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 811-215
Fidelity Hastings Street Trust
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | December 31 |
|
|
Date of reporting period: | June 30, 2012 |
Item 1. Reports to Stockholders
Fidelity®
Series Emerging Markets Debt
Fund
Fidelity Series Emerging Markets Debt Fund
Class F
Semiannual Report
June 30, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of the fund's investments. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
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 for Fidelity Series Emerging Markets Debt Fund or 1-800-835-5092 for Class F 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. © 2012 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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.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.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2012 to June 30, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Series Emerging Markets Debt | .86% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,063.10 | $ 4.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.59 | $ 4.32 |
Class F | .74% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,063.80 | $ 3.80 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.18 | $ 3.72 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Countries as of June 30, 2012 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Venezuela | 12.5 | 12.5 |
Turkey | 7.7 | 7.1 |
Russia | 6.7 | 6.8 |
Mexico | 6.6 | 6.9 |
Argentina | 6.2 | 7.3 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five Holdings as of June 30, 2012 | ||
(by issuer, excluding cash equivalents) | % of fund's | % of fund's net assets |
Turkish Republic | 7.0 | 6.3 |
Venezuelan Republic | 6.5 | 6.7 |
Russian Federation | 6.1 | 6.2 |
Petroleos de Venezuela SA | 6.0 | 5.8 |
Indonesian Republic | 4.4 | 3.9 |
| 30.0 | |
Asset Allocation (% of fund's net assets) | |||||||
As of June 30, 2012 | As of December 31, 2011 | ||||||
 | Corporate Bonds 30.6% |
| | Corporate Bonds 29.0% |
| ||
 | Government |
| | Government |
| ||
 | Preferred Securities 0.8% |
| | Preferred Securities 1.1% |
| ||
 | Other Investments 0.5% |
| | Other Investments 0.3% |
| ||
 | Short-Term |
| | Short-Term |
| ||
Semiannual Report
Investments June 30, 2012 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 30.6% | ||||
| Principal Amount (c) | Value | ||
Convertible Bonds - 0.5% | ||||
Bailiwick of Jersey - 0.2% | ||||
Vedanta Resources Jersey II Ltd. 5.5% 7/13/16 | $ 1,900,000 | $ 1,748,000 | ||
United Kingdom - 0.3% | ||||
Vedanta Resources Jersey II Ltd. 4% 3/30/17 | 3,100,000 | 3,038,000 | ||
TOTAL CONVERTIBLE BONDS | 4,786,000 | |||
Nonconvertible Bonds - 30.1% | ||||
Argentina - 1.2% | ||||
Aeropuertos Argentina 2000 SA 10.75% 12/1/20 (e) | 3,023,040 | 2,478,893 | ||
Empresa Distribuidora y Comercializadora Norte SA 9.75% 10/25/22 (e) | 2,190,000 | 766,500 | ||
Pan American Energy LLC 7.875% 5/7/21 (e) | 1,780,000 | 1,504,100 | ||
Transportadora de Gas del Sur SA 7.875% 5/14/17 (e) | 8,550,000 | 5,835,375 | ||
YPF SA 10% 11/2/28 | 1,615,000 | 1,582,700 | ||
TOTAL ARGENTINA | 12,167,568 | |||
Brazil - 0.7% | ||||
Banco Nacional de Desenvolvimento Economico e Social 6.5% 6/10/19 (e) | 1,360,000 | 1,621,800 | ||
OGX Petroleo e Gas Participacoes SA 8.5% 6/1/18 (e) | 3,610,000 | 3,230,950 | ||
Votorantim Cimentos SA 7.25% 4/5/41 (e) | 1,825,000 | 1,829,563 | ||
TOTAL BRAZIL | 6,682,313 | |||
British Virgin Islands - 0.5% | ||||
Arcos Dorados Holdings, Inc. 10.25% 7/13/16 (e) | BRL | 9,202,000 | 4,822,059 | |
Canada - 0.6% | ||||
Pacific Rubiales Energy Corp. 7.25% 12/12/21 (e) | 4,773,000 | 5,202,570 | ||
Sino-Forest Corp. 6.25% 10/21/17 (b)(e) | 3,220,000 | 909,650 | ||
TOTAL CANADA | 6,112,220 | |||
Cayman Islands - 2.0% | ||||
Fibria Overseas Finance Ltd.: | ||||
6.75% 3/3/21 (e) | 970,000 | 970,000 | ||
7.5% 5/4/20 (e) | 1,285,000 | 1,336,400 | ||
Mongolian Mining Corp. 8.875% 3/29/17 (e) | 2,650,000 | 2,656,625 | ||
Odebrecht Finance Ltd. 7.5% (e)(f) | 6,510,000 | 6,690,978 | ||
Petrobras International Finance Co. Ltd.: | ||||
5.375% 1/27/21 | 3,265,000 | 3,518,922 | ||
