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 811-3221
Fidelity Charles 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: | September 30 |
| |
Date of reporting period: | September 30, 2009 |
Item 1. Reports to Stockholders
Fidelity Asset Manager® Funds -
20%, 30%, 40%, 50%, 60%, 70%, 85%
Annual Report
September 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/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.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
We've seen a welcome uptick in the global equity markets this spring and summer, as signs of stabilization in some economic indicators have brought many investors back into the marketplace. But there remain other key measures - notably high unemployment and slack consumer spending - that suggest the road back to economic health could still be a bumpy ride. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Abigail P. Johnson
Abigail P. Johnson
Annual Report
Fidelity Asset Manager 20%
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Past 5
years | Past 10
years |
Asset Manager 20% | 7.90% | 4.60% | 4.70% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Asset Manager 20%, a class of the fund, on September 30, 1999. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period.
-
Annual Report
Fidelity Asset Manager 30%
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Life of
class A |
Asset Manager 30% | 7.77% | -2.32% |
A From October 9, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Asset Manager 30%, a class of the fund, on October 9, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Asset Manager 40%
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Life of
class A |
Asset Manager 40% | 7.00% | -4.22% |
A From October 9, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Asset Manager 40%, a class of the fund, on October 9, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Asset Manager 50%
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Past 5
years | Past 10
years |
Asset Manager 50% | 7.78% | 3.08% | 3.22% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Asset Manager 50%, a class of the fund, on September 30, 1999. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500 SM Index (S&P 500 ®) performed over the same period.
Annual Report
Fidelity Asset Manager 60%
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Life of
class A |
Asset Manager 60% | 7.81% | -7.22% |
A From October 9, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Asset Manager 60%, a class of the fund, on October 9, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 performed over the same period.
Annual Report
Fidelity Asset Manager 70%
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Past 5
years | Past 10
years |
Asset Manager 70% | 5.59% | 2.22% | 1.45% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Asset Manager 70%, a class of the fund, on September 30, 1999. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Asset Manager 85%
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Past 5
years | Past 10
years |
Asset Manager 85% | 4.54% | 3.16% | 2.64% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Asset Manager 85%, a class of the fund, on September 30, 1999. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 performed over the same period.
Annual Report
Market Recap: Global equity markets came almost full circle during the 12 months ending September 30, 2009, recouping large portions of the deep losses suffered in last fall's big sell-off, as unprecedented government intervention programs to shore up the credit markets and stimulate economic growth began to take root. In early March, as signs of improvement were emerging, equity markets began to rally sharply. The Standard & Poor's 500SM Index returned -6.91% for the year, the blue-chip Dow Jones Industrial AverageSM returned -7.38% and the technology-laden Nasdaq Composite® Index gained 2.53%. International equities, which had fared worse than their domestic counterparts during the sell-off, outperformed for the year as a whole, with the MSCI® EAFE® Index (Europe, Australasia, Far East) - a measure of developed markets outside the U.S. and Canada - advancing 3.37%, bolstered in part by a weaker dollar. Within the bond space, spread-based products replaced Treasuries later in the period as the favored sector for fixed-income investors. For the year, the overall investment-grade bond universe, as measured by the Barclays Capital U.S. Aggregate Bond Index, returned 10.56%, while high-yield corporate bonds finished the period with an advance of 22.73%, as gauged by the Merrill Lynch® U.S. High Yield Master II Constrained Index.
Comments from Geoffrey Stein, who became Portfolio Manager of Fidelity Asset Manager® Funds on June 1, 2009: In the midst of a dramatically improved market environment during most of the period for both stocks and credit-sensitive bonds, all seven of the Asset Manager funds outperformed their Composite benchmarks by substantial margins for the year ending September 30, 2009. Strong domestic-equity stock selection and favorable asset-allocation positioning overall fueled the funds' solid relative results. Shifting into higher-beta - meaning more-volatile - stocks during the first quarter of 2009 proved to be the right strategy at the right time to capitalize on the ensuing market rally. In total, nine of the 10 underlying domestic equity sector central funds beat their respective components of the Composite index, with consumer discretionary performing in line with its benchmark component. Within the domestic equity sector central funds, favorable security selection in technology contributed the most to relative returns, followed by picks in financials, health care, industrials and energy. From a market-capitalization perspective, overweighting mid- and small-cap stocks - particularly in the $1 billion to $10 billion range - was the correct positioning, as stocks in these capitalization tiers outperformed their large-cap counterparts amid a sustained market rebound during the period's second half. Concerning our equity and fixed-income asset-allocation strategies, by continually rebalancing our domestic equity stakes early in the period, our allocations were positioned to rebound as the market bottomed in March and then rallied sharply, which aided performance in most of the funds. In addition to domestic equities, out-of-index positions in emerging-markets (EM) equities, high-yield bonds and floating-rate bank-loan securities also contributed. In order to fund our allocations to high-yield and floating-rate debt and EM equities, we underweighted cash across all of the funds - except Asset Manager 85% -which also boosted relative returns. In Asset Manager 85%, an out-of-benchmark cash position of roughly 2% actually helped on a relative basis because the positive return generated by the cash beat the negative return of the fund's benchmark. In terms of detractors, stock selection in international equity dampened returns across all funds, but the negative impact was minimal in Asset Manager 20% and 30%, where the allocation to foreign equities was very small. In addition, our generally underweighted exposure to investment-grade bonds detracted from performance in most of the funds, despite the underlying central fund outperforming its benchmark.
Note to shareholders: In conjunction with an adjustment to Fidelity's planning and guidance methodology, Fidelity will modify the international equity exposure within the Asset Manager funds' target asset allocations. Effective October 2, 2009, each Asset Manager fund will increase the international equity exposure within its target asset allocation to 30% of total equity, and modify its composite performance benchmark accordingly. Fidelity believes this change improves the risk and return characteristics of the funds.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
The Funds invest in Fidelity Central Funds, which are open-end investment companies with similar investment objectives to those of the Funds, available only to other mutual funds and accounts managed by Fidelity Management & Research Company, (FMR) and its affiliates. In addition to the direct expenses incurred by the Funds presented in the table, as a shareholder of the underlying Fidelity Central Funds, the Funds also indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. These expenses are not included in the Funds' annualized expense ratio used to calculate either the actual or hypothetical expense estimates presented in the table but are summarized in a footnote to the table.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2009 to September 30, 2009).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
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 | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 20% | | | | |
Class A | .86% | | | |
Actual | | $ 1,000.00 | $ 1,168.60 | $ 4.68 |
HypotheticalA | | $ 1,000.00 | $ 1,020.76 | $ 4.36 |
Class T | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,166.30 | $ 5.97 |
HypotheticalA | | $ 1,000.00 | $ 1,019.55 | $ 5.57 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,164.50 | $ 8.95 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.63% | | | |
Actual | | $ 1,000.00 | $ 1,164.90 | $ 8.85 |
HypotheticalA | | $ 1,000.00 | $ 1,016.90 | $ 8.24 |
Asset Manager 20% | .58% | | | |
Actual | | $ 1,000.00 | $ 1,170.90 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,022.16 | $ 2.94 |
Institutional Class | .55% | | | |
Actual | | $ 1,000.00 | $ 1,171.00 | $ 2.99 |
HypotheticalA | | $ 1,000.00 | $ 1,022.31 | $ 2.79 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 30% | | | | |
Class A | .90% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 4.99 |
HypotheticalA | | $ 1,000.00 | $ 1,020.56 | $ 4.56 |
Class T | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,210.20 | $ 6.37 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,207.00 | $ 9.13 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,206.20 | $ 9.13 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Asset Manager 30% | .65% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 3.61 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Institutional Class | .65% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 3.61 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Fidelity Asset Manager 40% | | | | |
Class A | .90% | | | |
Actual | | $ 1,000.00 | $ 1,248.50 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,020.56 | $ 4.56 |
Class T | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,246.40 | $ 6.48 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,241.80 | $ 9.27 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,243.10 | $ 9.28 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Asset Manager 40% | .65% | | | |
Actual | | $ 1,000.00 | $ 1,249.20 | $ 3.66 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Institutional Class | .65% | | | |
Actual | | $ 1,000.00 | $ 1,249.20 | $ 3.66 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Fidelity Asset Manager 50% | | | | |
Class A | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,293.90 | $ 5.75 |
HypotheticalA | | $ 1,000.00 | $ 1,020.05 | $ 5.06 |
Class T | 1.27% | | | |
Actual | | $ 1,000.00 | $ 1,292.40 | $ 7.30 |
HypotheticalA | | $ 1,000.00 | $ 1,018.70 | $ 6.43 |
Class B | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,288.80 | $ 10.61 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Class C | 1.80% | | | |
Actual | | $ 1,000.00 | $ 1,288.20 | $ 10.33 |
HypotheticalA | | $ 1,000.00 | $ 1,016.04 | $ 9.10 |
Asset Manager 50% | .76% | | | |
Actual | | $ 1,000.00 | $ 1,295.20 | $ 4.37 |
HypotheticalA | | $ 1,000.00 | $ 1,021.26 | $ 3.85 |
Institutional Class | .69% | | | |
Actual | | $ 1,000.00 | $ 1,296.10 | $ 3.97 |
HypotheticalA | | $ 1,000.00 | $ 1,021.61 | $ 3.50 |
Fidelity Asset Manager 60% | | | | |
Class A | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,324.40 | $ 6.41 |
HypotheticalA | | $ 1,000.00 | $ 1,019.55 | $ 5.57 |
Class T | 1.35% | | | |
Actual | | $ 1,000.00 | $ 1,323.90 | $ 7.86 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.83 |
Class B | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,320.20 | $ 10.76 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
Class C | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,322.30 | $ 10.77 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
Asset Manager 60% | .85% | | | |
Actual | | $ 1,000.00 | $ 1,327.60 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Institutional Class | .85% | | | |
Actual | | $ 1,000.00 | $ 1,327.60 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Fidelity Asset Manager 70% | | | | |
Class A | 1.18% | | | |
Actual | | $ 1,000.00 | $ 1,361.30 | $ 6.98 |
HypotheticalA | | $ 1,000.00 | $ 1,019.15 | $ 5.97 |
Class T | 1.43% | | | |
Actual | | $ 1,000.00 | $ 1,358.40 | $ 8.45 |
HypotheticalA | | $ 1,000.00 | $ 1,017.90 | $ 7.23 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,356.20 | $ 11.52 |
HypotheticalA | | $ 1,000.00 | $ 1,015.29 | $ 9.85 |
Class C | 1.89% | | | |
Actual | | $ 1,000.00 | $ 1,356.20 | $ 11.16 |
HypotheticalA | | $ 1,000.00 | $ 1,015.59 | $ 9.55 |
Asset Manager 70% | .85% | | | |
Actual | | $ 1,000.00 | $ 1,362.90 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Institutional Class | .87% | | | |
Actual | | $ 1,000.00 | $ 1,362.90 | $ 5.15 |
HypotheticalA | | $ 1,000.00 | $ 1,020.71 | $ 4.41 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 85% | | | | |
Class A | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,409.80 | $ 6.95 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class T | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,408.30 | $ 8.57 |
HypotheticalA | | $ 1,000.00 | $ 1,017.95 | $ 7.18 |
Class B | 1.98% | | | |
Actual | | $ 1,000.00 | $ 1,403.80 | $ 11.93 |
HypotheticalA | | $ 1,000.00 | $ 1,015.14 | $ 10.00 |
Class C | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,404.30 | $ 11.63 |
HypotheticalA | | $ 1,000.00 | $ 1,015.39 | $ 9.75 |
Asset Manager 85% | .94% | | | |
Actual | | $ 1,000.00 | $ 1,412.10 | $ 5.68 |
HypotheticalA | | $ 1,000.00 | $ 1,020.36 | $ 4.76 |
Institutional Class | .82% | | | |
Actual | | $ 1,000.00 | $ 1,413.80 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.96 | $ 4.15 |
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 183/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Funds annualized expense ratio.
