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 811-01352
Fidelity Devonshire Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
| |
Date of fiscal year end: | January 31 |
|
|
Date of reporting period: | July 31, 2020 |
Item 1.
Reports to Stockholders
Fidelity® Equity-Income Fund
Semi-Annual Report
July 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| Johnson & Johnson | 3.1 |
| JPMorgan Chase & Co. | 3.1 |
| The Walt Disney Co. | 2.4 |
| Bank of America Corp. | 2.2 |
| Walmart, Inc. | 2.2 |
| Microsoft Corp. | 1.9 |
| McDonald's Corp. | 1.8 |
| Cisco Systems, Inc. | 1.8 |
| NextEra Energy, Inc. | 1.8 |
| Apple, Inc. | 1.7 |
| | 22.0 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Health Care | 16.3 |
| Financials | 15.7 |
| Information Technology | 12.3 |
| Industrials | 10.6 |
| Consumer Discretionary | 9.3 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020 * |
| | Stocks | 96.8% |
| | Other Investments | 0.2% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 3.0% |
* Foreign investments - 14.8%
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 96.8% | | | |
| | | Shares | Value (000s) |
| COMMUNICATION SERVICES - 8.2% | | | |
| Diversified Telecommunication Services - 1.5% | | | |
| AT&T, Inc. | | 1,208,489 | $35,747 |
| Verizon Communications, Inc. | | 765,760 | 44,016 |
| | | | 79,763 |
| Entertainment - 2.9% | | | |
| Activision Blizzard, Inc. | | 319,300 | 26,384 |
| The Walt Disney Co. | | 1,116,400 | 130,552 |
| | | | 156,936 |
| Interactive Media & Services - 0.9% | | | |
| Alphabet, Inc. Class A (a) | | 31,600 | 47,019 |
| Media - 1.7% | | | |
| Comcast Corp. Class A | | 1,929,588 | 82,586 |
| Interpublic Group of Companies, Inc. | | 614,400 | 11,090 |
| | | | 93,676 |
| Wireless Telecommunication Services - 1.2% | | | |
| T-Mobile U.S., Inc. | | 604,540 | 64,916 |
|
| TOTAL COMMUNICATION SERVICES | | | 442,310 |
|
| CONSUMER DISCRETIONARY - 9.3% | | | |
| Hotels, Restaurants & Leisure - 3.3% | | | |
| Dunkin' Brands Group, Inc. | | 293,900 | 20,200 |
| McDonald's Corp. | | 511,500 | 99,374 |
| Restaurant Brands International, Inc. | | 330,200 | 18,649 |
| Starbucks Corp. | | 528,000 | 40,408 |
| | | | 178,631 |
| Household Durables - 0.4% | | | |
| Lennar Corp. Class A | | 287,700 | 20,815 |
| Multiline Retail - 1.5% | | | |
| Dollar General Corp. | | 269,600 | 51,332 |
| Dollar Tree, Inc. (a) | | 320,500 | 29,919 |
| | | | 81,251 |
| Specialty Retail - 4.0% | | | |
| Burlington Stores, Inc. (a) | | 129,700 | 24,384 |
| Lowe's Companies, Inc. | | 237,900 | 35,426 |
| Ross Stores, Inc. | | 179,800 | 16,123 |
| The Home Depot, Inc. | | 235,300 | 62,470 |
| Tiffany & Co., Inc. | | 147,700 | 18,516 |
| TJX Companies, Inc. | | 1,102,800 | 57,335 |
| | | | 214,254 |
| Textiles, Apparel & Luxury Goods - 0.1% | | | |
| Columbia Sportswear Co. | | 78,200 | 5,931 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 500,882 |
|
| CONSUMER STAPLES - 9.3% | | | |
| Beverages - 1.6% | | | |
| Diageo PLC | | 369,600 | 13,524 |
| Keurig Dr. Pepper, Inc. (b) | | 567,500 | 17,360 |
| Monster Beverage Corp. (a) | | 124,000 | 9,732 |
| The Coca-Cola Co. | | 962,600 | 45,473 |
| | | | 86,089 |
| Food & Staples Retailing - 4.2% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 407,100 | 14,148 |
| BJ's Wholesale Club Holdings, Inc. (a) | | 522,924 | 20,943 |
| Costco Wholesale Corp. | | 60,600 | 19,727 |
| Kroger Co. | | 1,041,800 | 36,244 |
| Sysco Corp. | | 372,100 | 19,665 |
| Walmart, Inc. | | 901,991 | 116,718 |
| | | | 227,445 |
| Food Products - 1.8% | | | |
| Hilton Food Group PLC | | 1,674,536 | 24,155 |
| Mondelez International, Inc. | | 739,600 | 41,040 |
| Nestle SA (Reg. S) | | 252,019 | 29,971 |
| | | | 95,166 |
| Household Products - 1.4% | | | |
| Procter & Gamble Co. | | 564,800 | 74,057 |
| Personal Products - 0.3% | | | |
| Estee Lauder Companies, Inc. Class A | | 72,500 | 14,322 |
|
| TOTAL CONSUMER STAPLES | | | 497,079 |
|
| ENERGY - 5.0% | | | |
| Oil, Gas & Consumable Fuels - 5.0% | | | |
| BP PLC | | 4,617,000 | 16,721 |
| Chevron Corp. | | 1,008,672 | 84,668 |
| ConocoPhillips Co. | | 1,005,372 | 37,591 |
| Enterprise Products Partners LP | | 1,588,600 | 27,959 |
| Exxon Mobil Corp. | | 638,600 | 26,872 |
| Imperial Oil Ltd. | | 1,054,700 | 16,496 |
| Phillips 66 Co. | | 327,700 | 20,324 |
| Suncor Energy, Inc. | | 964,000 | 15,164 |
| Valero Energy Corp. | | 419,400 | 23,583 |
| | | | 269,378 |
| FINANCIALS - 15.7% | | | |
| Banks - 9.0% | | | |
| Bank of America Corp. | | 4,799,400 | 119,409 |
| Citigroup, Inc. | | 1,737,600 | 86,897 |
| JPMorgan Chase & Co. | | 1,727,482 | 166,944 |
| M&T Bank Corp. | | 293,200 | 31,065 |
| Wells Fargo & Co. | | 3,241,550 | 78,640 |
| | | | 482,955 |
| Capital Markets - 2.2% | | | |
| BlackRock, Inc. Class A | | 72,500 | 41,688 |
| KKR & Co. LP (b) | | 943,665 | 33,377 |
| Raymond James Financial, Inc. | | 304,900 | 21,184 |
| The Blackstone Group LP | | 451,432 | 24,052 |
| | | | 120,301 |
| Consumer Finance - 1.1% | | | |
| Capital One Financial Corp. | | 935,900 | 59,710 |
| Insurance - 3.4% | | | |
| Chubb Ltd. | | 557,400 | 70,924 |
| Marsh & McLennan Companies, Inc. | | 402,700 | 46,955 |
| The Travelers Companies, Inc. | | 557,800 | 63,823 |
| | | | 181,702 |
|
| TOTAL FINANCIALS | | | 844,668 |
|
| HEALTH CARE - 16.3% | | | |
| Biotechnology - 2.2% | | | |
| AbbVie, Inc. | | 222,200 | 21,089 |
| Amgen, Inc. | | 344,800 | 84,362 |
| CSL Ltd. | | 63,668 | 12,286 |
| | | | 117,737 |
| Health Care Equipment & Supplies - 2.8% | | | |
| Becton, Dickinson & Co. | | 206,200 | 58,012 |
| Danaher Corp. | | 442,800 | 90,243 |
| | | | 148,255 |
| Health Care Providers & Services - 1.8% | | | |
| Cigna Corp. | | 232,300 | 40,116 |
| UnitedHealth Group, Inc. | | 183,900 | 55,681 |
| | | | 95,797 |
| Pharmaceuticals - 9.5% | | | |
| AstraZeneca PLC (United Kingdom) | | 613,555 | 67,785 |
| Bristol-Myers Squibb Co. | | 1,381,400 | 81,033 |
| Eli Lilly & Co. | | 478,100 | 71,854 |
| Johnson & Johnson | | 1,165,148 | 169,830 |
| Roche Holding AG (participation certificate) | | 180,980 | 62,684 |
| Royalty Pharma PLC | | 90,600 | 3,900 |
| Sanofi SA | | 526,619 | 55,293 |
| | | | 512,379 |
|
| TOTAL HEALTH CARE | | | 874,168 |
|
| INDUSTRIALS - 10.6% | | | |
| Aerospace & Defense - 1.8% | | | |
| General Dynamics Corp. | | 265,800 | 39,003 |
| Northrop Grumman Corp. | | 176,200 | 57,267 |
| | | | 96,270 |
| Air Freight & Logistics - 0.9% | | | |
| DSV A/S | | 108,600 | 14,894 |
| United Parcel Service, Inc. Class B | | 241,200 | 34,434 |
| | | | 49,328 |
| Commercial Services & Supplies - 0.3% | | | |
| Waste Connection, Inc. (Canada) | | 175,945 | 17,983 |
| Electrical Equipment - 0.9% | | | |
| AMETEK, Inc. | | 531,300 | 49,544 |
| Industrial Conglomerates - 2.3% | | | |
| General Electric Co. | | 7,194,655 | 43,672 |
| Roper Technologies, Inc. | | 163,100 | 70,533 |
| Siemens AG | | 67,400 | 8,589 |
| | | | 122,794 |
| Machinery - 1.5% | | | |
| Fortive Corp. | | 357,100 | 25,065 |
| ITT, Inc. | | 258,800 | 14,941 |
| Snap-On, Inc. | | 78,400 | 11,436 |
| Stanley Black & Decker, Inc. | | 186,700 | 28,625 |
| | | | 80,067 |
| Marine - 0.3% | | | |
| A.P. Moller - Maersk A/S Series B | | 11,300 | 14,548 |
| Professional Services - 1.0% | | | |
| Clarivate Analytics PLC (a) | | 583,200 | 16,125 |
| Equifax, Inc. | | 118,700 | 19,296 |
| IHS Markit Ltd. | | 239,200 | 19,311 |
| | | | 54,732 |
| Road & Rail - 0.9% | | | |
| Norfolk Southern Corp. | | 244,900 | 47,072 |
| Trading Companies & Distributors - 0.7% | | | |
| Watsco, Inc. | | 164,400 | 38,810 |
|
| TOTAL INDUSTRIALS | | | 571,148 |
|
| INFORMATION TECHNOLOGY - 12.3% | | | |
| Communications Equipment - 1.8% | | | |
| Cisco Systems, Inc. | | 2,050,186 | 96,564 |
| Electronic Equipment & Components - 0.3% | | | |
| TE Connectivity Ltd. | | 163,632 | 14,575 |
| IT Services - 3.1% | | | |
| Amdocs Ltd. | | 484,300 | 30,075 |
| Black Knight, Inc. (a) | | 69,000 | 5,169 |
| Fidelity National Information Services, Inc. | | 604,900 | 88,503 |
| Genpact Ltd. | | 399,700 | 15,916 |
| Visa, Inc. Class A | | 150,700 | 28,693 |
| | | | 168,356 |
| Semiconductors & Semiconductor Equipment - 2.3% | | | |
| NXP Semiconductors NV | | 356,280 | 41,874 |
| Qualcomm, Inc. | | 437,100 | 46,162 |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 454,100 | 35,824 |
| | | | 123,860 |
| Software - 2.6% | | | |
| Microsoft Corp. | | 506,916 | 103,923 |
| Open Text Corp. | | 425,900 | 19,170 |
| SAP SE | | 94,900 | 14,980 |
| | | | 138,073 |
| Technology Hardware, Storage & Peripherals - 2.2% | | | |
| Apple, Inc. | | 212,900 | 90,491 |
| Samsung Electronics Co. Ltd. | | 596,630 | 28,887 |
| | | | 119,378 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 660,806 |
|
| MATERIALS - 2.4% | | | |
| Chemicals - 1.4% | | | |
| Linde PLC | | 303,500 | 74,391 |
| Containers & Packaging - 1.0% | | | |
| Crown Holdings, Inc. (a) | | 457,100 | 32,719 |
| WestRock Co. | | 781,300 | 20,986 |
| | | | 53,705 |
|
| TOTAL MATERIALS | | | 128,096 |
|
| REAL ESTATE - 1.5% | | | |
| Equity Real Estate Investment Trusts (REITs) - 1.5% | | | |
| American Tower Corp. | | 204,200 | 53,376 |
| Public Storage | | 143,600 | 28,703 |
| | | | 82,079 |
| UTILITIES - 6.2% | | | |
| Electric Utilities - 3.7% | | | |
| Exelon Corp. | | 1,836,100 | 70,892 |
| NextEra Energy, Inc. | | 337,300 | 94,680 |
| NRG Energy, Inc. | | 771,500 | 26,084 |
| PG&E Corp. (a) | | 754,200 | 7,052 |
| | | | 198,708 |
| Independent Power and Renewable Electricity Producers - 0.5% | | | |
| Vistra Corp. | | 1,563,100 | 29,167 |
| Multi-Utilities - 2.0% | | | |
| Ameren Corp. | | 656,100 | 52,645 |
| CenterPoint Energy, Inc. | | 1,178,900 | 22,411 |
| WEC Energy Group, Inc. | | 326,400 | 31,093 |
| | | | 106,149 |
|
| TOTAL UTILITIES | | | 334,024 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $4,111,601) | | | 5,204,638 |
|
| Other - 0.2% | | | |
| Energy - 0.2% | | | |
| Oil, Gas & Consumable Fuels - 0.2% | | | |
| Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(e) | | | |
| (Cost $22,679) | | 22,678,929 | 10,387 |
|
| Money Market Funds - 1.7% | | | |
| Fidelity Cash Central Fund 0.14% (f) | | 57,405,254 | 57,422 |
| Fidelity Securities Lending Cash Central Fund 0.13% (f)(g) | | 32,695,534 | 32,699 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $90,116) | | | 90,121 |
| TOTAL INVESTMENT IN SECURITIES - 98.7% | | | |
| (Cost $4,224,396) | | | 5,305,146 |
| NET OTHER ASSETS (LIABILITIES) - 1.3% | | | 72,071 |
| NET ASSETS - 100% | | | $5,377,217 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(d) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $10,387,000 or 0.2% of net assets.
(e) Level 3 security
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $22,679 |
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 | $436 |
| Fidelity Securities Lending Cash Central Fund | 56 |
| Total | $492 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | | | | |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $442,310 | $442,310 | $-- | $-- |
| Consumer Discretionary | 500,882 | 500,882 | -- | -- |
| Consumer Staples | 497,079 | 453,584 | 43,495 | -- |
| Energy | 269,378 | 252,657 | 16,721 | -- |
| Financials | 844,668 | 844,668 | -- | -- |
| Health Care | 874,168 | 688,406 | 185,762 | -- |
| Industrials | 571,148 | 548,011 | 23,137 | -- |
| Information Technology | 660,806 | 645,826 | 14,980 | -- |
| Materials | 128,096 | 128,096 | -- | -- |
| Real Estate | 82,079 | 82,079 | -- | -- |
| Utilities | 334,024 | 334,024 | -- | -- |
| Other | 10,387 | -- | -- | 10,387 |
| Money Market Funds | 90,121 | 90,121 | -- | -- |
| Total Investments in Securities: | $5,305,146 | $5,010,664 | $284,095 | $10,387 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 85.2% |
| Switzerland | 3.4% |
| United Kingdom | 2.3% |
| Canada | 1.8% |
| Ireland | 1.4% |
| France | 1.0% |
| Others (Individually Less Than 1%) | 4.9% |
| | 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $31,875) — See accompanying schedule:
Unaffiliated issuers (cost $4,134,280) | $5,215,025 | |
| Fidelity Central Funds (cost $90,116) | 90,121 | |
| Total Investment in Securities (cost $4,224,396) | | $5,305,146 |
| Restricted cash | | 759 |
| Receivable for investments sold | | 100,593 |
| Receivable for fund shares sold | | 1,192 |
| Dividends receivable | | 7,776 |
| Distributions receivable from Fidelity Central Funds | | 19 |
| Prepaid expenses | | 1 |
| Other receivables | | 1,242 |
| Total assets | | 5,416,728 |
| Liabilities | | |
| Payable for fund shares redeemed | $3,150 | |
| Accrued management fee | 1,914 | |
| Other affiliated payables | 664 | |
| Other payables and accrued expenses | 1,084 | |
| Collateral on securities loaned | 32,699 | |
| Total liabilities | | 39,511 |
| Net Assets | | $5,377,217 |
| Net Assets consist of: | | |
| Paid in capital | | $4,237,165 |
| Total accumulated earnings (loss) | | 1,140,052 |
| Net Assets | | $5,377,217 |
| Net Asset Value and Maximum Offering Price | | |
| Equity-Income: | | |
| Net Asset Value, offering price and redemption price per share ($4,732,095 ÷ 86,472 shares) | | $54.72 |
| Class K: | | |
| Net Asset Value, offering price and redemption price per share ($645,122 ÷ 11,798 shares) | | $54.68 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends | | $70,950 |
| Income from Fidelity Central Funds (including $56 from security lending) | | 492 |
| Total income | | 71,442 |
| Expenses | | |
| Management fee | $11,462 | |
| Transfer agent fees | 3,424 | |
| Accounting fees | 547 | |
| Custodian fees and expenses | 47 | |
| Independent trustees' fees and expenses | 18 | |
| Registration fees | 59 | |
| Audit | 59 | |
| Legal | 11 | |
| Miscellaneous | 65 | |
| Total expenses before reductions | 15,692 | |
| Expense reductions | (220) | |
| Total expenses after reductions | | 15,472 |
| Net investment income (loss) | | 55,970 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 71,873 | |
| Fidelity Central Funds | 6 | |
| Foreign currency transactions | (561) | |
| Total net realized gain (loss) | | 71,318 |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (552,734) | |
| Fidelity Central Funds | 5 | |
| Assets and liabilities in foreign currencies | 109 | |
| Total change in net unrealized appreciation (depreciation) | | (552,620) |
| Net gain (loss) | | (481,302) |
| Net increase (decrease) in net assets resulting from operations | | $(425,332) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended July 31, 2020 (Unaudited) | Year ended January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $55,970 | $126,303 |
| Net realized gain (loss) | 71,318 | 338,662 |
| Change in net unrealized appreciation (depreciation) | (552,620) | 479,728 |
| Net increase (decrease) in net assets resulting from operations | (425,332) | 944,693 |
| Distributions to shareholders | (67,994) | (445,556) |
| Share transactions - net increase (decrease) | (295,605) | (156,322) |
| Total increase (decrease) in net assets | (788,931) | 342,815 |
| Net Assets | | |
| Beginning of period | 6,166,148 | 5,823,333 |
| End of period | $5,377,217 | $6,166,148 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Equity-Income Fund
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $59.36 | $54.70 | $63.45 | $57.76 | $48.57 | $57.26 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .55 | 1.19 | 1.44 | 1.30 | 1.22 | 1.43 |
| Net realized and unrealized gain (loss) | (4.51) | 7.81 | (5.22) | 8.52 | 10.43 | (3.91)B |
| Total from investment operations | (3.96) | 9.00 | (3.78) | 9.82 | 11.65 | (2.48) |
| Distributions from net investment income | (.52) | (1.10) | (1.39) | (1.20)C | (1.36) | (1.71)C |
| Distributions from net realized gain | (.15) | (3.24) | (3.58) | (2.93)C | (1.10) | (4.51)C |
| Total distributions | (.68)D | (4.34) | (4.97) | (4.13) | (2.46) | (6.21)E |
| Net asset value, end of period | $54.72 | $59.36 | $54.70 | $63.45 | $57.76 | $48.57 |
| Total ReturnF,G | (6.57)% | 16.69% | (5.91)% | 17.57% | 24.42% | (4.89)%B |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | .61%J | .60% | .61% | .61% | .63% | .64% |
| Expenses net of fee waivers, if any | .60%J | .60% | .61% | .61% | .63% | .64% |
| Expenses net of all reductions | .60%J | .60% | .60% | .61% | .62% | .63% |
| Net investment income (loss) | 2.10%J | 2.04% | 2.50% | 2.18% | 2.27% | 2.55% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $4,732 | $5,378 | $5,016 | $5,921 | $6,686 | $5,752 |
| Portfolio turnover rateK | 74%J | 32%L | 24%L | 33% | 36% | 46%L |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.13 per share. Excluding these litigation proceeds, the total return would have been (5.12)%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $.68 per share is comprised of distributions from net investment income of $.524 and distributions from net realized gain of $.152 per share.
E Total distributions of $6.21 per share is comprised of distributions from net investment income of $1.709 and distributions from net realized gain of $4.505 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Equity-Income Fund Class K
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $59.31 | $54.67 | $63.41 | $57.73 | $48.55 | $57.25 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .58 | 1.24 | 1.51 | 1.36 | 1.28 | 1.50 |
| Net realized and unrealized gain (loss) | (4.51) | 7.80 | (5.22) | 8.51 | 10.42 | (3.92)B |
| Total from investment operations | (3.93) | 9.04 | (3.71) | 9.87 | 11.70 | (2.42) |
| Distributions from net investment income | (.55) | (1.16) | (1.45) | (1.26)C | (1.42) | (1.78)C |
| Distributions from net realized gain | (.15) | (3.24) | (3.58) | (2.93)C | (1.10) | (4.51)C |
| Total distributions | (.70) | (4.40) | (5.03) | (4.19) | (2.52) | (6.28)D |
| Net asset value, end of period | $54.68 | $59.31 | $54.67 | $63.41 | $57.73 | $48.55 |
| Total ReturnE,F | (6.51)% | 16.77% | (5.81)% | 17.68% | 24.56% | (4.78)%B |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | .51%I | .51% | .51% | .51% | .52% | .52% |
| Expenses net of fee waivers, if any | .51%I | .51% | .51% | .51% | .52% | .52% |
| Expenses net of all reductions | .50%I | .50% | .50% | .51% | .51% | .51% |
| Net investment income (loss) | 2.20%I | 2.13% | 2.60% | 2.28% | 2.39% | 2.67% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $645 | $788 | $807 | $1,623 | $1,791 | $1,646 |
| Portfolio turnover rateJ | 74%I | 32%K | 24%K | 33% | 36% | 46%K |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.13 per share. Excluding these litigation proceeds, the total return would have been (5.01)%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $6.28 per share is comprised of distributions from net investment income of $1.777 and distributions from net realized gain of $4.505 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended July 31, 2020
(Amounts in thousands except percentages)
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. The Fund offers Equity-Income and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $997 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, equity-debt classifications, certain conversion ratio adjustments, market discount, contingent interest, redemptions in kind, partnerships, deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,327,379 |
| Gross unrealized depreciation | (295,028) |
| Net unrealized appreciation (depreciation) | $1,032,351 |
| Tax cost | $4,272,795 |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $11,146 in this Subsidiary, representing .21% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| | Purchases ($) | Sales ($) |
| Fidelity Equity-Income Fund | 1,908,607 | 2,347,076 |
Prior Fiscal Year Unaffiliated Redemptions In-Kind. During the prior period, shares of the Fidelity Equity-Income Fund were redeemed in-kind for investments. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. For additional information of the Fidelity Equity-Income Fund in-kind transactions, please refer to the Fidelity Equity-Income Fund prior annual shareholder report.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .43% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Equity-Income, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Effective February 1, 2020, the Board approved to change the fee for Class K from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets(a) |
| Equity-Income | $3,284 | .14 |
| Class K | 140 | .04 |
| | $3,424 | |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
| | % of Average Net Assets |
| Fidelity Equity-Income Fund | .02 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| | Amount�� |
| Fidelity Equity-Income Fund | $64 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, shares of the Fidelity Equity-Income Fund were redeemed in-kind for investments. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. For additional information of the Fidelity Equity-Income Fund in-kind transactions, please refer to the Fidelity Equity-Income Fund prior annual shareholder report.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| | Amount |
| Fidelity Equity-Income Fund | $7 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Total fees paid by the Fund to NFS, as lending agent, amounted to $1. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Net income from the Fidelity Securities Lending Cash Central Fund during the period is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $207 for the period. In addition, through arrangements with each class' transfer agent, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, transfer agent credits reduced each class' expense as noted in the table below.
| | Expense reduction |
| Equity-Income | $–(a) |
(a) Amount less than five-hundred dollars.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $13.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
July 31, 2020 | Year ended
January 31, 2020 |
| Distributions to shareholders | | |
| Equity-Income | $59,425 | $384,187 |
| Class K | 8,570 | 61,369 |
| Total | $67,994 | $445,556 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended July 31, 2020 | Year ended January 31, 2020 | Six months ended July 31, 2020 | Year ended January 31, 2020 |
| Equity-Income | | | | |
| Shares sold | 2,569 | 3,785 | $132,859 | $221,414 |
| Reinvestment of distributions | 1,108 | 6,120 | 55,504 | 359,151 |
| Shares redeemed | (7,810) | (11,001) | (401,514) | (643,179) |
| Net increase (decrease) | (4,133) | (1,096) | $(213,151) | $(62,614) |
| Class K | | | | |
| Shares sold | 977 | 6,683 | $51,554 | $382,177 |
| Reinvestment of distributions | 172 | 1,048 | 8,570 | 61,369 |
| Shares redeemed | (2,641) | (9,205)(a),(b) | (142,578) | (537,254)(a),(b) |
| Net increase (decrease) | (1,492) | (1,474) | $(82,454) | $(93,708) |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Unaffiliated Redemptions In-Kind note for additional details)
(b) Amount includes in-kind redemptions (see the Prior Fiscal Year Affiliated Redemptions In-Kind note for additional details)
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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
February 1, 2020 | Ending
Account Value
July 31, 2020 | Expenses Paid
During Period-B
February 1, 2020
to July 31, 2020 |
| Fidelity Equity-Income Fund | | | | |
| Equity-Income | .60% | | | |
| Actual | | $1,000.00 | $934.30 | $2.89 |
| Hypothetical-C | | $1,000.00 | $1,021.88 | $3.02 |
| Class K | .51% | | | |
| Actual | | $1,000.00 | $934.90 | $2.45 |
| Hypothetical-C | | $1,000.00 | $1,022.33 | $2.56 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| | # of
Votes | % of
Votes |
| Dennis J. Dirks |
| Affirmative | 20,677,600,881.166 | 98.531 |
| Withheld | 308,216,367.332 | 1.469 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Donald F. Donahue |
| Affirmative | 20,685,205,663.711 | 98.568 |
| Withheld | 300,611,584.787 | 1.432 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Bettina Doulton |
| Affirmative | 20,701,129,729.034 | 98.643 |
| Withheld | 284,687,519.464 | 1.357 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Vicki L. Fuller |
| Affirmative | 20,713,892,146.063 | 98.704 |
| Withheld | 271,925,102.435 | 1.296 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Patricia L. Kampling |
| Affirmative | 20,693,289,719.327 | 98.606 |
| Withheld | 292,527,529.171 | 1.394 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Alan J. Lacy |
| Affirmative | 20,659,591,158.873 | 98.445 |
| Withheld | 326,226,089.625 | 1.555 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Ned C. Lautenbach |
| Affirmative | 20,634,244,420.039 | 98.325 |
| Withheld | 351,572,828.459 | 1.675 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Robert A. Lawrence |
| Affirmative | 20,672,781,907.548 | 98.508 |
| Withheld | 313,035,340.950 | 1.492 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Joseph Mauriello |
| Affirmative | 20,652,465,304.654 | 98.412 |
| Withheld | 333,351,943.843 | 1.588 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Cornelia M. Small |
| Affirmative | 20,671,641,667.984 | 98.503 |
| Withheld | 314,175,580.514 | 1.497 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Garnett A. Smith |
| Affirmative | 20,655,644,270.628 | 98.427 |
| Withheld | 330,172,977.870 | 1.573 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| David M. Thomas |
| Affirmative | 20,654,595,907.599 | 98.422 |
| Withheld | 331,221,340.899 | 1.578 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Susan Tomasky |
| Affirmative | 20,686,662,870.375 | 98.574 |
| Withheld | 299,154,378.123 | 1.426 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Michael E. Wiley |
| Affirmative | 20,662,847,882.871 | 98.461 |
| Withheld | 322,969,365.626 | 1.539 |
| TOTAL | 20,985,817,248.498 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
| | # of
Votes | % of
Votes |
| Affirmative | 2,178,390,909.147 | 71.113 |
| Against | 474,103,439.581 | 15.477 |
| Abstain | 299,421,153.908 | 9.775 |
| Broker Non-Vote | 111,367,556.580 | 3.636 |
| TOTAL | 3,063,283,059.215 | 100.000 |
PROPOSAL 5
For the fund, a shareholder proposal requesting that the Board of Trustees institute procedures to avoid holding investments in companies that, in management's judgement, substantially contribute to genocide or crimes against humanity.