Corporate Bonds - continued | ||||
| Principal Amount (c) | Value | ||
Nonconvertible Bonds - continued | ||||
Cayman Islands - continued | ||||
Petrobras International Finance Co. Ltd.: - continued | ||||
6.875% 1/20/40 | $ 2,185,000 | $ 2,623,748 | ||
8.375% 12/10/18 | 2,605,000 | 3,224,469 | ||
TOTAL CAYMAN ISLANDS | 21,021,142 | |||
Chile - 0.1% | ||||
Automotores Gildemeister SA 8.25% 5/24/21 (e) | 1,420,000 | 1,469,700 | ||
Egypt - 0.1% | ||||
African Export-Import Bank 8.75% 11/13/14 | 1,350,000 | 1,479,938 | ||
El Salvador - 0.4% | ||||
Telemovil Finance Co. Ltd. 8% 10/1/17 (e) | 4,259,000 | 4,381,446 | ||
Georgia - 0.3% | ||||
Georgia Bank Joint Stock Co. 7.75% 7/5/17 (e) | 1,740,000 | 1,718,250 | ||
JSC Georgian Railway 7.75% 7/11/22 (e) | 1,165,000 | 1,166,456 | ||
TOTAL GEORGIA | 2,884,706 | |||
Germany - 0.3% | ||||
Rearden G Holdings Eins GmbH 7.875% 3/30/20 (e) | 2,790,000 | 2,929,500 | ||
Indonesia - 1.3% | ||||
Indo Energy Finance BV 7% 5/7/18 (e) | 2,535,000 | 2,471,625 | ||
PT Adaro Indonesia 7.625% 10/22/19 (e) | 2,250,000 | 2,373,840 | ||
PT Pertamina Persero: | ||||
4.875% 5/3/22 (e) | 2,370,000 | 2,370,000 | ||
5.25% 5/23/21 (e) | 2,000,000 | 2,060,000 | ||
6% 5/3/42 (e) | 2,445,000 | 2,414,438 | ||
6.5% 5/27/41 (e) | 1,580,000 | 1,655,050 | ||
TOTAL INDONESIA | 13,344,953 | |||
Ireland - 1.2% | ||||
Vimpel Communications OJSC 7.748% 2/2/21 | 2,375,000 | 2,285,938 | ||
Vnesheconombank Via VEB Finance PLC: | ||||
5.375% 2/13/17 (e) | 1,740,000 | 1,800,900 | ||
6.025% 7/5/22 (e) | 1,820,000 | 1,836,016 | ||
6.8% 11/22/25 (e) | 1,819,000 | 1,900,855 | ||
6.902% 7/9/20 (e) | 4,515,000 | 4,898,775 | ||
TOTAL IRELAND | 12,722,484 | |||
Corporate Bonds - continued | ||||
| Principal Amount (c) | Value | ||
Nonconvertible Bonds - continued | ||||
Kazakhstan - 0.6% | ||||
Kazkommerts International BV 7.875% 4/7/14 (Reg. S) | $ 980,000 | $ 961,625 | ||
Zhaikmunai Finance BV 10.5% 10/19/15 (e) | 5,275,000 | 5,248,625 | ||
TOTAL KAZAKHSTAN | 6,210,250 | |||
Luxembourg - 2.4% | ||||
Alrosa Finance SA 7.75% 11/3/20 (e) | 1,050,000 | 1,099,875 | ||
Aquarius Investments Luxemburg 8.25% 2/18/16 | 2,885,000 | 3,029,250 | ||
EVRAZ Group SA: | ||||
7.4% 4/24/17 (e) | 1,465,000 | 1,435,964 | ||
8.25% 11/10/15 (e) | 4,825,000 | 5,054,188 | ||
MHP SA 10.25% 4/29/15 (e) | 2,385,000 | 2,277,675 | ||
RSHB Capital SA: | ||||
6% 6/3/21 (e) | 1,005,000 | 987,413 | ||
9% 6/11/14 (e) | 1,210,000 | 1,331,000 | ||
TMK Capital SA 7.75% 1/27/18 | 2,545,000 | 2,379,575 | ||
Vimpel Communications 8.25% 5/23/16 (Reg. S) (Issued by UBS Luxembourg SA for Vimpel Communications) | 6,575,000 | 6,854,438 | ||
TOTAL LUXEMBOURG | 24,449,378 | |||
Mexico - 3.4% | ||||
Alestra SA de RL de CV 11.75% 8/11/14 | 4,220,000 | 4,726,400 | ||
Gruma SAB de CV 7.75% (Reg. S) (f) | 3,109,000 | 3,109,000 | ||
Kansas City Southern de Mexico SA de CV 12.5% 4/1/16 | 626,000 | 707,380 | ||
Petroleos Mexicanos: | ||||
4.875% 1/24/22 (e) | 2,305,000 | 2,500,925 | ||
5.5% 1/21/21 | 2,950,000 | 3,348,250 | ||
5.5% 6/27/44 (e) | 2,255,000 | 2,317,013 | ||
6% 3/5/20 | 2,000,000 | 2,332,500 | ||
6.5% 6/2/41 | 1,250,000 | 1,459,375 | ||
6.5% 6/2/41 (e) | 1,165,000 | 1,371,788 | ||
6.625% (e)(f) | 8,355,000 | 8,522,100 | ||
8% 5/3/19 | 1,350,000 | 1,731,375 | ||
TV Azteca SA de CV 7.5% 5/25/18 (Reg. S) | 2,535,000 | 2,566,688 | ||
TOTAL MEXICO | 34,692,794 | |||
Mongolia - 0.2% | ||||
Trade & Development Bank of Mongolia LLC 8.5% 10/25/13 | 2,325,000 | 2,325,000 | ||
Corporate Bonds - continued | ||||
| Principal Amount (c) | Value | ||
Nonconvertible Bonds - continued | ||||
Multi-National - 0.5% | ||||
Eastern and Southern African Trade and Development Bank 6.875% 1/9/16 (Reg. S) | $ 1,500,000 | $ 1,455,000 | ||
International Bank for Reconstruction & Development: | ||||
8% 6/20/13 | NGN | 199,000,000 | 1,123,815 | |
8.2% 12/12/12 | NGN | 480,000,000 | 2,787,097 | |
TOTAL MULTI-NATIONAL | 5,365,912 | |||
Netherlands - 3.1% | ||||
DTEK Finance BV 9.5% 4/28/15 (e) | 1,700,000 | 1,649,000 | ||
HSBK (Europe) BV: | ||||
7.25% 5/3/17 (e) | 3,150,000 | 3,157,875 | ||
9.25% 10/16/13 (e) | 1,920,000 | 1,987,200 | ||