In addition to the expenses noted above, the Funds also indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying Fidelity Central Funds as of their most recent fiscal half year ranged from less than ..01% to .12%.
Annual Report
Fidelity Asset Manager 20%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 15.7 | 15.6 |
U.S. Treasury Obligations | 14.3 | 6.4 |
Freddie Mac | 2.2 | 2.6 |
Government National Mortgage Association | 0.6 | 2.6 |
JPMorgan Chase Capital XX | 0.5 | 0.4 |
| 33.3 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
 | U.S. Government and
U.S. Government
Agency Obligations 32.8% | | | U.S. Government and
U.S. Government
Agency Obligations 27.6% | |
 | AAA,AA,A 12.4% | | | AAA,AA,A 13.3% | |
 | BBB 10.7% | | | BBB 10.0% | |
 | BB and Below 6.3% | | | BB and Below 7.1% | |
 | Not Rated 0.2% | | | Not Rated 0.3% | |
 | Equities 21.0% | | | Equities 19.4% | |
 | Short-Term
Investments and
Net Other Assets 16.6% | | | Short-Term
Investments and
Net Other Assets 22.3% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.3 | 0.2 |
Google, Inc. Class A | 0.3 | 0.3 |
Procter & Gamble Co. | 0.2 | 0.3 |
Pfizer, Inc. | 0.2 | 0.1 |
Charles Schwab Corp. | 0.2 | 0.0 |
| 1.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 20.9% | | | Stock Class and
Equity Futures 19.4% | |
| Bond Class 58.4% | | | Bond Class 56.6% | |
| Short-Term Class 20.7% | | | Short-Term Class 24.0% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 20%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 3.8 |
Fidelity Financials Central Fund | 3.1 |
Fidelity Health Care Central Fund | 2.6 |
Fidelity Energy Central Fund | 2.3 |
Fidelity Industrials Central Fund | 2.2 |
Fidelity Consumer Discretionary Central Fund | 1.9 |
Fidelity Consumer Staples Central Fund | 1.9 |
Fidelity International Equity Central Fund | 1.1 |
Fidelity Materials Central Fund | 0.9 |
Fidelity Telecom Services Central Fund | 0.7 |
Fidelity Utilities Central Fund | 0.7 |
Total Equity Central Funds | 21.2 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.1 |
Investment Grade Fixed-Income Funds | 54.8 |
Total Fixed-Income Central Funds | 59.9 |
Money Market Central Funds | 18.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 9.0% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 20%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 21.2% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 485,022 | | $ 44,675,351 |
Fidelity Consumer Staples Central Fund (b) | 394,725 | | 45,057,822 |
Fidelity Energy Central Fund (b) | 546,892 | | 54,207,979 |
Fidelity Financials Central Fund (b) | 1,267,434 | | 73,751,990 |
Fidelity Health Care Central Fund (b) | 610,494 | | 61,659,926 |
Fidelity Industrials Central Fund (b) | 518,506 | | 52,695,777 |
Fidelity Information Technology Central Fund (b) | 724,762 | | 89,102,247 |
Fidelity International Equity Central Fund (b) | 409,869 | | 26,661,977 |
Fidelity Materials Central Fund (b) | 160,366 | | 20,193,264 |
Fidelity Telecom Services Central Fund (b) | 152,867 | | 15,219,399 |
Fidelity Utilities Central Fund (b) | 187,247 | | 16,532,066 |
TOTAL EQUITY CENTRAL FUNDS (Cost $525,660,348) | 499,757,798 |
Fixed-Income Central Funds - 59.9% |
| | | |
High Yield Fixed-Income Funds - 5.1% |
Fidelity Floating Rate Central Fund (b) | 295,201 | | 26,813,071 |
Fidelity High Income Central Fund 1 (b) | 1,048,404 | | 92,773,272 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 119,586,343 |
Investment Grade Fixed-Income Funds - 54.8% |
Fidelity Tactical Income Central Fund (b) | 13,649,544 | 1,291,110,352 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $1,428,182,003) | 1,410,696,695 |
Money Market Central Funds - 18.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 33,566,053 | | $ 33,566,053 |
Fidelity Money Market Central Fund, 0.60% (a) | 410,550,134 | | 410,550,134 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $444,116,187) | 444,116,187 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,397,958,538) | | 2,354,570,680 |
NET OTHER ASSETS - 0.0% | | 239,537 |
NET ASSETS - 100% | $ 2,354,810,217 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 1,171,183 |
Fidelity Consumer Discretionary Central Fund | 679,426 |
Fidelity Consumer Staples Central Fund | 1,140,450 |
Fidelity Energy Central Fund | 499,004 |
Fidelity Financials Central Fund | 1,514,306 |
Fidelity Floating Rate Central Fund | 2,459,618 |
Fidelity Health Care Central Fund | 722,757 |
Fidelity High Income Central Fund 1 | 6,546,550 |
Fidelity Industrials Central Fund | 955,918 |
Fidelity Information Technology Central Fund | 585,733 |
Fidelity International Equity Central Fund | 321,199 |
Fidelity Materials Central Fund | 309,593 |
Fidelity Money Market Central Fund | 5,109,378 |
Fidelity Tactical Income Central Fund | 53,793,437 |
Fidelity Telecom Services Central Fund | 274,648 |
Fidelity Utilities Central Fund | 589,546 |
Total | $ 76,672,746 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 42,899,299 | $ 9,187,790 | $ 7,369,840 | $ 44,675,351 | 8.6% |
Fidelity Consumer Staples Central Fund | 43,280,780 | 9,915,583 | 7,701,524 | 45,057,822 | 8.7% |
Fidelity Energy Central Fund | 45,971,670 | 19,298,823 | 8,173,672 | 54,207,979 | 9.4% |
Fidelity Financials Central Fund | 67,032,602 | 22,632,822 | 7,854,488 | 73,751,990 | 9.6% |
Fidelity Floating Rate Central Fund | 67,675,508 | 2,823,864 | 40,135,484 | 26,813,071 | 0.9% |
Fidelity Health Care Central Fund | 54,027,771 | 17,282,411 | 10,784,516 | 61,659,926 | 9.2% |
Fidelity High Income Central Fund 1 | 42,245,646 | 43,077,160 | 1,724,386 | 92,773,272 | 18.2% |
Fidelity Industrials Central Fund | 50,521,309 | 12,506,465 | 8,710,687 | 52,695,777 | 8.8% |
Fidelity Information Technology Central Fund | 62,956,141 | 18,067,661 | 11,828,955 | 89,102,247 | 8.9% |
Fidelity International Equity Central Fund | - | 22,200,728 | 193,681 | 26,661,977 | 4.2% |
Fidelity Materials Central Fund | 15,341,018 | 4,597,107 | 2,993,757 | 20,193,264 | 8.8% |
Fidelity Tactical Income Central Fund | 1,082,230,662 | 283,043,467 | 133,925,715 | 1,291,110,352 | 29.3% |
Fidelity Telecom Services Central Fund | 12,667,166 | 3,171,200 | 2,534,078 | 15,219,399 | 8.8% |
Fidelity Utilities Central Fund | 15,447,872 | 4,648,407 | 2,738,740 | 16,532,066 | 9.2% |
Total | $ 1,602,297,444 | $ 472,453,488 | $ 246,669,523 | $ 1,910,454,493 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $109,929,389 all of which will expire on September 30, 2017. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $70,092,243 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 20%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $2,397,958,538) - See accompanying schedule: | | $ 2,354,570,680 |
Receivable for investments sold | | 633,325 |
Receivable for fund shares sold | | 3,913,305 |
Distributions receivable from Fidelity Central Funds | | 5,408,210 |
Prepaid expenses | | 11,317 |
Receivable from investment adviser for expense reductions | | 95 |
Total assets | | 2,364,536,932 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,292,125 | |
Payable for fund shares redeemed | 2,324,954 | |
Accrued management fee | 801,294 | |
Distribution fees payable | 18,132 | |
Other affiliated payables | 261,399 | |
Other payables and accrued expenses | 28,811 | |
Total liabilities | | 9,726,715 |
| | |
Net Assets | | $ 2,354,810,217 |
Net Assets consist of: | | |
Paid in capital | | $ 2,497,555,882 |
Undistributed net investment income | | 3,231,753 |
Accumulated undistributed net realized gain (loss) on investments | | (102,589,560) |
Net unrealized appreciation (depreciation) on investments | | (43,387,858) |
Net Assets | | $ 2,354,810,217 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($24,487,577 ÷ 2,074,584 shares) | | $ 11.80 |
| | |
Maximum offering price per share (100/94.25 of $11.80) | | $ 12.52 |
Class T:
Net Asset Value and redemption price per share ($10,032,090 ÷ 851,260 shares) | | $ 11.78 |
| | |
Maximum offering price per share (100/96.50 of $11.78) | | $ 12.21 |
Class B:
Net Asset Value and offering price per share ($2,712,207 ÷ 230,420 shares)A | | $ 11.77 |
| | |
Class C:
Net Asset Value and offering price per share ($9,189,262 ÷ 781,554 shares)A | | $ 11.76 |
| | |
Asset Manager 20%:
Net Asset Value, offering price and redemption price per share ($2,305,691,732 ÷ 195,088,270 shares) | | $ 11.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,697,349 ÷ 228,280 shares) | | $ 11.82 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 2,448 |
Income from Fidelity Central Funds | | 76,672,746 |
Total income | | 76,675,194 |
| | |
Expenses | | |
Management fee | $ 8,288,972 | |
Transfer agent fees | 2,213,862 | |
Distribution fees | 142,116 | |
Accounting fees and expenses | 651,792 | |
Custodian fees and expenses | 5,025 | |
Independent trustees' compensation | 7,308 | |
Registration fees | 125,233 | |
Audit | 51,703 | |
Legal | 10,719 | |
Miscellaneous | 85,713 | |
Total expenses before reductions | 11,582,443 | |
Expense reductions | (34,107) | 11,548,336 |
Net investment income (loss) | | 65,126,858 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 634,279 | |
Fidelity Central Funds | (23,977,067) | |
Futures contracts | (7,536,941) | |
Total net realized gain (loss) | | (30,879,729) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 106,345,918 | |
Futures contracts | 1,367,696 | |
Total change in net unrealized appreciation (depreciation) | | 107,713,614 |
Net gain (loss) | | 76,833,885 |
Net increase (decrease) in net assets resulting from operations | | $ 141,960,743 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 65,126,858 | $ 86,585,401 |
Net realized gain (loss) | (30,879,729) | (18,069,996) |
Change in net unrealized appreciation (depreciation) | 107,713,614 | (241,275,471) |
Net increase (decrease) in net assets resulting from operations | 141,960,743 | (172,760,066) |
Distributions to shareholders from net investment income | (71,793,201) | (91,104,113) |
Distributions to shareholders from net realized gain | - | (49,576,396) |
Total distributions | (71,793,201) | (140,680,509) |
Share transactions - net increase (decrease) | (1,051,686) | 79,342,713 |
Total increase (decrease) in net assets | 69,115,856 | (234,097,862) |
| | |
Net Assets | | |
Beginning of period | 2,285,694,361 | 2,519,792,223 |
End of period (including undistributed net investment income of $3,231,753 and undistributed net investment income of $11,795,814, respectively) | $ 2,354,810,217 | $ 2,285,694,361 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.35 | $ 12.90 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .33 | .39 | .48 |
Net realized and unrealized gain (loss) | .48 | (1.27) | .40 |
Total from investment operations | .81 | (.88) | .88 |
Distributions from net investment income | (.36) | (.42) | (.52) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.36) | (.67) | (1.11) |
Net asset value, end of period | $ 11.80 | $ 11.35 | $ 12.90 |
Total Return B,C,D | 7.51% | (7.18)% | 7.03% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | .87% | .86% | .87% A |
Expenses net of fee waivers, if any | .87% | .86% | .87% A |
Expenses net of all reductions | .87% | .86% | .87% A |
Net investment income (loss) | 3.01% | 3.18% | 3.84% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 24,488 | $ 8,030 | $ 3,422 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.33 | $ 12.88 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .30 | .36 | .45 |