| | # of
Votes | % of
Votes |
| Affirmative | 871,058,302.497 | 28.435 |
| Against | 1,831,775,305.446 | 59.798 |
| Abstain | 243,613,306.263 | 7.953 |
| Broker Non-Vote | 116,836,145.009 | 3.814 |
| TOTAL | 3,063,283,059.215 | 100.000 |
| Proposal 1 reflects trust wide proposal and voting results. |
| Proposal 5 was not approved by shareholders. |
EQU-SANN-0920
1.536123.123
Fidelity® Equity-Income K6 Fund
Semi-Annual Report
July 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| Johnson & Johnson | 3.2 |
| JPMorgan Chase & Co. | 3.1 |
| The Walt Disney Co. | 2.5 |
| Bank of America Corp. | 2.2 |
| Walmart, Inc. | 2.2 |
| Microsoft Corp. | 1.9 |
| McDonald's Corp. | 1.9 |
| Cisco Systems, Inc. | 1.8 |
| NextEra Energy, Inc. | 1.8 |
| Apple, Inc. | 1.7 |
| | 22.3 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Health Care | 16.4 |
| Financials | 15.7 |
| Information Technology | 12.4 |
| Industrials | 10.6 |
| Consumer Discretionary | 9.4 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020 * |
| | Stocks | 97.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.9% |
* Foreign investments - 14.6%
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.1% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 8.2% | | | |
| Diversified Telecommunication Services - 1.5% | | | |
| AT&T, Inc. | | 12,056 | $356,616 |
| Verizon Communications, Inc. | | 7,722 | 443,861 |
| | | | 800,477 |
| Entertainment - 3.0% | | | |
| Activision Blizzard, Inc. | | 3,300 | 272,679 |
| The Walt Disney Co. | | 11,231 | 1,313,353 |
| | | | 1,586,032 |
| Interactive Media & Services - 0.8% | | | |
| Alphabet, Inc. Class A (a) | | 300 | 446,385 |
| Media - 1.7% | | | |
| Comcast Corp. Class A | | 19,238 | 823,386 |
| Interpublic Group of Companies, Inc. | | 6,446 | 116,350 |
| | | | 939,736 |
| Wireless Telecommunication Services - 1.2% | | | |
| T-Mobile U.S., Inc. | | 6,079 | 652,763 |
|
| TOTAL COMMUNICATION SERVICES | | | 4,425,393 |
|
| CONSUMER DISCRETIONARY - 9.4% | | | |
| Hotels, Restaurants & Leisure - 3.4% | | | |
| Dunkin' Brands Group, Inc. | | 3,000 | 206,190 |
| McDonald's Corp. | | 5,176 | 1,005,593 |
| Restaurant Brands International, Inc. | | 3,400 | 192,027 |
| Starbucks Corp. | | 5,300 | 405,609 |
| | | | 1,809,419 |
| Household Durables - 0.4% | | | |
| Lennar Corp. Class A | | 2,800 | 202,580 |
| Multiline Retail - 1.5% | | | |
| Dollar General Corp. | | 2,740 | 521,696 |
| Dollar Tree, Inc. (a) | | 3,301 | 308,148 |
| | | | 829,844 |
| Specialty Retail - 4.0% | | | |
| Burlington Stores, Inc. (a) | | 1,259 | 236,692 |
| Lowe's Companies, Inc. | | 2,389 | 355,746 |
| Ross Stores, Inc. | | 1,900 | 170,373 |
| The Home Depot, Inc. | | 2,378 | 631,335 |
| Tiffany & Co., Inc. | | 1,500 | 188,040 |
| TJX Companies, Inc. | | 11,051 | 574,541 |
| | | | 2,156,727 |
| Textiles, Apparel & Luxury Goods - 0.1% | | | |
| Columbia Sportswear Co. | | 800 | 60,672 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 5,059,242 |
|
| CONSUMER STAPLES - 9.1% | | | |
| Beverages - 1.6% | | | |
| Diageo PLC | | 3,688 | 134,946 |
| Keurig Dr. Pepper, Inc. | | 5,800 | 177,422 |
| Monster Beverage Corp. (a) | | 1,300 | 102,024 |
| The Coca-Cola Co. | | 9,600 | 453,504 |
| | | | 867,896 |
| Food & Staples Retailing - 4.2% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 4,184 | 145,407 |
| BJ's Wholesale Club Holdings, Inc. (a) | | 5,275 | 211,264 |
| Costco Wholesale Corp. | | 600 | 195,318 |
| Kroger Co. | | 10,322 | 359,102 |
| Sysco Corp. | | 3,800 | 200,830 |
| Walmart, Inc. | | 9,037 | 1,169,388 |
| | | | 2,281,309 |
| Food Products - 1.6% | | | |
| Hilton Food Group PLC | | 12,500 | 180,315 |
| Mondelez International, Inc. | | 7,410 | 411,181 |
| Nestle SA (Reg. S) | | 2,491 | 296,234 |
| | | | 887,730 |
| Household Products - 1.4% | | | |
| Procter & Gamble Co. | | 5,700 | 747,384 |
| Personal Products - 0.3% | | | |
| Estee Lauder Companies, Inc. Class A | | 700 | 138,278 |
|
| TOTAL CONSUMER STAPLES | | | 4,922,597 |
|
| ENERGY - 5.1% | | | |
| Oil, Gas & Consumable Fuels - 5.1% | | | |
| BP PLC | | 47,411 | 171,699 |
| Chevron Corp. | | 10,148 | 851,823 |
| ConocoPhillips Co. | | 10,100 | 377,639 |
| Enterprise Products Partners LP | | 15,793 | 277,957 |
| Exxon Mobil Corp. | | 6,469 | 272,216 |
| Imperial Oil Ltd. | | 10,766 | 168,388 |
| Phillips 66 Co. | | 3,391 | 210,310 |
| Suncor Energy, Inc. | | 9,329 | 146,748 |
| Valero Energy Corp. | | 4,288 | 241,114 |
| | | | 2,717,894 |
| FINANCIALS - 15.7% | | | |
| Banks - 9.0% | | | |
| Bank of America Corp. | | 48,094 | 1,196,579 |
| Citigroup, Inc. | | 17,336 | 866,973 |
| JPMorgan Chase & Co. | | 17,340 | 1,675,738 |
| M&T Bank Corp. | | 3,030 | 321,029 |
| Wells Fargo & Co. | | 32,384 | 785,636 |
| | | | 4,845,955 |
| Capital Markets - 2.2% | | | |
| BlackRock, Inc. Class A | | 700 | 402,507 |
| KKR & Co. LP | | 9,584 | 338,986 |
| Raymond James Financial, Inc. | | 3,127 | 217,264 |
| The Blackstone Group LP | | 4,479 | 238,641 |
| | | | 1,197,398 |
| Consumer Finance - 1.1% | | | |
| Capital One Financial Corp. | | 9,308 | 593,850 |
| Insurance - 3.4% | | | |
| Chubb Ltd. | | 5,619 | 714,962 |
| Marsh & McLennan Companies, Inc. | | 3,995 | 465,817 |
| The Travelers Companies, Inc. | | 5,635 | 644,757 |
| | | | 1,825,536 |
|
| TOTAL FINANCIALS | | | 8,462,739 |
|
| HEALTH CARE - 16.4% | | | |
| Biotechnology - 2.2% | | | |
| AbbVie, Inc. | | 2,324 | 220,571 |
| Amgen, Inc. | | 3,483 | 852,186 |
| CSL Ltd. | | 655 | 126,397 |
| | | | 1,199,154 |
| Health Care Equipment & Supplies - 2.8% | | | |
| Becton, Dickinson & Co. | | 2,135 | 600,661 |
| Danaher Corp. | | 4,394 | 895,497 |
| | | | 1,496,158 |
| Health Care Providers & Services - 1.8% | | | |
| Cigna Corp. | | 2,378 | 410,657 |
| UnitedHealth Group, Inc. | | 1,864 | 564,382 |
| | | | 975,039 |
| Pharmaceuticals - 9.6% | | | |
| AstraZeneca PLC (United Kingdom) | | 6,126 | 676,799 |
| Bristol-Myers Squibb Co. | | 13,823 | 810,857 |
| Eli Lilly & Co. | | 4,784 | 718,987 |
| Johnson & Johnson | | 11,643 | 1,697,087 |
| Roche Holding AG (participation certificate) | | 1,835 | 635,564 |
| Royalty Pharma PLC | | 900 | 38,745 |
| Sanofi SA | | 5,303 | 556,799 |
| | | | 5,134,838 |
|
| TOTAL HEALTH CARE | | | 8,805,189 |
|
| INDUSTRIALS - 10.6% | | | |
| Aerospace & Defense - 1.8% | | | |
| General Dynamics Corp. | | 2,713 | 398,106 |
| Northrop Grumman Corp. | | 1,810 | 588,268 |
| | | | 986,374 |
| Air Freight & Logistics - 0.9% | | | |
| DSV A/S | | 1,100 | 150,861 |
| United Parcel Service, Inc. Class B | | 2,400 | 342,624 |
| | | | 493,485 |
| Commercial Services & Supplies - 0.4% | | | |
| Waste Connection, Inc. (Canada) | | 1,830 | 187,037 |
| Electrical Equipment - 0.9% | | | |
| AMETEK, Inc. | | 5,243 | 488,910 |
| Industrial Conglomerates - 2.3% | | | |
| General Electric Co. | | 72,475 | 439,923 |
| Roper Technologies, Inc. | | 1,612 | 697,109 |
| Siemens AG | | 700 | 89,205 |
| | | | 1,226,237 |
| Machinery - 1.5% | | | |
| Fortive Corp. | | 3,650 | 256,194 |
| ITT, Inc. | | 2,500 | 144,325 |
| Snap-On, Inc. | | 800 | 116,696 |
| Stanley Black & Decker, Inc. | | 1,900 | 291,308 |
| | | | 808,523 |
| Marine - 0.2% | | | |
| A.P. Moller - Maersk A/S Series B | | 100 | 128,743 |
| Professional Services - 1.0% | | | |
| Clarivate Analytics PLC (a) | | 5,642 | 156,001 |
| Equifax, Inc. | | 1,220 | 198,323 |
| IHS Markit Ltd. | | 2,300 | 185,679 |
| | | | 540,003 |
| Road & Rail - 0.9% | | | |
| Norfolk Southern Corp. | | 2,500 | 480,525 |
| Trading Companies & Distributors - 0.7% | | | |
| Watsco, Inc. | | 1,600 | 377,712 |
|
| TOTAL INDUSTRIALS | | | 5,717,549 |
|
| INFORMATION TECHNOLOGY - 12.4% | | | |
| Communications Equipment - 1.8% | | | |
| Cisco Systems, Inc. | | 20,617 | 971,061 |
| Electronic Equipment & Components - 0.3% | | | |
| TE Connectivity Ltd. | | 1,628 | 145,006 |
| IT Services - 3.2% | | | |
| Amdocs Ltd. | | 4,944 | 307,022 |
| Black Knight, Inc. (a) | | 700 | 52,444 |
| Fidelity National Information Services, Inc. | | 6,050 | 885,176 |
| Genpact Ltd. | | 4,100 | 163,262 |
| Visa, Inc. Class A | | 1,496 | 284,838 |
| | | | 1,692,742 |
| Semiconductors & Semiconductor Equipment - 2.3% | | | |
| NXP Semiconductors NV | | 3,689 | 433,568 |
| Qualcomm, Inc. | | 4,316 | 455,813 |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 4,642 | 366,207 |
| | | | 1,255,588 |
| Software - 2.6% | | | |
| Microsoft Corp. | | 5,097 | 1,044,936 |
| Open Text Corp. | | 4,401 | 198,093 |
| SAP SE | | 1,000 | 157,853 |
| | | | 1,400,882 |
| Technology Hardware, Storage & Peripherals - 2.2% | | | |
| Apple, Inc. | | 2,107 | 895,559 |
| Samsung Electronics Co. Ltd. | | 5,920 | 286,629 |
| | | | 1,182,188 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 6,647,467 |
|
| MATERIALS - 2.3% | | | |
| Chemicals - 1.3% | | | |
| Linde PLC | | 3,000 | 735,330 |
| Containers & Packaging - 1.0% | | | |
| Crown Holdings, Inc. (a) | | 4,500 | 322,110 |
| WestRock Co. | | 7,700 | 206,822 |
| | | | 528,932 |
|
| TOTAL MATERIALS | | | 1,264,262 |
|
| REAL ESTATE - 1.6% | | | |
| Equity Real Estate Investment Trusts (REITs) - 1.6% | | | |
| American Tower Corp. | | 2,089 | 546,044 |
| Public Storage | | 1,453 | 290,426 |
| | | | 836,470 |
| UTILITIES - 6.3% | | | |
| Electric Utilities - 3.7% | | | |
| Exelon Corp. | | 18,568 | 716,910 |
| NextEra Energy, Inc. | | 3,408 | 956,626 |
| NRG Energy, Inc. | | 7,830 | 264,732 |
| PG&E Corp. (a) | | 7,700 | 71,995 |
| | | | 2,010,263 |
| Independent Power and Renewable Electricity Producers - 0.6% | | | |
| Vistra Corp. | | 15,499 | 289,211 |
| Multi-Utilities - 2.0% | | | |
| Ameren Corp. | | 6,559 | 526,294 |
| CenterPoint Energy, Inc. | | 11,536 | 219,299 |
| WEC Energy Group, Inc. | | 3,369 | 320,931 |
| | | | 1,066,524 |
|
| TOTAL UTILITIES | | | 3,365,998 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $48,862,785) | | | 52,224,800 |
|
| Money Market Funds - 1.0% | | | |
| Fidelity Cash Central Fund 0.14% (b) | | | |
| (Cost $543,513) | | 543,355 | 543,518 |
| TOTAL INVESTMENT IN SECURITIES - 98.1% | | | |
| (Cost $49,406,298) | | | 52,768,318 |
| NET OTHER ASSETS (LIABILITIES) - 1.9% | | | 1,049,157 |
| NET ASSETS - 100% | | | $53,817,475 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
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 | $3,575 |
| Fidelity Securities Lending Cash Central Fund | 7 |
| Total | $3,582 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $4,425,393 | $4,425,393 | $-- | $-- |
| Consumer Discretionary | 5,059,242 | 5,059,242 | -- | -- |
| Consumer Staples | 4,922,597 | 4,491,417 | 431,180 | -- |
| Energy | 2,717,894 | 2,546,195 | 171,699 | -- |
| Financials | 8,462,739 | 8,462,739 | -- | -- |
| Health Care | 8,805,189 | 6,936,027 | 1,869,162 | -- |
| Industrials | 5,717,549 | 5,499,601 | 217,948 | -- |
| Information Technology | 6,647,467 | 6,489,614 | 157,853 | -- |
| Materials | 1,264,262 | 1,264,262 | -- | -- |
| Real Estate | 836,470 | 836,470 | -- | -- |
| Utilities | 3,365,998 | 3,365,998 | -- | -- |
| Money Market Funds | 543,518 | 543,518 | -- | -- |
| Total Investments in Securities: | $52,768,318 | $49,920,476 | $2,847,842 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 85.4% |
| Switzerland | 3.3% |
| United Kingdom | 2.2% |
| Canada | 2.1% |
| Ireland | 1.3% |
| France | 1.0% |
| Others (Individually Less Than 1%) | 4.7% |
| | 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $48,862,785) | $52,224,800 | |
| Fidelity Central Funds (cost $543,513) | 543,518 | |
| Total Investment in Securities (cost $49,406,298) | | $52,768,318 |
| Receivable for investments sold | | 1,035,400 |
| Receivable for fund shares sold | | 9,829 |
| Dividends receivable | | 64,564 |
| Distributions receivable from Fidelity Central Funds | | 78 |
| Other receivables | | 1,023 |
| Total assets | | 53,879,212 |
| Liabilities | | |
| Payable for investments purchased | $27,418 | |
| Payable for fund shares redeemed | 18,864 | |
| Accrued management fee | 15,234 | |
| Other payables and accrued expenses | 221 | |
| Total liabilities | | 61,737 |
| Net Assets | | $53,817,475 |
| Net Assets consist of: | | |
| Paid in capital | | $52,402,854 |
| Total accumulated earnings (loss) | | 1,414,621 |
| Net Assets | | $53,817,475 |
| Net Asset Value, offering price and redemption price per share ($53,817,475 ÷ 5,386,364 shares) | | $9.99 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends | | $639,021 |
| Income from Fidelity Central Funds (including $7 from security lending) | | 3,582 |
| Total income | | 642,603 |
| Expenses | | |
| Management fee | $82,190 | |
| Independent trustees' fees and expenses | 150 | |
| Miscellaneous | 900 | |
| Total expenses before reductions | 83,240 | |
| Expense reductions | (2,005) | |
| Total expenses after reductions | | 81,235 |
| Net investment income (loss) | | 561,368 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (2,035,477) | |
| Fidelity Central Funds | 96 | |
| Foreign currency transactions | (2,159) | |
| Total net realized gain (loss) | | (2,037,540) |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (576,229) | |
| Fidelity Central Funds | 5 | |
| Assets and liabilities in foreign currencies | 365 | |
| Total change in net unrealized appreciation (depreciation) | | (575,859) |
| Net gain (loss) | | (2,613,399) |
| Net increase (decrease) in net assets resulting from operations | | $(2,052,031) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended July 31, 2020 (Unaudited) | For the period
June 13, 2019 (commencement of operations) to January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $561,368 | $373,637 |
| Net realized gain (loss) | (2,037,540) | 60,096 |
| Change in net unrealized appreciation (depreciation) | (575,859) | 3,938,244 |
| Net increase (decrease) in net assets resulting from operations | (2,052,031) | 4,371,977 |
| Distributions to shareholders | (572,220) | (333,105) |
| Share transactions | | |
| Proceeds from sales of shares | 14,359,230 | 47,694,819 |
| Reinvestment of distributions | 572,220 | 333,105 |
| Cost of shares redeemed | (7,020,783) | (3,535,737) |
| Net increase (decrease) in net assets resulting from share transactions | 7,910,667 | 44,492,187 |
| Total increase (decrease) in net assets | 5,286,416 | 48,531,059 |
| Net Assets | | |
| Beginning of period | 48,531,059 | – |
| End of period | $53,817,475 | $48,531,059 |
| Other Information | | |
| Shares | | |
| Sold | 1,596,361 | 4,782,107 |
| Issued in reinvestment of distributions | 63,038 | 31,108 |
| Redeemed | (753,687) | (332,563) |
| Net increase (decrease) | 905,712 | 4,480,652 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Equity-Income K6 Fund
| | Six months ended (Unaudited) July 31, | Year endedJanuary 31, |
| | 2020 | 2020 A |
| Selected Per–Share Data | | |
| Net asset value, beginning of period | $10.83 | $10.00 |
| Income from Investment Operations | | |
| Net investment income (loss)B | .11 | .12 |
| Net realized and unrealized gain (loss) | (.83) | .79 |
| Total from investment operations | (.72) | .91 |
| Distributions from net investment income | (.11) | (.08) |
| Distributions from net realized gain | (.01) | –C |
| Total distributions | (.12) | (.08) |
| Net asset value, end of period | $9.99 | $10.83 |
| Total ReturnD,E | (6.52)% | 9.14% |
| Ratios to Average Net AssetsF,G | | |
| Expenses before reductions | .34%H,I | .34%H |
| Expenses net of fee waivers, if any | .34%H,I | .34%H |
| Expenses net of all reductions | .33%H,I | .34%H |
| Net investment income (loss) | 2.32%H,I | 1.78%H |
| Supplemental Data | | |
| Net assets, end of period (000 omitted) | $53,817 | $48,531 |
| Portfolio turnover rateJ | 106%H | 21%H,K |
A For the period June 13, 2019 (commencement of operations) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund 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 Fund.
H Annualized
I Proxy expenses are not annualized.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended July 31, 2020
1. Organization.
Fidelity Equity-Income K6 Fund (the Fund) is a fund of Fidelity Devonshire Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $5,970,191 |
| Gross unrealized depreciation | (3,161,805) |
| Net unrealized appreciation (depreciation) | $2,808,386 |
| Tax cost | $49,959,932 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| | Purchases ($) | Sales ($) |
| Fidelity Equity-Income K6 Fund | 31,896,078 | 25,151,002 |
Prior Fiscal Year Unaffiliated Exchanges In-Kind. During the prior period, the Fidelity Equity-Income K6 Fund received investments in exchange for shares of the Fidelity Equity-Income K6 Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. For additional information of the Fidelity Equity-Income K6 Fund in-kind transactions, please refer to the Fidelity Equity-Income K6 Fund prior annual shareholder report.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .34% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| | Amount |
| Fidelity Equity-Income K6 Fund | $707 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fidelity Equity-Income K6 Fund received investments in exchange for shares of the Fidelity Equity-Income K6 Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. For additional information of the Fidelity Equity-Income K6 Fund in-kind transactions, please refer to the Fidelity Equity-Income K6 Fund prior annual shareholder report.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| | Amount |
| Fidelity Equity-Income K6 Fund | $33 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Net income from the Fidelity Securities Lending Cash Central Fund during the period is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $1,947 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $58.
9. 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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
February 1, 2020 | Ending
Account Value
July 31, 2020 | Expenses Paid
During Period-B
February 1, 2020
to July 31, 2020 |
| Fidelity Equity-Income K6 Fund | .34% | | | |
| Actual | | $1,000.00 | $934.80 | $1.64 |
| Hypothetical-C | | $1,000.00 | $1,023.17 | $1.71 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| | # of
Votes | % of
Votes |
| Dennis J. Dirks |
| Affirmative | 20,677,600,881.166 | 98.531 |
| Withheld | 308,216,367.332 | 1.469 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Donald F. Donahue |
| Affirmative | 20,685,205,663.711 | 98.568 |
| Withheld | 300,611,584.787 | 1.432 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Bettina Doulton |
| Affirmative | 20,701,129,729.034 | 98.643 |
| Withheld | 284,687,519.464 | 1.357 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Vicki L. Fuller |
| Affirmative | 20,713,892,146.063 | 98.704 |
| Withheld | 271,925,102.435 | 1.296 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Patricia L. Kampling |
| Affirmative | 20,693,289,719.327 | 98.606 |
| Withheld | 292,527,529.171 | 1.394 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Alan J. Lacy |
| Affirmative | 20,659,591,158.873 | 98.445 |
| Withheld | 326,226,089.625 | 1.555 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Ned C. Lautenbach |
| Affirmative | 20,634,244,420.039 | 98.325 |
| Withheld | 351,572,828.459 | 1.675 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Robert A. Lawrence |
| Affirmative | 20,672,781,907.548 | 98.508 |
| Withheld | 313,035,340.950 | 1.492 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Joseph Mauriello |
| Affirmative | 20,652,465,304.654 | 98.412 |
| Withheld | 333,351,943.843 | 1.588 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Cornelia M. Small |
| Affirmative | 20,671,641,667.984 | 98.503 |
| Withheld | 314,175,580.514 | 1.497 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Garnett A. Smith |
| Affirmative | 20,655,644,270.628 | 98.427 |
| Withheld | 330,172,977.870 | 1.573 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| David M. Thomas |
| Affirmative | 20,654,595,907.599 | 98.422 |
| Withheld | 331,221,340.899 | 1.578 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Susan Tomasky |
| Affirmative | 20,686,662,870.375 | 98.574 |
| Withheld | 299,154,378.123 | 1.426 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Michael E. Wiley |
| Affirmative | 20,662,847,882.871 | 98.461 |
| Withheld | 322,969,365.626 | 1.539 |
| TOTAL | 20,985,817,248.498 | 100.000 |
|
| Proposal 1 reflects trust wide proposal and voting results. |
EQU-K6-SANN-0920
1.9893875.101
Fidelity Flex® Funds
Fidelity Flex® Mid Cap Value Fund
Semi-Annual Report
July 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-3455 (for managed account clients) or 1-800-835-5092 (for retirement plan participants) to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| Cigna Corp. | 2.7 |
| CubeSmart | 2.4 |
| Centene Corp. | 2.3 |
| Equity Lifestyle Properties, Inc. | 2.0 |
| Equinix, Inc. | 2.0 |
| CBRE Group, Inc. | 1.9 |
| Ameriprise Financial, Inc. | 1.9 |
| CenterPoint Energy, Inc. | 1.7 |
| The AES Corp. | 1.7 |
| Edison International | 1.7 |
| | 20.3 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Industrials | 19.6 |
| Financials | 14.5 |
| Real Estate | 10.7 |
| Consumer Discretionary | 10.2 |
| Materials | 9.1 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020* |
| | Stocks and Equity Futures | 99.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments - 12.1%
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.4% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 2.8% | | | |
| Diversified Telecommunication Services - 0.7% | | | |
| Liberty Global PLC Class C (a) | | 8,372 | $190,547 |
| Media - 2.1% | | | |
| Interpublic Group of Companies, Inc. | | 16,213 | 292,645 |
| Nexstar Broadcasting Group, Inc. Class A | | 3,440 | 301,516 |
| | | | 594,161 |
|
| TOTAL COMMUNICATION SERVICES | | | 784,708 |
|
| CONSUMER DISCRETIONARY - 10.2% | | | |
| Auto Components - 1.1% | | | |
| BorgWarner, Inc. | | 8,749 | 320,213 |
| Distributors - 1.0% | | | |
| LKQ Corp. (a) | | 10,652 | 300,280 |
| Diversified Consumer Services - 1.3% | | | |
| Laureate Education, Inc. Class A (a) | | 28,178 | 357,297 |
| Hotels, Restaurants & Leisure - 1.1% | | | |
| Caesars Entertainment, Inc. (a) | | 10,140 | 314,847 |
| Household Durables - 1.1% | | | |
| Mohawk Industries, Inc. (a) | | 3,884 | 310,137 |
| Internet & Direct Marketing Retail - 1.2% | | | |
| eBay, Inc. | | 6,327 | 349,757 |
| Leisure Products - 1.1% | | | |
| Mattel, Inc. (a) | | 27,547 | 306,047 |
| Specialty Retail - 1.1% | | | |
| Lowe's Companies, Inc. | | 2,077 | 309,286 |
| Textiles, Apparel & Luxury Goods - 1.2% | | | |
| Tapestry, Inc. | | 25,520 | 340,947 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 2,908,811 |
|
| CONSUMER STAPLES - 7.0% | | | |
| Food & Staples Retailing - 1.1% | | | |
| U.S. Foods Holding Corp. (a) | | 14,866 | 301,780 |
| Food Products - 2.9% | | | |
| Darling Ingredients, Inc. (a) | | 11,740 | 327,898 |
| Nomad Foods Ltd. (a) | | 11,826 | 272,708 |
| Post Holdings, Inc. (a) | | 2,610 | 231,611 |
| | | | 832,217 |
| Household Products - 2.0% | | | |
| Energizer Holdings, Inc. | | 4,789 | 240,073 |
| Spectrum Brands Holdings, Inc. | | 5,867 | 317,757 |
| | | | 557,830 |
| Tobacco - 1.0% | | | |
| Altria Group, Inc. | | 7,118 | 292,906 |
|
| TOTAL CONSUMER STAPLES | | | 1,984,733 |
|
| ENERGY - 4.6% | | | |
| Oil, Gas & Consumable Fuels - 4.6% | | | |
| Cheniere Energy, Inc. (a) | | 8,857 | 438,244 |
| Hess Corp. | | 7,266 | 357,560 |
| Noble Energy, Inc. | | 23,017 | 229,940 |
| Valero Energy Corp. | | 5,315 | 298,862 |
| | | | 1,324,606 |
| FINANCIALS - 14.5% | | | |
| Banks - 1.9% | | | |
| First Citizens Bancshares, Inc. | | 583 | 248,282 |
| M&T Bank Corp. | | 2,890 | 306,196 |
| | | | 554,478 |
| Capital Markets - 3.8% | | | |
| Ameriprise Financial, Inc. | | 3,405 | 523,110 |
| Lazard Ltd. Class A | | 8,979 | 263,264 |
| LPL Financial | | 3,586 | 283,366 |
| | | | 1,069,740 |
| Consumer Finance - 4.5% | | | |
| Capital One Financial Corp. | | 6,408 | 408,830 |
| Discover Financial Services | | 5,833 | 288,325 |
| OneMain Holdings, Inc. | | 11,010 | 315,987 |
| SLM Corp. | | 40,827 | 276,399 |
| | | | 1,289,541 |
| Insurance - 4.3% | | | |
| Allstate Corp. | | 2,923 | 275,902 |
| American International Group, Inc. | | 7,336 | 235,779 |
| Old Republic International Corp. | | 17,273 | 277,577 |
| The Travelers Companies, Inc. | | 3,744 | 428,388 |
| | | | 1,217,646 |
|
| TOTAL FINANCIALS | | | 4,131,405 |
|
| HEALTH CARE - 7.3% | | | |
| Biotechnology - 1.5% | | | |
| Alexion Pharmaceuticals, Inc. (a) | | 4,100 | 420,209 |
| Health Care Providers & Services - 5.0% | | | |
| Centene Corp. (a) | | 9,967 | 650,347 |
| Cigna Corp. | | 4,541 | 784,185 |
| | | | 1,434,532 |
| Pharmaceuticals - 0.8% | | | |
| Jazz Pharmaceuticals PLC (a) | | 2,047 | 221,588 |
|
| TOTAL HEALTH CARE | | | 2,076,329 |
|
| INDUSTRIALS - 19.6% | | | |
| Aerospace & Defense - 1.0% | | | |
| General Dynamics Corp. | | 1,926 | 282,621 |
| Air Freight & Logistics - 0.5% | | | |
| FedEx Corp. | | 901 | 151,728 |
| Commercial Services & Supplies - 1.0% | | | |
| The Brink's Co. | | 6,449 | 286,013 |
| Construction & Engineering - 2.3% | | | |
| AECOM (a) | | 8,844 | 320,064 |
| Willscot Mobile Mini Holdings (a) | | 22,604 | 340,416 |
| | | | 660,480 |
| Electrical Equipment - 2.8% | | | |
| Regal Beloit Corp. | | 4,357 | 400,713 |
| Sensata Technologies, Inc. PLC (a) | | 10,470 | 397,651 |
| | | | 798,364 |
| Machinery - 2.7% | | | |
| Allison Transmission Holdings, Inc. | | 9,547 | 356,676 |
| Stanley Black & Decker, Inc. | | 2,732 | 418,870 |
| | | | 775,546 |
| Professional Services - 3.5% | | | |
| ASGN, Inc. (a) | | 4,363 | 298,691 |
| Manpower, Inc. | | 5,136 | 353,305 |
| Nielsen Holdings PLC | | 23,409 | 337,792 |
| | | | 989,788 |
| Road & Rail - 2.2% | | | |
| Ryder System, Inc. | | 7,540 | 276,190 |
| TFI International, Inc. (Canada) | | 7,861 | 341,096 |
| | | | 617,286 |
| Trading Companies & Distributors - 3.6% | | | |
| Beacon Roofing Supply, Inc. (a) | | 12,146 | 378,469 |
| HD Supply Holdings, Inc. (a) | | 8,290 | 290,979 |
| Univar, Inc. (a) | | 19,557 | 345,572 |
| | | | 1,015,020 |
|
| TOTAL INDUSTRIALS | | | 5,576,846 |
|
| INFORMATION TECHNOLOGY - 5.9% | | | |
| Electronic Equipment & Components - 0.9% | | | |
| Flextronics International Ltd. (a) | | 22,099 | 253,918 |
| IT Services - 1.9% | | | |
| Capgemini SA | | 2,300 | 296,667 |
| DXC Technology Co. | | 13,217 | 236,716 |
| | | | 533,383 |
| Semiconductors & Semiconductor Equipment - 1.9% | | | |
| NXP Semiconductors NV | | 2,196 | 258,096 |
| ON Semiconductor Corp. (a) | | 14,206 | 292,644 |
| | | | 550,740 |
| Software - 1.2% | | | |
| SS&C Technologies Holdings, Inc. | | 5,985 | 344,138 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 1,682,179 |
|
| MATERIALS - 9.1% | | | |
| Chemicals - 5.1% | | | |
| Axalta Coating Systems Ltd. (a) | | 12,604 | 279,809 |
| DuPont de Nemours, Inc. | | 6,508 | 348,048 |
| Olin Corp. | | 20,224 | 227,318 |
| Tronox Holdings PLC | | 32,267 | 245,875 |
| W.R. Grace & Co. | | 7,471 | 344,637 |
| | | | 1,445,687 |
| Construction Materials - 1.9% | | | |
| Eagle Materials, Inc. | | 3,977 | 319,075 |
| Summit Materials, Inc. (a) | | 15,115 | 222,493 |
| | | | 541,568 |
| Containers & Packaging - 2.1% | | | |
| Crown Holdings, Inc. (a) | | 4,994 | 357,471 |
| O-I Glass, Inc. | | 22,923 | 239,316 |
| | | | 596,787 |
|
| TOTAL MATERIALS | | | 2,584,042 |
|
| REAL ESTATE - 10.7% | | | |
| Equity Real Estate Investment Trusts (REITs) - 8.7% | | | |
| American Tower Corp. | | 1,452 | 379,538 |
| CubeSmart | | 22,702 | 673,568 |
| Equinix, Inc. | | 712 | 559,262 |
| Equity Lifestyle Properties, Inc. | | 8,528 | 582,633 |
| Iron Mountain, Inc. (b) | | 10,115 | 285,142 |
| | | | 2,480,143 |
| Real Estate Management & Development - 2.0% | | | |
| CBRE Group, Inc. (a) | | 12,203 | 534,613 |
| Cushman & Wakefield PLC (a) | | 2,124 | 22,727 |
| | | | 557,340 |
|
| TOTAL REAL ESTATE | | | 3,037,483 |
|
| UTILITIES - 6.7% | | | |
| Electric Utilities - 1.7% | | | |
| Edison International | | 8,606 | 479,096 |
| Independent Power and Renewable Electricity Producers - 3.3% | | | |
| The AES Corp. | | 31,603 | 481,314 |
| Vistra Corp. | | 25,117 | 468,683 |
| | | | 949,997 |
| Multi-Utilities - 1.7% | | | |
| CenterPoint Energy, Inc. | | 25,862 | 491,637 |
|
| TOTAL UTILITIES | | | 1,920,730 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $28,430,409) | | | 28,011,872 |
| | | Principal Amount | Value |
|
| U.S. Treasury Obligations - 0.3% | | | |
| U.S. Treasury Bills, yield at date of purchase 0.15% to 0.16% 9/3/20 to 9/17/20 (c) | | | |
| (Cost $89,984) | | $90,000 | 89,991 |
| | | Shares | Value |
|
| Money Market Funds - 2.0% | | | |
| Fidelity Cash Central Fund 0.14% (d) | | 295,274 | $295,363 |
| Fidelity Securities Lending Cash Central Fund 0.13% (d)(e) | | 266,773 | 266,800 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $562,141) | | | 562,163 |
| TOTAL INVESTMENT IN SECURITIES - 100.7% | | | |
| (Cost $29,082,534) | | | 28,664,026 |
| NET OTHER ASSETS (LIABILITIES) - (0.7)% | | | (206,591) |
| NET ASSETS - 100% | | | $28,457,435 |
| Futures Contracts | | | | | |
| | Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) |
| Purchased | | | | | |
| Equity Index Contracts | | | | | |
| CME E-mini S&P MidCap 400 Index Contracts (United States) | 1 | Sept. 2020 | $186,050 | $9,090 | $9,090 |
The notional amount of futures purchased as a percentage of Net Assets is 0.7%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $74,992.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
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 | $952 |
| Fidelity Securities Lending Cash Central Fund | 56 |
| Total | $1008 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $784,708 | $784,708 | $-- | $-- |
| Consumer Discretionary | 2,908,811 | 2,908,811 | -- | -- |
| Consumer Staples | 1,984,733 | 1,984,733 | -- | -- |
| Energy | 1,324,606 | 1,324,606 | -- | -- |
| Financials | 4,131,405 | 4,131,405 | -- | -- |
| Health Care | 2,076,329 | 2,076,329 | -- | -- |
| Industrials | 5,576,846 | 5,576,846 | -- | -- |
| Information Technology | 1,682,179 | 1,682,179 | -- | -- |
| Materials | 2,584,042 | 2,584,042 | -- | -- |
| Real Estate | 3,037,483 | 3,037,483 | -- | -- |
| Utilities | 1,920,730 | 1,920,730 | -- | -- |
| U.S. Government and Government Agency Obligations | 89,991 | -- | 89,991 | -- |
| Money Market Funds | 562,163 | 562,163 | -- | -- |
| Total Investments in Securities: | $28,664,026 | $28,574,035 | $89,991 | $-- |
| Derivative Instruments: | | | | |
| Assets | | | | |
| Futures Contracts | $9,090 | $9,090 | $-- | $-- |
| Total Assets | $9,090 | $9,090 | $-- | $-- |
| Total Derivative Instruments: | $9,090 | $9,090 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of July 31, 2020. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value |
| | Asset | Liability |
| Equity Risk | | |
| Futures Contracts(a) | $9,090 | $0 |
| Total Equity Risk | 9,090 | 0 |
| Total Value of Derivatives | $9,090 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 87.9% |
| United Kingdom | 4.3% |
| Bermuda | 1.9% |
| Canada | 1.2% |
| France | 1.1% |
| British Virgin Islands | 1.0% |
| Others (Individually Less Than 1%) | 2.6% |
| | 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $259,348) — See accompanying schedule:
Unaffiliated issuers (cost $28,520,393) | $28,101,863 | |
| Fidelity Central Funds (cost $562,141) | 562,163 | |
| Total Investment in Securities (cost $29,082,534) | | $28,664,026 |
| Cash | | 47,777 |
| Foreign currency held at value (cost $141) | | 149 |
| Receivable for fund shares sold | | 29,127 |
| Dividends receivable | | 10,706 |
| Distributions receivable from Fidelity Central Funds | | 110 |
| Total assets | | 28,751,895 |
| Liabilities | | |
| Payable for fund shares redeemed | $25,556 | |
| Payable for daily variation margin on futures contracts | 1,270 | |
| Other payables and accrued expenses | 834 | |
| Collateral on securities loaned | 266,800 | |
| Total liabilities | | 294,460 |
| Net Assets | | $28,457,435 |
| Net Assets consist of: | | |
| Paid in capital | | $33,163,879 |
| Total accumulated earnings (loss) | | (4,706,444) |
| Net Assets | | $28,457,435 |
| Net Asset Value, offering price and redemption price per share ($28,457,435 ÷ 3,061,275 shares) | | $9.30 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends | | $324,863 |
| Interest | | 78 |
| Income from Fidelity Central Funds (including $56 from security lending) | | 1,008 |
| Total income | | 325,949 |
| Expenses | | |
| Independent trustees' fees and expenses | $93 | |
| Miscellaneous | 1,239 | |
| Total expenses | | 1,332 |
| Net investment income (loss) | | 324,617 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (4,409,313) | |
| Fidelity Central Funds | 2 | |
| Foreign currency transactions | (1,366) | |
| Futures contracts | 36,129 | |
| Total net realized gain (loss) | | (4,374,548) |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (1,776,298) | |
| Fidelity Central Funds | 22 | |
| Assets and liabilities in foreign currencies | (3) | |
| Futures contracts | 11,922 | |
| Total change in net unrealized appreciation (depreciation) | | (1,764,357) |
| Net gain (loss) | | (6,138,905) |
| Net increase (decrease) in net assets resulting from operations | | $(5,814,288) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended July 31, 2020 (Unaudited) | Year ended January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $324,617 | $223,967 |
| Net realized gain (loss) | (4,374,548) | 77,641 |
| Change in net unrealized appreciation (depreciation) | (1,764,357) | 1,454,826 |
| Net increase (decrease) in net assets resulting from operations | (5,814,288) | 1,756,434 |
| Distributions to shareholders | (225,239) | (209,901) |
| Share transactions | | |
| Proceeds from sales of shares | 9,335,331 | 36,549,568 |
| Reinvestment of distributions | 225,239 | 209,901 |
| Cost of shares redeemed | (11,509,130) | (4,581,492) |
| Net increase (decrease) in net assets resulting from share transactions | (1,948,560) | 32,177,977 |
| Total increase (decrease) in net assets | (7,988,087) | 33,724,510 |
| Net Assets | | |
| Beginning of period | 36,445,522 | 2,721,012 |
| End of period | $28,457,435 | $36,445,522 |
| Other Information | | |
| Shares | | |
| Sold | 1,074,035 | 3,433,071 |
| Issued in reinvestment of distributions | 23,660 | 18,893 |
| Redeemed | (1,353,321) | (421,308) |
| Net increase (decrease) | (255,626) | 3,030,656 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Mid Cap Value Fund
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | |
| | 2020 | 2020 | 2019 | 2018 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $10.99 | $9.51 | $11.14 | $10.00 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .11 | .18 | .20 | .17 |
| Net realized and unrealized gain (loss) | (1.73) | 1.37 | (1.18) | 1.10 |
| Total from investment operations | (1.62) | 1.55 | (.98) | 1.27 |
| Distributions from net investment income | –C | (.07) | (.21) | (.10) |
| Distributions from net realized gain | (.07) | – | (.44) | (.03) |
| Total distributions | (.07) | (.07) | (.65) | (.13) |
| Net asset value, end of period | $9.30 | $10.99 | $9.51 | $11.14 |
| Total ReturnD | (14.76)% | 16.26% | (8.60)% | 12.72% |
| Ratios to Average Net AssetsE,F | | | | |
| Expenses before reductions | .01%G,H | - %I | - %I | - %G,I |
| Expenses net of fee waivers, if any | .01%G,H | - %I | - %I | - %G,I |
| Expenses net of all reductions | .01%G,H | - %I | - %I | - %G,I |
| Net investment income (loss) | 2.36%G,H | 1.71% | 1.88% | 1.76%G |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $28,457 | $36,446 | $2,721 | $2,869 |
| Portfolio turnover rateJ | 159%G | 89% | 218% | 137%G |
A For the period March 8, 2017 (commencement of operations) to January 31, 2018.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from 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 expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Annualized
H Proxy expenses are not annualized.