Intergas Finance BV 6.375% 5/14/17 (Reg. S) | 1,175,000 | 1,263,125 | ||
JSC Kazkommertsbank BV 8% 11/3/15 (e) | 2,585,000 | 2,391,125 | ||
KazMunaiGaz Finance Sub BV: | ||||
6.375% 4/9/21 (e) | 2,025,000 | 2,232,563 | ||
7% 5/5/20 (e) | 2,385,000 | 2,712,938 | ||
9.125% 7/2/18 (e) | 2,825,000 | 3,506,673 | ||
11.75% 1/23/15 (e) | 2,675,000 | 3,183,250 | ||
Listrindo Capital BV 6.95% 2/21/19 (e) | 1,530,000 | 1,575,900 | ||
Majapahit Holding BV: | ||||
7.25% 6/28/17 (Reg. S) | 800,000 | 907,040 | ||
7.75% 1/20/20 (e) | 1,650,000 | 1,967,625 | ||
8% 8/7/19 (e) | 1,175,000 | 1,410,000 | ||
Metinvest BV 10.25% 5/20/15 (e) | 2,100,000 | 2,058,000 | ||
VimpelCom Holdings BV 7.5043% 3/1/22 (e) | 2,345,000 | 2,198,438 | ||
TOTAL NETHERLANDS | 32,200,752 | |||
Pakistan - 0.5% | ||||
Pakistan Mobile Communications Ltd. 8.625% 11/13/13 (e) | 5,464,000 | 5,313,740 | ||
Paraguay - 0.2% | ||||
BBVA Paraguay SA 9.75% 2/11/16 (e) | 2,400,000 | 2,448,000 | ||
Philippines - 0.4% | ||||
Development Bank of Philippines 8.375% (f)(g) | 1,065,000 | 1,144,875 | ||
Corporate Bonds - continued | ||||
| Principal Amount (c) | Value | ||
Nonconvertible Bonds - continued | ||||
Philippines - continued | ||||
National Power Corp. 6.875% 11/2/16 (e) | $ 650,000 | $ 747,500 | ||
Power Sector Assets and Liabilities Management Corp. 7.39% 12/2/24 (e) | 1,300,000 | 1,673,750 | ||
TOTAL PHILIPPINES | 3,566,125 | |||
Russia - 0.6% | ||||
MTS International Funding Ltd. 8.625% 6/22/20 (e) | 5,675,000 | 6,512,063 | ||
Turkey - 0.7% | ||||
Akbank T.A.S.: | ||||
5.125% 7/22/15 (e) | 3,600,000 | 3,640,500 | ||
6.5% 3/9/18 (e) | 865,000 | 901,763 | ||
Yapi ve Kredi Bankasi A/S 6.75% 2/8/17 (e) | 2,515,000 | 2,540,150 | ||
TOTAL TURKEY | 7,082,413 | |||
Ukraine - 0.2% | ||||
Naftogaz of Ukraine NJSC 9.5% 9/30/14 | 2,550,000 | 2,432,190 | ||
United Kingdom - 0.8% | ||||
Afren PLC 11.5% 2/1/16 (e) | 1,550,000 | 1,639,125 | ||
Biz Finance PLC 8.375% 4/27/15 (Reg. S) | 3,650,000 | 3,266,750 | ||
SSB #1 PLC 8.25% 3/10/16 | 550,000 | 466,125 | ||
The State Export-Import Bank of Ukraine JSC 5.7928% 2/9/16 (Issued by Credit Suisse First Boston International for The State Export-Import Bank of Ukraine JSC) (d) | 3,050,000 | 2,348,500 | ||
TOTAL UNITED KINGDOM | 7,720,500 | |||
United States of America - 1.6% | ||||
Braskem America Finance Co. 7.125% 7/22/41 (e) | 1,060,000 | 1,060,000 | ||
NII Capital Corp. 8.875% 12/15/19 | 1,365,000 | 1,242,150 | ||
Pemex Project Funding Master Trust: | ||||
5.75% 3/1/18 | 2,855,000 | 3,233,288 | ||
6.625% 6/15/35 | 8,115,000 | 9,738,000 | ||
Southern Copper Corp. 6.75% 4/16/40 | 1,275,000 | 1,362,835 | ||
TOTAL UNITED STATES OF AMERICA | 16,636,273 | |||
US Virgin Islands - 0.2% | ||||
Magnesita Finance Ltd. 8.625% (e)(f) | 1,495,000 | 1,487,525 | ||
Venezuela - 6.0% | ||||
Petroleos de Venezuela SA: | ||||
4.9% 10/28/14 | 13,975,000 | 12,018,500 | ||
Corporate Bonds - continued | ||||
| Principal Amount (c) | Value | ||
Nonconvertible Bonds - continued | ||||
Venezuela - continued | ||||
Petroleos de Venezuela SA: - continued | ||||
5% 10/28/15 | $ 1,755,000 | $ 1,364,513 | ||
5.375% 4/12/27 | 9,635,000 | 5,516,038 | ||
5.5% 4/12/37 | 5,290,000 | 3,002,075 | ||
8% 11/17/13 | 2,685,000 | 2,671,575 | ||
8.5% 11/2/17 (e) | 29,430,000 | 23,838,300 | ||
9% 11/17/21 (Reg. S) | 4,865,000 | 3,563,613 | ||
12.75% 2/17/22 (e) | 10,415,000 | 9,790,100 | ||
TOTAL VENEZUELA | 61,764,714 | |||
TOTAL NONCONVERTIBLE BONDS | 310,225,658 | |||
TOTAL CORPORATE BONDS (Cost $312,325,762) |
| |||
Government Obligations - 61.1% | ||||
| ||||
Argentina - 5.0% | ||||
Argentine Republic: | ||||
discount (with partial capitalization through 12/31/13) 8.28% 12/31/33 | 7,178,169 | 4,701,701 | ||
0.785% 8/3/12 (g) | 5,109,375 | 5,035,997 | ||
2.5% 12/31/38 (d) | 7,795,000 | 2,513,888 | ||
7% 9/12/13 | 17,410,000 | 15,341,595 | ||
7% 10/3/15 | 17,960,000 | 13,586,740 | ||
City of Buenos Aires 12.5% 4/6/15 (e) | 8,530,000 | 7,421,100 | ||
Provincia de Cordoba 12.375% 8/17/17 (e) | 5,155,000 | 3,041,450 | ||
TOTAL ARGENTINA | 51,642,471 | |||
Azerbaijan - 0.1% | ||||
State Oil Company of Azerbaijan Republic 5.45% 2/9/17 | 865,000 | 888,935 | ||