Net realized and unrealized gain (loss) | .48 | (1.28) | .40 |
Total from investment operations | .78 | (.92) | .85 |
Distributions from net investment income | (.33) | (.38) | (.51) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.33) | (.63) | (1.10) |
Net asset value, end of period | $ 11.78 | $ 11.33 | $ 12.88 |
Total Return B,C,D | 7.26% | (7.43)% | 6.75% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.11% | 1.12% | 1.11% A |
Expenses net of fee waivers, if any | 1.11% | 1.12% | 1.11% A |
Expenses net of all reductions | 1.11% | 1.12% | 1.11% A |
Net investment income (loss) | 2.76% | 2.93% | 3.60% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 10,032 | $ 4,915 | $ 3,954 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.32 | $ 12.87 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .24 | .29 | .39 |
Net realized and unrealized gain (loss) | .49 | (1.27) | .38 |
Total from investment operations | .73 | (.98) | .77 |
Distributions from net investment income | (.28) | (.32) | (.44) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.28) | (.57) | (1.03) |
Net asset value, end of period | $ 11.77 | $ 11.32 | $ 12.87 |
Total Return B,C,D | 6.70% | (7.89)% | 6.13% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.69% | 1.67% | 1.65% A |
Expenses net of fee waivers, if any | 1.65% | 1.66% | 1.65% A |
Expenses net of all reductions | 1.65% | 1.66% | 1.65% A |
Net investment income (loss) | 2.23% | 2.38% | 3.06% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,712 | $ 1,975 | $ 991 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.31 | $ 12.86 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .24 | .29 | .39 |
Net realized and unrealized gain (loss) | .49 | (1.26) | .38 |
Total from investment operations | .73 | (.97) | .77 |
Distributions from net investment income | (.28) | (.33) | (.45) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.28) | (.58) | (1.04) |
Net asset value, end of period | $ 11.76 | $ 11.31 | $ 12.86 |
Total Return B,C,D | 6.75% | (7.87)% | 6.15% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.63% | 1.65% | 1.64% A |
Expenses net of fee waivers, if any | 1.63% | 1.65% | 1.64% A |
Expenses net of all reductions | 1.63% | 1.64% | 1.64% A |
Net investment income (loss) | 2.24% | 2.40% | 3.07% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 9,189 | $ 3,668 | $ 1,697 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 20%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.36 | $ 12.91 | $ 13.14 | $ 13.00 | $ 12.25 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .35 | .43 | .53 | .46 | .33 |
Net realized and unrealized gain (loss) | .50 | (1.28) | .38 | .39 | .74 |
Total from investment operations | .85 | (.85) | .91 | .85 | 1.07 |
Distributions from net investment income | (.39) | (.45) | (.55) | (.43) | (.32) |
Distributions from net realized gain | - | (.25) | (.59) | (.28) | - |
Total distributions | (.39) | (.70) | (1.14) | (.71) | (.32) |
Net asset value, end of period | $ 11.82 | $ 11.36 | $ 12.91 | $ 13.14 | $ 13.00 |
Total Return A | 7.90% | (6.90)% | 7.26% | 6.77% | 8.85% |
Ratios to Average Net Assets D | | | | | |
Expenses before reductions | .58% | .56% | .57% | .58% | .60% |
Expenses net of fee waivers, if any | .58% | .56% | .57% | .58% | .60% |
Expenses net of all reductions | .58% | .56% | .57% | .57% | .58% |
Net investment income (loss) | 3.30% | 3.48% | 4.15% | 3.58% | 2.64% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,305,692 | $ 2,265,384 | $ 2,509,481 | $ 2,130,750 | $ 1,724,038 |
Portfolio turnover rate C | 16% | 5% | 6% | 81% E | 81% E |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
E Portfolio turnover rate excludes securities received or delivered in kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.35 | $ 12.90 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) D | .36 | .42 | .53 |
Net realized and unrealized gain (loss) | .50 | (1.27) | .38 |
Total from investment operations | .86 | (.85) | .91 |
Distributions from net investment income | (.39) | (.45) | (.55) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.39) | (.70) | (1.14) |
Net asset value, end of period | $ 11.82 | $ 11.35 | $ 12.90 |
Total Return B,C | 8.00% | (6.91)% | 7.24% |
Ratios to Average Net AssetsG | | | |
Expenses before reductions | .56% | .57% | .59% A |
Expenses net of fee waivers, if any | .56% | .57% | .59% A |
Expenses net of all reductions | .56% | .56% | .59% A |
Net investment income (loss) | 3.32% | 3.48% | 4.13% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,697 | $ 1,722 | $ 248 |
Portfolio turnover rate E | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 30%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 15.2 | 15.6 |
U.S. Treasury Obligations | 13.8 | 6.3 |
Freddie Mac | 2.2 | 2.5 |
Government National Mortgage Association | 0.6 | 2.6 |
JPMorgan Chase Capital XX | 0.5 | 0.4 |
| 32.3 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| U.S. Government and
U.S. Government
Agency Obligations 31.8% | | | U.S. Government and
U.S. Government
Agency Obligations 27.4% | |
| AAA,AA,A 11.5% | | | AAA,AA,A 13.3% | |
| BBB 10.5% | | | BBB 9.9% | |
| BB and Below 6.3% | | | BB and Below 7.0% | |
| Not Rated 0.2% | | | Not Rated 0.3% | |
| Equities 30.3% | | | Equities 29.2% | |
| Short-Term
Investments and
Net Other Assets 9.4% | | | Short-Term
Investments and
Net Other Assets 12.9% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.5 | 0.3 |
Procter & Gamble Co. | 0.3 | 0.5 |
Google, Inc. Class A | 0.4 | 0.3 |
Pfizer, Inc. | 0.3 | 0.2 |
Charles Schwab Corp. | 0.3 | 0.0 |
| 1.8 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 30.3% | | | Stock Class and
Equity Futures 29.1% | |
| Bond Class 56.6% | | | Bond Class 56.3% | |
| Short-Term Class 13.1% | | | Short-Term Class 14.6% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 30%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 5.5 |
Fidelity Financials Central Fund | 4.7 |
Fidelity Health Care Central Fund | 3.9 |
Fidelity Energy Central Fund | 3.3 |
Fidelity Industrials Central Fund | 3.3 |
Fidelity Consumer Discretionary Central Fund | 3.0 |
Fidelity Consumer Staples Central Fund | 3.0 |
Fidelity Materials Central Fund | 1.1 |
Fidelity Utilities Central Fund | 1.1 |
Fidelity International Equity Central Fund | 1.0 |
Fidelity Telecom Services Central Fund | 0.9 |
Total Equity Central Funds | 30.8 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 52.9 |
Total Fixed-Income Central Funds | 57.9 |
Money Market Central Funds | 10.8 |
Net Other Assets | 0.5 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 10.0% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 30%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 30.8% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 23,380 | | $ 2,153,509 |
Fidelity Consumer Staples Central Fund (b) | 18,603 | | 2,123,558 |
Fidelity Energy Central Fund (b) | 24,181 | | 2,396,832 |
Fidelity Financials Central Fund (b) | 58,285 | | 3,391,587 |
Fidelity Health Care Central Fund (b) | 27,628 | | 2,790,440 |
Fidelity Industrials Central Fund (b) | 23,091 | | 2,346,736 |
Fidelity Information Technology Central Fund (b) | 32,258 | | 3,965,785 |
Fidelity International Equity Central Fund (b) | 10,964 | | 713,202 |
Fidelity Materials Central Fund (b) | 6,531 | | 822,400 |
Fidelity Telecom Services Central Fund (b) | 6,114 | | 608,687 |
Fidelity Utilities Central Fund (b) | 9,153 | | 808,087 |
TOTAL EQUITY CENTRAL FUNDS (Cost $21,739,032) | 22,120,823 |
Fixed-Income Central Funds - 57.9% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 9,421 | | 855,694 |
Fidelity High Income Central Fund 1 (b) | 30,811 | | 2,726,495 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 3,582,189 |
Investment Grade Fixed-Income Funds - 52.9% |
Fidelity Tactical Income Central Fund (b) | 401,473 | 37,975,333 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $40,331,741) | 41,557,522 |
Money Market Central Funds - 10.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 2,806,891 | | $ 2,806,891 |
Fidelity Money Market Central Fund, 0.60% (a) | 4,900,000 | | 4,900,000 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $7,706,891) | 7,706,891 |
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $69,777,664) | | 71,385,236 |
NET OTHER ASSETS - 0.5% | | 352,745 |
NET ASSETS - 100% | $ 71,737,981 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 34,180 |
Fidelity Consumer Discretionary Central Fund | 20,707 |
Fidelity Consumer Staples Central Fund | 35,542 |
Fidelity Energy Central Fund | 15,925 |
Fidelity Financials Central Fund | 43,582 |
Fidelity Floating Rate Central Fund | 43,117 |
Fidelity Health Care Central Fund | 21,112 |
Fidelity High Income Central Fund 1 | 128,645 |
Fidelity Industrials Central Fund | 27,423 |
Fidelity Information Technology Central Fund | 17,972 |
Fidelity International Equity Central Fund | 7,870 |
Fidelity Materials Central Fund | 8,710 |
Fidelity Money Market Central Fund | 19,579 |
Fidelity Tactical Income Central Fund | 1,021,832 |
Fidelity Telecom Services Central Fund | 7,558 |
Fidelity Utilities Central Fund | 19,034 |
Total | $ 1,472,788 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 965,072 | $ 1,096,230 | $ 104,201 | $ 2,153,509 | 0.4% |
Fidelity Consumer Staples Central Fund | 973,588 | 1,142,631 | 125,944 | 2,123,558 | 0.4% |
Fidelity Energy Central Fund | 1,034,093 | 1,465,600 | 285,882 | 2,396,832 | 0.4% |
Fidelity Financials Central Fund | 1,507,852 | 1,859,405 | 155,397 | 3,391,587 | 0.4% |
Fidelity Floating Rate Central Fund | 1,013,697 | 479,453 | 643,329 | 855,694 | 0.0% |
Fidelity Health Care Central Fund | 1,215,308 | 1,495,210 | 151,841 | 2,790,440 | 0.4% |
Fidelity High Income Central Fund 1 | 637,595 | 1,977,307 | 134,779 | 2,726,495 | 0.5% |
Fidelity Industrials Central Fund | 1,136,447 | 1,200,534 | 177,539 | 2,346,736 | 0.4% |
Fidelity Information Technology Central Fund | 1,416,220 | 1,873,725 | 272,651 | 3,965,785 | 0.4% |
Fidelity International Equity Central Fund | - | 597,081 | - | 713,202 | 0.1% |
Fidelity Materials Central Fund | 345,142 | 423,490 | 108,398 | 822,400 | 0.4% |
Fidelity Tactical Income Central Fund | 13,876,261 | 24,063,360 | 1,942,435 | 37,975,333 | 0.9% |
Fidelity Telecom Services Central Fund | 285,000 | 299,689 | 67,672 | 608,687 | 0.4% |
Fidelity Utilities Central Fund | 347,516 | 482,951 | 41,200 | 808,087 | 0.4% |
Total | $ 24,753,791 | $ 38,456,666 | $ 4,211,268 | $ 63,678,345 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 90.0% |
United Kingdom | 1.3% |
Bermuda | 1.2% |
Canada | 1.1% |
Others (individually less than 1%) | 6.4% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $270,253 of which $10,213 and $260,040 will expire on September 30, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $728,141 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 30%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $69,777,664) - See accompanying schedule: | | $ 71,385,236 |
Receivable for investments sold | | 22,364 |
Receivable for fund shares sold | | 442,379 |
Distributions receivable from Fidelity Central Funds | | 150,197 |
Prepaid expenses | | 310 |
Receivable from investment adviser for expense reductions | | 38,129 |