I Amount represents less than .005%.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended July 31, 2020
1. Organization.
Fidelity Flex Mid Cap Value Fund (the Fund) is a fund of Fidelity Devonshire Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund is available only to certain fee-based accounts offered by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, partnerships and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $2,034,080 |
| Gross unrealized depreciation | (3,199,126) |
| Net unrealized appreciation (depreciation) | $(1,165,046) |
| Tax cost | $29,838,162 |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
|
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
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 Flex Mid Cap Value Fund | 22,322,033 | 24,061,031 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services and the Fund does not pay any fees for these services. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| | Amount |
| Fidelity Flex Mid Cap Value Fund | $745 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| | Amount |
| Fidelity Flex Mid Cap Value Fund | $37 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Net income from the Fidelity Securities Lending Cash Central Fund during the period is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. 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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
February 1, 2020 | Ending
Account Value
July 31, 2020 | Expenses Paid
During Period-B
February 1, 2020
to July 31, 2020 |
| Fidelity Flex Mid Cap Value Fund | .01% | | | |
| Actual | | $1,000.00 | $852.40 | $.05 |
| Hypothetical-C | | $1,000.00 | $1,024.81 | $.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| | # of
Votes | % of
Votes |
| Dennis J. Dirks |
| Affirmative | 20,677,600,881.166 | 98.531 |
| Withheld | 308,216,367.332 | 1.469 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Donald F. Donahue |
| Affirmative | 20,685,205,663.711 | 98.568 |
| Withheld | 300,611,584.787 | 1.432 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Bettina Doulton |
| Affirmative | 20,701,129,729.034 | 98.643 |
| Withheld | 284,687,519.464 | 1.357 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Vicki L. Fuller |
| Affirmative | 20,713,892,146.063 | 98.704 |
| Withheld | 271,925,102.435 | 1.296 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Patricia L. Kampling |
| Affirmative | 20,693,289,719.327 | 98.606 |
| Withheld | 292,527,529.171 | 1.394 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Alan J. Lacy |
| Affirmative | 20,659,591,158.873 | 98.445 |
| Withheld | 326,226,089.625 | 1.555 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Ned C. Lautenbach |
| Affirmative | 20,634,244,420.039 | 98.325 |
| Withheld | 351,572,828.459 | 1.675 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Robert A. Lawrence |
| Affirmative | 20,672,781,907.548 | 98.508 |
| Withheld | 313,035,340.950 | 1.492 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Joseph Mauriello |
| Affirmative | 20,652,465,304.654 | 98.412 |
| Withheld | 333,351,943.843 | 1.588 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Cornelia M. Small |
| Affirmative | 20,671,641,667.984 | 98.503 |
| Withheld | 314,175,580.514 | 1.497 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Garnett A. Smith |
| Affirmative | 20,655,644,270.628 | 98.427 |
| Withheld | 330,172,977.870 | 1.573 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| David M. Thomas |
| Affirmative | 20,654,595,907.599 | 98.422 |
| Withheld | 331,221,340.899 | 1.578 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Susan Tomasky |
| Affirmative | 20,686,662,870.375 | 98.574 |
| Withheld | 299,154,378.123 | 1.426 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Michael E. Wiley |
| Affirmative | 20,662,847,882.871 | 98.461 |
| Withheld | 322,969,365.626 | 1.539 |
| TOTAL | 20,985,817,248.498 | 100.000 |
|
| Proposal 1 reflects trust wide proposal and voting results. |
ZMV-SANN-0920
1.9881566.103
Fidelity® Mid Cap Value Fund
Semi-Annual Report
July 31, 2020
Includes Fidelity and Fidelity Advisor share classes
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Contents
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NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
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Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| Best Buy Co., Inc. | 4.9 |
| Reliance Steel & Aluminum Co. | 4.2 |
| CBRE Group, Inc. | 4.1 |
| Williams-Sonoma, Inc. | 3.8 |
| Jones Lang LaSalle, Inc. | 2.9 |
| Amdocs Ltd. | 2.9 |
| OGE Energy Corp. | 2.9 |
| Synchrony Financial | 2.7 |
| Lear Corp. | 2.7 |
| NRG Energy, Inc. | 2.5 |
| | 33.6 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Industrials | 16.4 |
| Financials | 13.7 |
| Consumer Discretionary | 13.1 |
| Real Estate | 11.5 |
| Utilities | 10.3 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020* |
| | Stocks | 99.5% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 4.5%
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 99.5% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 3.6% | | | |
| Entertainment - 1.3% | | | |
| Electronic Arts, Inc. (a) | | 104,500 | $14,799,290 |
| Media - 2.3% | | | |
| AMC Networks, Inc. Class A (a)(b) | | 85,600 | 1,977,360 |
| Discovery Communications, Inc. Class A (a) | | 76,300 | 1,609,930 |
| Interpublic Group of Companies, Inc. | | 1,241,169 | 22,403,100 |
| | | | 25,990,390 |
|
| TOTAL COMMUNICATION SERVICES | | | 40,789,680 |
|
| CONSUMER DISCRETIONARY - 13.1% | | | |
| Auto Components - 4.4% | | | |
| BorgWarner, Inc. (b) | | 461,690 | 16,897,854 |
| Gentex Corp. | | 81,500 | 2,199,685 |
| Lear Corp. | | 277,608 | 30,642,371 |
| | | | 49,739,910 |
| Specialty Retail - 8.7% | | | |
| Best Buy Co., Inc. | | 557,512 | 55,522,617 |
| Williams-Sonoma, Inc. (b) | | 504,539 | 43,955,438 |
| | | | 99,478,055 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 149,217,965 |
|
| CONSUMER STAPLES - 5.4% | | | |
| Beverages - 0.1% | | | |
| Monster Beverage Corp. (a) | | 10,600 | 831,888 |
| Food & Staples Retailing - 0.7% | | | |
| Kroger Co. | | 249,100 | 8,666,189 |
| Food Products - 4.6% | | | |
| Ingredion, Inc. | | 281,993 | 24,392,395 |
| The J.M. Smucker Co. | | 182,584 | 19,965,560 |
| Tyson Foods, Inc. Class A | | 132,500 | 8,142,125 |
| | | | 52,500,080 |
|
| TOTAL CONSUMER STAPLES | | | 61,998,157 |
|
| ENERGY - 3.2% | | | |
| Energy Equipment & Services - 1.0% | | | |
| Baker Hughes Co. Class A | | 743,400 | 11,515,266 |
| Oil, Gas & Consumable Fuels - 2.2% | | | |
| BP Midstream Partners LP | | 9,700 | 105,730 |
| Chevron Corp. | | 181,561 | 15,240,230 |
| CVR Energy, Inc. (b) | | 193,400 | 3,713,280 |
| EOG Resources, Inc. | | 123,100 | 5,767,235 |
| World Fuel Services Corp. | | 27,700 | 651,781 |
| | | | 25,478,256 |
|
| TOTAL ENERGY | | | 36,993,522 |
|
| FINANCIALS - 13.7% | | | |
| Banks - 4.2% | | | |
| East West Bancorp, Inc. | | 659,600 | 22,861,736 |
| M&T Bank Corp. | | 239,300 | 25,353,835 |
| | | | 48,215,571 |
| Capital Markets - 1.3% | | | |
| Federated Hermes, Inc. Class B (non-vtg.) | | 235,500 | 6,207,780 |
| Raymond James Financial, Inc. | | 74,400 | 5,169,312 |
| Waddell & Reed Financial, Inc. Class A (b) | | 244,773 | 3,571,238 |
| | | | 14,948,330 |
| Consumer Finance - 2.7% | | | |
| Synchrony Financial | | 1,398,446 | 30,947,610 |
| Insurance - 4.7% | | | |
| Allstate Corp. | | 27,800 | 2,624,042 |
| American National Group, Inc. | | 4,200 | 309,330 |
| Globe Life, Inc. | | 50,400 | 4,011,840 |
| Hartford Financial Services Group, Inc. | | 233,900 | 9,898,648 |
| MetLife, Inc. | | 458,780 | 17,364,823 |
| Old Republic International Corp. | | 1,079,900 | 17,353,993 |
| Unum Group | | 77,521 | 1,335,687 |
| | | | 52,898,363 |
| Thrifts & Mortgage Finance - 0.8% | | | |
| MGIC Investment Corp. | | 459,000 | 3,795,930 |
| Radian Group, Inc. | | 380,800 | 5,681,536 |
| | | | 9,477,466 |
|
| TOTAL FINANCIALS | | | 156,487,340 |
|
| HEALTH CARE - 6.9% | | | |
| Biotechnology - 1.5% | | | |
| Alexion Pharmaceuticals, Inc. (a) | | 75,200 | 7,707,248 |
| Amgen, Inc. | | 33,668 | 8,237,550 |
| United Therapeutics Corp. (a) | | 13,600 | 1,515,992 |
| | | | 17,460,790 |
| Health Care Providers & Services - 3.9% | | | |
| AmerisourceBergen Corp. | | 61,967 | 6,208,474 |
| Laboratory Corp. of America Holdings (a) | | 72,193 | 13,927,474 |
| National Healthcare Corp. | | 30,200 | 1,791,464 |
| Premier, Inc. (a) | | 169,100 | 5,913,427 |
| Universal Health Services, Inc. Class B | | 149,521 | 16,432,358 |
| | | | 44,273,197 |
| Pharmaceuticals - 1.5% | | | |
| Jazz Pharmaceuticals PLC (a) | | 160,413 | 17,364,707 |
|
| TOTAL HEALTH CARE | | | 79,098,694 |
|
| INDUSTRIALS - 16.4% | | | |
| Airlines - 0.1% | | | |
| Copa Holdings SA Class A | | 15,100 | 625,744 |
| Building Products - 1.0% | | | |
| Fortune Brands Home & Security, Inc. | | 75,600 | 5,783,400 |
| Ufp Industries, Inc. | | 98,200 | 5,717,204 |
| | | | 11,500,604 |
| Commercial Services & Supplies - 0.3% | | | |
| Herman Miller, Inc. | | 43,300 | 1,014,519 |
| Steelcase, Inc. Class A | | 214,000 | 2,296,220 |
| | | | 3,310,739 |
| Construction & Engineering - 1.6% | | | |
| EMCOR Group, Inc. | | 185,600 | 12,713,600 |
| Valmont Industries, Inc. | | 43,100 | 5,223,720 |
| | | | 17,937,320 |
| Electrical Equipment - 3.2% | | | |
| Acuity Brands, Inc. | | 174,551 | 17,298,004 |
| Encore Wire Corp. (b) | | 100,100 | 5,024,019 |
| Hubbell, Inc. Class B | | 109,100 | 14,725,227 |
| | | | 37,047,250 |
| Machinery - 4.3% | | | |
| Allison Transmission Holdings, Inc. | | 583,800 | 21,810,768 |
| Crane Co. | | 277,267 | 15,684,994 |
| ITT, Inc. | | 103,600 | 5,980,828 |
| Mueller Industries, Inc. | | 188,400 | 5,267,664 |
| | | | 48,744,254 |
| Professional Services - 2.2% | | | |
| Korn Ferry | | 39,700 | 1,115,570 |
| Manpower, Inc. | | 251,126 | 17,274,958 |
| Robert Half International, Inc. | | 137,100 | 6,974,277 |
| | | | 25,364,805 |
| Road & Rail - 1.4% | | | |
| Landstar System, Inc. | | 134,700 | 16,403,766 |
| Trading Companies & Distributors - 2.3% | | | |
| HD Supply Holdings, Inc. (a) | | 476,918 | 16,739,822 |
| MSC Industrial Direct Co., Inc. Class A | | 140,100 | 9,248,001 |
| | | | 25,987,823 |
|
| TOTAL INDUSTRIALS | | | 186,922,305 |
|
| INFORMATION TECHNOLOGY - 8.4% | | | |
| Communications Equipment - 0.4% | | | |
| Juniper Networks, Inc. | | 173,300 | 4,398,354 |
| Electronic Equipment & Components - 2.2% | | | |
| Avnet, Inc. | | 169,900 | 4,539,728 |
| Sanmina Corp. (a) | | 131,000 | 3,888,080 |
| SYNNEX Corp. | | 138,300 | 17,251,542 |
| | | | 25,679,350 |
| IT Services - 2.9% | | | |
| Amdocs Ltd. | | 526,097 | 32,670,624 |
| Semiconductors & Semiconductor Equipment - 2.0% | | | |
| Applied Materials, Inc. | | 179,200 | 11,527,936 |
| Cirrus Logic, Inc. (a) | | 162,000 | 11,101,860 |
| | | | 22,629,796 |
| Technology Hardware, Storage & Peripherals - 0.9% | | | |
| Super Micro Computer, Inc. (a) | | 108,000 | 3,272,940 |
| Xerox Holdings Corp. | | 405,000 | 6,743,250 |
| | | | 10,016,190 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 95,394,314 |
|
| MATERIALS - 7.0% | | | |
| Chemicals - 2.5% | | | |
| Cabot Corp. | | 280,400 | 10,228,992 |
| Minerals Technologies, Inc. (b) | | 44,800 | 2,100,224 |
| NewMarket Corp. | | 44,700 | 16,754,007 |
| | | | 29,083,223 |
| Metals & Mining - 4.2% | | | |
| Kaiser Aluminum Corp. | | 4,300 | 266,385 |
| Reliance Steel & Aluminum Co. | | 482,438 | 47,404,358 |
| | | | 47,670,743 |
| Paper & Forest Products - 0.3% | | | |
| Schweitzer-Mauduit International, Inc. | | 92,600 | 3,012,278 |
|
| TOTAL MATERIALS | | | 79,766,244 |
|
| REAL ESTATE - 11.5% | | | |
| Equity Real Estate Investment Trusts (REITs) - 4.5% | | | |
| Apple Hospitality (REIT), Inc. | | 2,321,236 | 20,473,302 |
| CoreCivic, Inc. | | 231,800 | 2,065,338 |
| Equity Commonwealth | | 189,800 | 5,991,986 |
| Gaming & Leisure Properties | | 249,217 | 9,024,148 |
| Highwoods Properties, Inc. (SBI) | | 214,400 | 8,220,096 |
| PS Business Parks, Inc. | | 37,200 | 5,131,740 |
| | | | 50,906,610 |
| Real Estate Management & Development - 7.0% | | | |
| CBRE Group, Inc. (a) | | 1,059,556 | 46,419,148 |
| Jones Lang LaSalle, Inc. | | 335,719 | 33,205,966 |
| | | | 79,625,114 |
|
| TOTAL REAL ESTATE | | | 130,531,724 |
|
| UTILITIES - 10.3% | | | |
| Electric Utilities - 6.8% | | | |
| Exelon Corp. | | 415,284 | 16,034,115 |
| NRG Energy, Inc. | | 850,639 | 28,760,105 |
| OGE Energy Corp. | | 983,374 | 32,353,005 |
| | | | 77,147,225 |
| Gas Utilities - 0.1% | | | |
| National Fuel Gas Co. | | 27,100 | 1,099,447 |
| Independent Power and Renewable Electricity Producers - 1.0% | | | |
| Vistra Corp. | | 625,400 | 11,669,964 |
| Multi-Utilities - 2.4% | | | |
| MDU Resources Group, Inc. | | 1,285,772 | 26,975,497 |
|
| TOTAL UTILITIES | | | 116,892,133 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $1,233,217,919) | | | 1,134,092,078 |
|
| Money Market Funds - 3.0% | | | |
| Fidelity Cash Central Fund 0.14% (c) | | 6,312,517 | 6,314,411 |
| Fidelity Securities Lending Cash Central Fund 0.13% (c)(d) | | 27,824,236 | 27,827,019 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $34,141,024) | | | 34,141,430 |
| TOTAL INVESTMENT IN SECURITIES - 102.5% | | | |
| (Cost $1,267,358,943) | | | 1,168,233,508 |
| NET OTHER ASSETS (LIABILITIES) - (2.5)% | | | (28,346,193) |
| NET ASSETS - 100% | | | $1,139,887,315 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
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 | $89,932 |
| Fidelity Securities Lending Cash Central Fund | 18,520 |
| Total | $108,452 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $40,789,680 | $40,789,680 | $-- | $-- |
| Consumer Discretionary | 149,217,965 | 149,217,965 | -- | -- |
| Consumer Staples | 61,998,157 | 61,998,157 | -- | -- |
| Energy | 36,993,522 | 36,993,522 | -- | -- |
| Financials | 156,487,340 | 156,487,340 | -- | -- |
| Health Care | 79,098,694 | 79,098,694 | -- | -- |
| Industrials | 186,922,305 | 186,922,305 | -- | -- |
| Information Technology | 95,394,314 | 95,394,314 | -- | -- |
| Materials | 79,766,244 | 79,766,244 | -- | -- |
| Real Estate | 130,531,724 | 130,531,724 | -- | -- |
| Utilities | 116,892,133 | 116,892,133 | -- | -- |
| Money Market Funds | 34,141,430 | 34,141,430 | -- | -- |
| Total Investments in Securities: | $1,168,233,508 | $1,168,233,508 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $27,048,956) — See accompanying schedule:
Unaffiliated issuers (cost $1,233,217,919) | $1,134,092,078 | |
| Fidelity Central Funds (cost $34,141,024) | 34,141,430 | |
| Total Investment in Securities (cost $1,267,358,943) | | $1,168,233,508 |
| Receivable for fund shares sold | | 304,338 |
| Dividends receivable | | 932,963 |
| Distributions receivable from Fidelity Central Funds | | 4,605 |
| Prepaid expenses | | 153 |
| Other receivables | | 84,758 |
| Total assets | | 1,169,560,325 |
| Liabilities | | |
| Payable for fund shares redeemed | $1,383,715 | |
| Accrued management fee | 139,938 | |
| Distribution and service plan fees payable | 69,041 | |
| Other affiliated payables | 224,069 | |
| Other payables and accrued expenses | 40,947 | |
| Collateral on securities loaned | 27,815,300 | |
| Total liabilities | | 29,673,010 |
| Net Assets | | $1,139,887,315 |
| Net Assets consist of: | | |
| Paid in capital | | $1,407,386,490 |
| Total accumulated earnings (loss) | | (267,499,175) |
| Net Assets | | $1,139,887,315 |
| Net Asset Value and Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($109,488,445 ÷ 5,808,486 shares)(a) | | $18.85 |
| Maximum offering price per share (100/94.25 of $18.85) | | $20.00 |
| Class M: | | |
| Net Asset Value and redemption price per share ($26,471,407 ÷ 1,413,187 shares)(a) | | $18.73 |
| Maximum offering price per share (100/96.50 of $18.73) | | $19.41 |
| Class C: | | |
| Net Asset Value and offering price per share ($41,977,817 ÷ 2,316,885 shares)(a) | | $18.12 |
| Mid Cap Value: | | |
| Net Asset Value, offering price and redemption price per share ($848,834,193 ÷ 44,288,026 shares) | | $19.17 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($82,560,697 ÷ 4,347,051 shares) | | $18.99 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($30,554,756 ÷ 1,609,736 shares) | | $18.98 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends | | $15,405,533 |
| Income from Fidelity Central Funds (including $18,520 from security lending) | | 108,452 |
| Total income | | 15,513,985 |
| Expenses | | |
| Management fee | | |
| Basic fee | $3,169,564 | |
| Performance adjustment | (1,990,313) | |
| Transfer agent fees | 1,163,800 | |
| Distribution and service plan fees | 435,488 | |
| Accounting fees | 192,300 | |
| Custodian fees and expenses | 7,087 | |
| Independent trustees' fees and expenses | 4,145 | |
| Registration fees | 48,625 | |
| Audit | 50,683 | |
| Legal | 4,679 | |
| Miscellaneous | 38,326 | |
| Total expenses before reductions | 3,124,384 | |
| Expense reductions | (139,107) | |
| Total expenses after reductions | | 2,985,277 |
| Net investment income (loss) | | 12,528,708 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (53,098,818) | |
| Fidelity Central Funds | 4,400 | |
| Foreign currency transactions | 20,505 | |
| Total net realized gain (loss) | | (53,073,913) |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (174,119,773) | |
| Fidelity Central Funds | 406 | |
| Assets and liabilities in foreign currencies | (421) | |
| Total change in net unrealized appreciation (depreciation) | | (174,119,788) |
| Net gain (loss) | | (227,193,701) |
| Net increase (decrease) in net assets resulting from operations | | $(214,664,993) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended July 31, 2020 (Unaudited) | Year ended January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $12,528,708 | $35,686,237 |
| Net realized gain (loss) | (53,073,913) | (65,998,712) |
| Change in net unrealized appreciation (depreciation) | (174,119,788) | 137,720,740 |
| Net increase (decrease) in net assets resulting from operations | (214,664,993) | 107,408,265 |
| Distributions to shareholders | – | (30,653,496) |
| Share transactions - net increase (decrease) | (201,761,871) | (557,574,102) |
| Total increase (decrease) in net assets | (416,426,864) | (480,819,333) |
| Net Assets | | |
| Beginning of period | 1,556,314,179 | 2,037,133,512 |
| End of period | $1,139,887,315 | $1,556,314,179 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Mid Cap Value Fund Class A
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $21.75 | $20.91 | $26.62 | $24.94 | $20.52 | $23.90 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .17 | .38 | .39 | .44B | .29 | .29 |
| Net realized and unrealized gain (loss) | (3.07) | .83 | (3.35) | 3.54 | 4.40 | (2.57) |
| Total from investment operations | (2.90) | 1.21 | (2.96) | 3.98 | 4.69 | (2.28) |
| Distributions from net investment income | – | (.37) | (.40) | (.43) | (.27) | (.28) |
| Distributions from net realized gain | – | – | (2.35) | (1.87) | – | (.82) |
| Total distributions | – | (.37) | (2.75) | (2.30) | (.27) | (1.10) |
| Redemption fees added to paid in capitalA | – | – | – | – | –C | –C |
| Net asset value, end of period | $18.85 | $21.75 | $20.91 | $26.62 | $24.94 | $20.52 |
| Total ReturnD,E,F | (13.33)% | 5.72% | (11.23)% | 16.13% | 22.87% | (9.83)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | .75%I | .76% | .82% | .98% | 1.01% | 1.14% |
| Expenses net of fee waivers, if any | .75%I | .76% | .82% | .98% | 1.01% | 1.14% |
| Expenses net of all reductions | .72%I | .75% | .81% | .97% | 1.00% | 1.14% |
| Net investment income (loss) | 1.89%I | 1.77% | 1.66% | 1.67%B | 1.25% | 1.21% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $109,488 | $141,439 | $173,538 | $255,907 | $299,124 | $277,462 |
| Portfolio turnover rateJ | 99%I | 83%K | 80%K | 138%K | 83% | 83% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.18%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Mid Cap Value Fund Class M
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $21.65 | $20.82 | $26.51 | $24.84 | $20.46 | $23.81 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .15 | .32 | .32 | .36B | .22 | .22 |
| Net realized and unrealized gain (loss) | (3.07) | .82 | (3.33) | 3.54 | 4.38 | (2.54) |
| Total from investment operations | (2.92) | 1.14 | (3.01) | 3.90 | 4.60 | (2.32) |
| Distributions from net investment income | – | (.31) | (.33) | (.35) | (.22) | (.21) |
| Distributions from net realized gain | – | – | (2.35) | (1.87) | – | (.82) |
| Total distributions | – | (.31) | (2.68) | (2.23)C | (.22) | (1.03) |
| Redemption fees added to paid in capitalA | – | – | – | – | –D | –D |
| Net asset value, end of period | $18.73 | $21.65 | $20.82 | $26.51 | $24.84 | $20.46 |
| Total ReturnE,F,G | (13.49)% | 5.44% | (11.48)% | 15.84% | 22.48% | (10.04)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.02%J | 1.03% | 1.10% | 1.25% | 1.29% | 1.42% |
| Expenses net of fee waivers, if any | 1.02%J | 1.03% | 1.10% | 1.25% | 1.29% | 1.42% |
| Expenses net of all reductions | 1.00%J | 1.02% | 1.09% | 1.24% | 1.29% | 1.42% |
| Net investment income (loss) | 1.61%J | 1.50% | 1.39% | 1.40%B | .96% | .93% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $26,471 | $35,684 | $41,540 | $57,807 | $60,761 | $46,084 |
| Portfolio turnover rateK | 99%J | 83%L | 80%L | 138%L | 83% | 83% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .91%.
C Total distributions of $2.23 per share is comprised of distributions from net investment income of $.352 and distributions from net realized gain of $1.873 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Mid Cap Value Fund Class C
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.99 | $20.19 | $25.76 | $24.22 | $19.95 | $23.30 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .10 | .21 | .21 | .23B | .11 | .11 |
| Net realized and unrealized gain (loss) | (2.97) | .80 | (3.23) | 3.43 | 4.27 | (2.49) |
| Total from investment operations | (2.87) | 1.01 | (3.02) | 3.66 | 4.38 | (2.38) |
| Distributions from net investment income | – | (.21) | (.20) | (.25) | (.11) | (.15) |
| Distributions from net realized gain | – | – | (2.35) | (1.87) | – | (.81) |
| Total distributions | – | (.21) | (2.55) | (2.12) | (.11) | (.97)C |
| Redemption fees added to paid in capitalA | – | – | – | – | –D | –D |
| Net asset value, end of period | $18.12 | $20.99 | $20.19 | $25.76 | $24.22 | $19.95 |
| Total ReturnE,F,G | (13.67)% | 4.96% | (11.89)% | 15.28% | 21.97% | (10.52)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.50%J | 1.51% | 1.56% | 1.72% | 1.76% | 1.89% |
| Expenses net of fee waivers, if any | 1.50%J | 1.51% | 1.56% | 1.72% | 1.76% | 1.89% |
| Expenses net of all reductions | 1.48%J | 1.50% | 1.55% | 1.71% | 1.75% | 1.88% |
| Net investment income (loss) | 1.14%J | 1.02% | .92% | .93%B | .50% | .47% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $41,978 | $60,685 | $85,519 | $138,506 | $144,503 | $130,636 |
| Portfolio turnover rateK | 99%J | 83%L | 80%L | 138%L | 83% | 83% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .44%.