Bahamas (Nassau) - 0.2% | ||||
Bahamian Republic 6.95% 11/20/29 (e) | 2,045,000 | 2,372,200 | ||
Belarus - 1.2% | ||||
Belarus Republic: | ||||
8.75% 8/3/15 (Reg. S) | 8,725,000 | 8,528,688 | ||
8.95% 1/26/18 | 3,815,000 | 3,514,760 | ||
TOTAL BELARUS | 12,043,448 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Bermuda - 0.1% | ||||
Government of Bermuda 4.138% 1/3/23 (e) | $ 1,215,000 | $ 1,233,225 | ||
Brazil - 2.5% | ||||
Brazilian Federative Republic: | ||||
7.125% 1/20/37 | 4,570,000 | 6,609,591 | ||
8.25% 1/20/34 | 2,830,000 | 4,471,400 | ||
8.75% 2/4/25 | 1,075,000 | 1,666,250 | ||
10.125% 5/15/27 | 4,425,000 | 7,511,438 | ||
12.25% 3/6/30 | 2,755,000 | 5,448,013 | ||
TOTAL BRAZIL | 25,706,692 | |||
Colombia - 1.9% | ||||
Colombian Republic: | ||||
4.375% 7/12/21 | 915,000 | 1,031,663 | ||
6.125% 1/18/41 | 2,420,000 | 3,176,250 | ||
7.375% 9/18/37 | 3,700,000 | 5,494,500 | ||
10.375% 1/28/33 | 4,350,000 | 7,764,750 | ||
11.75% 2/25/20 | 1,450,000 | 2,327,250 | ||
TOTAL COLOMBIA | 19,794,413 | |||
Congo - 0.4% | ||||
Congo Republic 3% 6/30/29 (d) | 6,238,650 | 4,616,601 | ||
Croatia - 1.7% | ||||
Croatia Republic: | ||||
6.25% 4/27/17 (e) | 6,895,000 | 6,860,525 | ||
6.375% 3/24/21 (e) | 3,150,000 | 3,051,720 | ||
6.625% 7/14/20 (e) | 3,060,000 | 3,021,750 | ||
6.75% 11/5/19 (e) | 4,075,000 | 4,115,750 | ||
TOTAL CROATIA | 17,049,745 | |||
Dominican Republic - 0.9% | ||||
Dominican Republic: | ||||
1.2754% 8/30/24 (g) | 2,650,000 | 2,385,000 | ||
7.5% 5/6/21 (e) | 4,210,000 | 4,494,175 | ||
9.04% 1/23/18 (e) | 2,235,138 | 2,508,942 | ||
TOTAL DOMINICAN REPUBLIC | 9,388,117 | |||
Egypt - 0.1% | ||||
Arab Republic of Egypt 6.875% 4/30/40 (e) | 875,000 | 752,500 | ||
El Salvador - 0.5% | ||||
El Salvador Republic: | ||||
7.375% 12/1/19 (e) | 1,200,000 | 1,326,000 | ||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
El Salvador - continued | ||||
El Salvador Republic: - continued | ||||
7.625% 2/1/41 (e) | $ 1,200,000 | $ 1,261,800 | ||
7.65% 6/15/35 (Reg. S) | 1,275,000 | 1,338,750 | ||
8.25% 4/10/32 (Reg. S) | 800,000 | 892,000 | ||
TOTAL EL SALVADOR | 4,818,550 | |||
Gabon - 0.2% | ||||
Gabonese Republic 8.2% 12/12/17 (e) | 1,550,000 | 1,840,625 | ||
Georgia - 0.4% | ||||
Georgia Republic 6.875% 4/12/21 (e) | 4,235,000 | 4,510,275 | ||
Ghana - 0.6% | ||||
Ghana Republic: | ||||
8.5% 10/4/17 (e) | 1,750,000 | 1,942,500 | ||
14.25% 7/29/13 | GHS | 2,350,000 | 1,126,234 | |
14.99% 3/11/13 | GHS | 2,775,000 | 1,368,346 | |
15.65% 6/3/13 | GHS | 3,320,000 | 1,625,270 | |
TOTAL GHANA | 6,062,350 | |||
Guatemala - 0.2% | ||||
Guatemalan Republic 5.75% 6/6/22 (e) | 1,655,000 | 1,712,925 | ||
Hungary - 1.4% | ||||
Hungarian Republic: | ||||
4.75% 2/3/15 | 9,565,000 | 9,182,400 | ||
7.625% 3/29/41 | 5,520,000 | 5,409,600 | ||
TOTAL HUNGARY | 14,592,000 | |||
Iceland - 0.2% | ||||
Republic of Iceland 5.875% 5/11/22 (e) | 2,405,000 | 2,362,985 | ||
Indonesia - 3.9% | ||||
Indonesian Republic: | ||||
4.875% 5/5/21 (e) | 4,390,000 | 4,774,125 | ||
5.25% 1/17/42 (e) | 3,845,000 | 4,013,411 | ||
5.875% 3/13/20 (e) | 4,675,000 | 5,364,563 | ||
6.625% 2/17/37 (e) | 2,950,000 | 3,643,250 | ||
6.875% 1/17/18 (e) | 2,300,000 | 2,719,750 | ||
7.75% 1/17/38 (e) | 4,230,000 | 5,826,825 | ||
8.5% 10/12/35 (Reg. S) | 4,850,000 | 7,081,000 | ||
11.625% 3/4/19 (e) | 4,800,000 | 7,044,000 | ||
TOTAL INDONESIA | 40,466,924 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Iraq - 0.7% | ||||
Republic of Iraq 5.8% 1/15/28 (Reg. S) | $ 8,425,000 | $ 6,950,625 | ||
Jordan - 0.1% | ||||
Jordanian Kingdom 3.875% 11/12/15 | 1,350,000 | 1,309,500 | ||
Latvia - 0.3% | ||||
Latvian Republic 5.25% 2/22/17 (e) | 3,265,000 | 3,383,356 | ||
Lebanon - 0.8% | ||||
Lebanese Republic: | ||||
4% 12/31/17 | 7,350,750 | 7,203,735 | ||
5.15% 11/12/18 | 1,050,000 | 1,036,875 | ||
TOTAL LEBANON | 8,240,610 | |||
Lithuania - 1.0% | ||||
Lithuanian Republic: | ||||
6.125% 3/9/21 (e) | 3,075,000 | 3,374,813 | ||
6.625% 2/1/22 (e) | 2,195,000 | 2,513,275 | ||
7.375% 2/11/20 (e) | 3,650,000 | 4,325,250 | ||
TOTAL LITHUANIA | 10,213,338 | |||
Mexico - 3.2% | ||||
United Mexican States: | ||||
4.75% 3/8/44 | 1,598,000 | 1,717,850 | ||