Total assets | | 72,038,615 |
| | |
Liabilities | | |
Payable for investments purchased | $ 210,887 | |
Payable for fund shares redeemed | 14,349 | |
Accrued management fee | 23,512 | |
Distribution fees payable | 4,380 | |
Other affiliated payables | 7,745 | |
Other payables and accrued expenses | 39,761 | |
Total liabilities | | 300,634 |
| | |
Net Assets | | $ 71,737,981 |
Net Assets consist of: | | |
Paid in capital | | $ 70,590,710 |
Undistributed net investment income | | 157,639 |
Accumulated undistributed net realized gain (loss) on investments | | (617,940) |
Net unrealized appreciation (depreciation) on investments | | 1,607,572 |
Net Assets | | $ 71,737,981 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($4,305,301 ÷ 476,481 shares) | | $ 9.04 |
| | |
Maximum offering price per share (100/94.25 of $9.04) | | $ 9.59 |
Class T:
Net Asset Value and redemption price per share ($2,181,202 ÷ 241,502 shares) | | $ 9.03 |
| | |
Maximum offering price per share (100/96.50 of $9.03) | | $ 9.36 |
Class B:
Net Asset Value and offering price per share ($772,519 ÷ 85,569 shares)A | | $ 9.03 |
| | |
Class C:
Net Asset Value and offering price per share ($2,498,914 ÷ 277,221 shares)A | | $ 9.01 |
| | |
Asset Manager 30%:
Net Asset Value, offering price and redemption price per share ($61,207,289 ÷ 6,770,261 shares) | | $ 9.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($772,756 ÷ 85,481 shares) | | $ 9.04 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 657 |
Income from Fidelity Central Funds | | 1,472,788 |
Total income | | 1,473,445 |
| | |
Expenses | | |
Management fee | $ 168,728 | |
Transfer agent fees | 47,001 | |
Distribution fees | 32,950 | |
Accounting fees and expenses | 16,708 | |
Custodian fees and expenses | 5,008 | |
Independent trustees' compensation | 134 | |
Registration fees | 67,768 | |
Audit | 61,448 | |
Legal | 137 | |
Miscellaneous | 1,521 | |
Total expenses before reductions | 401,403 | |
Expense reductions | (107,567) | 293,836 |
Net investment income (loss) | | 1,179,609 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 98 | |
Fidelity Central Funds | 63,714 | |
Futures contracts | (55,838) | |
Total net realized gain (loss) | | 7,974 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 4,615,333 | |
Futures contracts | 10,142 | |
Total change in net unrealized appreciation (depreciation) | | 4,625,475 |
Net gain (loss) | | 4,633,449 |
Net increase (decrease) in net assets resulting from operations | | $ 5,813,058 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | For the period October 9, 2007 (commencement of operations) to September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,179,609 | $ 697,480 |
Net realized gain (loss) | 7,974 | (584,261) |
Change in net unrealized appreciation (depreciation) | 4,625,475 | (3,017,903) |
Net increase (decrease) in net assets resulting from operations | 5,813,058 | (2,904,684) |
Distributions to shareholders from net investment income | (1,165,886) | (595,233) |
Share transactions - net increase (decrease) | 36,657,851 | 33,932,875 |
Total increase (decrease) in net assets | 41,305,023 | 30,432,958 |
| | |
Net Assets | | |
Beginning of period | 30,432,958 | - |
End of period (including undistributed net investment income of $157,639 and undistributed net investment income of $143,916, respectively) | $ 71,737,981 | $ 30,432,958 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .22 | .24 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .62 | (1.15) |
Distributions from net investment income | (.24) | (.19) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C,D | 7.50% | (11.63)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.21% | 1.66% A |
Expenses net of fee waivers, if any | .90% | .98% A |
Expenses net of all reductions | .89% | .98% A |
Net investment income (loss) | 2.75% | 2.63% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 4,305 | $ 1,159 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.65 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .22 |
Net realized and unrealized gain (loss) | .40 | (1.40) |
Total from investment operations | .60 | (1.18) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 9.03 | $ 8.65 |
Total Return B,C,D | 7.25% | (11.91)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.46% | 1.97% A |
Expenses net of fee waivers, if any | 1.15% | 1.20% A |
Expenses net of all reductions | 1.14% | 1.20% A |
Net investment income (loss) | 2.50% | 2.41% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,181 | $ 1,074 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.65 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .16 | .17 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .56 | (1.22) |
Distributions from net investment income | (.18) | (.13) |
Net asset value, end of period | $ 9.03 | $ 8.65 |
Total Return B,C,D | 6.73% | (12.30)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.00% | 2.71% A |
Expenses net of fee waivers, if any | 1.65% | 1.73% A |
Expenses net of all reductions | 1.65% | 1.73% A |
Net investment income (loss) | 2.00% | 1.87% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 773 | $ 480 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.64 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .16 | .17 |
Net realized and unrealized gain (loss) | .39 | (1.39) |
Total from investment operations | .55 | (1.22) |
Distributions from net investment income | (.18) | (.14) |
Net asset value, end of period | $ 9.01 | $ 8.64 |
Total Return B,C,D | 6.62% | (12.30)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.95% | 2.37% A |
Expenses net of fee waivers, if any | 1.65% | 1.70% A |
Expenses net of all reductions | 1.64% | 1.70% A |
Net investment income (loss) | 2.00% | 1.91% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,499 | $ 1,495 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 30%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .24 | .26 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .64 | (1.13) |
Distributions from net investment income | (.26) | (.21) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C | 7.77% | (11.43)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | .90% | 1.24% A |
Expenses net of fee waivers, if any | .65% | .73% A |
Expenses net of all reductions | .65% | .72% A |
Net investment income (loss) | 3.00% | 2.88% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 61,207 | $ 26,016 |
Portfolio turnover rate E | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .24 | .26 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .64 | (1.13) |
Distributions from net investment income | (.26) | (.21) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C | 7.77% | (11.45)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | .97% | 1.76% A |
Expenses net of fee waivers, if any | .65% | .75% A |
Expenses net of all reductions | .65% | .75% A |
Net investment income (loss) | 3.00% | 2.86% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 773 | $ 209 |
Portfolio turnover rate E | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 40%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 13.2 | 13.7 |
U.S. Treasury Obligations | 12.0 | 5.6 |
Freddie Mac | 1.9 | 2.2 |
Government National Mortgage Association | 0.5 | 2.3 |
JPMorgan Chase Capital XX | 0.4 | 0.4 |
| 28.0 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| U.S. Government and
U.S. Government
Agency Obligations 27.6% | | | U.S. Government and
U.S. Government
Agency Obligations 24.1% | |
| AAA,AA,A 10.0% | | | AAA,AA,A 11.6% | |
| BBB 9.1% | | | BBB 9.0% | |
| BB and Below 6.0% | | | BB and Below 6.4% | |
| Not Rated 0.2% | | | Not Rated 0.3% | |
| Equities 40.4% | | | Equities 38.2% | |
| Short-Term
Investments and
Net Other Assets 6.7% | | | Short-Term
Investments and
Net Other Assets 10.4% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.6 | 0.3 |
Procter & Gamble Co. | 0.4 | 0.5 |
Google, Inc. Class A | 0.5 | 0.3 |
Pfizer, Inc. | 0.4 | 0.2 |
Charles Schwab Corp. | 0.3 | 0.0 |
| 2.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 40.3% | | | Stock Class and
Equity Futures 38.0% | |
| Bond Class 49.7% | | | Bond Class 50.0% | |
| Short-Term Class 10.0% | | | Short-Term Class 12.0% | |
| | | | | |
| | | | | |
Asset Allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 40%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 6.7 |
Fidelity Financials Central Fund | 5.7 |
Fidelity Health Care Central Fund | 4.7 |
Fidelity Energy Central Fund | 4.0 |
Fidelity International Equity Central Fund | 4.0 |
Fidelity Industrials Central Fund | 3.9 |
Fidelity Consumer Discretionary Central Fund | 3.6 |
Fidelity Consumer Staples Central Fund | 3.6 |
Fidelity Materials Central Fund | 1.4 |
Fidelity Utilities Central Fund | 1.4 |
Fidelity Telecom Services Central Fund | 1.0 |
Fidelity Emerging Markets Equity Central Fund | 1.0 |
Total Equity Central Funds | 41.0 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 46.0 |
Total Fixed-Income Central Funds | 51.0 |
Money Market Central Funds | 7.9 |
Net Other Assets | 0.1 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 14.4% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 40%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 41.0% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 17,636 | | $ 1,624,457 |
Fidelity Consumer Staples Central Fund (b) | 14,066 | | 1,605,623 |
Fidelity Emerging Markets Equity Central Fund (b) | 2,640 | | 447,179 |
Fidelity Energy Central Fund (b) | 18,341 | | 1,817,976 |
Fidelity Financials Central Fund (b) | 43,792 | | 2,548,251 |
Fidelity Health Care Central Fund (b) | 20,864 | | 2,107,215 |
Fidelity Industrials Central Fund (b) | 17,380 | | 1,766,313 |
Fidelity Information Technology Central Fund (b) | 24,312 | | 2,988,886 |
Fidelity International Equity Central Fund (b) | 27,536 | | 1,791,219 |
Fidelity Materials Central Fund (b) | 4,961 | | 624,751 |
Fidelity Telecom Services Central Fund (b) | 4,608 | | 458,806 |
Fidelity Utilities Central Fund (b) | 6,980 | | 616,276 |
TOTAL EQUITY CENTRAL FUNDS (Cost $18,575,895) | 18,396,952 |
Fixed-Income Central Funds - 51.0% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 5,988 | | 543,882 |
Fidelity High Income Central Fund 1 (b) | 19,200 | | 1,698,998 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 2,242,880 |
Investment Grade Fixed-Income Funds - 46.0% |
Fidelity Tactical Income Central Fund (b) | 218,192 | | 20,638,811 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $22,148,418) | 22,881,691 |
Money Market Central Funds - 7.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 1,644,693 | | $ 1,644,693 |
Fidelity Money Market Central Fund, 0.60% (a) | 1,900,000 | | 1,900,000 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $3,544,693) | 3,544,693 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $44,269,006) | | 44,823,336 |
NET OTHER ASSETS - 0.1% | | 47,993 |
NET ASSETS - 100% | $ 44,871,329 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 20,714 |
Fidelity Consumer Discretionary Central Fund | 16,422 |
Fidelity Consumer Staples Central Fund | 28,228 |
Fidelity Emerging Markets Equity Central Fund | 5,556 |
Fidelity Energy Central Fund | 12,591 |
Fidelity Financials Central Fund | 33,996 |
Fidelity Floating Rate Central Fund | 25,021 |
Fidelity Health Care Central Fund | 17,369 |