C Total distributions of $.97 per share is comprised of distributions from net investment income of $.153 and distributions from net realized gain of $.812 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Mid Cap Value Fund
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $22.09 | $21.23 | $26.99 | $25.24 | $20.76 | $24.15 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .20 | .45 | .47 | .52B | .35 | .36 |
| Net realized and unrealized gain (loss) | (3.12) | .84 | (3.41) | 3.60 | 4.46 | (2.60) |
| Total from investment operations | (2.92) | 1.29 | (2.94) | 4.12 | 4.81 | (2.24) |
| Distributions from net investment income | – | (.43) | (.47) | (.50) | (.33) | (.33) |
| Distributions from net realized gain | – | – | (2.35) | (1.87) | – | (.82) |
| Total distributions | – | (.43) | (2.82) | (2.37) | (.33) | (1.15) |
| Redemption fees added to paid in capitalA | – | – | – | – | –C | –C |
| Net asset value, end of period | $19.17 | $22.09 | $21.23 | $26.99 | $25.24 | $20.76 |
| Total ReturnD,E | (13.22)% | 6.03% | (10.97)% | 16.51% | 23.19% | (9.58)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | .45%H | .46% | .53% | .69% | .73% | .86% |
| Expenses net of fee waivers, if any | .45%H | .46% | .53% | .69% | .73% | .85% |
| Expenses net of all reductions | .43%H | .45% | .52% | .68% | .72% | .85% |
| Net investment income (loss) | 2.19%H | 2.07% | 1.96% | 1.96%B | 1.53% | 1.50% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $848,834 | $1,156,286 | $1,456,510 | $2,332,143 | $2,426,359 | $2,331,665 |
| Portfolio turnover rateI | 99%H | 83%J | 80%J | 138%J | 83% | 83% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.47%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Mid Cap Value Fund Class I
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $21.88 | $21.03 | $26.77 | $25.05 | $20.61 | $24.00 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .20 | .45 | .46 | .51B | .35 | .35 |
| Net realized and unrealized gain (loss) | (3.09) | .83 | (3.38) | 3.58 | 4.43 | (2.58) |
| Total from investment operations | (2.89) | 1.28 | (2.92) | 4.09 | 4.78 | (2.23) |
| Distributions from net investment income | – | (.43) | (.47) | (.50) | (.34) | (.34) |
| Distributions from net realized gain | – | – | (2.35) | (1.87) | – | (.82) |
| Total distributions | – | (.43) | (2.82) | (2.37) | (.34) | (1.16) |
| Redemption fees added to paid in capitalA | – | – | – | – | –C | –C |
| Net asset value, end of period | $18.99 | $21.88 | $21.03 | $26.77 | $25.05 | $20.61 |
| Total ReturnD,E | (13.21)% | 6.01% | (10.99)% | 16.52% | 23.19% | (9.60)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | .44%H | .46% | .53% | .69% | .73% | .87% |
| Expenses net of fee waivers, if any | .44%H | .46% | .53% | .69% | .73% | .86% |
| Expenses net of all reductions | .42%H | .45% | .52% | .68% | .73% | .86% |
| Net investment income (loss) | 2.20%H | 2.07% | 1.95% | 1.95%B | 1.53% | 1.49% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $82,561 | $127,647 | $244,054 | $410,868 | $363,949 | $261,686 |
| Portfolio turnover rateI | 99%H | 83%J | 80%J | 138%J | 83% | 83% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.47%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Mid Cap Value Fund Class Z
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | |
| | 2020 | 2020 | 2019 | 2018A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $21.86 | $21.01 | $26.76 | $25.03 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .22 | .48 | .49 | .56C |
| Net realized and unrealized gain (loss) | (3.10) | .83 | (3.38) | 3.59 |
| Total from investment operations | (2.88) | 1.31 | (2.89) | 4.15 |
| Distributions from net investment income | – | (.46) | (.51) | (.54) |
| Distributions from net realized gain | – | – | (2.35) | (1.87) |
| Total distributions | – | (.46) | (2.86) | (2.42)D |
| Net asset value, end of period | $18.98 | $21.86 | $21.01 | $26.76 |
| Total ReturnE,F | (13.17)% | 6.19% | (10.86)% | 16.74% |
| Ratios to Average Net AssetsG,H | | | | |
| Expenses before reductions | .30%I | .33% | .40% | .56% |
| Expenses net of fee waivers, if any | .30%I | .33% | .40% | .56% |
| Expenses net of all reductions | .28%I | .32% | .39% | .55% |
| Net investment income (loss) | 2.34%I | 2.20% | 2.09% | 2.09%C |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $30,555 | $34,573 | $35,972 | $32,974 |
| Portfolio turnover rateJ | 99%I | 83%K | 80%K | 138%K |
A For the period February 1, 2017 (commencement of sale of shares) to January 31, 2018.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.60%.
D Total distributions of $2.42 per share is comprised of distributions from net investment income of $.542 and distributions from net realized gain of $1.873 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended July 31, 2020
1. Organization.
Fidelity Mid Cap Value 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. The Fund offers Class A, Class M, Class C, Mid Cap Value, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, foreign currency transactions, partnerships, redemption in-kind, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $91,692,226 |
| Gross unrealized depreciation | (192,866,415) |
| Net unrealized appreciation (depreciation) | $(101,174,189) |
| Tax cost | $1,269,407,697 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(29,679,377) |
| Long-term | (97,747,004) |
| Total capital loss carryforward | $(127,426,381) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| | Purchases ($) | Sales ($) |
| Fidelity Mid Cap Value Fund | 588,578,911 | 719,784,553 |
Prior Fiscal Year Unaffiliated Redemptions In-Kind. During the prior period, shares of the Fidelity Mid Cap Value Fund were redeemed in-kind for investments. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. For additional information of the Fidelity Mid Cap Value Fund in-kind transactions, please refer to the Fidelity Mid Cap Value Fund prior annual shareholder report.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% 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 relative investment performance of Mid Cap Value as compared to its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .20% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution Fee | Service Fee | Total Fees | Retained by FDC |
| Class A | -% | .25% | $137,687 | $3,457 |
| Class M | .25% | .25% | 68,426 | 967 |
| Class C | .75% | .25% | 229,375 | 11,011 |
| | | | $435,488 | $15,435 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained by FDC |
| Class A | $15,797 |
| Class M | 1,728 |
| Class C(a) | 1,103 |
| | $18,628 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Effective February 1, 2020, the Board approved to change the fee for Class Z from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets(a) |
| Class A | $130,801 | .24 |
| Class M | 36,156 | .27 |
| Class C | 54,223 | .24 |
| Mid Cap Value | 851,216 | .19 |
| Class I | 85,643 | .18 |
| Class Z | 5,761 | .04 |
| | $1,163,800 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
| | % of Average Net Assets |
| Fidelity Mid Cap Value Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| | Amount |
| Fidelity Mid Cap Value Fund | $22,177 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| | Amount |
| Fidelity Mid Cap Value Fund | $1,610 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Total fees paid by the Fund to NFS, as lending agent, amounted to $1,751. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Net income from the Fidelity Securities Lending Cash Central Fund during the period is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $135,117 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $582.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $3,408.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
July 31, 2020 | Year ended
January 31, 2020 |
| Distributions to shareholders | | |
| Class A | $– | $2,394,766 |
| Class M | – | 510,699 |
| Class C | – | 616,126 |
| Mid Cap Value | – | 23,731,890 |
| Class I | – | 2,698,882 |
| Class Z | – | 701,133 |
| Total | $– | $30,653,496 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended July 31, 2020 | Year ended January 31, 2020 | Six months ended July 31, 2020 | Year ended January 31, 2020 |
| Class A | | | | |
| Shares sold | 541,271 | 1,004,356 | $9,660,195 | $21,578,476 |
| Reinvestment of distributions | – | 105,481 | – | 2,363,773 |
| Shares redeemed | (1,234,967) | (2,904,976) | (22,787,166) | (62,269,422) |
| Net increase (decrease) | (693,696) | (1,795,139) | $(13,126,971) | $(38,327,173) |
| Class M | | | | |
| Shares sold | 66,796 | 154,682 | $1,203,227 | $3,319,054 |
| Reinvestment of distributions | – | 22,710 | – | 506,671 |
| Shares redeemed | (302,079) | (524,041) | (5,343,935) | (11,218,534) |
| Net increase (decrease) | (235,283) | (346,649) | $(4,140,708) | $(7,392,809) |
| Class C | | | | |
| Shares sold | 65,816 | 182,381 | $1,117,461 | $3,784,548 |
| Reinvestment of distributions | – | 27,336 | – | 591,589 |
| Shares redeemed | (640,481) | (1,553,063) | (11,091,492) | (32,022,085) |
| Net increase (decrease) | (574,665) | (1,343,346) | $(9,974,031) | $(27,645,948) |
| Mid Cap Value | | | | |
| Shares sold | 1,633,586 | 2,687,666 | $29,364,027 | $58,799,714 |
| Reinvestment of distributions | – | 997,660 | – | 22,686,785 |
| Shares redeemed | (9,701,113) | (19,943,038)(a) | (177,486,617) | (438,331,615)(a) |
| Net increase (decrease) | (8,067,527) | (16,257,712) | $(148,122,590) | $(356,845,116) |
| Class I | | | | |
| Shares sold | 1,074,160 | 1,766,654 | $19,588,112 | $37,972,577 |
| Reinvestment of distributions | – | 113,719 | – | 2,563,218 |
| Shares redeemed | (2,560,122) | (7,651,428) | (46,855,078) | (165,254,663) |
| Net increase (decrease) | (1,485,962) | (5,771,055) | $(27,266,966) | $(124,718,868) |
| Class Z | | | | |
| Shares sold | 910,483 | 781,177 | $16,330,244 | $17,085,406 |
| Reinvestment of distributions | – | 24,328 | – | 547,372 |
| Shares redeemed | (882,653) | (935,595) | (15,460,849) | (20,276,966) |
| Net increase (decrease) | 27,830 | (130,090) | $869,395 | $(2,644,188) |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Unaffiliated Redemptions In-Kind note for additional details).
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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | Annualized Expense Ratio-A | Beginning
Account Value
February 1, 2020 | Ending
Account Value
July 31, 2020 | Expenses Paid
During Period-B
February 1, 2020
to July 31, 2020 |
| Fidelity Mid Cap Value Fund | | | | |
| Class A | .75% | | | |
| Actual | | $1,000.00 | $866.70 | $3.48 |
| Hypothetical-C | | $1,000.00 | $1,021.13 | $3.77 |
| Class M | 1.02% | | | |
| Actual | | $1,000.00 | $865.10 | $4.73 |
| Hypothetical-C | | $1,000.00 | $1,019.79 | $5.12 |
| Class C | 1.50% | | | |
| Actual | | $1,000.00 | $863.30 | $6.95 |
| Hypothetical-C | | $1,000.00 | $1,017.40 | $7.52 |
| Mid Cap Value | .45% | | | |
| Actual | | $1,000.00 | $867.80 | $2.09 |
| Hypothetical-C | | $1,000.00 | $1,022.63 | $2.26 |
| Class I | .44% | | | |
| Actual | | $1,000.00 | $867.90 | $2.04 |
| Hypothetical-C | | $1,000.00 | $1,022.68 | $2.21 |
| Class Z | .30% | | | |
| Actual | | $1,000.00 | $868.30 | $1.39 |
| Hypothetical-C | | $1,000.00 | $1,023.37 | $1.51 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| | # of
Votes | % of
Votes |
| Dennis J. Dirks |
| Affirmative | 20,677,600,881.166 | 98.531 |
| Withheld | 308,216,367.332 | 1.469 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Donald F. Donahue |
| Affirmative | 20,685,205,663.711 | 98.568 |
| Withheld | 300,611,584.787 | 1.432 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Bettina Doulton |
| Affirmative | 20,701,129,729.034 | 98.643 |
| Withheld | 284,687,519.464 | 1.357 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Vicki L. Fuller |
| Affirmative | 20,713,892,146.063 | 98.704 |
| Withheld | 271,925,102.435 | 1.296 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Patricia L. Kampling |
| Affirmative | 20,693,289,719.327 | 98.606 |
| Withheld | 292,527,529.171 | 1.394 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Alan J. Lacy |
| Affirmative | 20,659,591,158.873 | 98.445 |
| Withheld | 326,226,089.625 | 1.555 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Ned C. Lautenbach |
| Affirmative | 20,634,244,420.039 | 98.325 |
| Withheld | 351,572,828.459 | 1.675 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Robert A. Lawrence |
| Affirmative | 20,672,781,907.548 | 98.508 |
| Withheld | 313,035,340.950 | 1.492 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Joseph Mauriello |
| Affirmative | 20,652,465,304.654 | 98.412 |
| Withheld | 333,351,943.843 | 1.588 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Cornelia M. Small |
| Affirmative | 20,671,641,667.984 | 98.503 |
| Withheld | 314,175,580.514 | 1.497 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Garnett A. Smith |
| Affirmative | 20,655,644,270.628 | 98.427 |
| Withheld | 330,172,977.870 | 1.573 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| David M. Thomas |
| Affirmative | 20,654,595,907.599 | 98.422 |
| Withheld | 331,221,340.899 | 1.578 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Susan Tomasky |
| Affirmative | 20,686,662,870.375 | 98.574 |
| Withheld | 299,154,378.123 | 1.426 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Michael E. Wiley |
| Affirmative | 20,662,847,882.871 | 98.461 |
| Withheld | 322,969,365.626 | 1.539 |
| TOTAL | 20,985,817,248.498 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
| | # of
Votes | % of
Votes |
| Affirmative | 453,663,724.005 | 64.976 |
| Against | 95,057,229.492 | 13.615 |
| Abstain | 67,323,742.831 | 9.642 |
| Broker Non-Vote | 82,159,043.990 | 11.767 |
| TOTAL | 698,203,740.318 | 100.000 |
| Proposal 1 reflects trust wide proposal and voting results. |
| Proposal 2 was not approved by shareholders. |
MCV-SANN-0920
1.900183.111
Fidelity® Mid Cap Value K6 Fund
Semi-Annual Report
July 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
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This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| Best Buy Co., Inc. | 4.6 |
| Reliance Steel & Aluminum Co. | 4.0 |
| CBRE Group, Inc. | 3.9 |
| Williams-Sonoma, Inc. | 3.7 |
| Jones Lang LaSalle, Inc. | 2.8 |
| Amdocs Ltd. | 2.7 |
| OGE Energy Corp. | 2.7 |
| Synchrony Financial | 2.6 |
| Lear Corp. | 2.6 |
| NRG Energy, Inc. | 2.5 |
| | 32.1 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Industrials | 16.0 |
| Financials | 13.5 |
| Consumer Discretionary | 12.5 |
| Real Estate | 11.1 |
| Utilities | 10.5 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020* |
| | Stocks | 98.4% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.6% |
* Foreign investments - 4.2%
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.4% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 3.5% | | | |
| Entertainment - 1.3% | | | |
| Electronic Arts, Inc. (a) | | 3,600 | $509,832 |
| Media - 2.2% | | | |
| AMC Networks, Inc. Class A (a)(b) | | 2,800 | 64,680 |
| Discovery Communications, Inc. Class A (a) | | 2,600 | 54,860 |
| Interpublic Group of Companies, Inc. | | 42,831 | 773,100 |
| | | | 892,640 |
|
| TOTAL COMMUNICATION SERVICES | | | 1,402,472 |
|
| CONSUMER DISCRETIONARY - 12.5% | | | |
| Auto Components - 4.2% | | | |
| BorgWarner, Inc. | | 15,538 | 568,691 |
| Gentex Corp. | | 2,800 | 75,572 |
| Lear Corp. | | 9,362 | 1,033,378 |
| | | | 1,677,641 |
| Specialty Retail - 8.3% | | | |
| Best Buy Co., Inc. | | 18,794 | 1,871,692 |
| Williams-Sonoma, Inc. | | 17,029 | 1,483,566 |
| | | | 3,355,258 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 5,032,899 |
|
| CONSUMER STAPLES - 5.3% | | | |
| Beverages - 0.1% | | | |
| Monster Beverage Corp. (a) | | 400 | 31,392 |
| Food & Staples Retailing - 0.8% | | | |
| Kroger Co. | | 8,700 | 302,673 |
| Food Products - 4.4% | | | |
| Ingredion, Inc. | | 9,497 | 821,491 |
| The J.M. Smucker Co. | | 6,116 | 668,785 |
| Tyson Foods, Inc. Class A | | 4,700 | 288,815 |
| | | | 1,779,091 |
|
| TOTAL CONSUMER STAPLES | | | 2,113,156 |
|
| ENERGY - 3.2% | | | |
| Energy Equipment & Services - 1.0% | | | |
| Baker Hughes Co. Class A | | 25,900 | 401,191 |
| Oil, Gas & Consumable Fuels - 2.2% | | | |
| BP Midstream Partners LP | | 300 | 3,270 |
| Chevron Corp. | | 6,099 | 511,950 |
| CVR Energy, Inc. | | 6,600 | 126,720 |
| EOG Resources, Inc. | | 4,300 | 201,455 |
| World Fuel Services Corp. | | 900 | 21,177 |
| | | | 864,572 |
|
| TOTAL ENERGY | | | 1,265,763 |
|
| FINANCIALS - 13.5% | | | |
| Banks - 4.2% | | | |
| East West Bancorp, Inc. | | 22,800 | 790,248 |
| M&T Bank Corp. | | 8,300 | 879,385 |
| | | | 1,669,633 |
| Capital Markets - 1.3% | | | |
| Federated Hermes, Inc. Class B (non-vtg.) | | 8,100 | 213,516 |
| Raymond James Financial, Inc. | | 2,600 | 180,648 |
| Waddell & Reed Financial, Inc. Class A | | 8,427 | 122,950 |
| | | | 517,114 |
| Consumer Finance - 2.6% | | | |
| Synchrony Financial | | 47,145 | 1,043,319 |
| Insurance - 4.6% | | | |
| Allstate Corp. | | 1,000 | 94,390 |
| American National Group, Inc. | | 100 | 7,365 |
| Globe Life, Inc. | | 1,700 | 135,320 |
| Hartford Financial Services Group, Inc. | | 8,100 | 342,792 |
| MetLife, Inc. | | 15,720 | 595,002 |
| National General Holdings Corp. | | 1,000 | 33,990 |
| Old Republic International Corp. | | 37,700 | 605,839 |
| Unum Group | | 3,000 | 51,690 |
| | | | 1,866,388 |
| Thrifts & Mortgage Finance - 0.8% | | | |
| MGIC Investment Corp. | | 15,800 | 130,666 |
| Radian Group, Inc. | | 13,000 | 193,960 |
| | | | 324,626 |
|
| TOTAL FINANCIALS | | | 5,421,080 |
|
| HEALTH CARE - 7.0% | | | |
| Biotechnology - 1.5% | | | |
| Alexion Pharmaceuticals, Inc. (a) | | 2,600 | 266,474 |
| Amgen, Inc. | | 1,132 | 276,966 |
| United Therapeutics Corp. (a) | | 500 | 55,735 |
| | | | 599,175 |
| Health Care Providers & Services - 4.0% | | | |
| AmerisourceBergen Corp. | | 2,133 | 213,705 |
| Laboratory Corp. of America Holdings (a) | | 3,038 | 586,091 |
| National Healthcare Corp. | | 1,000 | 59,320 |
| Premier, Inc. (a) | | 6,000 | 209,820 |
| Universal Health Services, Inc. Class B | | 5,035 | 553,347 |
| | | | 1,622,283 |
| Pharmaceuticals - 1.5% | | | |
| Jazz Pharmaceuticals PLC (a) | | 5,447 | 589,638 |
|
| TOTAL HEALTH CARE | | | 2,811,096 |
|
| INDUSTRIALS - 16.0% | | | |
| Airlines - 0.0% | | | |
| Copa Holdings SA Class A | | 500 | 20,720 |
| Building Products - 1.0% | | | |
| Fortune Brands Home & Security, Inc. | | 2,600 | 198,900 |
| Ufp Industries, Inc. | | 3,400 | 197,948 |
| | | | 396,848 |
| Commercial Services & Supplies - 0.3% | | | |
| Herman Miller, Inc. | | 1,500 | 35,145 |
| Steelcase, Inc. Class A | | 7,400 | 79,402 |
| | | | 114,547 |
| Construction & Engineering - 1.5% | | | |
| EMCOR Group, Inc. | | 6,400 | 438,400 |
| Valmont Industries, Inc. | | 1,500 | 181,800 |
| | | | 620,200 |
| Electrical Equipment - 3.2% | | | |
| Acuity Brands, Inc. | | 5,883 | 583,005 |
| Encore Wire Corp. | | 3,500 | 175,665 |
| Hubbell, Inc. Class B | | 3,800 | 512,886 |
| | | | 1,271,556 |
| Machinery - 4.2% | | | |
| Allison Transmission Holdings, Inc. | | 19,700 | 735,992 |
| Crane Co. | | 9,633 | 544,939 |
| ITT, Inc. | | 3,600 | 207,828 |
| Mueller Industries, Inc. | | 6,500 | 181,740 |
| | | | 1,670,499 |
| Professional Services - 2.2% | | | |
| Korn Ferry | | 1,400 | 39,340 |
| Manpower, Inc. | | 8,674 | 596,684 |
| Robert Half International, Inc. | | 4,600 | 234,002 |
| | | | 870,026 |
| Road & Rail - 1.4% | | | |
| Landstar System, Inc. | | 4,700 | 572,366 |
| Trading Companies & Distributors - 2.2% | | | |
| HD Supply Holdings, Inc. (a) | | 16,314 | 572,621 |
| MSC Industrial Direct Co., Inc. Class A | | 4,800 | 316,848 |
| | | | 889,469 |
|
| TOTAL INDUSTRIALS | | | 6,426,231 |
|
| INFORMATION TECHNOLOGY - 8.1% | | | |
| Communications Equipment - 0.4% | | | |
| Juniper Networks, Inc. | | 6,000 | 152,280 |
| Electronic Equipment & Components - 2.2% | | | |
| Avnet, Inc. | | 5,900 | 157,648 |
| Sanmina Corp. (a) | | 4,400 | 130,592 |
| SYNNEX Corp. | | 4,800 | 598,752 |
| | | | 886,992 |
| IT Services - 2.7% | | | |
| Amdocs Ltd. | | 17,724 | 1,100,660 |
| Semiconductors & Semiconductor Equipment - 1.9% | | | |
| Applied Materials, Inc. | | 6,200 | 398,846 |
| Cirrus Logic, Inc. (a) | | 5,600 | 383,768 |
| | | | 782,614 |
| Technology Hardware, Storage & Peripherals - 0.9% | | | |
| Super Micro Computer, Inc. (a) | | 3,700 | 112,129 |
| Xerox Holdings Corp. | | 14,100 | 234,765 |
| | | | 346,894 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 3,269,440 |
|
| MATERIALS - 7.7% | | | |
| Chemicals - 3.4% | | | |
| Cabot Corp. | | 9,700 | 353,856 |
| Innospec, Inc. | | 4,693 | 352,773 |
| Minerals Technologies, Inc. | | 1,500 | 70,320 |
| NewMarket Corp. | | 1,600 | 599,696 |
| | | | 1,376,645 |
| Metals & Mining - 4.0% | | | |
| Kaiser Aluminum Corp. | | 200 | 12,390 |
| Reliance Steel & Aluminum Co. | | 16,279 | 1,599,575 |
| | | | 1,611,965 |
| Paper & Forest Products - 0.3% | | | |
| Schweitzer-Mauduit International, Inc. | | 3,100 | 100,843 |
|
| TOTAL MATERIALS | | | 3,089,453 |
|
| REAL ESTATE - 11.1% | | | |
| Equity Real Estate Investment Trusts (REITs) - 4.4% | | | |
| Apple Hospitality (REIT), Inc. | | 80,157 | 706,985 |
| CoreCivic, Inc. | | 8,200 | 73,062 |
| Equity Commonwealth | | 6,700 | 211,519 |
| Gaming & Leisure Properties | | 8,705 | 315,208 |
| Highwoods Properties, Inc. (SBI) | | 7,400 | 283,716 |
| PS Business Parks, Inc. | | 1,300 | 179,335 |
| | | | 1,769,825 |
| Real Estate Management & Development - 6.7% | | | |
| CBRE Group, Inc. (a) | | 35,676 | 1,562,966 |
| Jones Lang LaSalle, Inc. | | 11,354 | 1,123,024 |
| | | | 2,685,990 |
|
| TOTAL REAL ESTATE | | | 4,455,815 |
|
| UTILITIES - 10.5% | | | |
| Electric Utilities - 7.1% | | | |
| Exelon Corp. | | 14,016 | 541,158 |
| Hawaiian Electric Industries, Inc. | | 5,844 | 211,903 |
| NRG Energy, Inc. | | 29,382 | 993,405 |
| OGE Energy Corp. | | 33,131 | 1,090,010 |
| | | | 2,836,476 |
| Gas Utilities - 0.1% | | | |
| National Fuel Gas Co. | | 900 | 36,513 |
| Independent Power and Renewable Electricity Producers - 1.0% | | | |
| Vistra Corp. | | 22,000 | 410,520 |
| Multi-Utilities - 2.3% | | | |
| MDU Resources Group, Inc. | | 43,373 | 909,966 |
|
| TOTAL UTILITIES | | | 4,193,475 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $43,526,437) | | | 39,480,880 |
|
| Money Market Funds - 1.5% | | | |
| Fidelity Cash Central Fund 0.14% (c) | | 540,315 | 540,477 |
| Fidelity Securities Lending Cash Central Fund 0.13% (c)(d) | | 47,995 | 48,000 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $588,430) | | | 588,477 |
| TOTAL INVESTMENT IN SECURITIES - 99.9% | | | |
| (Cost $44,114,867) | | | 40,069,357 |
| NET OTHER ASSETS (LIABILITIES) - 0.1% | | | 47,822 |
| NET ASSETS - 100% | | | $40,117,179 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
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 | $3,433 |
| Fidelity Securities Lending Cash Central Fund | 284 |
| Total | $3,717 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $1,402,472 | $1,402,472 | $-- | $-- |
| Consumer Discretionary | 5,032,899 | 5,032,899 | -- | -- |
| Consumer Staples | 2,113,156 | 2,113,156 | -- | -- |
| Energy | 1,265,763 | 1,265,763 | -- | -- |
| Financials | 5,421,080 | 5,421,080 | -- | -- |
| Health Care | 2,811,096 | 2,811,096 | -- | -- |
| Industrials | 6,426,231 | 6,426,231 | -- | -- |
| Information Technology | 3,269,440 | 3,269,440 | -- | -- |
| Materials | 3,089,453 | 3,089,453 | -- | -- |
| Real Estate | 4,455,815 | 4,455,815 | -- | -- |
| Utilities | 4,193,475 | 4,193,475 | -- | -- |
| Money Market Funds | 588,477 | 588,477 | -- | -- |
| Total Investments in Securities: | $40,069,357 | $40,069,357 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $46,200) — See accompanying schedule:
Unaffiliated issuers (cost $43,526,437) | $39,480,880 | |
| Fidelity Central Funds (cost $588,430) | 588,477 | |
| Total Investment in Securities (cost $44,114,867) | | $40,069,357 |
| Receivable for fund shares sold | | 96,011 |
| Dividends receivable | | 31,846 |
| Distributions receivable from Fidelity Central Funds | | 85 |
| Other receivables | | 3,134 |
| Total assets | | 40,200,433 |
| Liabilities | | |
| Payable for fund shares redeemed | $19,479 | |
| Accrued management fee | 15,027 | |
| Other payables and accrued expenses | 748 | |
| Collateral on securities loaned | 48,000 | |
| Total liabilities | | 83,254 |
| Net Assets | | $40,117,179 |
| Net Assets consist of: | | |
| Paid in capital | | $51,942,879 |
| Total accumulated earnings (loss) | | (11,825,700) |
| Net Assets | | $40,117,179 |
| Net Asset Value, offering price and redemption price per share ($40,117,179 ÷ 4,514,763 shares) | | $8.89 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends | | $530,207 |
| Income from Fidelity Central Funds (including $284 from security lending) | | 3,717 |
| Total income | | 533,924 |
| Expenses | | |
| Management fee | $93,074 | |
| Independent trustees' fees and expenses | 142 | |
| Miscellaneous | 982 | |
| Total expenses before reductions | 94,198 | |
| Expense reductions | (5,131) | |
| Total expenses after reductions | | 89,067 |
| Net investment income (loss) | | 444,857 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (2,230,033) | |
| Fidelity Central Funds | 52 | |
| Foreign currency transactions | 689 | |
| Total net realized gain (loss) | | (2,229,292) |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (5,588,779) | |
| Fidelity Central Funds | 47 | |
| Assets and liabilities in foreign currencies | (14) | |
| Total change in net unrealized appreciation (depreciation) | | (5,588,746) |
| Net gain (loss) | | (7,818,038) |
| Net increase (decrease) in net assets resulting from operations | | $(7,373,181) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended July 31, 2020 (Unaudited) | Year ended January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $444,857 | $1,051,757 |
| Net realized gain (loss) | (2,229,292) | (1,226,520) |
| Change in net unrealized appreciation (depreciation) | (5,588,746) | 3,245,984 |
| Net increase (decrease) in net assets resulting from operations | (7,373,181) | 3,071,221 |
| Distributions to shareholders | (64,879) | (925,927) |
| Share transactions | | |
| Proceeds from sales of shares | 3,359,230 | 12,851,209 |
| Reinvestment of distributions | 64,879 | 925,927 |
| Cost of shares redeemed | (9,056,464) | (11,658,955) |
| Net increase (decrease) in net assets resulting from share transactions | (5,632,355) | 2,118,181 |
| Total increase (decrease) in net assets | (13,070,415) | 4,263,475 |
| Net Assets | | |
| Beginning of period | 53,187,594 | 48,924,119 |
| End of period | $40,117,179 | $53,187,594 |
| Other Information | | |
| Shares | | |
| Sold | 400,906 | 1,265,042 |
| Issued in reinvestment of distributions | 7,060 | 87,517 |
| Redeemed | (1,068,002) | (1,146,724) |
| Net increase (decrease) | (660,036) | 205,835 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Mid Cap Value K6 Fund
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | |
| | 2020 | 2020 | 2019 | 2018 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $10.28 | $9.85 | $11.35 | $10.00 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .09 | .21 | .21 | .11 |
| Net realized and unrealized gain (loss) | (1.47) | .40 | (1.44) | 1.33 |
| Total from investment operations | (1.38) | .61 | (1.23) | 1.44 |
| Distributions from net investment income | (.01) | (.18) | (.22) | (.09) |
| Distributions from net realized gain | – | – | (.05) | – |
| Total distributions | (.01) | (.18) | (.27) | (.09) |
| Net asset value, end of period | $8.89 | $10.28 | $9.85 | $11.35 |
| Total ReturnC,D | (13.40)% | 6.15% | (10.82)% | 14.38% |
| Ratios to Average Net AssetsE,F | | | | |
| Expenses before reductions | .46%G,H | .45% | .45% | .45%H |
| Expenses net of fee waivers, if any | .46%G,H | .45% | .45% | .45%H |
| Expenses net of all reductions | .43%G,H | .44% | .44% | .45%H |
| Net investment income (loss) | 2.16%G,H | 2.05% | 2.05% | 1.52%H |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $40,117 | $53,188 | $48,924 | $67,563 |
| Portfolio turnover rateI | 100%H | 102%J | 89%J | 142%H,J |
A For the period May 25, 2017 (commencement of operations) to January 31, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund 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 Fund.
G Proxy expenses are not annualized.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended July 31, 2020
1. Organization.
Fidelity Mid Cap Value K6 Fund (the Fund) is a fund of Fidelity Devonshire Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to partnerships, foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $2,724,028 |
| Gross unrealized depreciation | (6,903,243) |
| Net unrealized appreciation (depreciation) | $(4,179,215) |
| Tax cost | $44,248,572 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(3,873,355) |
| Long-term | (1,974,374) |
| Total capital loss carryforward | $(5,847,729) |
Due to large redemptions in a prior period, approximately $3,019,437 of the Fund's realized capital losses are subject to limitation. Due to this limitation, the Fund will only be permitted to use approximately $1,170,413 of those capital losses per year to offset capital gains.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| | Purchases ($) | Sales ($) |
| Fidelity Mid Cap Value K6 Fund | 20,611,813 | 24,385,429 |
Prior Fiscal Year Unaffiliated Exchanges In-Kind. During the prior period, the Fidelity Mid Cap Value K6 Fund received investments in exchange for shares of the Fidelity Mid Cap Value K6 Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. For additional information of the Fidelity Mid Cap Value K6 Fund in-kind transactions, please refer to the Fidelity Mid Cap Value K6 Fund prior annual shareholder report.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .45% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| | Amount |
| Fidelity Mid Cap Value K6 Fund | $760 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| | Amount |
| Fidelity Mid Cap Value K6 Fund | $55 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Total fees paid by the Fund to NFS, as lending agent, amounted to $28. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Net income from the Fidelity Securities Lending Cash Central Fund during the period is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $5,105 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $26.