5.125% 1/15/20 | 3,398,000 | 3,982,456 | ||
5.75% 10/12/2110 | 3,634,000 | 4,151,845 | ||
6.05% 1/11/40 | 7,432,000 | 9,550,120 | ||
6.75% 9/27/34 | 6,275,000 | 8,534,000 | ||
7.5% 4/8/33 | 1,500,000 | 2,186,250 | ||
8.3% 8/15/31 | 1,510,000 | 2,336,725 | ||
TOTAL MEXICO | 32,459,246 | |||
Namibia - 0.2% | ||||
Republic of Namibia 5.5% 11/3/21 (e) | 2,070,000 | 2,149,612 | ||
Nigeria - 0.3% | ||||
Republic of Nigeria: | ||||
0% 3/7/13 | NGN | 172,000,000 | 941,985 | |
6.75% 1/28/21 (e) | 1,500,000 | 1,620,000 | ||
TOTAL NIGERIA | 2,561,985 | |||
Pakistan - 0.6% | ||||
Islamic Republic of Pakistan 7.125% 3/31/16 (e) | 7,650,000 | 6,617,250 | ||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Peru - 1.6% | ||||
Peruvian Republic: | ||||
3% 3/7/27 (d) | $ 3,350,000 | $ 3,216,000 | ||
5.625% 11/18/50 | 2,560,000 | 3,116,800 | ||
7.35% 7/21/25 | 1,500,000 | 2,100,000 | ||
8.75% 11/21/33 | 4,680,000 | 7,686,900 | ||
TOTAL PERU | 16,119,700 | |||
Philippines - 2.1% | ||||
Philippine Republic: | ||||
7.5% 9/25/24 | 890,000 | 1,181,475 | ||
7.75% 1/14/31 | 4,590,000 | 6,529,275 | ||
9.5% 2/2/30 | 3,945,000 | 6,396,029 | ||
9.875% 1/15/19 | 1,325,000 | 1,874,875 | ||
10.625% 3/16/25 | 3,535,000 | 5,850,425 | ||
TOTAL PHILIPPINES | 21,832,079 | |||
Poland - 0.7% | ||||
Polish Government: | ||||
3.875% 7/16/15 | 850,000 | 896,750 | ||
5% 3/23/22 | 1,535,000 | 1,676,988 | ||
6.375% 7/15/19 | 4,125,000 | 4,867,500 | ||
TOTAL POLAND | 7,441,238 | |||
Qatar - 0.2% | ||||
State of Qatar 5.75% 1/20/42 (e) | 1,940,000 | 2,294,050 | ||
Romania - 0.4% | ||||
Romanian Republic 6.75% 2/7/22 (e) | 4,301,000 | 4,494,545 | ||
Russia - 6.1% | ||||
Russian Federation: | ||||
3.25% 4/4/17 (e) | 2,400,000 | 2,412,000 | ||
4.5% 4/4/22 (e) | 2,400,000 | 2,517,120 | ||
5.625% 4/4/42 (e) | 3,800,000 | 4,061,440 | ||
7.5% 3/31/30 (Reg. S) | 29,764,875 | 35,682,109 | ||
11% 7/24/18 (Reg. S) | 2,080,000 | 2,912,000 | ||
12.75% 6/24/28 (Reg. S) | 8,670,000 | 15,606,000 | ||
TOTAL RUSSIA | 63,190,669 | |||
Senegal - 0.1% | ||||
Republic of Senegal 8.75% 5/13/21 (e) | 860,000 | 946,000 | ||
Serbia - 1.6% | ||||
Republic of Serbia 6.75% 11/1/24 (e) | 17,029,170 | 16,305,430 | ||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Slovakia - 0.2% | ||||
Slovakia Republic 4.375% 5/21/22 (e) | $ 2,415,000 | $ 2,354,625 | ||
Sri Lanka - 1.0% | ||||
Democratic Socialist Republic of Sri Lanka: | ||||
6.25% 10/4/20 (e) | 4,280,000 | 4,376,300 | ||
6.25% 7/27/21 (e) | 2,170,000 | 2,213,400 | ||
7.4% 1/22/15 (e) | 3,675,000 | 3,941,438 | ||
TOTAL SRI LANKA | 10,531,138 | |||
Turkey - 7.0% | ||||
Turkish Republic: | ||||
0% 5/15/13 | TRY | 3,710,000 | 1,904,337 | |
5.125% 3/25/22 | 2,315,000 | 2,416,397 | ||
5.625% 3/30/21 | 3,275,000 | 3,577,938 | ||
6% 1/14/41 | 3,510,000 | 3,694,275 | ||
6.25% 9/26/22 | 2,725,000 | 3,082,793 | ||
6.75% 4/3/18 | 4,500,000 | 5,169,600 | ||
6.75% 5/30/40 | 3,200,000 | 3,728,000 | ||
6.875% 3/17/36 | 7,270,000 | 8,569,876 | ||
7% 9/26/16 | 4,150,000 | 4,693,650 | ||
7.25% 3/15/15 | 4,275,000 | 4,713,188 | ||
7.25% 3/5/38 | 3,825,000 | 4,709,723 | ||
7.375% 2/5/25 | 6,350,000 | 7,874,000 | ||
7.5% 7/14/17 | 4,550,000 | 5,323,500 | ||
7.5% 11/7/19 | 3,300,000 | 3,997,290 | ||
8% 2/14/34 | 1,900,000 | 2,510,470 | ||
11.875% 1/15/30 | 3,650,000 | 6,465,245 | ||
TOTAL TURKEY | 72,430,282 | |||
Ukraine - 1.8% | ||||
Ukraine Financing of Infrastructure Projects State Enterprise 8.375% 11/3/17 (e) | 3,850,000 | 3,234,000 | ||
Ukraine Government: | ||||
6.25% 6/17/16 (e) | 3,415,000 | 3,060,865 | ||
6.75% 11/14/17 (e) | 1,675,000 | 1,486,563 | ||
7.65% 6/11/13 (e) | 6,805,000 | 6,685,913 | ||
7.75% 9/23/20 (e) | 2,550,000 | 2,301,375 | ||
7.95% 2/23/21 (e) | 1,700,000 | 1,555,500 | ||
TOTAL UKRAINE | 18,324,216 | |||
United Arab Emirates - 0.1% | ||||
United Arab Emirates 7.75% 10/5/20 (Reg. S) | 1,190,000 | 1,340,238 | ||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
United States of America - 0.7% | ||||
U.S. Treasury Bonds 3% 5/15/42 | $ 6,513,000 | $ 6,836,618 | ||
Uruguay - 0.9% | ||||
Uruguay Republic: | ||||
7.875% 1/15/33 pay-in-kind | 3,425,000 | 4,983,375 | ||