Fidelity High Income Central Fund 1 | 87,205 |
Fidelity Industrials Central Fund | 22,123 |
Fidelity Information Technology Central Fund | 14,346 |
Fidelity International Equity Central Fund | 29,117 |
Fidelity Materials Central Fund | 7,164 |
Fidelity Money Market Central Fund | 7,597 |
Fidelity Tactical Income Central Fund | 599,939 |
Fidelity Telecom Services Central Fund | 6,007 |
Fidelity Utilities Central Fund | 15,057 |
Total | $ 948,452 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 687,216 | $ 1,098,688 | $ 302,723 | $ 1,624,457 | 0.3% |
Fidelity Consumer Staples Central Fund | 693,355 | 1,177,953 | 350,495 | 1,605,623 | 0.3% |
Fidelity Emerging Markets Equity Central Fund | - | 382,781 | 112,949 | 447,179 | 0.2% |
Fidelity Energy Central Fund | 736,460 | 1,471,989 | 544,824 | 1,817,976 | 0.3% |
Fidelity Financials Central Fund | 1,073,867 | 1,867,725 | 460,906 | 2,548,251 | 0.3% |
Fidelity Floating Rate Central Fund | 504,178 | 398,655 | 388,969 | 543,882 | 0.0% |
Fidelity Health Care Central Fund | 865,513 | 1,488,253 | 416,843 | 2,107,215 | 0.3% |
Fidelity High Income Central Fund 1 | 316,276 | 1,381,623 | 175,217 | 1,698,998 | 0.3% |
Fidelity Industrials Central Fund | 809,331 | 1,187,737 | 352,138 | 1,766,313 | 0.3% |
Fidelity Information Technology Central Fund | 1,008,502 | 1,865,627 | 640,306 | 2,988,886 | 0.3% |
Fidelity International Equity Central Fund | 745,109 | 913,693 | 22,819 | 1,791,219 | 0.3% |
Fidelity Materials Central Fund | 245,701 | 382,559 | 131,381 | 624,751 | 0.3% |
Fidelity Tactical Income Central Fund | 7,380,508 | 14,534,743 | 2,452,732 | 20,638,811 | 0.5% |
Fidelity Telecom Services Central Fund | 202,857 | 315,366 | 138,517 | 458,806 | 0.3% |
Fidelity Utilities Central Fund | 247,387 | 479,530 | 117,794 | 616,276 | 0.3% |
Total | $ 15,516,260 | $ 28,946,922 | $ 6,608,613 | $ 41,278,643 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 85.6% |
United Kingdom | 1.8% |
Switzerland | 1.2% |
Canada | 1.2% |
Bermuda | 1.2% |
Others (individually less than 1%) | 9.0% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $565,738 of which $101,011 and $464,727 will expire on September 30, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $557,564 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 40%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $44,269,006) - See accompanying schedule: | | $ 44,823,336 |
Cash | | 12,739 |
Receivable for investments sold | | 14,251 |
Receivable for fund shares sold | | 66,869 |
Distributions receivable from Fidelity Central Funds | | 84,340 |
Prepaid expenses | | 195 |
Receivable from investment adviser for expense reductions | | 37,055 |
Total assets | | 45,038,785 |
| | |
Liabilities | | |
Payable for investments purchased | $ 85,109 | |
Payable for fund shares redeemed | 18,735 | |
Accrued management fee | 14,982 | |
Distribution fees payable | 3,740 | |
Other affiliated payables | 5,125 | |
Other payables and accrued expenses | 39,765 | |
Total liabilities | | 167,456 |
| | |
Net Assets | | $ 44,871,329 |
Net Assets consist of: | | |
Paid in capital | | $ 44,057,719 |
Undistributed net investment income | | 256,838 |
Accumulated undistributed net realized gain (loss) on investments | | 2,442 |
Net unrealized appreciation (depreciation) on investments | | 554,330 |
Net Assets | | $ 44,871,329 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($2,921,246 ÷ 332,999 shares) | | $ 8.77 |
| | |
Maximum offering price per share (100/94.25 of $8.77) | | $ 9.31 |
Class T:
Net Asset Value and redemption price per share ($2,089,341 ÷ 238,475 shares) | | $ 8.76 |
| | |
Maximum offering price per share (100/96.50 of $8.76) | | $ 9.08 |
Class B:
Net Asset Value and offering price per share ($1,262,680 ÷ 144,232 shares)A | | $ 8.75 |
| | |
Class C:
Net Asset Value and offering price per share ($1,469,210 ÷ 167,761 shares)A | | $ 8.76 |
| | |
| | |
Asset Manager 40%:
Net Asset Value, offering price and redemption price per share ($36,197,605 ÷ 4,126,118 shares) | | $ 8.77 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($931,247 ÷ 106,143 shares) | | $ 8.77 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 75 |
Income from Fidelity Central Funds | | 948,452 |
Total income | | 948,527 |
| | |
Expenses | | |
Management fee | $ 112,805 | |
Transfer agent fees | 33,993 | |
Distribution fees | 40,998 | |
Accounting fees and expenses | 11,167 | |
Custodian fees and expenses | 5,007 | |
Independent trustees' compensation | 88 | |
Registration fees | 59,383 | |
Audit | 61,436 | |
Legal | 1,856 | |
Miscellaneous | 1,028 | |
Total expenses before reductions | 327,761 | |
Expense reductions | (113,093) | 214,668 |
Net investment income (loss) | | 733,859 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 17 | |
Fidelity Central Funds | 128,703 | |
Futures contracts | (47,735) | |
Total net realized gain (loss) | | 80,985 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 3,295,362 | |
Futures contracts | 8,693 | |
Total change in net unrealized appreciation (depreciation) | | 3,304,055 |
Net gain (loss) | | 3,385,040 |
Net increase (decrease) in net assets resulting from operations | | $ 4,118,899 |
Statement of Changes in Net Assets
| Year ended
September 30, 2009 | For the period October 9, 2007 (commencement of operations) to
September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 733,859 | $ 363,871 |
Net realized gain (loss) | 80,985 | (82,406) |
Change in net unrealized appreciation (depreciation) | 3,304,055 | (2,749,725) |
Net increase (decrease) in net assets resulting from operations | 4,118,899 | (2,468,260) |
Distributions to shareholders from net investment income | (608,662) | (228,368) |
Share transactions - net increase (decrease) | 22,459,047 | 21,598,673 |
Total increase (decrease) in net assets | 25,969,284 | 18,902,045 |
| | |
Net Assets | | |
Beginning of period | 18,902,045 | - |
End of period (including undistributed net investment income of $256,838 and undistributed net investment income of $131,642, respectively) | $ 44,871,329 | $ 18,902,045 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.42 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .23 |
Net realized and unrealized gain (loss) | .34 | (1.66) |
Total from investment operations | .54 | (1.43) |
Distributions from net investment income | (.19) | (.15) |
Net asset value, end of period | $ 8.77 | $ 8.42 |
Total Return B, C, D | 6.80% | (14.43)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.33% | 1.91% A |
Expenses net of fee waivers, if any | .90% | 1.00% A |
Expenses net of all reductions | .90% | 1.00% A |
Net investment income (loss) | 2.62% | 2.52% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,921 | $ 2,033 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.41 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .18 | .21 |
Net realized and unrealized gain (loss) | .35 | (1.66) |
Total from investment operations | .53 | (1.45) |
Distributions from net investment income | (.18) | (.14) |
Net asset value, end of period | $ 8.76 | $ 8.41 |
Total Return B, C, D | 6.59% | (14.67)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.59% | 2.15% A |
Expenses net of fee waivers, if any | 1.15% | 1.25% A |
Expenses net of all reductions | 1.15% | 1.25% A |
Net investment income (loss) | 2.37% | 2.27% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,089 | $ 1,840 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.40 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .14 | .16 |
Net realized and unrealized gain (loss) | .35 | (1.66) |
Total from investment operations | .49 | (1.50) |
Distributions from net investment income | (.14) | (.10) |
Net asset value, end of period | $ 8.75 | $ 8.40 |
Total Return B, C, D | 6.02% | (15.09)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.08% | 2.64%A |
Expenses net of fee waivers, if any | 1.65% | 1.77%A |
Expenses net of all reductions | 1.65% | 1.77%A |
Net investment income (loss) | 1.87% | 1.76%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,263 | $ 1,378 |
Portfolio turnover rate F | 27% | 1%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.41 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .14 | .16 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .48 | (1.49) |
Distributions from net investment income | (.13) | (.10) |
Net asset value, end of period | $ 8.76 | $ 8.41 |
Total Return B, C, D | 6.00% | (15.01)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.09% | 2.66% A |
Expenses net of fee waivers, if any | 1.65% | 1.76% A |
Expenses net of all reductions | 1.65% | 1.76% A |
Net investment income (loss) | 1.87% | 1.76% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,469 | $ 1,384 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 40%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.43 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .22 | .25 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .56 | (1.40) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 8.77 | $ 8.43 |
Total Return B, C | 7.00% | (14.18)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.05% | 1.68% A |
Expenses net of fee waivers, if any | .65% | .72% A |
Expenses net of all reductions | .64% | .72% A |
Net investment income (loss) | 2.88% | 2.80% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 36,198 | $ 10,929 |
Portfolio turnover rate E | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.43 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .22 | .25 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .56 | (1.40) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 8.77 | $ 8.43 |
Total Return B, C | 7.00% | (14.18)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.07% | 1.63% A |
Expenses net of fee waivers, if any | .65% | .76% A |
Expenses net of all reductions | .65% | .76% A |
Net investment income (loss) | 2.87% | 2.76% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 931 | $ 1,339 |
Portfolio turnover rate E | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.8 | 0.4 |
Procter & Gamble Co. | 0.5 | 0.7 |
Google, Inc. Class A | 0.6 | 0.4 |
Pfizer, Inc. | 0.5 | 0.2 |
Microsoft Corp. | 0.4 | 0.4 |
CVS Caremark Corp. | 0.4 | 0.5 |
Charles Schwab Corp. | 0.4 | 0.0 |
PepsiCo, Inc. | 0.4 | 0.5 |
CME Group, Inc. | 0.4 | 0.2 |
AT&T, Inc. | 0.4 | 0.2 |
| 4.8 | |
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 11.6 | 12.5 |
U.S. Treasury Obligations | 10.5 | 5.1 |
Freddie Mac | 1.7 | 2.0 |
Government National Mortgage Association | 0.4 | 2.1 |
JPMorgan Chase Capital XX | 0.4 | 0.4 |
| 24.6 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 51.0% | | | Stock Class and
Equity Futures 49.7% | |
| Bond Class 44.1% | | | Bond Class 46.2% | |
| Short-Term Class 4.9% | | | Short-Term Class 4.1% | |
| | | | | |
| | | | | |
Asset Allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 50%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 9.0 |
Fidelity Financials Central Fund | 6.7 |
Fidelity Health Care Central Fund | 5.9 |
Fidelity Industrials Central Fund | 5.4 |
Fidelity Energy Central Fund | 5.1 |
Fidelity Consumer Discretionary Central Fund | 4.6 |
Fidelity Consumer Staples Central Fund | 4.6 |
Fidelity International Equity Central Fund | 4.2 |
Fidelity Materials Central Fund | 2.1 |
Fidelity Telecom Services Central Fund | 1.6 |
Fidelity Utilities Central Fund | 1.6 |