9. 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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
February 1, 2020 | Ending
Account Value
July 31, 2020 | Expenses Paid
During Period-B
February 1, 2020
to July 31, 2020 |
| Fidelity Mid Cap Value K6 Fund | .46% | | | |
| Actual | | $1,000.00 | $866.00 | $2.13 |
| Hypothetical-C | | $1,000.00 | $1,022.58 | $2.31 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| | # of
Votes | % of
Votes |
| Dennis J. Dirks |
| Affirmative | 20,677,600,881.166 | 98.531 |
| Withheld | 308,216,367.332 | 1.469 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Donald F. Donahue |
| Affirmative | 20,685,205,663.711 | 98.568 |
| Withheld | 300,611,584.787 | 1.432 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Bettina Doulton |
| Affirmative | 20,701,129,729.034 | 98.643 |
| Withheld | 284,687,519.464 | 1.357 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Vicki L. Fuller |
| Affirmative | 20,713,892,146.063 | 98.704 |
| Withheld | 271,925,102.435 | 1.296 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Patricia L. Kampling |
| Affirmative | 20,693,289,719.327 | 98.606 |
| Withheld | 292,527,529.171 | 1.394 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Alan J. Lacy |
| Affirmative | 20,659,591,158.873 | 98.445 |
| Withheld | 326,226,089.625 | 1.555 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Ned C. Lautenbach |
| Affirmative | 20,634,244,420.039 | 98.325 |
| Withheld | 351,572,828.459 | 1.675 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Robert A. Lawrence |
| Affirmative | 20,672,781,907.548 | 98.508 |
| Withheld | 313,035,340.950 | 1.492 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Joseph Mauriello |
| Affirmative | 20,652,465,304.654 | 98.412 |
| Withheld | 333,351,943.843 | 1.588 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Cornelia M. Small |
| Affirmative | 20,671,641,667.984 | 98.503 |
| Withheld | 314,175,580.514 | 1.497 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Garnett A. Smith |
| Affirmative | 20,655,644,270.628 | 98.427 |
| Withheld | 330,172,977.870 | 1.573 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| David M. Thomas |
| Affirmative | 20,654,595,907.599 | 98.422 |
| Withheld | 331,221,340.899 | 1.578 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Susan Tomasky |
| Affirmative | 20,686,662,870.375 | 98.574 |
| Withheld | 299,154,378.123 | 1.426 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Michael E. Wiley |
| Affirmative | 20,662,847,882.871 | 98.461 |
| Withheld | 322,969,365.626 | 1.539 |
| TOTAL | 20,985,817,248.498 | 100.000 |
|
| Proposal 1 reflects trust wide proposal and voting results. |
MCVK6-SANN-0920
1.9883982.103
Fidelity® Series All-Sector Equity Fund
Fidelity® Series Stock Selector Large Cap Value Fund
Fidelity® Series Value Discovery Fund
Semi-Annual Report
July 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Funds nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Fidelity® Series All-Sector Equity Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| Microsoft Corp. | 6.0 |
| Apple, Inc. | 5.6 |
| Amazon.com, Inc. | 3.9 |
| Alphabet, Inc. Class C | 3.2 |
| Facebook, Inc. Class A | 2.7 |
| UnitedHealth Group, Inc. | 1.5 |
| Berkshire Hathaway, Inc. Class B | 1.4 |
| Procter & Gamble Co. | 1.3 |
| NVIDIA Corp. | 1.3 |
| Eli Lilly & Co. | 1.2 |
| | 28.1 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Information Technology | 27.1 |
| Health Care | 14.3 |
| Consumer Discretionary | 11.2 |
| Communication Services | 10.3 |
| Financials | 10.2 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020* |
| | Stocks and Equity Futures | 98.9% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.1% |
* Foreign investments - 3.9%
Fidelity® Series All-Sector Equity Fund
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.6% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 10.3% | | | |
| Diversified Telecommunication Services - 0.2% | | | |
| AT&T, Inc. | | 235,300 | $6,960,174 |
| Entertainment - 2.4% | | | |
| Activision Blizzard, Inc. | | 354,121 | 29,261,018 |
| Electronic Arts, Inc. (a) | | 42,100 | 5,962,202 |
| Live Nation Entertainment, Inc. (a) | | 11,800 | 552,358 |
| Netflix, Inc. (a) | | 47,600 | 23,270,688 |
| Take-Two Interactive Software, Inc. (a) | | 11,700 | 1,919,034 |
| The Walt Disney Co. | | 171,217 | 20,022,116 |
| World Wrestling Entertainment, Inc. Class A (b) | | 17,300 | 806,353 |
| | | | 81,793,769 |
| Interactive Media & Services - 6.3% | | | |
| Alphabet, Inc.: | | | �� |
| Class A (a) | | 4,800 | 7,142,160 |
| Class C (a) | | 73,966 | 109,688,619 |
| Facebook, Inc. Class A (a) | | 370,600 | 94,010,102 |
| InterActiveCorp (a) | | 17,600 | 2,330,592 |
| Match Group, Inc. (a) | | 43,815 | 4,499,801 |
| TripAdvisor, Inc. | | 12,500 | 252,875 |
| | | | 217,924,149 |
| Media - 0.8% | | | |
| Altice U.S.A., Inc. Class A (a) | | 175,400 | 4,734,046 |
| Comcast Corp. Class A | | 233,048 | 9,974,454 |
| Discovery Communications, Inc. Class A (a) | | 30,900 | 651,990 |
| Interpublic Group of Companies, Inc. | | 38,600 | 696,730 |
| Liberty Media Corp.: | | | |
| Liberty Formula One Group Series C (a) | | 72,500 | 2,569,400 |
| Liberty SiriusXM Series A (a) | | 32,500 | 1,130,675 |
| Liberty SiriusXM Series C (a) | | 3,165 | 110,743 |
| Nexstar Broadcasting Group, Inc. Class A | | 32,900 | 2,883,685 |
| ViacomCBS, Inc. Class B | | 117,492 | 3,063,016 |
| | | | 25,814,739 |
| Wireless Telecommunication Services - 0.6% | | | |
| T-Mobile U.S., Inc. | | 184,112 | 19,769,947 |
|
| TOTAL COMMUNICATION SERVICES | | | 352,262,778 |
|
| CONSUMER DISCRETIONARY - 11.2% | | | |
| Auto Components - 0.3% | | | |
| Aptiv PLC | | 154,500 | 12,012,375 |
| Automobiles - 0.8% | | | |
| Tesla, Inc. (a) | | 18,900 | 27,041,364 |
| Diversified Consumer Services - 0.2% | | | |
| Service Corp. International | | 154,500 | 6,699,120 |
| Hotels, Restaurants & Leisure - 1.3% | | | |
| Las Vegas Sands Corp. | | 215,600 | 9,408,784 |
| McDonald's Corp. | | 174,900 | 33,979,572 |
| | | | 43,388,356 |
| Household Durables - 0.2% | | | |
| Lennar Corp. Class A | | 118,600 | 8,580,710 |
| Internet & Direct Marketing Retail - 4.4% | | | |
| Amazon.com, Inc. (a) | | 41,920 | 132,663,386 |
| The Booking Holdings, Inc. (a) | | 10,190 | 16,937,105 |
| | | | 149,600,491 |
| Leisure Products - 0.3% | | | |
| Hasbro, Inc. | | 126,600 | 9,211,416 |
| Multiline Retail - 0.4% | | | |
| Dollar Tree, Inc. (a) | | 140,000 | 13,069,000 |
| Specialty Retail - 2.2% | | | |
| Burlington Stores, Inc. (a) | | 58,160 | 10,934,080 |
| The Home Depot, Inc. | | 138,279 | 36,711,692 |
| TJX Companies, Inc. | | 315,796 | 16,418,234 |
| Ulta Beauty, Inc. (a) | | 61,000 | 11,772,390 |
| | | | 75,836,396 |
| Textiles, Apparel & Luxury Goods - 1.1% | | | |
| Columbia Sportswear Co. (b) | | 101,000 | 7,659,840 |
| NIKE, Inc. Class B | | 196,600 | 19,190,126 |
| VF Corp. | | 189,800 | 11,456,328 |
| | | | 38,306,294 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 383,745,522 |
|
| CONSUMER STAPLES - 6.5% | | | |
| Beverages - 2.2% | | | |
| Boston Beer Co., Inc. Class A (a) | | 5,000 | 4,052,200 |
| Keurig Dr. Pepper, Inc. (b) | | 211,943 | 6,483,336 |
| Monster Beverage Corp. (a) | | 117,898 | 9,252,635 |
| PepsiCo, Inc. | | 224,300 | 30,877,138 |
| The Coca-Cola Co. | | 492,200 | 23,251,528 |
| | | | 73,916,837 |
| Food & Staples Retailing - 1.7% | | | |
| Costco Wholesale Corp. | | 68,300 | 22,233,699 |
| Kroger Co. | | 150,500 | 5,235,895 |
| Sysco Corp. | | 87,800 | 4,640,230 |
| U.S. Foods Holding Corp. (a) | | 11,100 | 225,330 |
| Walmart, Inc. | | 194,600 | 25,181,240 |
| | | | 57,516,394 |
| Food Products - 0.6% | | | |
| Beyond Meat, Inc. (a)(b) | | 13,500 | 1,699,650 |
| Lamb Weston Holdings, Inc. | | 68,400 | 4,109,472 |
| Mondelez International, Inc. | | 290,200 | 16,103,198 |
| | | | 21,912,320 |
| Household Products - 1.6% | | | |
| Church & Dwight Co., Inc. | | 58,200 | 5,606,406 |
| Clorox Co. | | 19,400 | 4,588,294 |
| Energizer Holdings, Inc. | | 42,100 | 2,110,473 |
| Procter & Gamble Co. | | 337,100 | 44,200,552 |
| | | | 56,505,725 |
| Personal Products - 0.3% | | | |
| Estee Lauder Companies, Inc. Class A | | 60,700 | 11,990,678 |
| Tobacco - 0.1% | | | |
| Altria Group, Inc. | | 61,930 | 2,548,420 |
|
| TOTAL CONSUMER STAPLES | | | 224,390,374 |
|
| ENERGY - 2.5% | | | |
| Energy Equipment & Services - 0.1% | | | |
| Baker Hughes Co. Class A | | 181,200 | 2,806,788 |
| Championx Corp. (a) | | 37,863 | 360,077 |
| | | | 3,166,865 |
| Oil, Gas & Consumable Fuels - 2.4% | | | |
| Apache Corp. | | 870,300 | 13,359,105 |
| Cheniere Energy, Inc. (a) | | 60,100 | 2,973,748 |
| Chevron Corp. | | 52,129 | 4,375,708 |
| Exxon Mobil Corp. | | 770,024 | 32,402,610 |
| Hess Corp. | | 307,900 | 15,151,759 |
| Kinder Morgan, Inc. | | 53,900 | 759,990 |
| Kosmos Energy Ltd. | | 1,192,700 | 1,920,247 |
| Phillips 66 Co. | | 96,200 | 5,966,324 |
| The Williams Companies, Inc. | | 209,700 | 4,011,561 |
| Valero Energy Corp. | | 65,800 | 3,699,934 |
| | | | 84,620,986 |
|
| TOTAL ENERGY | | | 87,787,851 |
|
| FINANCIALS - 10.2% | | | |
| Banks - 3.0% | | | |
| Bank of America Corp. | | 1,017,187 | 25,307,613 |
| Citigroup, Inc. | | 445,484 | 22,278,655 |
| Comerica, Inc. | | 102,800 | 3,959,856 |
| First Horizon National Corp. | | 364,900 | 3,382,623 |
| Huntington Bancshares, Inc. | | 253,657 | 2,351,400 |
| JPMorgan Chase & Co. | | 182,600 | 17,646,464 |
| KeyCorp | | 345,300 | 4,147,053 |
| M&T Bank Corp. | | 39,900 | 4,227,405 |
| Signature Bank | | 30,900 | 3,168,177 |
| Synovus Financial Corp. | | 79,800 | 1,607,970 |
| Truist Financial Corp. | | 110,383 | 4,134,947 |
| Wells Fargo & Co. | | 383,500 | 9,303,710 |
| | | | 101,515,873 |
| Capital Markets - 2.4% | | | |
| Bank of New York Mellon Corp. | | 497,900 | 17,849,715 |
| BlackRock, Inc. Class A | | 21,800 | 12,535,218 |
| Cboe Global Markets, Inc. | | 75,200 | 6,595,040 |
| Intercontinental Exchange, Inc. | | 171,400 | 16,588,092 |
| Morgan Stanley | | 321,900 | 15,734,472 |
| State Street Corp. | | 63,000 | 4,018,770 |
| Virtu Financial, Inc. Class A | | 324,863 | 8,056,602 |
| | | | 81,377,909 |
| Consumer Finance - 1.3% | | | |
| Ally Financial, Inc. | | 216,400 | 4,349,640 |
| Capital One Financial Corp. | | 518,905 | 33,106,139 |
| Discover Financial Services | | 118,000 | 5,832,740 |
| SLM Corp. | | 352,800 | 2,388,456 |
| | | | 45,676,975 |
| Diversified Financial Services - 1.4% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 246,200 | 48,201,036 |
| Insurance - 2.1% | | | |
| American International Group, Inc. | | 201,000 | 6,460,140 |
| Chubb Ltd. | | 28,300 | 3,600,892 |
| Hartford Financial Services Group, Inc. | | 267,800 | 11,333,296 |
| Marsh & McLennan Companies, Inc. | | 86,800 | 10,120,880 |
| The Travelers Companies, Inc. | | 211,100 | 24,154,062 |
| Willis Towers Watson PLC | | 79,500 | 16,695,795 |
| | | | 72,365,065 |
|
| TOTAL FINANCIALS | | | 349,136,858 |
|
| HEALTH CARE - 14.3% | | | |
| Biotechnology - 2.9% | | | |
| Alexion Pharmaceuticals, Inc. (a) | | 92,500 | 9,480,325 |
| Amgen, Inc. | | 136,903 | 33,496,057 |
| Biogen, Inc. (a) | | 10,400 | 2,856,776 |
| Immunomedics, Inc. (a) | | 85,000 | 3,589,550 |
| Neurocrine Biosciences, Inc. (a) | | 65,200 | 7,847,472 |
| Regeneron Pharmaceuticals, Inc. (a) | | 30,700 | 19,404,549 |
| Sarepta Therapeutics, Inc. (a) | | 19,300 | 2,962,936 |
| Seattle Genetics, Inc. (a) | | 24,000 | 3,990,480 |
| Vertex Pharmaceuticals, Inc. (a) | | 63,400 | 17,244,800 |
| | | | 100,872,945 |
| Health Care Equipment & Supplies - 3.0% | | | |
| Abbott Laboratories | | 219,600 | 22,100,544 |
| Becton, Dickinson & Co. | | 103,700 | 29,174,958 |
| Boston Scientific Corp. (a) | | 427,010 | 16,469,776 |
| DexCom, Inc. (a) | | 16,800 | 7,317,072 |
| Hologic, Inc. (a) | | 24,500 | 1,709,610 |
| Intuitive Surgical, Inc. (a) | | 32,200 | 22,071,168 |
| Masimo Corp. (a) | | 18,000 | 3,962,160 |
| | | | 102,805,288 |
| Health Care Providers & Services - 3.8% | | | |
| AmerisourceBergen Corp. | | 51,924 | 5,202,266 |
| Centene Corp. (a) | | 206,100 | 13,448,025 |
| Cigna Corp. | | 108,500 | 18,736,865 |
| HCA Holdings, Inc. | | 83,700 | 10,599,768 |
| Humana, Inc. | | 70,000 | 27,471,500 |
| UnitedHealth Group, Inc. | | 175,000 | 52,986,500 |
| | | | 128,444,924 |
| Life Sciences Tools & Services - 1.0% | | | |
| Thermo Fisher Scientific, Inc. | | 81,200 | 33,612,740 |
| Pharmaceuticals - 3.6% | | | |
| Bristol-Myers Squibb Co. | | 559,800 | 32,837,868 |
| Eli Lilly & Co. | | 271,066 | 40,738,509 |
| Horizon Pharma PLC (a) | | 299,600 | 18,332,524 |
| Merck & Co., Inc. | | 170,600 | 13,688,944 |
| Zoetis, Inc. Class A | | 120,100 | 18,216,768 |
| | | | 123,814,613 |
|
| TOTAL HEALTH CARE | | | 489,550,510 |
|
| INDUSTRIALS - 7.5% | | | |
| Aerospace & Defense - 1.8% | | | |
| General Dynamics Corp. | | 118,200 | 17,344,668 |
| Northrop Grumman Corp. | | 50,200 | 16,315,502 |
| Raytheon Technologies Corp. | | 332,048 | 18,820,481 |
| The Boeing Co. | | 51,200 | 8,089,600 |
| | | | 60,570,251 |
| Air Freight & Logistics - 0.8% | | | |
| FedEx Corp. | | 167,299 | 28,173,152 |
| Construction & Engineering - 0.7% | | | |
| AECOM (a) | | 662,700 | 23,983,113 |
| Electrical Equipment - 0.7% | | | |
| Sensata Technologies, Inc. PLC (a) | | 681,739 | 25,892,447 |
| Industrial Conglomerates - 0.7% | | | |
| 3M Co. | | 40,700 | 6,124,129 |
| General Electric Co. | | 2,544,219 | 15,443,409 |
| Honeywell International, Inc. | | 17,900 | 2,673,723 |
| | | | 24,241,261 |
| Machinery - 0.9% | | | |
| Allison Transmission Holdings, Inc. | | 652,000 | 24,358,720 |
| Caterpillar, Inc. | | 21,600 | 2,870,208 |
| Colfax Corp. (a)(b) | | 100,231 | 2,914,717 |
| | | | 30,143,645 |
| Professional Services - 0.5% | | | |
| Nielsen Holdings PLC | | 1,106,584 | 15,968,007 |
| Road & Rail - 0.8% | | | |
| CSX Corp. | | 35,800 | 2,553,972 |
| Norfolk Southern Corp. | | 103,800 | 19,951,398 |
| Union Pacific Corp. | | 27,500 | 4,767,125 |
| | | | 27,272,495 |
| Trading Companies & Distributors - 0.6% | | | |
| HD Supply Holdings, Inc. (a) | | 625,300 | 21,948,030 |
|
| TOTAL INDUSTRIALS | | | 258,192,401 |
|
| INFORMATION TECHNOLOGY - 27.1% | | | |
| Communications Equipment - 0.0% | | | |
| CommScope Holding Co., Inc. (a) | | 15,900 | 147,552 |
| Electronic Equipment & Components - 1.3% | | | |
| Avnet, Inc. | | 17,200 | 459,584 |
| Corning, Inc. | | 162,000 | 5,022,000 |
| Jabil, Inc. | | 1,144,017 | 39,880,433 |
| SYNNEX Corp. | | 6,000 | 748,440 |
| | | | 46,110,457 |
| IT Services - 4.9% | | | |
| Alliance Data Systems Corp. | | 5,400 | 239,544 |
| Cognizant Technology Solutions Corp. Class A | | 81,200 | 5,547,584 |
| DXC Technology Co. | | 29,400 | 526,554 |
| Euronet Worldwide, Inc. (a) | | 15,900 | 1,528,626 |
| Fidelity National Information Services, Inc. | | 240,258 | 35,152,148 |
| Genpact Ltd. | | 465,100 | 18,520,282 |
| Global Payments, Inc. | | 72,400 | 12,888,648 |
| GoDaddy, Inc. (a) | | 84,705 | 5,953,067 |
| IBM Corp. | | 11,000 | 1,352,340 |
| MasterCard, Inc. Class A | | 98,000 | 30,235,940 |
| MongoDB, Inc. Class A (a)(b) | | 14,600 | 3,344,568 |
| PayPal Holdings, Inc. (a) | | 163,000 | 31,959,410 |
| Sabre Corp. | | 389,700 | 2,946,132 |
| Square, Inc. (a) | | 41,100 | 5,336,835 |
| Twilio, Inc. Class A (a) | | 39,300 | 10,902,606 |
| WEX, Inc. (a) | | 5,000 | 791,850 |
| | | | 167,226,134 |
| Semiconductors & Semiconductor Equipment - 3.7% | | | |
| Advanced Micro Devices, Inc. (a) | | 170,012 | 13,164,029 |
| Applied Materials, Inc. | | 58,500 | 3,763,305 |
| Broadcom, Inc. | | 11,300 | 3,579,275 |
| Lam Research Corp. | | 2,130 | 803,351 |
| Marvell Technology Group Ltd. | | 497,600 | 18,147,472 |
| Micron Technology, Inc. (a) | | 359,930 | 18,016,296 |
| NVIDIA Corp. | | 101,680 | 43,172,311 |
| ON Semiconductor Corp. (a) | | 471,468 | 9,712,241 |
| Qualcomm, Inc. | | 104,104 | 10,994,423 |
| Skyworks Solutions, Inc. | | 20,950 | 3,049,901 |
| Xilinx, Inc. | | 31,100 | 3,338,585 |
| | | | 127,741,189 |
| Software - 11.1% | | | |
| Adobe, Inc. (a) | | 43,500 | 19,327,920 |
| Autodesk, Inc. (a) | | 49,335 | 11,664,274 |
| Citrix Systems, Inc. | | 18,554 | 2,648,769 |
| Elastic NV (a) | | 122,200 | 11,754,418 |
| HubSpot, Inc. (a) | | 4,900 | 1,149,589 |
| Microsoft Corp. | | 995,500 | 204,087,456 |
| Nortonlifelock, Inc. | | 1,367,500 | 29,332,875 |
| Nuance Communications, Inc. (a) | | 160,701 | 4,395,172 |
| Nutanix, Inc. Class A (a) | | 12,000 | 266,280 |
| Oracle Corp. | | 298,100 | 16,529,645 |
| Palo Alto Networks, Inc. (a) | | 15,300 | 3,915,576 |
| Parametric Technology Corp. (a) | | 30,400 | 2,601,024 |
| Pluralsight, Inc. (a) | | 214,600 | 4,543,082 |
| RealPage, Inc. (a) | | 38,000 | 2,394,380 |
| RingCentral, Inc. (a) | | 13,300 | 3,860,591 |
| Salesforce.com, Inc. (a) | | 173,863 | 33,877,206 |
| Splunk, Inc. (a) | | 17,500 | 3,671,850 |
| SS&C Technologies Holdings, Inc. | | 182,100 | 10,470,750 |
| Workday, Inc. Class A (a) | | 36,200 | 6,549,304 |
| Zendesk, Inc. (a) | | 80,200 | 7,310,230 |
| | | | 380,350,391 |
| Technology Hardware, Storage & Peripherals - 6.1% | | | |
| Apple, Inc. | | 452,259 | 192,228,165 |
| HP, Inc. | | 307,900 | 5,412,882 |
| Pure Storage, Inc. Class A (a) | | 23,300 | 416,138 |
| Western Digital Corp. | | 220,200 | 9,490,620 |
| Xerox Holdings Corp. | | 19,700 | 328,005 |
| | | | 207,875,810 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 929,451,533 |
|
| MATERIALS - 2.7% | | | |
| Chemicals - 1.4% | | | |
| Air Products & Chemicals, Inc. | | 24,577 | 7,044,506 |
| Albemarle Corp. U.S. | | 29,800 | 2,457,308 |
| DuPont de Nemours, Inc. | | 109,074 | 5,833,278 |
| Ecolab, Inc. | | 31,082 | 5,814,821 |
| FMC Corp. | | 42,648 | 4,522,820 |
| Linde PLC | | 61,386 | 15,046,322 |
| LyondellBasell Industries NV Class A | | 36,000 | 2,250,720 |
| Sherwin-Williams Co. | | 6,785 | 4,396,137 |
| | | | 47,365,912 |
| Construction Materials - 0.4% | | | |
| Martin Marietta Materials, Inc. | | 30,439 | 6,306,352 |
| Vulcan Materials Co. | | 54,900 | 6,446,358 |
| | | | 12,752,710 |
| Containers & Packaging - 0.2% | | | |
| Crown Holdings, Inc. (a) | | 93,500 | 6,692,730 |
| Metals & Mining - 0.7% | | | |
| Freeport-McMoRan, Inc. | | 964,834 | 12,465,655 |
| Newmont Corp. | | 109,500 | 7,577,400 |
| Reliance Steel & Aluminum Co. | | 26,969 | 2,649,974 |
| Royal Gold, Inc. | | 15,100 | 2,112,943 |
| | | | 24,805,972 |
|
| TOTAL MATERIALS | | | 91,617,324 |
|
| REAL ESTATE - 3.4% | | | |
| Equity Real Estate Investment Trusts (REITs) - 3.3% | | | |
| American Homes 4 Rent Class A | | 319,700 | 9,271,300 |
| American Tower Corp. | | 85,700 | 22,401,123 |
| Corporate Office Properties Trust (SBI) | | 197,200 | 5,221,856 |
| Digital Realty Trust, Inc. | | 44,900 | 7,208,246 |
| Douglas Emmett, Inc. | | 215,500 | 6,279,670 |
| Equinix, Inc. | | 14,300 | 11,232,364 |
| Equity Lifestyle Properties, Inc. | | 106,900 | 7,303,408 |
| Prologis (REIT), Inc. | | 210,800 | 22,222,536 |
| Public Storage | | 6,900 | 1,379,172 |
| SBA Communications Corp. Class A | | 20,300 | 6,324,262 |
| VICI Properties, Inc. | | 118,200 | 2,566,122 |
| Weyerhaeuser Co. | | 426,400 | 11,858,184 |
| | | | 113,268,243 |
| Real Estate Management & Development - 0.1% | | | |
| Jones Lang LaSalle, Inc. | | 48,600 | 4,807,026 |
|
| TOTAL REAL ESTATE | | | 118,075,269 |
|
| UTILITIES - 2.9% | | | |
| Electric Utilities - 2.0% | | | |
| Edison International | | 155,400 | 8,651,118 |
| Entergy Corp. | | 53,600 | 5,634,968 |
| Evergy, Inc. | | 95,900 | 6,217,197 |
| Exelon Corp. | | 253,693 | 9,795,087 |
| FirstEnergy Corp. | | 142,600 | 4,135,400 |
| NextEra Energy, Inc. | | 65,135 | 18,283,395 |
| NRG Energy, Inc. | | 46,200 | 1,562,022 |
| PG&E Corp. (c) | | 549,393 | 4,879,983 |
| PG&E Corp. (a) | | 63,000 | 589,050 |
| Southern Co. | | 168,500 | 9,201,785 |
| | | | 68,950,005 |
| Independent Power and Renewable Electricity Producers - 0.1% | | | |
| The AES Corp. | | 75,900 | 1,155,957 |
| Vistra Corp. | | 151,000 | 2,817,660 |
| | | | 3,973,617 |
| Multi-Utilities - 0.8% | | | |
| CenterPoint Energy, Inc. | | 209,390 | 3,980,504 |
| Dominion Energy, Inc. | | 175,814 | 14,246,208 |
| Sempra Energy | | 67,244 | 8,369,188 |
| | | | 26,595,900 |
|
| TOTAL UTILITIES | | | 99,519,522 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $2,194,183,657) | | | 3,383,729,942 |
| | | Principal Amount | Value |
|
| U.S. Treasury Obligations - 0.1% | | | |
| U.S. Treasury Bills, yield at date of purchase 0.15% to 0.17% 9/3/20 to 9/10/20 (d) | | | |
| (Cost $3,589,449) | | 3,590,000 | 3,589,701 |
| | | Shares | Value |
|
| Money Market Funds - 1.7% | | | |
| Fidelity Cash Central Fund 0.14% (e) | | 42,094,444 | $42,107,073 |
| Fidelity Securities Lending Cash Central Fund 0.13% (e)(f) | | 14,460,084 | 14,461,530 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $56,563,474) | | | 56,568,603 |
| TOTAL INVESTMENT IN SECURITIES - 100.4% | | | |
| (Cost $2,254,336,580) | | | 3,443,888,246 |
| NET OTHER ASSETS (LIABILITIES) - (0.4)% | | | (12,574,426) |
| NET ASSETS - 100% | | | $3,431,313,820 |
| Futures Contracts | | | | | |
| | Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) |
| Purchased | | | | | |
| Equity Index Contracts | | | | | |
| CME E-mini S&P 500 Index Contracts (United States) | 54 | Sept. 2020 | $8,811,450 | $713,522 | $713,522 |
The notional amount of futures purchased as a percentage of Net Assets is 0.3%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $4,879,983 or 0.1% of net assets.
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $974,916.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PG&E Corp. | 6/30/20 | $5,219,234 |
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 | $157,554 |
| Fidelity Securities Lending Cash Central Fund | 15,399 |
| Total | $172,953 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $352,262,778 | $352,262,778 | $-- | $-- |
| Consumer Discretionary | 383,745,522 | 383,745,522 | -- | -- |
| Consumer Staples | 224,390,374 | 224,390,374 | -- | -- |
| Energy | 87,787,851 | 87,787,851 | -- | -- |
| Financials | 349,136,858 | 349,136,858 | -- | -- |
| Health Care | 489,550,510 | 489,550,510 | -- | -- |
| Industrials | 258,192,401 | 258,192,401 | -- | -- |
| Information Technology | 929,451,533 | 929,451,533 | -- | -- |
| Materials | 91,617,324 | 91,617,324 | -- | -- |
| Real Estate | 118,075,269 | 118,075,269 | -- | -- |
| Utilities | 99,519,522 | 94,639,539 | 4,879,983 | -- |
| U.S. Government and Government Agency Obligations | 3,589,701 | -- | 3,589,701 | -- |
| Money Market Funds | 56,568,603 | 56,568,603 | -- | -- |
| Total Investments in Securities: | $3,443,888,246 | $3,435,418,562 | $8,469,684 | $-- |
| Derivative Instruments: | | | | |
| Assets | | | | |
| Futures Contracts | $713,522 | $713,522 | $-- | $-- |
| Total Assets | $713,522 | $713,522 | $-- | $-- |
| Total Derivative Instruments: | $713,522 | $713,522 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of July 31, 2020. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value |
| | Asset | Liability |
| Equity Risk | | |
| Futures Contracts | $713,522 | $0 |
| Total Equity Risk | 713,522 | 0 |
| Total Value of Derivatives | $713,522 | $0 |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series All-Sector Equity Fund
Financial Statements
Statement of Assets and Liabilities
| | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $13,899,997) — See accompanying schedule:
Unaffiliated issuers (cost $2,197,773,106) | $3,387,319,643 | |
| Fidelity Central Funds (cost $56,563,474) | 56,568,603 | |
| Total Investment in Securities (cost $2,254,336,580) | | $3,443,888,246 |
| Cash | | 131,890 |
| Receivable for investments sold | | 18,385,112 |
| Receivable for fund shares sold | | 1,630,821 |
| Dividends receivable | | 1,832,623 |
| Distributions receivable from Fidelity Central Funds | | 10,969 |
| Receivable for daily variation margin on futures contracts | | 12,603 |
| Other receivables | | 128,230 |
| Total assets | | 3,466,020,494 |
| Liabilities | | |
| Payable for investments purchased | $14,614,085 | |
| Payable for fund shares redeemed | 5,600,209 | |
| Other payables and accrued expenses | 30,380 | |
| Collateral on securities loaned | 14,462,000 | |
| Total liabilities | | 34,706,674 |
| Net Assets | | $3,431,313,820 |
| Net Assets consist of: | | |
| Paid in capital | | $2,202,079,913 |
| Total accumulated earnings (loss) | | 1,229,233,907 |
| Net Assets | | $3,431,313,820 |
| Net Asset Value, offering price and redemption price per share ($3,431,313,820 ÷ 336,196,602 shares) | | $10.21 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends | | $29,426,433 |
| Interest | | 11,390 |
| Income from Fidelity Central Funds (including $15,399 from security lending) | | 172,953 |
| Total income | | 29,610,776 |
| Expenses | | |
| Custodian fees and expenses | $54,495 | |
| Independent trustees' fees and expenses | 10,277 | |
| Interest | 1,110 | |
| Commitment fees | 4,000 | |
| Miscellaneous | 765 | |
| Total expenses | | 70,647 |
| Net investment income (loss) | | 29,540,129 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 17,588,869 | |
| Fidelity Central Funds | 1,815 | |
| Futures contracts | (1,179,032) | |
| Total net realized gain (loss) | | 16,411,652 |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 73,185,294 | |
| Fidelity Central Funds | 4,008 | |
| Assets and liabilities in foreign currencies | (4,665) | |
| Futures contracts | 642,780 | |
| Total change in net unrealized appreciation (depreciation) | | 73,827,417 |
| Net gain (loss) | | 90,239,069 |
| Net increase (decrease) in net assets resulting from operations | | $119,779,198 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended July 31, 2020 (Unaudited) | Year ended January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $29,540,129 | $61,136,416 |
| Net realized gain (loss) | 16,411,652 | 394,908,482 |
| Change in net unrealized appreciation (depreciation) | 73,827,417 | 246,625,555 |
| Net increase (decrease) in net assets resulting from operations | 119,779,198 | 702,670,453 |
| Distributions to shareholders | (188,819,396) | (301,301,401) |
| Share transactions | | |
| Proceeds from sales of shares | 98,915,221 | 401,081,505 |
| Reinvestment of distributions | 188,819,396 | 301,301,401 |
| Cost of shares redeemed | (268,255,054) | (1,221,330,518) |
| Net increase (decrease) in net assets resulting from share transactions | 19,479,563 | (518,947,612) |
| Total increase (decrease) in net assets | (49,560,635) | (117,578,560) |
| Net Assets | | |
| Beginning of period | 3,480,874,455 | 3,598,453,015 |
| End of period | $3,431,313,820 | $3,480,874,455 |
| Other Information | | |
| Shares | | |
| Sold | 10,744,644 | 39,640,867 |
| Issued in reinvestment of distributions | 20,910,232 | 30,042,877 |
| Redeemed | (29,853,722) | (120,330,645) |
| Net increase (decrease) | 1,801,154 | (50,646,901) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series All-Sector Equity Fund
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $10.41 | $9.35 | $13.46 | $12.33 | $12.02 | $13.80 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .17 | .21 | .18 | .12 | .12 |
| Net realized and unrealized gain (loss) | .28 | 1.78 | (.79) | 2.80 | 2.33 | (.54) |
| Total from investment operations | .37 | 1.95 | (.58) | 2.98 | 2.45 | (.42) |
| Distributions from net investment income | (.01) | (.18) | (.22) | (.19) | (.18) | (.14)B |
| Distributions from net realized gain | (.56) | (.71) | (3.31) | (1.66) | (1.96) | (1.22)B |
| Total distributions | (.57) | (.89) | (3.53) | (1.85) | (2.14) | (1.36) |
| Net asset value, end of period | $10.21 | $10.41 | $9.35 | $13.46 | $12.33 | $12.02 |
| Total ReturnC,D | 4.25% | 21.33% | (3.23)% | 25.62% | 21.03% | (3.55)% |
| Ratios to Average Net AssetsE,F | | | | | | |
| Expenses before reductions | - %G,H | - %H | - %H | .20% | .68% | .73% |
| Expenses net of fee waivers, if any | - %G,H | - %H | - %H | .20% | .68% | .73% |
| Expenses net of all reductions | - %G,H | - %H | - %H | .20% | .67% | .73% |
| Net investment income (loss) | 1.87%G | 1.68% | 1.68% | 1.37% | .95% | .85% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $3,431,314 | $3,480,874 | $3,598,453 | $6,550,143 | $2,736,748 | $4,418,280 |
| Portfolio turnover rateI | 70%G | 59% | 65% | 61% | 43% | 66% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the 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.