8% 11/18/22 | 2,756,250 | 3,879,422 | ||
TOTAL URUGUAY | 8,862,797 | |||
Venezuela - 6.5% | ||||
Venezuelan Republic: | ||||
oil recovery rights 4/15/20 (h) | 57,010 | 1,667,543 | ||
6% 12/9/20 | 2,330,000 | 1,584,400 | ||
7% 3/31/38 | 2,000,000 | 1,300,000 | ||
7.75% 10/13/19 (Reg. S) | 4,245,000 | 3,268,650 | ||
8.5% 10/8/14 | 3,375,000 | 3,332,813 | ||
9% 5/7/23 (Reg. S) | 11,075,000 | 8,527,750 | ||
9.25% 9/15/27 | 7,100,000 | 5,786,500 | ||
9.25% 5/7/28 (Reg. S) | 4,215,000 | 3,192,863 | ||
9.375% 1/13/34 | 3,930,000 | 3,006,450 | ||
10.75% 9/19/13 | 4,250,000 | 4,356,250 | ||
11.75% 10/21/26 (Reg. S) | 6,215,000 | 5,484,738 | ||
11.95% 8/5/31 (Reg. S) | 10,535,000 | 9,323,475 | ||
12.75% 8/23/22 | 14,000,000 | 13,440,000 | ||
13.625% 8/15/18 | 2,415,000 | 2,451,225 | ||
TOTAL VENEZUELA | 66,722,657 | |||
Vietnam - 1.4% | ||||
Vietnamese Socialist Republic: | ||||
1.5567% 3/12/16 (g) | 2,672,000 | 2,378,080 | ||
4% 3/12/28 (d) | 8,725,000 | 7,067,250 | ||
6.875% 1/15/16 (e) | 4,205,000 | 4,467,813 | ||
TOTAL VIETNAM | 13,913,143 | |||
TOTAL GOVERNMENT OBLIGATIONS (Cost $613,726,629) |
| |||
Sovereign Loan Participations - 0.5% | ||||
| ||||
Indonesia - 0.5% | ||||
Indonesian Republic loan participation Goldman Sachs 1.25% 12/14/19 (g) | 5,202,882 |
| ||
Preferred Securities - 0.8% | |||
Principal Amount (c) | Value | ||
Brazil - 0.4% | |||
Globo Comunicacoes e Participacoes SA 6.25% (d)(e)(f) | $ 3,970,000 | $ 4,267,205 | |
Cayman Islands - 0.4% | |||
CSN Islands XII Corp. 7% (Reg. S) (f) | 4,525,000 | 4,497,948 | |
TOTAL PREFERRED SECURITIES (Cost $8,642,303) |
| ||
Money Market Funds - 6.0% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (a) | 61,610,443 |
| |
Cash Equivalents - 0.4% | |||
Maturity Amount |
| ||
Investments in repurchase agreements in a joint trading account at 0.15%, dated 6/29/12 due 7/2/12 (Collateralized by U.S. Treasury Obligations) # | $ 4,607,057 | $ 4,607,000 | |
TOTAL INVESTMENT PORTFOLIO - 99.4% (Cost $1,005,861,349) | 1,024,538,877 | ||
NET OTHER ASSETS (LIABILITIES) - 0.6% | 6,593,641 | ||
NET ASSETS - 100% | $ 1,031,132,518 | ||
Currency Abbreviations | ||
BRL | - | Brazilian real |
GHS | - | Ghana Cedi |
NGN | - | Nigerian naira |
TRY | - | Turkish Lira |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(b) Non-income producing - Security is in default. |
(c) Principal amount is stated in United States dollars unless otherwise noted. |
(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $385,533,430 or 37.4% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) Quantity represents share amount. |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$4,607,000 due 7/02/12 at 0.15% | |
Barclays Capital, Inc. | $ 1,290,460 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 890,474 |
RBS Securities, Inc. | 2,426,066 |
| $ 4,607,000 |
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 | $ 36,147 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of June 30, 2012, 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 in the table below, please refer to the Security 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: | ||||
Corporate Bonds | $ 315,011,658 | $ - | $ 315,011,658 | $ - |
Government Obligations | 629,679,928 | - | 629,679,928 | - |
Sovereign Loan Participations | 4,864,695 | - | - | 4,864,695 |
Preferred Securities | 8,765,153 | - | 8,765,153 | - |
Money Market Funds | 61,610,443 | 61,610,443 | - | - |
Cash Equivalents | 4,607,000 | - | 4,607,000 | - |
Total Investments in Securities: | $ 1,024,538,877 | $ 61,610,443 | $ 958,063,739 | $ 4,864,695 |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.7% |
AAA,AA,A | 2.7% |
BBB | 32.1% |
BB | 21.9% |
B | 25.7% |
Not Rated | 9.9% |
Short-Term Investments and Net Other Assets | 7.0% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| June 30, 2012 (Unaudited) | |
Assets | ||
Investment in securities, at value (including repurchase agreements of $4,607,000) - See accompanying schedule: Unaffiliated issuers (cost $944,250,906) | $ 962,928,434 |
|
Fidelity Central Funds (cost $61,610,443) | 61,610,443 |
|
Total Investments (cost $1,005,861,349) |
| $ 1,024,538,877 |
Cash |
| 412 |