Fidelity Emerging Markets Equity Central Fund | 1.1 |
Total Equity Central Funds | 51.9 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 40.2 |
Total Fixed-Income Central Funds | 45.2 |
Money Market Central Funds | 2.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 15.8% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 50%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 51.9% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 3,029,232 | | $ 279,022,577 |
Fidelity Consumer Staples Central Fund (b) | 2,460,441 | | 280,859,348 |
Fidelity Emerging Markets Equity Central Fund (b) | 406,259 | | 68,820,196 |
Fidelity Energy Central Fund (b) | 3,085,999 | | 305,884,194 |
Fidelity Financials Central Fund (b) | 6,988,302 | | 406,649,295 |
Fidelity Health Care Central Fund (b) | 3,550,643 | | 358,614,937 |
Fidelity Industrials Central Fund (b) | 3,219,787 | | 327,227,002 |
Fidelity Information Technology Central Fund (b) | 4,427,896 | | 544,365,539 |
Fidelity International Equity Central Fund (b) | 3,945,473 | | 256,653,011 |
Fidelity Materials Central Fund (b) | 1,001,691 | | 126,132,911 |
Fidelity Telecom Services Central Fund (b) | 960,011 | | 95,578,669 |
Fidelity Utilities Central Fund (b) | 1,082,411 | | 95,566,059 |
TOTAL EQUITY CENTRAL FUNDS (Cost $3,360,316,375) | 3,145,373,738 |
Fixed-Income Central Funds - 45.2% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 786,110 | | 71,402,355 |
Fidelity High Income Central
Fund 1 (b) | 2,609,210 | | 230,888,991 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 302,291,346 |
Investment Grade Fixed-Income Funds - 40.2% |
Fidelity Tactical Income Central
Fund (b) | 25,772,766 | | 2,437,845,914 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $2,788,750,133) | 2,740,137,260 |
Money Market Central Funds - 2.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 49,432,131 | | $ 49,432,131 |
Fidelity Money Market Central Fund, 0.60% (a) | 126,013,442 | | 126,013,442 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $175,445,573) | 175,445,573 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,324,512,081) | | 6,060,956,571 |
NET OTHER ASSETS - 0.0% | | (1,542,421) |
NET ASSETS - 100% | $ 6,059,414,150 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 464,023 |
Fidelity Consumer Discretionary Central Fund | 4,215,855 |
Fidelity Consumer Staples Central Fund | 7,075,528 |
Fidelity Emerging Markets Equity Central Fund | 1,049,697 |
Fidelity Energy Central Fund | 3,019,057 |
Fidelity Financials Central Fund | 9,222,939 |
Fidelity Floating Rate Central Fund | 6,828,917 |
Fidelity Health Care Central Fund | 4,418,293 |
Fidelity High Income Central Fund 1 | 16,409,991 |
Fidelity Industrials Central Fund | 5,924,860 |
Fidelity Information Technology Central Fund | 3,624,660 |
Fidelity International Equity Central Fund | 6,192,750 |
Fidelity Materials Central Fund | 1,919,595 |
Fidelity Money Market Central Fund | 2,740,511 |
Fidelity Tactical Income Central Fund | 111,942,431 |
Fidelity Telecom Services Central Fund | 1,707,733 |
Fidelity Utilities Central Fund | 3,589,225 |
Total | $ 190,346,065 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 293,016,928 | $ 21,117,173 | $ 33,091,644 | $ 279,022,577 | 53.9% |
Fidelity Consumer Staples Central Fund | 295,622,548 | 23,544,674 | 34,680,458 | 280,859,348 | 54.0% |
Fidelity Emerging Markets Equity Central Fund | - | 50,554,550 | 13,711,909 | 68,820,196 | 37.9% |
Fidelity Energy Central Fund | 314,002,263 | 59,506,751 | 38,198,317 | 305,884,194 | 53.1% |
Fidelity Financials Central Fund | 457,855,099 | 42,983,016 | 37,439,314 | 406,649,295 | 52.7% |
Fidelity Floating Rate Central Fund | 196,167,573 | 6,857,895 | 118,525,861 | 71,402,355 | 2.4% |
Fidelity Health Care Central Fund | 369,027,997 | 28,522,552 | 42,011,830 | 358,614,937 | 53.4% |
Fidelity High Income Central Fund 1 | 122,947,937 | 89,937,301 | 2,846,909 | 230,888,991 | 45.4% |
Fidelity Industrials Central Fund | 345,077,478 | 36,996,811 | 42,160,881 | 327,227,002 | 54.4% |
Fidelity Information Technology Central Fund | 430,011,894 | 55,816,417 | 60,444,300 | 544,365,539 | 54.1% |
Fidelity International Equity Central Fund | 267,067,885 | 6,675,795 | 7,232,349 | 256,653,011 | 40.0% |
Fidelity Materials Central Fund | 104,784,844 | 15,974,799 | 13,584,556 | 126,132,911 | 55.0% |
Fidelity Tactical Income Central Fund | 2,390,712,422 | 334,181,062 | 401,233,861 | 2,437,845,914 | 55.4% |
Fidelity Telecom Services Central Fund | 86,521,154 | 9,116,697 | 10,946,734 | 95,578,669 | 55.0% |
Fidelity Utilities Central Fund | 105,514,101 | 8,993,666 | 12,787,499 | 95,566,059 | 53.0% |
Total | $ 5,778,330,123 | $ 790,779,159 | $ 868,896,422 | $ 5,885,510,998 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 24.2% |
AAA,AA,A | 8.9% |
BBB | 7.9% |
BB | 3.0% |
B | 2.1% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 50.8% |
Short-Term Investments and Net Other Assets | 2.2% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 84.2% |
United Kingdom | 1.8% |
Switzerland | 1.5% |
Bermuda | 1.3% |
Canada | 1.1% |
Others (individually less than 1%) | 10.1% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $544,429,664 all of which will expire on September 30, 2017. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $471,148,356 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investments in securities, at value (cost $6,324,512,081) - See accompanying schedule: | | $ 6,060,956,571 |
Receivable for investments sold | | 2,532,471 |
Receivable for fund shares sold | | 3,637,725 |
Distributions receivable from Fidelity Central Funds | | 10,407,884 |
Prepaid expenses | | 29,850 |
Other receivables | | 195,210 |
Total assets | | 6,077,759,711 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,886,559 | |
Payable for fund shares redeemed | 3,581,999 | |
Accrued management fee | 2,552,053 | |
Transfer agent fee payable | 957,569 | |
Distribution fees payable | 19,489 | |
Other affiliated payables | 122,673 | |
Other payables and accrued expenses | 225,219 | |
Total liabilities | | 18,345,561 |
| | |
Net Assets | | $ 6,059,414,150 |
Net Assets consist of: | | |
Paid in capital | | $ 6,814,868,526 |
Undistributed net investment income | | 31,105,092 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (523,003,958) |
Net unrealized appreciation (depreciation) on investments | | (263,555,510) |
Net Assets | | $ 6,059,414,150 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($25,521,634 ÷ 1,893,435 shares) | | $ 13.48 |
| | |
Maximum offering price per share (100/94.25 of $13.48) | | $ 14.30 |
Class T:
Net Asset Value and redemption price per share ($10,950,329 ÷ 812,987 shares) | | $ 13.47 |
| | |
Maximum offering price per share (100/96.50 of $13.47) | | $ 13.96 |
Class B:
Net Asset Value and offering price per share ($3,492,784 ÷ 259,960 shares)A | | $ 13.44 |
| | |
Class C:
Net Asset Value and offering price per share ($8,934,598 ÷ 665,589 shares)A | | $ 13.42 |
| | |
| | |
Asset Manager 50%:
Net Asset Value, offering price and redemption price per share ($6,008,085,981 ÷ 444,611,136 shares) | | $ 13.51 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,428,824 ÷ 179,869 shares) | | $ 13.50 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Financial Statements - continued
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 10,941 |
Income from Fidelity Central Funds | | 190,346,065 |
Total income | | 190,357,006 |
| | |
Expenses | | |
Management fee | $ 27,008,211 | |
Transfer agent fees | 11,758,255 | |
Distribution fees | 143,274 | |
Accounting and security lending fees | 1,376,748 | |
Custodian fees and expenses | 5,062 | |
Independent trustees' compensation | 20,831 | |
Depreciation in deferred trustee compensation account | (3,047) | |
Registration fees | 103,387 | |
Audit | 63,577 | |
Legal | 48,581 | |
Interest | 1,327 | |
Miscellaneous | 259,937 | |
Total expenses before reductions | 40,786,143 | |
Expense reductions | (290,343) | 40,495,800 |
Net investment income (loss) | | 149,861,206 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 29,338,355 | |
Fidelity Central Funds | (73,806,596) | |
Foreign currency transactions | (352,959) | |
Futures contracts | (35,226,589) | |
Total net realized gain (loss) | | (80,047,789) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 259,085,538 | |
Futures contracts | 6,392,238 | |
Total change in net unrealized appreciation (depreciation) | | 265,477,776 |
Net gain (loss) | | 185,429,987 |
Net increase (decrease) in net assets resulting from operations | | $ 335,291,193 |
Statement of Changes in Net Assets
| Year ended
September 30, 2009 | Year ended
September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 149,861,206 | $ 213,491,172 |
Net realized gain (loss) | (80,047,789) | (58,382,609) |
Change in net unrealized appreciation (depreciation) | 265,477,776 | (1,461,977,490) |
Net increase (decrease) in net assets resulting from operations | 335,291,193 | (1,306,868,927) |
Distributions to shareholders from net investment income | (178,694,512) | (239,866,976) |
Distributions to shareholders from net realized gain | (4,660,918) | (556,509,728) |
Total distributions | (183,355,430) | (796,376,704) |
Share transactions - net increase (decrease) | (414,536,080) | (541,463,365) |
Total increase (decrease) in net assets | (262,600,317) | (2,644,708,996) |
| | |
Net Assets | | |
Beginning of period | 6,322,014,467 | 8,966,723,463 |
End of period (including undistributed net investment income of $31,105,092 and undistributed net investment income of $64,010,831, respectively) | $ 6,059,414,150 | $ 6,322,014,467 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.95 | $ 17.08 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .30 | .36 | .43 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.45 |
Total from investment operations | .90 | (2.60) | 1.88 |
Distributions from net investment income | (.36) | (.43) | (.47) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.37) | (1.53) | (1.37) |
Net asset value, end of period | $ 13.48 | $ 12.95 | $ 17.08 |
Total Return B, C, D | 7.49% | (16.56)% | 11.93% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.02% | .99% | 1.01% A |
Expenses net of fee waivers, if any | 1.02% | .99% | 1.01% A |
Expenses net of all reductions | 1.01% | .98% | 1.00% A |
Net investment income (loss) | 2.61% | 2.46% | 2.62% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 25,522 | $ 10,611 | $ 4,432 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.94 | $ 17.06 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .27 | .33 | .39 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.46 |
Total from investment operations | .87 | (2.63) | 1.85 |
Distributions from net investment income | (.33) | (.39) | (.46) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.34) | (1.49) | (1.36) |
Net asset value, end of period | $ 13.47 | $ 12.94 | $ 17.06 |
Total Return B, C, D | 7.21% | (16.76)% | 11.68% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.29% | 1.24% | 1.24% A |
Expenses net of fee waivers, if any | 1.29% | 1.24% | 1.24% A |
Expenses net of all reductions | 1.28% | 1.23% | 1.23% A |
Net investment income (loss) | 2.34% | 2.21% | 2.40% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 10,950 | $ 5,475 | $ 3,148 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.91 | $ 17.02 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .21 | .24 | .30 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.46 |