G Annualized
H Amount represents less than .005%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series Stock Selector Large Cap Value Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| Berkshire Hathaway, Inc. Class B | 2.6 |
| The Walt Disney Co. | 2.5 |
| Verizon Communications, Inc. | 2.4 |
| McDonald's Corp. | 2.2 |
| Johnson & Johnson | 2.0 |
| Capital One Financial Corp. | 1.9 |
| Cisco Systems, Inc. | 1.7 |
| Procter & Gamble Co. | 1.7 |
| Bank of America Corp. | 1.5 |
| Sensata Technologies, Inc. PLC | 1.4 |
| | 19.9 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Financials | 18.0 |
| Health Care | 13.9 |
| Industrials | 11.8 |
| Information Technology | 9.6 |
| Communication Services | 9.2 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020* |
| | Stocks | 98.8% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.2% |
* Foreign investments - 9.3%
Fidelity® Series Stock Selector Large Cap Value Fund
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.2% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 9.2% | | | |
| Diversified Telecommunication Services - 3.5% | | | |
| AT&T, Inc. | | 1,858,925 | $54,987,002 |
| Liberty Global PLC Class C (a) | | 1,998,134 | 45,477,530 |
| Verizon Communications, Inc. | | 3,961,345 | 227,698,111 |
| | | | 328,162,643 |
| Entertainment - 2.5% | | | |
| The Walt Disney Co. | | 2,055,500 | 240,370,170 |
| Interactive Media & Services - 0.9% | | | |
| Alphabet, Inc. Class A (a) | | 57,544 | 85,622,595 |
| Media - 2.3% | | | |
| Comcast Corp. Class A | | 2,735,197 | 117,066,432 |
| Discovery Communications, Inc. Class A (a) | | 842,381 | 17,774,239 |
| Interpublic Group of Companies, Inc. | | 4,719,720 | 85,190,946 |
| | | | 220,031,617 |
|
| TOTAL COMMUNICATION SERVICES | | | 874,187,025 |
|
| CONSUMER DISCRETIONARY - 6.7% | | | |
| Auto Components - 0.9% | | | |
| Aptiv PLC | | 1,087,000 | 84,514,250 |
| Hotels, Restaurants & Leisure - 2.8% | | | |
| Las Vegas Sands Corp. | | 1,368,600 | 59,725,704 |
| McDonald's Corp. | | 1,060,260 | 205,987,313 |
| | | | 265,713,017 |
| Household Durables - 0.6% | | | |
| Lennar Corp. Class A | | 737,500 | 53,358,125 |
| Multiline Retail - 0.7% | | | |
| Dollar Tree, Inc. (a) | | 714,100 | 66,661,235 |
| Specialty Retail - 1.2% | | | |
| Burlington Stores, Inc. (a) | | 336,390 | 63,241,320 |
| Ulta Beauty, Inc. (a) | | 284,960 | 54,994,430 |
| | | | 118,235,750 |
| Textiles, Apparel & Luxury Goods - 0.5% | | | |
| VF Corp. | | 810,200 | 48,903,672 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 637,386,049 |
|
| CONSUMER STAPLES - 7.9% | | | |
| Beverages - 1.9% | | | |
| Constellation Brands, Inc. Class A (sub. vtg.) | | 159,500 | 28,422,900 |
| Keurig Dr. Pepper, Inc. (b) | | 1,668,400 | 51,036,356 |
| PepsiCo, Inc. | | 86,200 | 11,866,292 |
| The Coca-Cola Co. | | 1,784,600 | 84,304,504 |
| | | | 175,630,052 |
| Food & Staples Retailing - 1.5% | | | |
| Costco Wholesale Corp. | | 72,800 | 23,698,584 |
| Walmart, Inc. | | 943,771 | 122,123,967 |
| | | | 145,822,551 |
| Food Products - 1.2% | | | |
| Lamb Weston Holdings, Inc. | | 366,200 | 22,001,296 |
| Mondelez International, Inc. | | 1,720,952 | 95,495,626 |
| | | | 117,496,922 |
| Household Products - 2.5% | | | |
| Kimberly-Clark Corp. | | 485,700 | 73,845,828 |
| Procter & Gamble Co. | | 1,236,672 | 162,152,433 |
| | | | 235,998,261 |
| Tobacco - 0.8% | | | |
| Philip Morris International, Inc. | | 928,246 | 71,298,575 |
|
| TOTAL CONSUMER STAPLES | | | 746,246,361 |
|
| ENERGY - 4.8% | | | |
| Oil, Gas & Consumable Fuels - 4.8% | | | |
| Cenovus Energy, Inc. (Canada) | | 10,541,747 | 46,906,426 |
| Cheniere Energy, Inc. (a) | | 1,507,700 | 74,600,996 |
| Chevron Corp. | | 718,400 | 60,302,496 |
| ConocoPhillips Co. | | 1,912,206 | 71,497,382 |
| Equinor ASA | | 4,106,800 | 60,596,828 |
| Hess Corp. | | 1,232,000 | 60,626,720 |
| Noble Energy, Inc. | | 2,141,900 | 21,397,581 |
| Valero Energy Corp. | | 1,044,900 | 58,754,727 |
| | | | 454,683,156 |
| FINANCIALS - 18.0% | | | |
| Banks - 5.5% | | | |
| Bank of America Corp. | | 5,782,400 | 143,866,112 |
| Citigroup, Inc. | | 2,419,300 | 120,989,193 |
| DNB ASA | | 1,252,300 | 19,234,510 |
| First Horizon National Corp. | | 2,263,700 | 20,984,499 |
| Huntington Bancshares, Inc. | | 1,830,800 | 16,971,516 |
| JPMorgan Chase & Co. | | 881,500 | 85,188,160 |
| KeyCorp | | 2,453,400 | 29,465,334 |
| Truist Financial Corp. | | 874,271 | 32,750,192 |
| Wells Fargo & Co. | | 2,308,300 | 55,999,358 |
| | | | 525,448,874 |
| Capital Markets - 4.3% | | | |
| Bank of New York Mellon Corp. | | 2,867,000 | 102,781,950 |
| BlackRock, Inc. Class A | | 112,200 | 64,516,122 |
| Cboe Global Markets, Inc. | | 453,400 | 39,763,180 |
| Intercontinental Exchange, Inc. | | 708,300 | 68,549,274 |
| Morgan Stanley | | 2,052,200 | 100,311,536 |
| Virtu Financial, Inc. Class A | | 1,440,758 | 35,730,798 |
| | | | 411,652,860 |
| Consumer Finance - 2.4% | | | |
| Ally Financial, Inc. | | 1,183,300 | 23,784,330 |
| Capital One Financial Corp. | | 2,799,500 | 178,608,100 |
| Discover Financial Services | | 535,800 | 26,484,594 |
| | | | 228,877,024 |
| Diversified Financial Services - 2.6% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 1,234,400 | 241,670,831 |
| Insurance - 3.2% | | | |
| American International Group, Inc. | | 1,045,876 | 33,614,455 |
| Chubb Ltd. | | 129,400 | 16,464,856 |
| Hartford Financial Services Group, Inc. | | 1,190,300 | 50,373,496 |
| The Travelers Companies, Inc. | | 1,121,064 | 128,272,143 |
| Willis Towers Watson PLC | | 359,816 | 75,564,958 |
| | | | 304,289,908 |
|
| TOTAL FINANCIALS | | | 1,711,939,497 |
|
| HEALTH CARE - 13.9% | | | |
| Biotechnology - 0.6% | | | |
| Gilead Sciences, Inc. | | 809,500 | 56,284,535 |
| Health Care Equipment & Supplies - 5.3% | | | |
| Abbott Laboratories | | 654,500 | 65,868,880 |
| Baxter International, Inc. | | 731,200 | 63,161,056 |
| Becton, Dickinson & Co. | | 381,600 | 107,359,344 |
| Boston Scientific Corp. (a) | | 1,288,600 | 49,701,302 |
| Danaher Corp. | | 652,300 | 132,938,740 |
| Medtronic PLC | | 842,464 | 81,280,927 |
| | | | 500,310,249 |
| Health Care Providers & Services - 2.8% | | | |
| Cardinal Health, Inc. | | 506,500 | 27,665,030 |
| Cigna Corp. | | 470,900 | 81,319,721 |
| CVS Health Corp. | | 682,236 | 42,939,934 |
| Humana, Inc. | | 132,700 | 52,078,115 |
| UnitedHealth Group, Inc. | | 210,600 | 63,765,468 |
| | | | 267,768,268 |
| Life Sciences Tools & Services - 1.1% | | | |
| Thermo Fisher Scientific, Inc. | | 248,300 | 102,783,785 |
| Pharmaceuticals - 4.1% | | | |
| Bristol-Myers Squibb Co. | | 922,500 | 54,113,850 |
| Johnson & Johnson | | 1,340,106 | 195,333,851 |
| Merck & Co., Inc. | | 177,600 | 14,250,624 |
| Pfizer, Inc. | | 3,378,236 | 129,994,521 |
| | | | 393,692,846 |
|
| TOTAL HEALTH CARE | | | 1,320,839,683 |
|
| INDUSTRIALS - 11.8% | | | |
| Aerospace & Defense - 2.7% | | | |
| General Dynamics Corp. | | 549,800 | 80,677,652 |
| Northrop Grumman Corp. | | 118,700 | 38,578,687 |
| Raytheon Technologies Corp. | | 1,693,153 | 95,967,912 |
| The Boeing Co. | | 279,400 | 44,145,200 |
| | | | 259,369,451 |
| Air Freight & Logistics - 1.4% | | | |
| FedEx Corp. | | 767,021 | 129,166,336 |
| Construction & Engineering - 1.3% | | | |
| AECOM (a) | | 3,293,020 | 119,174,394 |
| Electrical Equipment - 1.4% | | | |
| Sensata Technologies, Inc. PLC (a) | | 3,574,984 | 135,777,892 |
| Industrial Conglomerates - 1.1% | | | |
| General Electric Co. | | 13,316,945 | 80,833,856 |
| Honeywell International, Inc. | | 150,200 | 22,435,374 |
| | | | 103,269,230 |
| Machinery - 0.3% | | | |
| Caterpillar, Inc. | | 204,700 | 27,200,536 |
| Marine - 0.8% | | | |
| A.P. Moller - Maersk A/S Series B | | 58,048 | 74,732,872 |
| Professional Services - 0.9% | | | |
| Nielsen Holdings PLC | | 5,932,578 | 85,607,101 |
| Road & Rail - 1.1% | | | |
| Norfolk Southern Corp. | | 540,544 | 103,897,962 |
| Trading Companies & Distributors - 0.8% | | | |
| HD Supply Holdings, Inc. (a) | | 2,299,749 | 80,721,190 |
|
| TOTAL INDUSTRIALS | | | 1,118,916,964 |
|
| INFORMATION TECHNOLOGY - 9.6% | | | |
| Communications Equipment - 2.5% | | | |
| Cisco Systems, Inc. | | 3,549,261 | 167,170,193 |
| CommScope Holding Co., Inc. (a) | | 3,175,388 | 29,467,601 |
| F5 Networks, Inc. (a) | | 333,961 | 45,385,300 |
| | | | 242,023,094 |
| IT Services - 4.3% | | | |
| Amdocs Ltd. | | 1,883,307 | 116,953,365 |
| Capgemini SA | | 645,592 | 83,272,023 |
| Fidelity National Information Services, Inc. | | 540,659 | 79,103,818 |
| Fiserv, Inc. (a) | | 236,100 | 23,560,419 |
| IBM Corp. | | 867,028 | 106,592,422 |
| | | | 409,482,047 |
| Semiconductors & Semiconductor Equipment - 1.6% | | | |
| Broadcom, Inc. | | 111,586 | 35,344,866 |
| Intel Corp. | | 2,346,508 | 111,998,827 |
| | | | 147,343,693 |
| Software - 1.2% | | | |
| Nortonlifelock, Inc. | | 3,108,581 | 66,679,062 |
| SS&C Technologies Holdings, Inc. | | 859,539 | 49,423,493 |
| | | | 116,102,555 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 914,951,389 |
|
| MATERIALS - 4.5% | | | |
| Chemicals - 2.7% | | | |
| DuPont de Nemours, Inc. | | 1,844,623 | 98,650,438 |
| Olin Corp. | | 4,488,451 | 50,450,189 |
| The Chemours Co. LLC | | 3,155,600 | 58,473,268 |
| W.R. Grace & Co. | | 991,600 | 45,742,508 |
| Westlake Chemical Corp. | | 10 | 545 |
| | | | 253,316,948 |
| Construction Materials - 0.7% | | | |
| Eagle Materials, Inc. | | 521,800 | 41,864,014 |
| Summit Materials, Inc. (a) | | 1,823,700 | 26,844,864 |
| | | | 68,708,878 |
| Containers & Packaging - 1.1% | | | |
| Crown Holdings, Inc. (a) | | 1,491,200 | 106,740,096 |
|
| TOTAL MATERIALS | | | 428,765,922 |
|
| REAL ESTATE - 4.9% | | | |
| Equity Real Estate Investment Trusts (REITs) - 4.6% | | | |
| American Homes 4 Rent Class A | | 1,330,400 | 38,581,600 |
| American Tower Corp. | | 174,584 | 45,634,512 |
| Corporate Office Properties Trust (SBI) | | 1,620,377 | 42,907,583 |
| Digital Realty Trust, Inc. | | 399,100 | 64,071,514 |
| Highwoods Properties, Inc. (SBI) | | 744,000 | 28,524,960 |
| Prologis (REIT), Inc. | | 1,116,063 | 117,655,361 |
| VICI Properties, Inc. | | 671,200 | 14,571,752 |
| Weyerhaeuser Co. | | 2,865,100 | 79,678,431 |
| | | | 431,625,713 |
| Real Estate Management & Development - 0.3% | | | |
| Cushman & Wakefield PLC (a) | | 2,754,800 | 29,476,360 |
|
| TOTAL REAL ESTATE | | | 461,102,073 |
|
| UTILITIES - 5.9% | | | |
| Electric Utilities - 2.2% | | | |
| Edison International | | 1,200,000 | 66,804,000 |
| Evergy, Inc. | | 665,700 | 43,157,331 |
| Exelon Corp. | | 2,125,200 | 82,053,972 |
| NextEra Energy, Inc. | | 67 | 18,807 |
| PG&E Corp. (c) | | 636,648 | 5,655,026 |
| PG&E Corp. (a) | | 1,377,100 | 12,875,885 |
| | | | 210,565,021 |
| Independent Power and Renewable Electricity Producers - 1.3% | | | |
| The AES Corp. | | 4,261,100 | 64,896,553 |
| Vistra Corp. | | 3,153,433 | 58,843,060 |
| | | | 123,739,613 |
| Multi-Utilities - 2.4% | | | |
| CenterPoint Energy, Inc. | | 3,480,800 | 66,170,008 |
| Dominion Energy, Inc. | | 1,025,500 | 83,096,265 |
| Sempra Energy | | 618,799 | 77,015,724 |
| | | | 226,281,997 |
|
| TOTAL UTILITIES | | | 560,586,631 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $8,620,936,869) | | | 9,229,604,750 |
|
| Money Market Funds - 1.7% | | | |
| Fidelity Cash Central Fund 0.14% (d) | | 106,833,624 | 106,865,675 |
| Fidelity Securities Lending Cash Central Fund 0.13% (d)(e) | | 52,097,140 | 52,102,350 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $158,957,251) | | | 158,968,025 |
|
| Equity Funds - 1.6% | | | |
| Domestic Equity Funds - 1.6% | | | |
| iShares Russell 1000 Value Index ETF (b) | | | |
| (Cost $138,095,379) | | 1,298,472 | 152,090,025 |
| TOTAL INVESTMENT IN SECURITIES - 100.5% | | | |
| (Cost $8,917,989,499) | | | 9,540,662,800 |
| NET OTHER ASSETS (LIABILITIES) - (0.5)% | | | (47,343,651) |
| NET ASSETS - 100% | | | $9,493,319,149 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,655,026 or 0.1% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PG&E Corp. | 6/30/20 | $6,048,156 |
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 | $678,844 |
| Fidelity Securities Lending Cash Central Fund | 202,238 |
| Total | $881,082 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $874,187,025 | $874,187,025 | $-- | $-- |
| Consumer Discretionary | 637,386,049 | 637,386,049 | -- | -- |
| Consumer Staples | 746,246,361 | 746,246,361 | -- | -- |
| Energy | 454,683,156 | 454,683,156 | -- | -- |
| Financials | 1,711,939,497 | 1,692,704,987 | 19,234,510 | -- |
| Health Care | 1,320,839,683 | 1,320,839,683 | -- | -- |
| Industrials | 1,118,916,964 | 1,044,184,092 | 74,732,872 | -- |
| Information Technology | 914,951,389 | 914,951,389 | -- | -- |
| Materials | 428,765,922 | 428,765,922 | -- | -- |
| Real Estate | 461,102,073 | 461,102,073 | -- | -- |
| Utilities | 560,586,631 | 554,931,605 | 5,655,026 | -- |
| Money Market Funds | 158,968,025 | 158,968,025 | -- | -- |
| Equity Funds | 152,090,025 | 152,090,025 | -- | -- |
| Total Investments in Securities: | $9,540,662,800 | $9,441,040,392 | $99,622,408 | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series Stock Selector Large Cap Value Fund
Financial Statements
Statement of Assets and Liabilities
| | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $50,682,554) — See accompanying schedule:
Unaffiliated issuers (cost $8,759,032,248) | $9,381,694,775 | |
| Fidelity Central Funds (cost $158,957,251) | 158,968,025 | |
| Total Investment in Securities (cost $8,917,989,499) | | $9,540,662,800 |
| Cash | | 49,983 |
| Foreign currency held at value (cost $485) | | 502 |
| Receivable for investments sold | | 42,361,944 |
| Receivable for fund shares sold | | 6,029,668 |
| Dividends receivable | | 12,209,284 |
| Distributions receivable from Fidelity Central Funds | | 33,394 |
| Other receivables | | 70 |
| Total assets | | 9,601,347,645 |
| Liabilities | | |
| Payable for investments purchased | $42,561,171 | |
| Payable for fund shares redeemed | 13,338,111 | |
| Other payables and accrued expenses | 26,864 | |
| Collateral on securities loaned | 52,102,350 | |
| Total liabilities | | 108,028,496 |
| Net Assets | | $9,493,319,149 |
| Net Assets consist of: | | |
| Paid in capital | | $9,340,042,516 |
| Total accumulated earnings (loss) | | 153,276,633 |
| Net Assets | | $9,493,319,149 |
| Net Asset Value, offering price and redemption price per share ($9,493,319,149 ÷ 880,883,602 shares) | | $10.78 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends | | $113,723,616 |
| Special dividends | | 28,862,400 |
| Interest | | 23,684 |
| Income from Fidelity Central Funds (including $202,238 from security lending) | | 881,082 |
| Total income | | 143,490,782 |
| Expenses | | |
| Custodian fees and expenses | $43,159 | |
| Independent trustees' fees and expenses | 28,157 | |
| Commitment fees | 10,974 | |
| Miscellaneous | 765 | |
| Total expenses | | 83,055 |
| Net investment income (loss) | | 143,407,727 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (552,731,788) | |
| Fidelity Central Funds | 27,843 | |
| Foreign currency transactions | (220,867) | |
| Futures contracts | (24,869,774) | |
| Total net realized gain (loss) | | (577,794,586) |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (767,191,084) | |
| Fidelity Central Funds | 9,913 | |
| Assets and liabilities in foreign currencies | 11,511 | |
| Futures contracts | 1,012,358 | |
| Total change in net unrealized appreciation (depreciation) | | (766,157,302) |
| Net gain (loss) | | (1,343,951,888) |
| Net increase (decrease) in net assets resulting from operations | | $(1,200,544,161) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended July 31, 2020 (Unaudited) | Year ended January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $143,407,727 | $241,637,306 |
| Net realized gain (loss) | (577,794,586) | 437,023,377 |
| Change in net unrealized appreciation (depreciation) | (766,157,302) | 718,904,431 |
| Net increase (decrease) in net assets resulting from operations | (1,200,544,161) | 1,397,565,114 |
| Distributions to shareholders | (172,895,169) | (570,671,464) |
| Share transactions | | |
| Proceeds from sales of shares | 1,264,133,177 | 1,185,143,827 |
| Reinvestment of distributions | 172,895,169 | 570,671,463 |
| Cost of shares redeemed | (543,917,463) | (3,140,079,084) |
| Net increase (decrease) in net assets resulting from share transactions | 893,110,883 | (1,384,263,794) |
| Total increase (decrease) in net assets | (480,328,447) | (557,370,144) |
| Net Assets | | |
| Beginning of period | 9,973,647,596 | 10,531,017,740 |
| End of period | $9,493,319,149 | $9,973,647,596 |
| Other Information | | |
| Shares | | |
| Sold | 117,917,168 | 96,419,816 |
| Issued in reinvestment of distributions | 15,891,100 | 46,089,849 |
| Redeemed | (53,259,865) | (252,732,221) |
| Net increase (decrease) | 80,548,403 | (110,222,556) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Stock Selector Large Cap Value Fund
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $12.46 | $11.57 | $13.47 | $12.49 | $10.38 | $12.67 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .17B | .28 | .29 | .28C | .17 | .18 |
| Net realized and unrealized gain (loss) | (1.63) | 1.33 | (1.01) | 1.63 | 2.25 | (.96) |
| Total from investment operations | (1.46) | 1.61 | (.72) | 1.91 | 2.42 | (.78) |
| Distributions from net investment income | (.01) | (.31) | (.27) | (.28) | (.16) | (.20)D |
| Distributions from net realized gain | (.21) | (.41) | (.90) | (.65) | (.14) | (1.31)D |
| Total distributions | (.22) | (.72) | (1.18)E | (.93) | (.31)F | (1.51) |
| Net asset value, end of period | $10.78 | $12.46 | $11.57 | $13.47 | $12.49 | $10.38 |
| Total ReturnG,H | (11.76)% | 13.98% | (5.07)% | 15.62% | 23.49% | (6.69)% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | - %K,L | - %L | - %L | .20% | .67% | .73% |
| Expenses net of fee waivers, if any | - %K,L | - %L | - %L | .20% | .67% | .73% |
| Expenses net of all reductions | - %K,L | - %L | - %L | .20% | .66% | .72% |
| Net investment income (loss) | 3.33%B,K | 2.32% | 2.33% | 2.13%C | 1.51% | 1.43% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $9,493,319 | $9,973,648 | $10,531,018 | $10,485,796 | $3,615,123 | $2,860,230 |
| Portfolio turnover rateM | 117%K | 65%N | 87%O | 61% | 54% | 64% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.66%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.87 %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $1.18 per share is comprised of distributions from net investment income of $.274 and distributions from net realized gain of $.902 per share.
F Total distributions of $.31 per share is comprised of distributions from net investment income of $.162 and distributions from net realized gain of $.144 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
J Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the 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.
K Annualized
L Amount represents less than .005%.
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
N Portfolio turnover rate excludes securities received or delivered in-kind.