Receivable for investments sold | 2,711,569 | |
Receivable for fund shares sold | 10,978 | |
Interest receivable | 18,246,167 | |
Distributions receivable from Fidelity Central Funds | 8,289 | |
Total assets | 1,045,516,292 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 13,669,904 | |
Accrued management fee | 547,477 | |
Other affiliated payables | 101,651 | |
Other payables and accrued expenses | 64,742 | |
Total liabilities | 14,383,774 | |
|
|
|
Net Assets | $ 1,031,132,518 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,007,549,245 | |
Undistributed net investment income | 4,422,841 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 512,428 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 18,648,004 | |
Net Assets | $ 1,031,132,518 | |
|
|
|
Series Emerging Markets Debt: Net Asset Value, offering price and redemption price | $ 10.26 | |
|
|
|
Class F: | $ 10.26 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended June 30, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 450,631 |
Interest |
| 31,936,086 |
Income from Fidelity Central Funds |
| 36,147 |
Total income |
| 32,422,864 |
|
|
|
Expenses | ||
Management fee | $ 3,120,824 | |
Transfer agent fees | 372,484 | |
Accounting fees and expenses | 220,358 | |
Custodian fees and expenses | 30,748 | |
Independent trustees' compensation | 2,920 | |
Registration fees | 20,273 | |
Audit | 28,458 | |
Legal | 1,417 | |
Miscellaneous | 3,627 | |
Total expenses before reductions | 3,801,109 | |
Expense reductions | (339) | 3,800,770 |
Net investment income (loss) | 28,622,094 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 950,271 | |
Foreign currency transactions | (15,287) | |
Total net realized gain (loss) |
| 934,984 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 25,989,654 | |
Assets and liabilities in foreign currencies | (21,989) | |
Total change in net unrealized appreciation (depreciation) |
| 25,967,665 |
Net gain (loss) | 26,902,649 | |
Net increase (decrease) in net assets resulting from operations | $ 55,524,743 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended June 30, 2012 | For the period March 17, 2011 (commencement of operations) to |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 28,622,094 | $ 21,333,625 |
Net realized gain (loss) | 934,984 | 448,269 |
Change in net unrealized appreciation (depreciation) | 25,967,665 | (7,319,661) |
Net increase (decrease) in net assets resulting | 55,524,743 | 14,462,233 |
Distributions to shareholders from net investment income | (25,676,221) | (19,621,485) |
Distributions to shareholders from net realized gain | (446,451) | (659,545) |
Total distributions | (26,122,672) | (20,281,030) |
Share transactions - net increase (decrease) | 180,514,930 | 827,034,314 |
Total increase (decrease) in net assets | 209,917,001 | 821,215,517 |
|
|
|
Net Assets | ||
Beginning of period | 821,215,517 | - |
End of period (including undistributed net investment income of $4,422,841 and undistributed net investment income of $1,476,968, respectively) | $ 1,031,132,518 | $ 821,215,517 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Emerging Markets Debt
| Six months ended June 30, 2012 | Year ended |
| (Unaudited) | 2011 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 9.92 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .310 | .420 |
Net realized and unrealized gain (loss) | .313 | (.127) |
Total from investment operations | .623 | .293 |
Distributions from net investment income | (.278) | (.365) |
Distributions from net realized gain | (.005) | (.008) |
Total distributions | (.283) | (.373) |
Net asset value, end of period | $ 10.26 | $ 9.92 |
Total Return B,C | 6.31% | 2.97% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .86% A | .90% A |
Expenses net of fee waivers, if any | .86% A | .90% A |
Expenses net of all reductions | .86% A | .90% A |
Net investment income (loss) | 6.09% A | 5.37% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 605,531 | $ 567,740 |
Portfolio turnover rate F | 43% A | 45% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period March 17, 2011 (commencement of operations) to December 31, 2011.