O The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series Value Discovery Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| Berkshire Hathaway, Inc. Class B | 3.4 |
| Comcast Corp. Class A | 2.8 |
| Cisco Systems, Inc. | 2.6 |
| Centene Corp. | 2.3 |
| Wells Fargo & Co. | 2.2 |
| Cigna Corp. | 2.2 |
| UnitedHealth Group, Inc. | 2.2 |
| Bristol-Myers Squibb Co. | 2.1 |
| Newmont Corp. | 2.1 |
| DuPont de Nemours, Inc. | 2.0 |
| | 23.9 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Health Care | 18.1 |
| Financials | 17.6 |
| Industrials | 14.7 |
| Information Technology | 10.9 |
| Communication Services | 9.6 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020* |
| | Stocks | 99.2% |
| | Other Investments | 0.2% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.6% |
* Foreign investments - 17.6%
Fidelity® Series Value Discovery Fund
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.8% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 9.6% | | | |
| Entertainment - 0.2% | | | |
| Lions Gate Entertainment Corp. Class B (a) | | 2,404,934 | $17,099,081 |
| Interactive Media & Services - 2.9% | | | |
| Alphabet, Inc. Class A (a) | | 90,991 | 135,390,058 |
| Facebook, Inc. Class A (a) | | 364,200 | 92,386,614 |
| | | | 227,776,672 |
| Media - 4.8% | | | |
| Comcast Corp. Class A | | 5,056,804 | 216,431,211 |
| Fox Corp. Class A | | 925,610 | 23,852,970 |
| Interpublic Group of Companies, Inc. | | 5,006,214 | 90,362,163 |
| WPP PLC | | 4,992,762 | 37,027,800 |
| | | | 367,674,144 |
| Wireless Telecommunication Services - 1.7% | | | |
| T-Mobile U.S., Inc. | | 1,191,953 | 127,991,913 |
|
| TOTAL COMMUNICATION SERVICES | | | 740,541,810 |
|
| CONSUMER DISCRETIONARY - 8.1% | | | |
| Auto Components - 0.7% | | | |
| Lear Corp. | | 499,613 | 55,147,283 |
| Household Durables - 1.2% | | | |
| Newell Brands, Inc. | | 1,219,900 | 20,006,360 |
| Whirlpool Corp. | | 440,224 | 71,809,339 |
| | | | 91,815,699 |
| Multiline Retail - 1.0% | | | |
| Dollar General Corp. | | 392,639 | 74,758,466 |
| Specialty Retail - 3.9% | | | |
| Best Buy Co., Inc. | | 964,200 | 96,024,678 |
| Dick's Sporting Goods, Inc. | | 817,500 | 37,294,350 |
| Lowe's Companies, Inc. | | 812,600 | 121,004,266 |
| Tiffany & Co., Inc. | | 157,700 | 19,769,272 |
| Urban Outfitters, Inc. (a) | | 472,200 | 7,810,188 |
| Williams-Sonoma, Inc. | | 243,700 | 21,231,144 |
| | | | 303,133,898 |
| Textiles, Apparel & Luxury Goods - 1.3% | | | |
| PVH Corp. | | 1,395,785 | 67,918,898 |
| Tapestry, Inc. | | 2,315,755 | 30,938,487 |
| | | | 98,857,385 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 623,712,731 |
|
| CONSUMER STAPLES - 4.6% | | | |
| Beverages - 0.4% | | | |
| C&C Group PLC (United Kingdom) | | 597,461 | 1,810,507 |
| Coca-Cola European Partners PLC | | 750,500 | 30,898,085 |
| | | | 32,708,592 |
| Food& Staples Retailing - 2.8% | | | |
| Performance Food Group Co. (a) | | 1,640,700 | 45,972,414 |
| Sysco Corp. | | 1,371,724 | 72,495,613 |
| U.S. Foods Holding Corp. (a) | | 4,858,830 | 98,634,249 |
| | | | 217,102,276 |
| Food Products - 0.3% | | | |
| Tyson Foods, Inc. Class A | | 350,900 | 21,562,805 |
| Household Products - 0.2% | | | |
| Spectrum Brands Holdings, Inc. | | 272,622 | 14,765,208 |
| Tobacco - 0.9% | | | |
| Altria Group, Inc. | | 1,549,000 | 63,741,350 |
|
| TOTAL CONSUMER STAPLES | | | 349,880,231 |
|
| ENERGY - 3.6% | | | |
| Energy Equipment & Services - 0.2% | | | |
| Hoegh LNG Partners LP | | 1,278,754 | 13,171,166 |
| Oil, Gas & Consumable Fuels - 3.4% | | | |
| BP PLC sponsored ADR | | 1,043,900 | 23,007,556 |
| Cabot Oil & Gas Corp. | | 3,362,400 | 62,876,880 |
| Dynagas LNG Partners LP (a) | | 994,300 | 3,112,159 |
| GasLog Partners LP (b) | | 876,809 | 3,349,410 |
| Golar LNG Ltd. (b) | | 1,412,233 | 10,591,748 |
| Golar LNG Partners LP | | 2,435,893 | 6,357,681 |
| Parex Resources, Inc. (a) | | 5,202,688 | 62,923,995 |
| Teekay LNG Partners LP | | 3,062,367 | 33,318,553 |
| Total SA sponsored ADR | | 842,100 | 31,713,486 |
| Valero Energy Corp. | | 395,500 | 22,238,965 |
| | | | 259,490,433 |
|
| TOTAL ENERGY | | | 272,661,599 |
|
| FINANCIALS - 17.6% | | | |
| Banks - 6.4% | | | |
| Bank of America Corp. | | 5,325,800 | 132,505,904 |
| CIT Group, Inc. (b) | | 890,800 | 16,898,476 |
| Cullen/Frost Bankers, Inc. | | 255,900 | 18,440,154 |
| JPMorgan Chase & Co. | | 982,000 | 94,900,480 |
| M&T Bank Corp. | | 345,944 | 36,652,767 |
| Truist Financial Corp. | | 598,300 | 22,412,318 |
| Wells Fargo & Co. | | 7,010,022 | 170,063,134 |
| | | | 491,873,233 |
| Capital Markets - 1.2% | | | |
| Affiliated Managers Group, Inc. | | 488,731 | 33,619,805 |
| BlackRock, Inc. Class A | | 46,200 | 26,565,462 |
| Invesco Ltd. | | 921,824 | 9,255,113 |
| State Street Corp. | | 329,539 | 21,021,293 |
| | | | 90,461,673 |
| Consumer Finance - 2.5% | | | |
| Capital One Financial Corp. | | 1,352,774 | 86,306,981 |
| Discover Financial Services | | 2,119,034 | 104,743,851 |
| | | | 191,050,832 |
| Diversified Financial Services - 3.4% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 1,346,966 | 263,709,001 |
| Insurance - 3.4% | | | |
| Allstate Corp. | | 241,403 | 22,786,029 |
| American International Group, Inc. | | 1,040,500 | 33,441,670 |
| Chubb Ltd. | | 721,239 | 91,770,450 |
| MetLife, Inc. | | 432,400 | 16,366,340 |
| The Travelers Companies, Inc. | | 853,770 | 97,688,363 |
| | | | 262,052,852 |
| Mortgage Real Estate Investment Trusts - 0.2% | | | |
| AGNC Investment Corp. | | 1,152,400 | 15,672,640 |
| Thrifts & Mortgage Finance - 0.5% | | | |
| Essent Group Ltd. | | 656,800 | 23,533,144 |
| MGIC Investment Corp. | | 1,726,300 | 14,276,501 |
| | | | 37,809,645 |
|
| TOTAL FINANCIALS | | | 1,352,629,876 |
|
| HEALTH CARE - 18.1% | | | |
| Biotechnology - 3.6% | | | |
| Alexion Pharmaceuticals, Inc. (a) | | 623,500 | 63,902,515 |
| Amgen, Inc. | | 510,698 | 124,952,480 |
| Regeneron Pharmaceuticals, Inc. (a) | | 137,100 | 86,656,797 |
| | | | 275,511,792 |
| Health Care Providers & Services - 9.5% | | | |
| Anthem, Inc. | | 326,426 | 89,375,439 |
| Centene Corp. (a) | | 2,761,803 | 180,207,646 |
| Cigna Corp. | | 979,507 | 169,151,064 |
| CVS Health Corp. | | 1,424,134 | 89,634,994 |
| Humana, Inc. | | 84,022 | 32,974,434 |
| UnitedHealth Group, Inc. | | 556,144 | 168,389,280 |
| | | | 729,732,857 |
| Pharmaceuticals - 5.0% | | | |
| Bristol-Myers Squibb Co. | | 2,765,448 | 162,221,180 |
| Bristol-Myers Squibb Co. rights (a) | | 1,566,696 | 5,640,106 |
| Roche Holding AG (participation certificate) | | 359,999 | 124,688,017 |
| Sanofi SA sponsored ADR | | 1,739,578 | 91,240,866 |
| | | | 383,790,169 |
|
| TOTAL HEALTH CARE | | | 1,389,034,818 |
|
| INDUSTRIALS - 14.7% | | | |
| Aerospace & Defense - 2.5% | | | |
| Airbus Group NV | | 733,400 | 53,681,919 |
| General Dynamics Corp. | | 631,017 | 92,595,435 |
| Raytheon Technologies Corp. | | 739,600 | 41,920,528 |
| | | | 188,197,882 |
| Air Freight & Logistics - 0.5% | | | |
| Deutsche Post AG | | 610,500 | 24,780,309 |
| XPO Logistics, Inc. (a) | | 220,100 | 16,511,902 |
| | | | 41,292,211 |
| Airlines - 0.8% | | | |
| Alaska Air Group, Inc. | | 977,500 | 33,665,100 |
| Copa Holdings SA Class A (b) | | 638,400 | 26,455,296 |
| | | | 60,120,396 |
| Building Products - 2.3% | | | |
| Carrier Global Corp. | | 742,100 | 20,214,804 |
| Jeld-Wen Holding, Inc. (a) | | 742,100 | 14,545,160 |
| Owens Corning | | 1,335,800 | 80,775,826 |
| Trane Technologies PLC | | 532,871 | 59,612,279 |
| | | | 175,148,069 |
| Commercial Services & Supplies - 0.1% | | | |
| Steelcase, Inc. Class A | | 474,700 | 5,093,531 |
| Electrical Equipment - 2.8% | | | |
| Acuity Brands, Inc. | | 679,600 | 67,348,360 |
| Regal Beloit Corp. | | 681,300 | 62,659,161 |
| Vestas Wind Systems A/S | | 688,468 | 88,251,245 |
| | | | 218,258,766 |
| Industrial Conglomerates - 1.2% | | | |
| Siemens AG | | 747,800 | 95,296,668 |
| Machinery - 3.2% | | | |
| Gardner Denver Holdings, Inc. (a) | | 804,531 | 25,415,134 |
| ITT, Inc. | | 257,600 | 14,871,248 |
| Oshkosh Corp. | | 1,063,500 | 83,718,720 |
| Otis Worldwide Corp. | | 503,300 | 31,577,042 |
| Stanley Black & Decker, Inc. | | 590,500 | 90,535,460 |
| | | | 246,117,604 |
| Trading Companies & Distributors - 1.3% | | | |
| Beacon Roofing Supply, Inc. (a) | | 298,600 | 9,304,376 |
| HD Supply Holdings, Inc. (a) | | 1,858,829 | 65,244,898 |
| United Rentals, Inc. (a) | | 165,600 | 25,729,272 |
| | | | 100,278,546 |
|
| TOTAL INDUSTRIALS | | | 1,129,803,673 |
|
| INFORMATION TECHNOLOGY - 9.5% | | | |
| Communications Equipment - 2.7% | | | |
| Cisco Systems, Inc. | | 4,221,475 | 198,831,473 |
| CommScope Holding Co., Inc. (a) | | 1,000,100 | 9,280,928 |
| | | | 208,112,401 |
| Electronic Equipment & Components - 1.4% | | | |
| Avnet, Inc. | | 159,200 | 4,253,824 |
| TE Connectivity Ltd. | | 1,147,038 | 102,166,675 |
| | | | 106,420,499 |
| IT Services - 2.1% | | | |
| Amdocs Ltd. | | 760,938 | 47,254,250 |
| Capgemini SA | | 282,100 | 36,386,816 |
| Cognizant Technology Solutions Corp. Class A | | 1,154,979 | 78,908,165 |
| | | | 162,549,231 |
| Semiconductors & Semiconductor Equipment - 2.8% | | | |
| Broadcom, Inc. | | 29,400 | 9,312,450 |
| Intel Corp. | | 3,146,000 | 150,158,580 |
| NXP Semiconductors NV | | 404,100 | 47,493,873 |
| ON Semiconductor Corp. (a) | | 525,100 | 10,817,060 |
| | | | 217,781,963 |
| Software - 0.5% | | | |
| Nortonlifelock, Inc. | | 1,764,728 | 37,853,416 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 732,717,510 |
|
| MATERIALS - 5.3% | | | |
| Chemicals - 2.5% | | | |
| Albemarle Corp. U.S. (b) | | 487,300 | 40,182,758 |
| DuPont de Nemours, Inc. | | 2,901,600 | 155,177,568 |
| | | | 195,360,326 |
| Metals & Mining - 2.8% | | | |
| BHP Billiton Ltd. sponsored ADR | | 173,800 | 9,183,592 |
| Lundin Mining Corp. | | 7,991,300 | 44,745,791 |
| Newmont Corp. | | 2,327,329 | 161,051,167 |
| | | | 214,980,550 |
|
| TOTAL MATERIALS | | | 410,340,876 |
|
| REAL ESTATE - 1.9% | | | |
| Equity Real Estate Investment Trusts (REITs) - 0.5% | | | |
| Simon Property Group, Inc. | | 601,594 | 37,509,386 |
| Real Estate Management & Development - 1.4% | | | |
| CBRE Group, Inc. (a) | | 2,427,872 | 106,365,072 |
|
| TOTAL REAL ESTATE | | | 143,874,458 |
|
| UTILITIES - 4.8% | | | |
| Electric Utilities - 3.7% | | | |
| Exelon Corp. | | 2,335,406 | 90,170,026 |
| PG&E Corp. (a) | | 6,963,400 | 65,107,790 |
| Southern Co. | | 2,288,276 | 124,962,752 |
| | | | 280,240,568 |
| Multi-Utilities - 1.1% | | | |
| Dominion Energy, Inc. | | 1,055,300 | 85,510,959 |
|
| TOTAL UTILITIES | | | 365,751,527 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $7,154,976,135) | | | 7,510,949,109 |
|
| Nonconvertible Preferred Stocks - 1.4% | | | |
| ENERGY - 0.0% | | | |
| Oil, Gas & Consumable Fuels - 0.0% | | | |
| Dynagas LNG Partners LP 9.00% | | 111,972 | 2,527,208 |
| INFORMATION TECHNOLOGY - 1.4% | | | |
| Technology Hardware, Storage & Peripherals - 1.4% | | | |
| Samsung Electronics Co. Ltd. | | 2,603,340 | 107,759,545 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $105,899,001) | | | 110,286,753 |
|
| Other - 0.2% | | | |
| ENERGY - 0.2% | | | |
| Oil, Gas & Consumable Fuels - 0.2% | | | |
| Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(e) | | | |
| (Cost $39,369,027) | | 39,369,027 | 18,031,014 |
|
| Money Market Funds - 1.2% | | | |
| Fidelity Cash Central Fund 0.14% (f) | | 33,207,971 | 33,217,934 |
| Fidelity Securities Lending Cash Central Fund 0.13% (f)(g) | | 54,567,533 | 54,572,990 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $87,787,689) | | | 87,790,924 |
| TOTAL INVESTMENT IN SECURITIES - 100.6% | | | |
| (Cost $7,388,031,852) | | | 7,727,057,800 |
| NET OTHER ASSETS (LIABILITIES) - (0.6)% | | | (49,222,654) |
| NET ASSETS - 100% | | | $7,677,835,146 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(d) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $18,031,014 or 0.2% of net assets.
(e) Level 3 security
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 10/30/18 | $39,369,027 |
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 | $211,701 |
| Fidelity Securities Lending Cash Central Fund | 278,253 |
| Total | $489,954 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Golar LNG Partners LP | $28,557,220 | $-- | $8,846,532 | $1,664,735 | $(31,083,043) | $17,032,203 | $-- |
| Total | $28,557,220 | $-- | $8,846,532 | $1,664,735 | $(31,083,043) | $17,032,203 | $-- |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $740,541,810 | $703,514,010 | $37,027,800 | $-- |
| Consumer Discretionary | 623,712,731 | 623,712,731 | -- | -- |
| Consumer Staples | 349,880,231 | 349,880,231 | -- | -- |
| Energy | 275,188,807 | 275,188,807 | -- | -- |
| Financials | 1,352,629,876 | 1,352,629,876 | -- | -- |
| Health Care | 1,389,034,818 | 1,264,346,801 | 124,688,017 | -- |
| Industrials | 1,129,803,673 | 867,793,532 | 262,010,141 | -- |
| Information Technology | 840,477,055 | 840,477,055 | -- | -- |
| Materials | 410,340,876 | 410,340,876 | -- | -- |
| Real Estate | 143,874,458 | 143,874,458 | -- | -- |
| Utilities | 365,751,527 | 365,751,527 | -- | -- |
| Other | 18,031,014 | -- | -- | 18,031,014 |
| Money Market Funds | 87,790,924 | 87,790,924 | -- | -- |
| Total Investments in Securities: | $7,727,057,800 | $7,285,300,828 | $423,725,958 | $18,031,014 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 82.4% |
| Switzerland | 4.1% |
| France | 2.1% |
| Canada | 1.6% |
| Germany | 1.5% |
| Korea (South) | 1.4% |
| Netherlands | 1.3% |
| Denmark | 1.1% |
| Others (Individually Less Than 1%) | 4.5% |
| | 100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series Value Discovery Fund
Financial Statements
Statement of Assets and Liabilities
| | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $52,774,916) — See accompanying schedule:
Unaffiliated issuers (cost $7,300,244,163) | $7,639,266,876 | |
| Fidelity Central Funds (cost $87,787,689) | 87,790,924 | |
| Total Investment in Securities (cost $7,388,031,852) | | $7,727,057,800 |
| Restricted cash | | 1,317,277 |
| Foreign currency held at value (cost $2,994) | | 3,090 |
| Receivable for fund shares sold | | 7,413,550 |
| Dividends receivable | | 8,137,725 |
| Distributions receivable from Fidelity Central Funds | | 44,172 |
| Other receivables | | 20,292 |
| Total assets | | 7,743,993,906 |
| Liabilities | | |
| Payable for investments purchased | $16,538 | |
| Payable for fund shares redeemed | 11,516,870 | |
| Other payables and accrued expenses | 51,996 | |
| Collateral on securities loaned | 54,573,356 | |
| Total liabilities | | 66,158,760 |
| Net Assets | | $7,677,835,146 |
| Net Assets consist of: | | |
| Paid in capital | | $7,640,615,323 |
| Total accumulated earnings (loss) | | 37,219,823 |
| Net Assets | | $7,677,835,146 |
| Net Asset Value, offering price and redemption price per share ($7,677,835,146 ÷ 637,159,300 shares) | | $12.05 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends (including $1,664,735 earned from other affiliated issuers) | | $85,503,897 |
| Special dividends | | 22,436,736 |
| Income from Fidelity Central Funds (including $278,253 from security lending) | | 489,954 |
| Total income | | 108,430,587 |
| Expenses | | |
| Custodian fees and expenses | $78,047 | |
| Independent trustees' fees and expenses | 21,867 | |
| Interest | 450 | |
| Commitment fees | 8,514 | |
| Miscellaneous | 796 | |
| Total expenses before reductions | 109,674 | |
| Expense reductions | (1,977) | |
| Total expenses after reductions | | 107,697 |
| Net investment income (loss) | | 108,322,890 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (363,695,975) | |
| Fidelity Central Funds | 3,886 | |
| Other affiliated issuers | (31,083,043) | |
| Foreign currency transactions | (78,536) | |
| Total net realized gain (loss) | | (394,853,668) |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers (net of increase in deferred foreign taxes of $67) | (252,792,619) | |
| Fidelity Central Funds | 3,235 | |
| Other affiliated issuers | 17,032,203 | |
| Assets and liabilities in foreign currencies | 94,935 | |
| Total change in net unrealized appreciation (depreciation) | | (235,662,246) |
| Net gain (loss) | | (630,515,914) |
| Net increase (decrease) in net assets resulting from operations | | $(522,193,024) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended July 31, 2020 (Unaudited) | Year ended January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $108,322,890 | $193,538,697 |
| Net realized gain (loss) | (394,853,668) | 203,465,815 |
| Change in net unrealized appreciation (depreciation) | (235,662,246) | 420,482,433 |
| Net increase (decrease) in net assets resulting from operations | (522,193,024) | 817,486,945 |
| Distributions to shareholders | (75,629,368) | (296,535,267) |
| Share transactions | | |
| Proceeds from sales of shares | 1,108,456,585 | 1,277,932,118 |
| Reinvestment of distributions | 75,629,368 | 296,535,267 |
| Cost of shares redeemed | (465,419,259) | (2,280,713,430) |
| Net increase (decrease) in net assets resulting from share transactions | 718,666,694 | (706,246,045) |
| Total increase (decrease) in net assets | 120,844,302 | (185,294,367) |
| Net Assets | | |
| Beginning of period | 7,556,990,844 | 7,742,285,211 |
| End of period | $7,677,835,146 | $7,556,990,844 |
| Other Information | | |
| Shares | | |
| Sold | 91,536,278 | 97,940,472 |
| Issued in reinvestment of distributions | 6,393,015 | 22,195,753 |
| Redeemed | (41,558,672) | (174,379,368) |
| Net increase (decrease) | 56,370,621 | (54,243,143) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Value Discovery Fund
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.01 | $12.19 | $13.89 | $13.03 | $10.83 | $12.31 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .18B | .32 | .32 | .31 | .27 | .31 |
| Net realized and unrealized gain (loss) | (1.01) | 1.03 | (1.20) | 1.58 | 2.44 | (.80) |
| Total from investment operations | (.83) | 1.35 | (.88) | 1.89 | 2.71 | (.49) |
| Distributions from net investment income | – | (.34) | (.30) | (.25)C | (.26) | (.32) |
| Distributions from net realized gain | (.13) | (.19) | (.52) | (.78)C | (.25) | (.67) |
| Total distributions | (.13) | (.53) | (.82) | (1.03) | (.51) | (.99) |
| Net asset value, end of period | $12.05 | $13.01 | $12.19 | $13.89 | $13.03 | $10.83 |
| Total ReturnD,E | (6.35)% | 10.95% | (6.12)% | 15.05% | 25.40% | (4.32)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | - %H,I | - %I | - %I | .27% | .62% | .62% |
| Expenses net of fee waivers, if any | - %H,I | - %I | - %I | .27% | .62% | .62% |
| Expenses net of all reductions | - %H,I | - %I | - %I | .26% | .62% | .62% |
| Net investment income (loss) | 3.19%B,H | 2.49% | 2.47% | 2.29% | 2.21% | 2.51% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $7,677,835 | $7,556,991 | $7,742,285 | $7,430,718 | $5,063,707 | $4,400,959 |
| Portfolio turnover rateJ | 95%H | 47%K | 40%L | 74%K | 42% | 41% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.53%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the 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.
H Annualized
I Amount represents less than .005%.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
L The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended July 31, 2020
1. Organization.
Fidelity Series All-Sector Equity Fund, Fidelity Series Stock Selector Large Cap Value Fund and Fidelity Series Value Discovery Fund (the Funds) are funds of Fidelity Devonshire Trust (the Trust). The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. Shares are offered only to certain other Fidelity funds and Fidelity managed 529 plans.
2. Investments in Fidelity Central Funds.
The Funds invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2020 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. The Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and for certain Funds include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Funds are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, futures contracts, foreign currency transactions, certain foreign taxes, market discount, certain deemed distributions and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
| | Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) |
| Fidelity Series All-Sector Equity Fund | $2,270,438,627 | $1,291,583,172 | $(117,420,031) | $1,174,163,141 |
| Fidelity Series Stock Selector Large Cap Value Fund | 9,054,224,118 | 1,191,342,723 | (704,904,041) | 486,438,682 |
| Fidelity Series Value Discovery Fund | 7,440,678,997 | 1,049,555,559 | (763,176,756) | 286,378,803 |
Restricted Securities (including Private Placements). The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.
Consolidated Subsidiary. Fidelity Series Value Discovery (the Fund) invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $19,348,291 in this Subsidiary, representing .25% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Funds' investment objective allows the Funds to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Funds used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Funds may not achieve their objectives.
The Funds' use of derivatives increased or decreased their exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
|
The Funds are also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Funds will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Funds. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Funds used futures contracts to manage their exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
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 Series All-Sector Equity Fund | 1,100,040,066 | 1,234,095,699 |
| Fidelity Series Stock Selector Large Cap Value Fund | 6,052,854,373 | 4,995,657,234 |
| Fidelity Series Value Discovery Fund | 4,203,402,275 | 3,198,359,214 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Funds with investment management related services for which the Funds do not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Funds, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| | Amount |
| Fidelity Series All-Sector Equity Fund | $36,116 |
| Fidelity Series Stock Selector Large Cap Value Fund | 135,889 |
| Fidelity Series Value Discovery Fund | 118,029 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, each fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing each fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
| | Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Fidelity Series All-Sector Equity Fund | Borrower | $21,842,000 | 1.83% | $1,110 |
| Fidelity Series Value Discovery Fund | Borrower | $5,960,500 | 1.36% | $450 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fidelity Series Stock Selector Large Cap Value Fund and Fidelity Series Value Discovery Fund received investments in exchange for shares of the Funds. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. For additional information of the Fidelity Series Stock Selector Large Cap Value Fund and Fidelity Series Value Discovery Fund in-kind transactions, please refer to the Fidelity Series Stock Selector Large Cap Value Fund and Fidelity Series Value Discovery Fund prior annual shareholder report.
Other. During the period, the investment adviser reimbursed the Funds for certain losses as follows:
| | Amount |
| Fidelity Series Value Discovery Fund | $ 1,146 |
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| | Amount |
| Fidelity Series All-Sector Equity Fund | $4,000 |
| Fidelity Series Stock Selector Large Cap Value Fund | 10,974 |
| Fidelity Series Value Discovery Fund | 8,514 |
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. Lending agents are used, including National Financial Services (NFS), an affiliate of the Funds. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a Fund's daily lending revenue, for its services as lending agent. The Funds may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, each applicable Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The Funds or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds may apply collateral received from the borrower against the obligation. The Funds may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on each applicable Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Net income from Fidelity Central Funds is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS. Affiliated security lending activity was as follows:
| | Total Security Lending Income Fees Paid to NFS |
| Fidelity Series All-Sector Equity Fund | $1,432 |
| Fidelity Series Stock Selector Large Cap Value Fund | $4,067 |
| Fidelity Series Value Discovery Fund | $27,000 |
9. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
| | Custodian credits |
| Fidelity Series Value Discovery Fund | 1,977 |
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.
At the end of the period, mutual funds and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Funds.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Funds' performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
February 1, 2020 | Ending
Account Value
July 31, 2020 | Expenses Paid
During Period-B
February 1, 2020
to July 31, 2020 |
| Fidelity Series All-Sector Equity Fund | - %-C | | | |
| Actual | | $1,000.00 | $1,042.50 | $--D |
| Hypothetical-E | | $1,000.00 | $1,024.86 | $--D |
| Fidelity Series Stock Selector Large Cap Value Fund | - %-C | | | |
| Actual | | $1,000.00 | $882.40 | $--D |
| Hypothetical-E | | $1,000.00 | $1,024.86 | $--D |
| Fidelity Series Value Discovery Fund | - %-C | | | |
| Actual | | $1,000.00 | $936.50 | $--D |
| Hypothetical-E | | $1,000.00 | $1,024.86 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Funds have adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage each Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. Each Fund’s Board of Trustees (the Board) has designated each Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| | # of
Votes | % of
Votes |
| Dennis J. Dirks |
| Affirmative | 20,677,600,881.166 | 98.531 |
| Withheld | 308,216,367.332 | 1.469 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Donald F. Donahue |
| Affirmative | 20,685,205,663.711 | 98.568 |
| Withheld | 300,611,584.787 | 1.432 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Bettina Doulton |
| Affirmative | 20,701,129,729.034 | 98.643 |
| Withheld | 284,687,519.464 | 1.357 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Vicki L. Fuller |
| Affirmative | 20,713,892,146.063 | 98.704 |
| Withheld | 271,925,102.435 | 1.296 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Patricia L. Kampling |
| Affirmative | 20,693,289,719.327 | 98.606 |
| Withheld | 292,527,529.171 | 1.394 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Alan J. Lacy |
| Affirmative | 20,659,591,158.873 | 98.445 |
| Withheld | 326,226,089.625 | 1.555 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Ned C. Lautenbach |
| Affirmative | 20,634,244,420.039 | 98.325 |
| Withheld | 351,572,828.459 | 1.675 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Robert A. Lawrence |
| Affirmative | 20,672,781,907.548 | 98.508 |
| Withheld | 313,035,340.950 | 1.492 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Joseph Mauriello |
| Affirmative | 20,652,465,304.654 | 98.412 |
| Withheld | 333,351,943.843 | 1.588 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Cornelia M. Small |
| Affirmative | 20,671,641,667.984 | 98.503 |
| Withheld | 314,175,580.514 | 1.497 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Garnett A. Smith |
| Affirmative | 20,655,644,270.628 | 98.427 |
| Withheld | 330,172,977.870 | 1.573 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| David M. Thomas |
| Affirmative | 20,654,595,907.599 | 98.422 |
| Withheld | 331,221,340.899 | 1.578 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Susan Tomasky |
| Affirmative | 20,686,662,870.375 | 98.574 |
| Withheld | 299,154,378.123 | 1.426 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Michael E. Wiley |
| Affirmative | 20,662,847,882.871 | 98.461 |
| Withheld | 322,969,365.626 | 1.539 |
| TOTAL | 20,985,817,248.498 | 100.000 |
PROPOSAL 2
For Fidelity Series All-Sector Equity Fund, to convert a fundamental investment policy to a non-fundamental investment policy.
| | # of
Votes | % of
Votes |
| Affirmative | 2,929,371,338.307 | 100.000 |
| Against | 0.000 | 0.000 |
| Abstain | 0.000 | 0.000 |
| Broker Non-Vote | 0.000 | 0.000 |
| TOTAL | 2,929,371,338.307 | 100.000 |
PROPOSAL 2
For Fidelity Series Stock Selector Large Cap Value Fund, to convert a fundamental investment policy to a non-fundamental investment policy.
| | # of
Votes | % of
Votes |
| Affirmative | 7,882,340,338.722 | 100.000 |
| Against | 0.000 | 0.000 |
| Abstain | 0.000 | 0.000 |
| Broker Non-Vote | 0.000 | 0.000 |
| TOTAL | 7,882,340,338.722 | 100.000 |
PROPOSAL 2
For Fidelity Series Value Discovery, to convert a fundamental investment policy to a non-fundamental investment policy.
| | # of
Votes | % of
Votes |
| Affirmative | 6,152,398,703.645 | 100.000 |
| Against | 0.000 | 0.000 |
| Abstain | 0.000 | 0.000 |
| Broker Non-Vote | 0.000 | 0.000 |
| TOTAL | 6,152,398,703.645 | 100.000 |
|
| Proposal 1 reflects trust wide proposal and voting results. |
EDT-LDT-SANN-0920
1.956974.107
Fidelity® Stock Selector Large Cap Value Fund
Semi-Annual Report
July 31, 2020
Includes Fidelity and Fidelity Advisor share classes
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| | % of fund's net assets |
| The Walt Disney Co. | 2.6 |
| Berkshire Hathaway, Inc. Class B | 2.5 |
| Verizon Communications, Inc. | 2.4 |
| McDonald's Corp. | 2.2 |
| Johnson & Johnson | 2.1 |
| Capital One Financial Corp. | 1.9 |
| Cisco Systems, Inc. | 1.8 |
| Procter & Gamble Co. | 1.7 |
| Bank of America Corp. | 1.5 |
| Sensata Technologies, Inc. PLC | 1.5 |
| | 20.2 |
Top Five Market Sectors as of July 31, 2020
| | % of fund's net assets |
| Financials | 18.1 |
| Health Care | 14.1 |
| Industrials | 12.1 |
| Information Technology | 9.8 |
| Communication Services | 9.4 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020* |
| | Stocks | 98.8% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.2% |
* Foreign investments - 9.6%
Schedule of Investments July 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.4% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 9.4% | | | |
| Diversified Telecommunication Services - 3.5% | | | |
| AT&T, Inc. | | 78,512 | $2,322,385 |
| Liberty Global PLC Class C (a) | | 84,405 | 1,921,058 |
| Verizon Communications, Inc. | | 167,433 | 9,624,049 |
| | | | 13,867,492 |
| Entertainment - 2.6% | | | |
| The Walt Disney Co. | | 86,817 | 10,152,380 |
| Interactive Media & Services - 0.9% | | | |
| Alphabet, Inc. Class A (a) | | 2,463 | 3,664,821 |
| Media - 2.4% | | | |
| Comcast Corp. Class A | | 115,633 | 4,949,092 |
| Discovery Communications, Inc. Class A (a) | | 35,589 | 750,928 |
| Interpublic Group of Companies, Inc. | | 199,504 | 3,601,047 |
| | | | 9,301,067 |
|
| TOTAL COMMUNICATION SERVICES | | | 36,985,760 |
|
| CONSUMER DISCRETIONARY - 6.8% | | | |
| Auto Components - 0.9% | | | |
| Aptiv PLC | | 45,910 | 3,569,503 |
| Hotels, Restaurants & Leisure - 2.8% | | | |
| Las Vegas Sands Corp. | | 57,800 | 2,522,392 |
| McDonald's Corp. | | 44,780 | 8,699,858 |
| | | | 11,222,250 |
| Household Durables - 0.6% | | | |
| Lennar Corp. Class A | | 31,150 | 2,253,703 |
| Multiline Retail - 0.7% | | | |
| Dollar Tree, Inc. (a) | | 30,160 | 2,815,436 |
| Specialty Retail - 1.3% | | | |
| Burlington Stores, Inc. (a) | | 14,201 | 2,669,788 |
| Ulta Beauty, Inc. (a) | | 12,030 | 2,321,670 |
| | | | 4,991,458 |
| Textiles, Apparel & Luxury Goods - 0.5% | | | |
| VF Corp. | | 34,210 | 2,064,916 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 26,917,266 |
|
| CONSUMER STAPLES - 8.0% | | | |
| Beverages - 1.9% | | | |
| Constellation Brands, Inc. Class A (sub. vtg.) | | 6,760 | 1,204,632 |
| Keurig Dr. Pepper, Inc. (b) | | 70,407 | 2,153,750 |
| PepsiCo, Inc. | | 3,600 | 495,576 |
| The Coca-Cola Co. | | 75,256 | 3,555,093 |
| | | | 7,409,051 |
| Food & Staples Retailing - 1.6% | | | |
| Costco Wholesale Corp. | | 3,097 | 1,008,166 |
| Walmart, Inc. | | 39,871 | 5,159,307 |
| | | | 6,167,473 |
| Food Products - 1.2% | | | |
| Lamb Weston Holdings, Inc. | | 15,433 | 927,215 |
| Mondelez International, Inc. | | 72,643 | 4,030,960 |
| | | | 4,958,175 |
| Household Products - 2.5% | | | |
| Kimberly-Clark Corp. | | 20,454 | 3,109,826 |
| Procter & Gamble Co. | | 52,233 | 6,848,791 |
| | | | 9,958,617 |
| Tobacco - 0.8% | | | |
| Philip Morris International, Inc. | | 39,211 | 3,011,797 |
|
| TOTAL CONSUMER STAPLES | | | 31,505,113 |
|
| ENERGY - 4.9% | | | |
| Oil, Gas & Consumable Fuels - 4.9% | | | |
| Cenovus Energy, Inc. (Canada) | | 500,700 | 2,227,908 |
| Cheniere Energy, Inc. (a) | | 63,200 | 3,127,136 |
| Chevron Corp. | | 30,100 | 2,526,594 |
| ConocoPhillips Co. | | 80,100 | 2,994,939 |
| Equinor ASA | | 172,100 | 2,539,377 |
| Hess Corp. | | 51,600 | 2,539,236 |
| Noble Energy, Inc. | | 89,800 | 897,102 |
| Valero Energy Corp. | | 43,800 | 2,462,874 |
| | | | 19,315,166 |
| FINANCIALS - 18.1% | | | |
| Banks - 5.7% | | | |
| Bank of America Corp. | | 238,600 | 5,936,368 |
| Citigroup, Inc. | | 99,800 | 4,990,998 |
| DNB ASA | | 51,700 | 794,078 |
| First Horizon National Corp. | | 92,800 | 860,256 |
| Huntington Bancshares, Inc. | | 75,600 | 700,812 |
| JPMorgan Chase & Co. | | 44,300 | 4,281,152 |
| KeyCorp | | 100,800 | 1,210,608 |
| Truist Financial Corp. | | 36,167 | 1,354,816 |
| Wells Fargo & Co. | | 95,400 | 2,314,404 |
| | | | 22,443,492 |
| Capital Markets - 4.3% | | | |
| Bank of New York Mellon Corp. | | 118,200 | 4,237,470 |
| BlackRock, Inc. Class A | | 4,600 | 2,645,046 |
| Cboe Global Markets, Inc. | | 18,700 | 1,639,990 |
| Intercontinental Exchange, Inc. | | 29,200 | 2,825,976 |
| Morgan Stanley | | 84,700 | 4,140,136 |
| Virtu Financial, Inc. Class A | | 59,400 | 1,473,120 |
| | | | 16,961,738 |
| Consumer Finance - 2.4% | | | |
| Ally Financial, Inc. | | 48,900 | 982,890 |
| Capital One Financial Corp. | | 115,500 | 7,368,900 |
| Discover Financial Services | | 22,100 | 1,092,403 |
| | | | 9,444,193 |
| Diversified Financial Services - 2.5% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 50,957 | 9,976,361 |
| Insurance - 3.2% | | | |
| American International Group, Inc. | | 43,170 | 1,387,484 |
| Chubb Ltd. | | 5,400 | 687,096 |
| Hartford Financial Services Group, Inc. | | 49,200 | 2,082,144 |
| The Travelers Companies, Inc. | | 46,300 | 5,297,646 |
| Willis Towers Watson PLC | | 14,784 | 3,104,788 |
| | | | 12,559,158 |
|
| TOTAL FINANCIALS | | | 71,384,942 |
|
| HEALTH CARE - 14.1% | | | |
| Biotechnology - 0.6% | | | |
| Gilead Sciences, Inc. | | 34,200 | 2,377,926 |
| Health Care Equipment & Supplies - 5.3% | | | |
| Abbott Laboratories | | 27,700 | 2,787,728 |
| Baxter International, Inc. | | 30,900 | 2,669,142 |
| Becton, Dickinson & Co. | | 16,100 | 4,529,574 |
| Boston Scientific Corp. (a) | | 54,400 | 2,098,208 |
| Danaher Corp. | | 27,600 | 5,624,880 |
| Medtronic PLC | | 35,620 | 3,436,618 |
| | | | 21,146,150 |
| Health Care Providers & Services - 2.9% | | | |
| Cardinal Health, Inc. | | 21,400 | 1,168,868 |
| Cigna Corp. | | 19,900 | 3,436,531 |
| CVS Health Corp. | | 28,834 | 1,814,812 |
| Humana, Inc. | | 5,600 | 2,197,720 |
| UnitedHealth Group, Inc. | | 8,900 | 2,694,742 |
| | | | 11,312,673 |
| Life Sciences Tools & Services - 1.1% | | | |
| Thermo Fisher Scientific, Inc. | | 10,500 | 4,346,475 |
| Pharmaceuticals - 4.2% | | | |
| Bristol-Myers Squibb Co. | | 39,000 | 2,287,740 |
| Johnson & Johnson | | 56,685 | 8,262,406 |
| Merck & Co., Inc. | | 7,500 | 601,800 |
| Pfizer, Inc. | | 142,771 | 5,493,828 |
| | | | 16,645,774 |
|
| TOTAL HEALTH CARE | | | 55,828,998 |
|
| INDUSTRIALS - 12.1% | | | |
| Aerospace & Defense - 2.8% | | | |
| General Dynamics Corp. | | 23,411 | 3,435,330 |
| Northrop Grumman Corp. | | 5,000 | 1,625,050 |
| Raytheon Technologies Corp. | | 72,037 | 4,083,057 |
| The Boeing Co. | | 11,846 | 1,871,668 |
| | | | 11,015,105 |
| Air Freight & Logistics - 1.4% | | | |
| FedEx Corp. | | 32,683 | 5,503,817 |
| Construction & Engineering - 1.3% | | | |
| AECOM (a) | | 140,095 | 5,070,038 |
| Electrical Equipment - 1.5% | | | |
| Sensata Technologies, Inc. PLC (a) | | 152,044 | 5,774,631 |
| Industrial Conglomerates - 1.1% | | | |
| General Electric Co. | | 566,370 | 3,437,866 |
| Honeywell International, Inc. | | 6,380 | 952,981 |
| | | | 4,390,847 |
| Machinery - 0.3% | | | |
| Caterpillar, Inc. | | 8,708 | 1,157,119 |
| Marine - 0.8% | | | |
| A.P. Moller - Maersk A/S Series B | | 2,469 | 3,178,670 |
| Professional Services - 0.9% | | | |
| Nielsen Holdings PLC | | 252,336 | 3,641,208 |
| Road & Rail - 1.1% | | | |
| Norfolk Southern Corp. | | 22,986 | 4,418,139 |
| Trading Companies & Distributors - 0.9% | | | |
| HD Supply Holdings, Inc. (a) | | 101,196 | 3,551,980 |
|
| TOTAL INDUSTRIALS | | | 47,701,554 |
|
| INFORMATION TECHNOLOGY - 9.8% | | | |
| Communications Equipment - 2.6% | | | |
| Cisco Systems, Inc. | | 149,555 | 7,044,041 |
| CommScope Holding Co., Inc. (a) | | 135,143 | 1,254,127 |
| F5 Networks, Inc. (a) | | 14,213 | 1,931,547 |
| | | | 10,229,715 |
| IT Services - 4.4% | | | |
| Amdocs Ltd. | | 79,327 | 4,926,207 |
| Capgemini SA | | 27,211 | 3,509,825 |
| Fidelity National Information Services, Inc. | | 23,011 | 3,366,739 |
| Fiserv, Inc. (a) | | 9,900 | 987,921 |
| IBM Corp. | | 36,533 | 4,491,367 |
| | | | 17,282,059 |
| Semiconductors & Semiconductor Equipment - 1.6% | | | |
| Broadcom, Inc. | | 4,706 | 1,490,626 |
| Intel Corp. | | 98,881 | 4,719,590 |
| | | | 6,210,216 |
| Software - 1.2% | | | |
| Nortonlifelock, Inc. | | 130,976 | 2,809,435 |
| SS&C Technologies Holdings, Inc. | | 36,203 | 2,081,673 |
| | | | 4,891,108 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 38,613,098 |
|
| MATERIALS - 4.4% | | | |
| Chemicals - 2.6% | | | |
| DuPont de Nemours, Inc. | | 75,539 | 4,039,826 |
| Olin Corp. | | 183,805 | 2,065,968 |
| The Chemours Co. LLC | | 129,040 | 2,391,111 |
| W.R. Grace & Co. | | 40,541 | 1,870,156 |
| | | | 10,367,061 |
| Construction Materials - 0.7% | | | |
| Eagle Materials, Inc. | | 21,310 | 1,709,701 |
| Summit Materials, Inc. (a) | | 74,881 | 1,102,248 |
| | | | 2,811,949 |
| Containers & Packaging - 1.1% | | | |
| Crown Holdings, Inc. (a) | | 61,066 | 4,371,104 |
|
| TOTAL MATERIALS | | | 17,550,114 |
|
| REAL ESTATE - 4.9% | | | |
| Equity Real Estate Investment Trusts (REITs) - 4.6% | | | |
| American Homes 4 Rent Class A | | 56,100 | 1,626,900 |
| American Tower Corp. | | 7,400 | 1,934,286 |
| Corporate Office Properties Trust (SBI) | | 68,400 | 1,811,232 |
| Digital Realty Trust, Inc. | | 16,800 | 2,697,072 |
| Highwoods Properties, Inc. (SBI) | | 28,700 | 1,100,358 |
| Prologis (REIT), Inc. | | 46,500 | 4,902,030 |
| VICI Properties, Inc. | | 28,300 | 614,393 |
| Weyerhaeuser Co. | | 120,800 | 3,359,448 |
| | | | 18,045,719 |
| Real Estate Management & Development - 0.3% | | | |
| Cushman & Wakefield PLC (a) | | 133,600 | 1,429,520 |
|
| TOTAL REAL ESTATE | | | 19,475,239 |
|
| UTILITIES - 5.9% | | | |
| Electric Utilities - 2.2% | | | |
| Edison International | | 50,082 | 2,788,065 |
| Evergy, Inc. | | 27,743 | 1,798,579 |
| Exelon Corp. | | 88,966 | 3,434,977 |
| PG&E Corp. (a) | | 57,591 | 538,476 |
| PG&E Corp. (c) | | 31,334 | 278,324 |
| | | | 8,838,421 |
| Independent Power and Renewable Electricity Producers - 1.3% | | | |
| The AES Corp. | | 178,481 | 2,718,266 |
| Vistra Corp. | | 132,122 | 2,465,397 |
| | | | 5,183,663 |
| Multi-Utilities - 2.4% | | | |
| CenterPoint Energy, Inc. | | 145,767 | 2,771,031 |
| Dominion Energy, Inc. | | 42,933 | 3,478,861 |
| Sempra Energy | | 25,879 | 3,220,900 |
| | | | 9,470,792 |
|
| TOTAL UTILITIES | | | 23,492,876 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $386,658,370) | | | 388,770,126 |
|
| Money Market Funds - 1.4% | | | |
| Fidelity Cash Central Fund 0.14% (d) | | 3,947,600 | 3,948,784 |
| Fidelity Securities Lending Cash Central Fund 0.13% (d)(e) | | 1,436,256 | 1,436,400 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $5,384,577) | | | 5,385,184 |
|
| Equity Funds - 0.4% | | | |
| Domestic Equity Funds - 0.4% | | | |
| iShares Russell 1000 Value Index ETF | | | |
| (Cost $1,495,002) | | 12,800 | 1,499,264 |
| TOTAL INVESTMENT IN SECURITIES - 100.2% | | | |
| (Cost $393,537,949) | | | 395,654,574 |
| NET OTHER ASSETS (LIABILITIES) - (0.2)% | | | (618,117) |
| NET ASSETS - 100% | | | $395,036,457 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $278,324 or 0.1% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PG&E Corp. | 6/30/20 | $297,673 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $23,893 |
| Fidelity Securities Lending Cash Central Fund | 10,986 |
| Total | $34,879 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $36,985,760 | $36,985,760 | $-- | $-- |
| Consumer Discretionary | 26,917,266 | 26,917,266 | -- | -- |
| Consumer Staples | 31,505,113 | 31,505,113 | -- | -- |
| Energy | 19,315,166 | 19,315,166 | -- | -- |
| Financials | 71,384,942 | 70,590,864 | 794,078 | -- |
| Health Care | 55,828,998 | 55,828,998 | -- | -- |
| Industrials | 47,701,554 | 44,522,884 | 3,178,670 | -- |
| Information Technology | 38,613,098 | 38,613,098 | -- | -- |
| Materials | 17,550,114 | 17,550,114 | -- | -- |
| Real Estate | 19,475,239 | 19,475,239 | -- | -- |
| Utilities | 23,492,876 | 23,214,552 | 278,324 | -- |
| Money Market Funds | 5,385,184 | 5,385,184 | -- | -- |
| Equity Funds | 1,499,264 | 1,499,264 | -- | -- |
| Total Investments in Securities: | $395,654,574 | $391,403,502 | $4,251,072 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | July 31, 2020 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $1,394,904) — See accompanying schedule:
Unaffiliated issuers (cost $388,153,372) | $390,269,390 | |
| Fidelity Central Funds (cost $5,384,577) | 5,385,184 | |
| Total Investment in Securities (cost $393,537,949) | | $395,654,574 |
| Receivable for investments sold | | 2,357,442 |
| Receivable for fund shares sold | | 165,934 |
| Dividends receivable | | 519,225 |
| Distributions receivable from Fidelity Central Funds | | 1,242 |
| Other receivables | | 20,527 |
| Total assets | | 398,718,944 |
| Liabilities | | |
| Payable to custodian bank | $51,522 | |
| Payable for investments purchased | 1,801,289 | |
| Payable for fund shares redeemed | 156,911 | |
| Accrued management fee | 112,663 | |
| Distribution and service plan fees payable | 12,548 | |
| Other affiliated payables | 70,875 | |
| Other payables and accrued expenses | 40,279 | |
| Collateral on securities loaned | 1,436,400 | |
| Total liabilities | | 3,682,487 |
| Net Assets | | $395,036,457 |
| Net Assets consist of: | | |
| Paid in capital | | $432,622,174 |
| Total accumulated earnings (loss) | | (37,585,717) |
| Net Assets | | $395,036,457 |
| Net Asset Value and Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($20,207,574 ÷ 1,104,091 shares)(a) | | $18.30 |
| Maximum offering price per share (100/94.25 of $18.30) | | $19.42 |
| Class M: | | |
| Net Asset Value and redemption price per share ($8,179,072 ÷ 448,357 shares)(a) | | $18.24 |
| Maximum offering price per share (100/96.50 of $18.24) | | $18.90 |
| Class C: | | |
| Net Asset Value and offering price per share ($5,842,037 ÷ 328,408 shares)(a) | | $17.79 |
| Stock Selector Large Cap Value: | | |
| Net Asset Value, offering price and redemption price per share ($342,903,676 ÷ 18,546,336 shares) | | $18.49 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($3,596,724 ÷ 193,618 shares) | | $18.58 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($14,307,374 ÷ 778,596 shares) | | $18.38 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended July 31, 2020 (Unaudited) |
| Investment Income | | |
| Dividends | | $5,372,282 |
| Special dividends | | 1,448,400 |
| Interest | | 378 |
| Income from Fidelity Central Funds (including $10,986 from security lending) | | 34,879 |
| Total income | | 6,855,939 |
| Expenses | | |
| Management fee | | |
| Basic fee | $1,071,517 | |
| Performance adjustment | (377,741) | |
| Transfer agent fees | 356,407 | |
| Distribution and service plan fees | 80,454 | |
| Accounting fees | 78,334 | |
| Custodian fees and expenses | 18,300 | |
| Independent trustees' fees and expenses | 1,363 | |
| Registration fees | 43,938 | |
| Audit | 30,687 | |
| Legal | 3,957 | |
| Miscellaneous | 9,588 | |
| Total expenses before reductions | 1,316,804 | |
| Expense reductions | (31,433) | |
| Total expenses after reductions | | 1,285,371 |
| Net investment income (loss) | | 5,570,568 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (39,779,563) | |
| Fidelity Central Funds | 1,139 | |
| Foreign currency transactions | (10,308) | |
| Futures contracts | (439,872) | |
| Total net realized gain (loss) | | (40,228,604) |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (26,591,167) | |
| Fidelity Central Funds | 377 | |
| Assets and liabilities in foreign currencies | 801 | |
| Futures contracts | 43,942 | |
| Total change in net unrealized appreciation (depreciation) | | (26,546,047) |
| Net gain (loss) | | (66,774,651) |
| Net increase (decrease) in net assets resulting from operations | | $(61,204,083) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended July 31, 2020 (Unaudited) | Year ended January 31, 2020 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $5,570,568 | $14,093,575 |
| Net realized gain (loss) | (40,228,604) | 52,984,207 |
| Change in net unrealized appreciation (depreciation) | (26,546,047) | 27,658,452 |
| Net increase (decrease) in net assets resulting from operations | (61,204,083) | 94,736,234 |
| Distributions to shareholders | (2,454,740) | (7,816,909) |
| Share transactions - net increase (decrease) | (40,588,716) | (537,512,895) |
| Total increase (decrease) in net assets | (104,247,539) | (450,593,570) |
| Net Assets | | |
| Beginning of period | 499,283,996 | 949,877,566 |
| End of period | $395,036,457 | $499,283,996 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Stock Selector Large Cap Value Fund Class A
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.92 | $18.80 | $21.26 | $18.63 | $15.37 | $16.41 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .22B | .29 | .26 | .25C | .19 | .15 |
| Net realized and unrealized gain (loss) | (2.74) | 2.14 | (1.45) | 2.54 | 3.27 | (1.03) |
| Total from investment operations | (2.52) | 2.43 | (1.19) | 2.79 | 3.46 | (.88) |
| Distributions from net investment income | (.10) | (.31) | (.24) | (.16) | (.20) | (.16) |
| Distributions from net realized gain | – | – | (1.03) | – | – | – |
| Total distributions | (.10) | (.31) | (1.27) | (.16) | (.20) | (.16) |
| Net asset value, end of period | $18.30 | $20.92 | $18.80 | $21.26 | $18.63 | $15.37 |
| Total ReturnD,E,F | (12.05)% | 12.92% | (5.46)% | 15.02% | 22.48% | (5.40)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | .91%I | .93% | .96% | 1.02% | 1.05% | 1.10% |
| Expenses net of fee waivers, if any | .91%I | .93% | .96% | 1.02% | 1.05% | 1.10% |
| Expenses net of all reductions | .89%I | .93% | .95% | 1.01% | 1.05% | 1.09% |
| Net investment income (loss) | 2.16%B,I | 1.45% | 1.28% | 1.27%C | 1.10% | .90% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $20,208 | $25,576 | $25,204 | $27,297 | $31,054 | $24,201 |
| Portfolio turnover rateJ | 115%I | 68%K | 92% | 90% | 51% | 67% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.80%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .90%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Large Cap Value Fund Class M
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.88 | $18.77 | $21.24 | $18.61 | $15.36 | $16.40 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .20B | .23 | .19 | .19C | .13 | .10 |
| Net realized and unrealized gain (loss) | (2.74) | 2.13 | (1.44) | 2.54 | 3.26 | (1.03) |
| Total from investment operations | (2.54) | 2.36 | (1.25) | 2.73 | 3.39 | (.93) |
| Distributions from net investment income | (.10) | (.25) | (.18) | (.10) | (.14) | (.11) |
| Distributions from net realized gain | – | – | (1.03) | – | – | – |
| Total distributions | (.10) | (.25) | (1.22)D | (.10) | (.14) | (.11) |
| Net asset value, end of period | $18.24 | $20.88 | $18.77 | $21.24 | $18.61 | $15.36 |
| Total ReturnE,F,G | (12.19)% | 12.59% | (5.78)% | 14.70% | 22.04% | (5.71)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.21%J | 1.24% | 1.28% | 1.34% | 1.39% | 1.42% |
| Expenses net of fee waivers, if any | 1.21%J | 1.23% | 1.28% | 1.34% | 1.39% | 1.42% |
| Expenses net of all reductions | 1.19%J | 1.23% | 1.27% | 1.33% | 1.39% | 1.41% |
| Net investment income (loss) | 1.87%B,J | 1.15% | .96% | .95%C | .76% | .58% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $8,179 | $10,385 | $9,542 | $10,615 | $10,704 | $9,515 |
| Portfolio turnover rateK | 115%J | 68%L | 92% | 90% | 51% | 67% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.50%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .58%.
D Total distributions of $1.22 per share is comprised of distributions from net investment income of $.183 and distributions from net realized gain of $1.032 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Large Cap Value Fund Class C
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.40 | $18.37 | $20.81 | $18.25 | $15.09 | $16.18 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .15B | .12 | .09 | .08C | .05 | .01 |
| Net realized and unrealized gain (loss) | (2.68) | 2.08 | (1.42) | 2.49 | 3.18 | (1.00) |
| Total from investment operations | (2.53) | 2.20 | (1.33) | 2.57 | 3.23 | (.99) |
| Distributions from net investment income | (.08) | (.17) | (.08) | (.01) | (.07) | (.10) |
| Distributions from net realized gain | – | – | (1.03) | – | – | – |
| Total distributions | (.08) | (.17) | (1.11) | (.01) | (.07) | (.10) |
| Net asset value, end of period | $17.79 | $20.40 | $18.37 | $20.81 | $18.25 | $15.09 |
| Total ReturnD,E,F | (12.39)% | 11.96% | (6.26)% | 14.07% | 21.43% | (6.13)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.73%I | 1.78% | 1.80% | 1.86% | 1.88% | 1.93% |
| Expenses net of fee waivers, if any | 1.73%I | 1.77% | 1.80% | 1.85% | 1.88% | 1.93% |
| Expenses net of all reductions | 1.71%I | 1.77% | 1.79% | 1.85% | 1.87% | 1.93% |
| Net investment income (loss) | 1.35%B,I | .61% | .44% | .43%C | .27% | .07% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $5,842 | $8,813 | $9,813 | $10,703 | $10,802 | $8,956 |
| Portfolio turnover rateJ | 115%I | 68%K | 92% | 90% | 51% | 67% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .06%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Large Cap Value Fund
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $21.11 | $18.94 | $21.41 | $18.76 | $15.47 | $16.51 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .25B | .35 | .32 | .31C | .24 | .20 |
| Net realized and unrealized gain (loss) | (2.76) | 2.16 | (1.46) | 2.57 | 3.29 | (1.03) |
| Total from investment operations | (2.51) | 2.51 | (1.14) | 2.88 | 3.53 | (.83) |
| Distributions from net investment income | (.11) | (.34) | (.29) | (.23) | (.24) | (.21) |
| Distributions from net realized gain | – | – | (1.03) | – | – | – |
| Total distributions | (.11) | (.34) | (1.33)D | (.23) | (.24) | (.21) |
| Net asset value, end of period | $18.49 | $21.11 | $18.94 | $21.41 | $18.76 | $15.47 |
| Total ReturnE,F | (11.91)% | 13.24% | (5.20)% | 15.39% | 22.82% | (5.10)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | .61%I | .64% | .67% | .73% | .77% | .81% |
| Expenses net of fee waivers, if any | .61%I | .64% | .67% | .73% | .77% | .81% |
| Expenses net of all reductions | .60%I | .64% | .66% | .72% | .76% | .80% |
| Net investment income (loss) | 2.46%B,I | 1.74% | 1.57% | 1.56%C | 1.38% | 1.19% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $342,904 | $432,154 | $806,342 | $989,001 | $703,722 | $644,182 |
| Portfolio turnover rateJ | 115%I | 68%K | 92% | 90% | 51% | 67% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.10%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.19%.
D Total distributions of $1.33 per share is comprised of distributions from net investment income of $.294 and distributions from net realized gain of $1.032 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Large Cap Value Fund Class I
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | | | |
| | 2020 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $21.22 | $18.82 | $21.28 | $18.66 | $15.40 | $16.44 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .25B | .34 | .31 | .30C | .23 | .20 |
| Net realized and unrealized gain (loss) | (2.77) | 2.14 | (1.45) | 2.55 | 3.27 | (1.04) |
| Total from investment operations | (2.52) | 2.48 | (1.14) | 2.85 | 3.50 | (.84) |
| Distributions from net investment income | (.12) | (.08) | (.29) | (.23) | (.24) | (.20) |
| Distributions from net realized gain | – | – | (1.03) | – | – | – |
| Total distributions | (.12) | (.08) | (1.32) | (.23) | (.24) | (.20) |
| Net asset value, end of period | $18.58 | $21.22 | $18.82 | $21.28 | $18.66 | $15.40 |
| Total ReturnD,E | (11.90)% | 13.20% | (5.20)% | 15.33% | 22.72% | (5.14)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | .68%H | .67% | .69% | .76% | .84% | .82% |
| Expenses net of fee waivers, if any | .68%H | .66% | .69% | .76% | .84% | .82% |
| Expenses net of all reductions | .66%H | .66% | .68% | .75% | .84% | .81% |
| Net investment income (loss) | 2.39%B,H | 1.72% | 1.55% | 1.53%C | 1.30% | 1.18% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $3,597 | $9,450 | $98,119 | $118,319 | $11,273 | $6,164 |
| Portfolio turnover rateI | 115%H | 68%J | 92% | 90% | 51% | 67% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.03%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.16%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Large Cap Value Fund Class Z
| | Six months ended (Unaudited) July 31, | Years endedJanuary 31, | | |
| | 2020 | 2020 | 2019 | 2018 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $20.97 | $18.84 | $21.30 | $18.64 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .26C | .38 | .34 | .34D |
| Net realized and unrealized gain (loss) | (2.74) | 2.14 | (1.45) | 2.57 |
| Total from investment operations | (2.48) | 2.52 | (1.11) | 2.91 |
| Distributions from net investment income | (.11) | (.39) | (.32) | (.25) |
| Distributions from net realized gain | – | – | (1.03) | – |
| Total distributions | (.11) | (.39) | (1.35) | (.25) |
| Net asset value, end of period | $18.38 | $20.97 | $18.84 | $21.30 |
| Total ReturnE,F | (11.84)% | 13.38% | (5.04)% | 15.65% |
| Ratios to Average Net AssetsG,H | | | | |
| Expenses before reductions | .48%I | .52% | .55% | .60% |
| Expenses net of fee waivers, if any | .48%I | .52% | .55% | .60% |
| Expenses net of all reductions | .47%I | .51% | .54% | .59% |
| Net investment income (loss) | 2.59%C,I | 1.86% | 1.70% | 1.68%D |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $14,307 | $12,905 | $858 | $888 |
| Portfolio turnover rateJ | 115%I | 68%K | 92% | 90% |
A For the period February 1, 2017 (commencement of sale of shares) to January 31, 2018.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.23%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.31%.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended July 31, 2020
1. Organization.
Fidelity Stock Selector Large Cap Value 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. The Fund offers Class A, Class M, Class C, Stock Selector Large Cap Value, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, redemptions in kind and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $38,994,892 |
| Gross unrealized depreciation | (41,849,631) |
| Net unrealized appreciation (depreciation) | $(2,854,739) |
| Tax cost | $398,509,313 |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
|
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
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 Stock Selector Large Cap Value Fund | 230,580,993 | 261,125,530 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% 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 relative investment performance of Stock Selector Large Cap Value as compared to its benchmark index, the Russell 1000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .35% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution Fee | Service Fee | Total Fees | Retained by FDC |
| Class A | -% | .25% | $25,787 | $532 |
| Class M | .25% | .25% | 21,205 | 342 |
| Class C | .75% | .25% | 33,462 | 2,768 |
| | | | $80,454 | $3,642 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained by FDC |
| Class A | $5,650 |
| Class M | 581 |
| Class C(a) | 340 |
| | $6,571 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Effective February 1, 2020, the Board approved to change the fee for Class Z from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets(a) |
| Class A | $22,658 | .22 |
| Class M | 11,268 | .27 |
| Class C | 9,405 | .28 |
| Stock Selector Large Cap Value | 302,280 | .17 |
| Class I | 8,435 | .24 |
| Class Z | 2,361 | .04 |
| | $356,407 | |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
| | % of Average Net Assets |
| Fidelity Stock Selector Large Cap Value Fund | .04 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| | Amount |
| Fidelity Stock Selector Large Cap Value Fund | $6,171 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, shares of the Fidelity Stock Selector Large Cap Value were redeemed in-kind for investments. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. For additional information of the Fidelity Stock Selector Large Cap Value in-kind transactions, please refer to the Fidelity Stock Selector Large Cap Value prior annual shareholder report.
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| | Amount |
| Fidelity Stock Selector Large Cap Value Fund | $531 |
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. Lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Total fees paid by the Fund to NFS, as lending agent, amounted to $183. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Net income from the Fidelity Securities Lending Cash Central Fund during the period is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $30,397 for the period. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| | Expense reduction |
| Class C | $16 |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,020.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
July 31, 2020 | Year ended
January 31, 2020 |
| Distributions to shareholders | | |
| Class A | $118,898 | $376,526 |
| Class M | 46,938 | 124,103 |
| Class C | 36,453 | 73,576 |
| Stock Selector Large Cap Value | 2,137,087 | 6,974,541 |
| Class I | 50,965 | 38,278 |
| Class Z | 64,399 | 229,885 |
| Total | $2,454,740 | $7,816,909 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended July 31, 2020 | Year ended January 31, 2020 | Six months ended July 31, 2020 | Year ended January 31, 2020 |
| Class A | | | | |
| Shares sold | 86,429 | 272,583 | $1,477,901 | $5,444,751 |
| Reinvestment of distributions | 6,070 | 16,942 | 112,425 | 356,457 |
| Shares redeemed | (210,870) | (407,710) | (3,678,627) | (8,121,788) |
| Net increase (decrease) | (118,371) | (118,185) | $(2,088,301) | $(2,320,580) |
| Class M | | | | |
| Shares sold | 25,170 | 52,572 | $443,410 | $1,061,174 |
| Reinvestment of distributions | 2,533 | 5,893 | 46,810 | 123,762 |
| Shares redeemed | (76,753) | (69,435) | (1,335,712) | (1,393,986) |
| Net increase (decrease) | (49,050) | (10,970) | $(845,492) | $(209,050) |
| Class C | | | | |
| Shares sold | 25,414 | 117,640 | $441,562 | $2,317,618 |
| Reinvestment of distributions | 2,011 | 3,552 | 36,327 | 72,960 |
| Shares redeemed | (130,950) | (223,436) | (2,140,743) | (4,307,137) |
| Net increase (decrease) | (103,525) | (102,244) | $(1,662,854) | $(1,916,559) |
| Stock Selector Large Cap Value | | | | |
| Shares sold | 857,016 | 3,286,805 | $14,822,620 | $65,276,805 |
| Reinvestment of distributions | 108,537 | 312,906 | 2,028,563 | 6,639,858 |
| Shares redeemed | (2,890,157) | (25,706,426)(a) | (51,233,105) | (519,914,728)(a) |
| Net increase (decrease) | (1,924,604) | (22,106,715) | $(34,381,922) | $(447,998,065) |
| Class I | | | | |
| Shares sold | 50,967 | 584,249 | $841,020 | $11,412,152 |
| Reinvestment of distributions | 1,310 | 871 | 24,599 | 18,584 |
| Shares redeemed | (303,946) | (5,353,625)(a) | (5,363,833) | (107,597,098)(a) |
| Net increase (decrease) | (251,669) | (4,768,505) | $(4,498,214) | $(96,166,362) |
| Class Z | | | | |
| Shares sold | 278,546 | 614,598 | $4,827,097 | $11,995,991 |
| Reinvestment of distributions | 3,419 | 10,810 | 63,453 | 227,875 |
| Shares redeemed | (118,781) | (55,521) | (2,002,483) | (1,126,145) |
| Net increase (decrease) | 163,184 | 569,887 | $2,888,067 | $11,097,721 |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Affiliated Redemptions In-Kind note for additional details).
12. 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.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | Annualized Expense Ratio-A | Beginning
Account Value
February 1, 2020 | Ending
Account Value
July 31, 2020 | Expenses Paid
During Period-B
February 1, 2020
to July 31, 2020 |
| Fidelity Stock Selector Large Cap Value Fund | | | | |
| Class A | .91% | | | |
| Actual | | $1,000.00 | $879.50 | $4.25 |
| Hypothetical-C | | $1,000.00 | $1,020.34 | $4.57 |
| Class M | 1.21% | | | |
| Actual | | $1,000.00 | $878.10 | $5.65 |
| Hypothetical-C | | $1,000.00 | $1,018.85 | $6.07 |
| Class C | 1.73% | | | |
| Actual | | $1,000.00 | $876.10 | $8.07 |
| Hypothetical-C | | $1,000.00 | $1,016.26 | $8.67 |
| Stock Selector Large Cap Value | .61% | | | |
| Actual | | $1,000.00 | $880.90 | $2.85 |
| Hypothetical-C | | $1,000.00 | $1,021.83 | $3.07 |
| Class I | .68% | | | |
| Actual | | $1,000.00 | $881.00 | $3.18 |
| Hypothetical-C | | $1,000.00 | $1,021.48 | $3.42 |
| Class Z | .48% | | | |
| Actual | | $1,000.00 | $881.60 | $2.25 |
| Hypothetical-C | | $1,000.00 | $1,022.48 | $2.41 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable..
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| | # of
Votes | % of
Votes |
| Dennis J. Dirks |
| Affirmative | 20,677,600,881.166 | 98.531 |
| Withheld | 308,216,367.332 | 1.469 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Donald F. Donahue |
| Affirmative | 20,685,205,663.711 | 98.568 |
| Withheld | 300,611,584.787 | 1.432 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Bettina Doulton |
| Affirmative | 20,701,129,729.034 | 98.643 |
| Withheld | 284,687,519.464 | 1.357 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Vicki L. Fuller |
| Affirmative | 20,713,892,146.063 | 98.704 |
| Withheld | 271,925,102.435 | 1.296 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Patricia L. Kampling |
| Affirmative | 20,693,289,719.327 | 98.606 |
| Withheld | 292,527,529.171 | 1.394 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Alan J. Lacy |
| Affirmative | 20,659,591,158.873 | 98.445 |
| Withheld | 326,226,089.625 | 1.555 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Ned C. Lautenbach |
| Affirmative | 20,634,244,420.039 | 98.325 |
| Withheld | 351,572,828.459 | 1.675 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Robert A. Lawrence |
| Affirmative | 20,672,781,907.548 | 98.508 |
| Withheld | 313,035,340.950 | 1.492 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Joseph Mauriello |
| Affirmative | 20,652,465,304.654 | 98.412 |
| Withheld | 333,351,943.843 | 1.588 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Cornelia M. Small |
| Affirmative | 20,671,641,667.984 | 98.503 |
| Withheld | 314,175,580.514 | 1.497 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Garnett A. Smith |
| Affirmative | 20,655,644,270.628 | 98.427 |
| Withheld | 330,172,977.870 | 1.573 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| David M. Thomas |
| Affirmative | 20,654,595,907.599 | 98.422 |
| Withheld | 331,221,340.899 | 1.578 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Susan Tomasky |
| Affirmative | 20,686,662,870.375 | 98.574 |
| Withheld | 299,154,378.123 | 1.426 |
| TOTAL | 20,985,817,248.498 | 100.000 |
| Michael E. Wiley |
| Affirmative | 20,662,847,882.871 | 98.461 |
| Withheld | 322,969,365.626 | 1.539 |
| TOTAL | 20,985,817,248.498 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
| | # of
Votes | % of
Votes |
| Affirmative | 125,285,703.333 | 60.522 |
| Against | 44,817,009.108 | 21.650 |
| Abstain | 25,570,812.547 | 12.352 |
| Broker Non-Vote | 11,336,617.650 | 5.476 |
| TOTAL | 207,010,142.638 | 100.000 |
| Proposal 1 reflects trust wide proposal and voting results. |
| Proposal 2 was not approved by shareholders. |
LCV-SANN-0920
1.900197.111
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Devonshire 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 Fidelity Devonshire Trust’s (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable
assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
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/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | September 18, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| |
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | September 18, 2020 |
| |
By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer |
|
|
Date: | September 18, 2020 |