H Expense ratios reflect operating expenses of the class. 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 class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended June 30, 2012 | Year ended |
| (Unaudited) | 2011 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 9.92 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .316 | .430 |
Net realized and unrealized gain (loss) | .314 | (.126) |
Total from investment operations | .630 | .304 |
Distributions from net investment income | (.285) | (.376) |
Distributions from net realized gain | (.005) | (.008) |
Total distributions | (.290) | (.384) |
Net asset value, end of period | $ 10.26 | $ 9.92 |
Total Return B,C | 6.38% | 3.08% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .74% A | .76% A |
Expenses net of fee waivers, if any | .74% A | .76% A |
Expenses net of all reductions | .74% A | .76% A |
Net investment income (loss) | 6.22% A | 5.51% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 425,601 | $ 253,475 |
Portfolio turnover rate F | 43% A | 45% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period March 17, 2011 (commencement of operations) to December 31, 2011.
H Expense ratios reflect operating expenses of the class. 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 class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2012 (Unaudited)
1. Organization.
Fidelity Series Emerging Markets Debt Fund (the Fund) is a non-diversified fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. 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 Series Emerging Markets Debt and Class F 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds 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 Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (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:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendor or broker to value its investments. When current market prices, quotations or rates are not readily available or reliable, securities will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by security type and may include market or security 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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. For corporate bonds, foreign government and government agency obligations, preferred securities, U.S. government and government agency obligations and sovereign loan participations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices and are generally categorized as Level 2 in the hierarchy. 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. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
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3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 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 June 30, 2012 for the Fund's investments, is included at the end of Fund's Schedule of Investments.
Foreign Currency Translation. 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 44,415,412 |
Gross unrealized depreciation | (22,096,863) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 22,318,549 |
|
|
Tax cost | $ 1,002,220,328 |
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3. Significant Accounting Policies - continued
New Accounting Pronouncement. In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans.
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Notes to Financial Statements (Unaudited) - continued
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $301,435,518 and $134,018,287, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and an annualized group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .67% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Series Emerging Markets Debt. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Series Emerging Markets Debt | $ 372,484 | .13 |
* Annualized
Accounting Fees. Fidelity Service Company, Inc.(FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR 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 Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,283 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $339.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Series Emerging Markets Debt | $ 16,010,736 | $ 13,978,102 |
Class F | 9,665,485 | 5,643,383 |
Total | $ 25,676,221 | $ 19,621,485 |
From net realized gain |
|
|
Series Emerging Markets Debt | $ 283,286 | $ 456,583 |
Class F | 163,165 | 202,962 |
Total | $ 446,451 | $ 659,545 |
A For the period March 17, 2011 (commencement of operations) to December 31, 2011.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended June 30, | Year ended | Six months ended June 30, | Year ended | |
Series Emerging Markets Debt |
|
|
|
|
Shares sold | 1,366,321 | 58,279,033 | $ 14,031,000 | $ 582,752,046 |
Reinvestment of distributions | 1,586,302 | 1,452,722 | 16,294,022 | 14,434,685 |
Shares redeemed | (1,123,875) | (2,518,842) | (11,167,890) | (25,108,819) |
Net increase (decrease) | 1,828,748 | 57,212,913 | $ 19,157,132 | $ 572,077,912 |
Class F |
|
|
|
|
Shares sold | 15,001,217 | 25,369,882 | $ 151,564,190 | $ 253,247,887 |
Reinvestment of distributions | 956,548 | 588,909 | 9,828,649 | 5,846,345 |
Shares redeemed | (3,387) | (415,272) | (35,041) | (4,137,830) |
Net increase (decrease) | 15,954,378 | 25,543,519 | $ 161,357,798 | $ 254,956,402 |
A For the period March 17, 2011 (commencement of operations) to December 31, 2011.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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.
At the end of the period, mutual funds managed by FMR or an FMR affiliate were the owners of record of all of the outstanding shares of the Fund.
12. Credit Risk.
The Fund's relatively large investment in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and the income they generate, as well as the Fund's ability to repatriate such amounts.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (UK) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
SED-SANN-0812 1.924253.101
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 Hastings Street 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 Hastings Street 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Hastings Street Trust
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
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Date: | August 23, 2012 |
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/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
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Date: | August 23, 2012 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
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Date: | August 23, 2012 |