Total from investment operations | .81 | (2.72) | 1.76 |
Distributions from net investment income | (.27) | (.29) | (.41) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.28) | (1.39) | (1.31) |
Net asset value, end of period | $ 13.44 | $ 12.91 | $ 17.02 |
Total Return B, C, D | 6.64% | (17.26)% | 11.03% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.85% | 1.79% | 1.79% A |
Expenses net of fee waivers, if any | 1.85% | 1.79% | 1.79% A |
Expenses net of all reductions | 1.84% | 1.79% | 1.78% A |
Net investment income (loss) | 1.78% | 1.65% | 1.84% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,493 | $ 2,084 | $ 1,007 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.90 | $ 17.00 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .21 | .25 | .31 |
Net realized and unrealized gain (loss) | .59 | (2.95) | 1.45 |
Total from investment operations | .80 | (2.70) | 1.76 |
Distributions from net investment income | (.27) | (.30) | (.43) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.28) | (1.40) | (1.33) |
Net asset value, end of period | $ 13.42 | $ 12.90 | $ 17.00 |
Total Return B, C, D | 6.59% | (17.18)% | 11.08% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.81% | 1.76% | 1.75% A |
Expenses net of fee waivers, if any | 1.81% | 1.76% | 1.75% A |
Expenses net of all reductions | 1.81% | 1.76% | 1.74% A |
Net investment income (loss) | 1.81% | 1.68% | 1.88% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 8,935 | $ 4,294 | $ 2,840 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 50%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.97 | $ 17.10 | $ 16.60 | $ 16.28 | $ 15.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .33 | .41 | .49 | .45 | .41 D |
Net realized and unrealized gain (loss) | .60 | (2.97) | 1.41 | .73 | .69 |
Total from investment operations | .93 | (2.56) | 1.90 | 1.18 | 1.10 |
Distributions from net investment income | (.38) | (.47) | (.50) | (.45) | (.40) |
Distributions from net realized gain | (.01) | (1.10) | (.90) | (.41) | - |
Total distributions | (.39) | (1.57) | (1.40) | (.86) | (.40) |
Net asset value, end of period | $ 13.51 | $ 12.97 | $ 17.10 | $ 16.60 | $ 16.28 |
Total Return A | 7.78% | (16.34)% | 12.02% | 7.50% | 7.15% |
Ratios to Average Net Assets E | | | | | |
Expenses before reductions | .77% | .71% | .71% | .72% | .73% |
Expenses net of fee waivers, if any | .77% | .71% | .71% | .72% | .73% |
Expenses net of all reductions | .77% | .70% | .70% | .71% | .72% |
Net investment income (loss) | 2.85% | 2.74% | 2.93% | 2.79% | 2.55% D |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,008,086 | $ 6,299,082 | $ 8,955,110 | $ 9,204,214 | $ 10,189,947 |
Portfolio turnover rate C | 15% | 8% | 12% | 65% F | 32% F |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $0.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 2.28%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.97 | $ 17.11 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) D | .34 | .42 | .48 |
Net realized and unrealized gain (loss) | .59 | (2.98) | 1.46 |
Total from investment operations | .93 | (2.56) | 1.94 |
Distributions from net investment income | (.39) | (.48) | (.50) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.40) | (1.58) | (1.40) |
Net asset value, end of period | $ 13.50 | $ 12.97 | $ 17.11 |
Total Return B, C | 7.80% | (16.30)% | 12.20% |
Ratios to Average Net Assets G | | | |
Expenses before reductions | .69% | .67% | .72% A |
Expenses net of fee waivers, if any | .69% | .67% | .72% A |
Expenses net of all reductions | .69% | .67% | .72% A |
Net investment income (loss) | 2.93% | 2.77% | 2.91% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,429 | $ 469 | $ 186 |
Portfolio turnover rate E | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 60%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds. |
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.8 | 0.4 |
Procter & Gamble Co. | 0.6 | 0.8 |
Google, Inc. Class A | 0.6 | 0.4 |
Pfizer, Inc. | 0.5 | 0.3 |
Charles Schwab Corp. | 0.5 | 0.0 |
CVS Caremark Corp. | 0.5 | 0.4 |
Microsoft Corp. | 0.5 | 0.4 |
CME Group, Inc. | 0.4 | 0.2 |
Morgan Stanley | 0.4 | 0.1 |
Covidien PLC | 0.4 | 0.0 |
| 5.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 59.3% | | | Stock Class and
Equity Futures 57.6% | |
 | Bond Class 37.0% | | | Bond Class 37.7% | |
| Short-Term Class 3.7% | | | Short-Term Class 4.7% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 60%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 9.4 |
Fidelity Financials Central Fund | 8.0 |
Fidelity International Equity Central Fund | 8.0 |
Fidelity Health Care Central Fund | 6.6 |
Fidelity Energy Central Fund | 5.7 |
Fidelity Industrials Central Fund | 5.5 |
Fidelity Consumer Discretionary Central Fund | 5.1 |
Fidelity Consumer Staples Central Fund | 5.0 |
Fidelity Emerging Markets Equity Central Fund | 2.0 |
Fidelity Materials Central Fund | 1.9 |
Fidelity Utilities Central Fund | 1.9 |
Fidelity Telecom Services Central Fund | 1.4 |
Total Equity Central Funds | 60.5 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 4.9 |
Investment Grade Fixed-Income Funds | 33.0 |
Total Fixed-Income Central Funds | 37.9 |
Money Market Central Funds | 1.6 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 20.8% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 60%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 60.5% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (a) | 36,132 | | $ 3,328,127 |
Fidelity Consumer Staples Central Fund (a) | 28,697 | | 3,275,772 |
Fidelity Emerging Markets Equity Central Fund (a) | 7,775 | | 1,317,003 |
Fidelity Energy Central Fund (a) | 37,657 | | 3,732,559 |
Fidelity Financials Central Fund (a) | 90,259 | | 5,252,184 |
Fidelity Health Care Central Fund (a) | 42,801 | | 4,322,878 |
Fidelity Industrials Central Fund (a) | 35,710 | | 3,629,170 |
Fidelity Information Technology Central Fund (a) | 49,908 | | 6,135,680 |
Fidelity International Equity Central Fund (a) | 80,036 | | 5,206,373 |
Fidelity Materials Central Fund (a) | 10,007 | | 1,260,092 |
Fidelity Telecom Services Central Fund (a) | 9,413 | | 937,166 |
Fidelity Utilities Central Fund (a) | 14,050 | | 1,240,459 |
TOTAL EQUITY CENTRAL FUNDS (Cost $38,456,565) | 39,637,463 |
Fixed-Income Central Funds - 37.9% |
| | | |
High Yield Fixed-Income Funds - 4.9% |
Fidelity Floating Rate Central Fund (a) | 8,325 | | 756,173 |
Fidelity High Income Central Fund 1 (a) | 27,774 | | 2,457,724 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 3,213,897 |
Investment Grade Fixed-Income Funds - 33.0% |
Fidelity Tactical Income Central Fund (a) | 228,009 | | 21,567,412 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $23,876,290) | 24,781,309 |
Money Market Central Funds - 1.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (b)
(Cost $1,025,366) | 1,025,366 | | $ 1,025,366 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $63,358,221) | | 65,444,138 |
NET OTHER ASSETS - 0.0% | | 29,708 |
NET ASSETS - 100% | $ 65,473,846 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 11,601 |
Fidelity Consumer Discretionary Central Fund | 29,828 |
Fidelity Consumer Staples Central Fund | 52,342 |
Fidelity Emerging Markets Equity Central Fund | 13,764 |
Fidelity Energy Central Fund | 23,471 |
Fidelity Financials Central Fund | 61,886 |
Fidelity Floating Rate Central Fund | 31,367 |
Fidelity Health Care Central Fund | 30,379 |
Fidelity High Income Central Fund 1 | 107,281 |
Fidelity Industrials Central Fund | 40,685 |
Fidelity Information Technology Central Fund | 26,780 |
Fidelity International Equity Central Fund | 84,475 |
Fidelity Materials Central Fund | 12,783 |
Fidelity Tactical Income Central Fund | 551,185 |
Fidelity Telecom Services Central Fund | 11,456 |
Fidelity Utilities Central Fund | 28,377 |
Total | $ 1,117,660 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 1,621,243 | $ 1,818,798 | $ 362,689 | $ 3,328,127 | 0.6% |
Fidelity Consumer Staples Central Fund | 1,635,731 | 1,965,471 | 523,505 | 3,275,772 | 0.6% |
Fidelity Emerging Markets Equity Central Fund | - | 1,083,164 | 184,190 | 1,317,003 | 0.7% |
Fidelity Energy Central Fund | 1,737,408 | 2,378,238 | 600,039 | 3,732,559 | 0.6% |
Fidelity Financials Central Fund | 2,533,356 | 3,020,645 | 621,956 | 5,252,184 | 0.7% |
Fidelity Floating Rate Central Fund | 599,148 | 502,516 | 397,331 | 756,173 | 0.0% |
Fidelity Health Care Central Fund | 2,041,880 | 2,509,422 | 588,425 | 4,322,878 | 0.6% |
Fidelity High Income Central Fund 1 | 376,783 | 1,984,375 | 146,926 | 2,457,724 | 0.5% |
Fidelity Industrials Central Fund | 1,909,359 | 1,976,806 | 514,964 | 3,629,170 | 0.6% |
Fidelity Information Technology Central Fund | 2,379,293 | 3,022,499 | 633,418 | 6,135,680 | 0.6% |
Fidelity International Equity Central Fund | 1,762,191 | 3,441,483 | 450,735 | 5,206,373 | 0.8% |
Fidelity Materials Central Fund | 579,741 | 593,182 | 137,516 | 1,260,092 | 0.5% |
Fidelity Tactical Income Central Fund | 8,688,176 | 16,279,121 | 4,514,601 | 21,567,412 | 0.5% |
Fidelity Telecom Services Central Fund | 478,691 | 472,131 | 132,770 | 937,166 | 0.5% |
Fidelity Utilities Central Fund | 583,808 | 750,799 | 126,893 | 1,240,459 | 0.7% |
Total | $ 26,926,808 | $ 41,798,650 | $ 9,935,958 | $ 64,418,772 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 19.8% |
AAA,AA,A | 7.3% |
BBB | 6.5% |
BB | 2.7% |
B | 2.1% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 59.6% |
Short-Term Investments and Net Other Assets | 1.1% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 79.2% |
United Kingdom | 2.7% |
Switzerland | 1.9% |
Japan | 1.5% |
Bermuda | 1.3% |
Canada | 1.2% |
China | 1.0% |
Netherlands | 1.0% |
Others (individually less than 1%) | 10.2% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $1,075,548 of which $76,825 and $998,723 will expire on September 30, 2016 and September 30, 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $1,162,635 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 60%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $63,358,221) - See accompanying schedule: | | $ 65,444,138 |
Receivable for fund shares sold | | 456,989 |
Distributions receivable from Fidelity Central Funds | | 92,258 |
Prepaid expenses | | 289 |
Receivable from investment adviser for expense reductions | | 40,517 |
Other receivables | | 271 |
Total assets | | 66,034,462 |
| | |
Liabilities | | |
Payable for investments purchased | $ 458,510 | |
Payable for fund shares redeemed | 15,696 | |
Accrued management fee | 29,387 | |
Distribution fees payable | 5,511 | |
Other affiliated payables | 11,751 | |
Other payables and accrued expenses | 39,761 | |
Total liabilities | | 560,616 |
| | |
Net Assets | | $ 65,473,846 |
Net Assets consist of: | | |
Paid in capital | | $ 63,802,175 |
Undistributed net investment income | | 626,213 |
Accumulated undistributed net realized gain (loss) on investments | | (1,040,459) |
Net unrealized appreciation (depreciation) on investments | | 2,085,917 |
Net Assets | | $ 65,473,846 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($6,043,685 ÷ 718,274 shares) | | $ 8.41 |
| | |
Maximum offering price per share (100/94.25 of $8.41) | | $ 8.92 |
Class T:
Net Asset Value and redemption price per share ($3,537,055 ÷ 421,945 shares) | | $ 8.38 |
| | |
Maximum offering price per share (100/96.50 of $8.38) | | $ 8.68 |
Class B:
Net Asset Value and offering price per share ($1,529,045 ÷ 182,696 shares)A | | $ 8.37 |
| | |
Class C:
Net Asset Value and offering price per share ($2,056,668 ÷ 245,846 shares)A | | $ 8.37 |
| | |
Asset Manager 60%:
Net Asset Value, offering price and redemption price per share ($51,463,751 ÷ 6,103,522 shares) | | $ 8.43 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($843,642 ÷ 100,050 shares) | | $ 8.43 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 148 |
Income from Fidelity Central Funds | | 1,117,660 |
Total income | | 1,117,808 |
| | |
Expenses | | |
Management fee | $ 193,551 | |
Transfer agent fees | 81,780 | |
Distribution fees | 45,912 | |
Accounting fees and expenses | 14,351 | |
Custodian fees and expenses | 5,127 | |
Independent trustees' compensation | 111 | |
Registration fees | 67,369 | |
Audit | 61,443 | |
Legal | 106 | |
Miscellaneous | 1,826 | |
Total expenses before reductions | 471,576 | |
Expense reductions | (136,023) | 335,553 |
Net investment income (loss) | | 782,255 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 161 | |
Fidelity Central Funds | (729,944) | |
Futures contracts | (119,603) | |
Total net realized gain (loss) | | (849,386) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 6,359,183 | |
Futures contracts | 21,732 | |
Total change in net unrealized appreciation (depreciation) | | 6,380,915 |
Net gain (loss) | | 5,531,529 |
Net increase (decrease) in net assets resulting from operations | | $ 6,313,784 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | For the period October 9, 2007 (commencement of operations) to September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 782,255 | $ 304,088 |
Net realized gain (loss) | (849,386) | (226,652) |
Change in net unrealized appreciation (depreciation) | 6,380,915 | (4,294,998) |
Net increase (decrease) in net assets resulting from operations | 6,313,784 | (4,217,562) |
Distributions to shareholders from net investment income | (387,880) | (36,701) |
Share transactions - net increase (decrease) | 29,464,827 | 34,337,378 |
Total increase (decrease) in net assets | 35,390,731 | 30,083,115 |
| | |
Net Assets | | |
Beginning of period | 30,083,115 | - |
End of period (including undistributed net investment income of $626,213 and undistributed net investment income of $231,837, respectively) | $ 65,473,846 | $ 30,083,115 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.95 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .15 | .17 |
Net realized and unrealized gain (loss) | .41 | (2.18) |
Total from investment operations | .56 | (2.01) |
Distributions from net investment income | (.10) | (.04) |
Net asset value, end of period | $ 8.41 | $ 7.95 |
Total Return B,C,D | 7.48% | (20.16)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.54% | 2.18% A |
Expenses net of fee waivers, if any | 1.10% | 1.16%A |
Expenses net of all reductions | 1.09% | 1.16%A |
Net investment income (loss) | 2.15% | 1.99%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 6,044 | $ 3,135 |
Portfolio turnover rateF | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.93 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | .15 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .55 | (2.04) |
Distributions from net investment income | (.10) | (.03) |
Net asset value, end of period | $ 8.38 | $ 7.93 |
Total Return B,C,D | 7.24% | (20.42)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.77% | 2.34% A |
Expenses net of fee waivers, if any | 1.35% | 1.42% A |
Expenses net of all reductions | 1.34% | 1.42% A |
Net investment income (loss) | 1.90% | 1.73% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 3,537 | $ 1,228 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.90 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .10 | .11 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .52 | (2.08) |
Distributions from net investment income | (.05) | (.02) |
Net asset value, end of period | $ 8.37 | $ 7.90 |
Total Return B,C,D | 6.78% | (20.81)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.31% | 2.85% A |
Expenses net of fee waivers, if any | 1.85% | 1.92% A |
Expenses net of all reductions | 1.84% | 1.92% A |
Net investment income (loss) | 1.40% | 1.23% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,529 | $ 1,074 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.90 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .10 | .11 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .52 | (2.08) |
Distributions from net investment income | (.05) | (.02) |
Net asset value, end of period | $ 8.37 | $ 7.90 |
Total Return B,C,D | 6.83% | (20.81)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.29% | 2.80% A |
Expenses net of fee waivers, if any | 1.85% | 1.91% A |
Expenses net of all reductions | 1.84% | 1.91% A |
Net investment income (loss) | 1.40% | 1.24% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,057 | $ 1,643 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 60%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.96 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .17 | .19 |
Net realized and unrealized gain (loss) | .42 | (2.18) |
Total from investment operations | .59 | (1.99) |
Distributions from net investment income | (.12) | (.05) |
Net asset value, end of period | $ 8.43 | $ 7.96 |
Total Return B,C | 7.81% | (20.03)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.22% | 1.87% A |
Expenses net of fee waivers, if any | .85% | .89% A |
Expenses net of all reductions | .84% | .89% A |
Net investment income (loss) | 2.40% | 2.26% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 51,464 | $ 22,212 |
Portfolio turnover rate E | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.96 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .17 | .20 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .59 | (1.99) |
Distributions from net investment income | (.12) | (.05) |
Net asset value, end of period | $ 8.43 | $ 7.96 |
Total Return B,C | 7.81% | (20.03)% |
Ratios to Average Net AssetsG | | |
Expenses before reductions | 1.21% | 1.86% A |
Expenses net of fee waivers, if any | .85% | .94% A |
Expenses net of all reductions | .84% | .93% A |
Net investment income (loss) | 2.40% | 2.22% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 844 | $ 792 |
Portfolio turnover rate E | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds. |
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 1.0 | 0.5 |
Procter & Gamble Co. | 0.7 | 1.0 |
Google, Inc. Class A | 0.7 | 0.5 |
Pfizer, Inc. | 0.6 | 0.3 |
Microsoft Corp. | 0.6 | 0.5 |
CVS Caremark Corp. | 0.5 | 0.5 |
Charles Schwab Corp. | 0.5 | 0.0 |
Covidien PLC | 0.4 | 0.0 |
CME Group, Inc. | 0.5 | 0.2 |
PepsiCo, Inc. | 0.5 | 0.6 |
| 6.0 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 70.1% | | | Stock Class and
Equity Futures 68.6% | |
| Bond Class 26.5% | | | Bond Class 28.6% | |
| Short-Term Class 3.4% | | | Short-Term Class 2.8% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 70%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 11.6 |
Fidelity Financials Central Fund | 8.9 |
Fidelity International Equity Central Fund | 8.4 |
Fidelity Health Care Central Fund | 7.8 |
Fidelity Industrials Central Fund | 7.0 |
Fidelity Energy Central Fund | 6.7 |
Fidelity Consumer Staples Central Fund | 6.1 |
Fidelity Consumer Discretionary Central Fund | 6.0 |
Fidelity Materials Central Fund | 2.6 |
Fidelity Emerging Markets Equity Central Fund | 2.2 |
Fidelity Utilities Central Fund | 2.1 |
Fidelity Telecom Services Central Fund | 2.0 |
Total Equity Central Funds | 71.4 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 4.9 |
Investment Grade Fixed-Income Funds | 22.3 |
Total Fixed-Income Central Funds | 27.2 |
Money Market Central Funds | 1.4 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 22.2% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 70%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 71.4% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 1,587,920 | | $ 146,263,309 |
Fidelity Consumer Staples Central Fund (b) | 1,291,253 | | 147,396,511 |
Fidelity Emerging Markets Equity Central Fund (b) | 313,516 | | 53,109,628 |
Fidelity Energy Central Fund (b) | 1,641,979 | | 162,752,963 |
Fidelity Financials Central Fund (b) | 3,722,975 | | 216,639,893 |
Fidelity Health Care Central Fund (b) | 1,877,334 | | 189,610,749 |
Fidelity Industrials Central Fund (b) | 1,672,593 | | 169,985,596 |
Fidelity Information Technology Central Fund (b) | 2,304,160 | | 283,273,466 |
Fidelity International Equity Central Fund (b) | 3,139,904 | | 204,250,748 |
Fidelity Materials Central Fund (b) | 508,537 | | 64,035,028 |
Fidelity Telecom Services Central Fund (b) | 488,908 | | 48,675,698 |
Fidelity Utilities Central Fund (b) | 574,868 | | 50,755,053 |
TOTAL EQUITY CENTRAL FUNDS (Cost $1,986,597,980) | 1,736,748,642 |
Fixed-Income Central Funds - 27.2% |
| | | |
High Yield Fixed-Income Funds - 4.9% |
Fidelity Floating Rate Central Fund (b) | 313,951 | | 28,516,136 |
Fidelity High Income Central
Fund 1 (b) | 1,011,702 | | 89,525,548 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 118,041,684 |
Investment Grade Fixed-Income Funds - 22.3% |
Fidelity Tactical Income Central Fund (b) | 5,748,818 | | 543,780,680 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $676,169,058) | 661,822,364 |
Money Market Central Funds - 1.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 23,467,063 | | $ 23,467,063 |
Fidelity Money Market Central Fund, 0.60% (a) | 12,056,119 | | 12,056,119 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $35,523,182) | 35,523,182 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,698,290,220) | 2,434,094,188 |
NET OTHER ASSETS - 0.0% | | (456,440) |
NET ASSETS - 100% | $ 2,433,637,748 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 199,470 |
Fidelity Consumer Discretionary Central Fund | 2,159,424 |
Fidelity Consumer Staples Central Fund | 3,628,414 |
Fidelity Emerging Markets Equity Central Fund | 571,197 |
Fidelity Energy Central Fund | 1,561,087 |
Fidelity Financials Central Fund | 4,719,488 |
Fidelity Floating Rate Central Fund | 2,710,444 |
Fidelity Health Care Central Fund | 2,275,378 |
Fidelity High Income Central Fund 1 | 6,151,502 |
Fidelity Industrials Central Fund | 3,048,386 |
Fidelity Information Technology Central Fund | 1,860,873 |
Fidelity International Equity Central Fund | 5,047,251 |
Fidelity Materials Central Fund | 978,911 |
Fidelity Money Market Central Fund | 78,280 |
Fidelity Tactical Income Central Fund | 24,125,450 |
Fidelity Telecom Services Central Fund | 870,788 |
Fidelity Utilities Central Fund | 1,857,703 |
Total | $ 61,844,046 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 158,562,571 | $ 3,268,653 | $ 12,674,988 | $ 146,263,309 | 28.3% |
Fidelity Consumer Staples Central Fund | 159,972,498 | 3,921,158 | 13,622,565 | 147,396,511 | 28.3% |
Fidelity Emerging Markets Equity Central Fund | - | 37,188,519 | 152,680 | 53,109,628 | 29.2% |
Fidelity Energy Central Fund | 169,988,020 | 25,045,736 | 14,586,834 | 162,752,963 | 28.3% |
Fidelity Financials Central Fund | 247,762,683 | 16,123,412 | 15,161,703 | 216,639,893 | 28.1% |
Fidelity Floating Rate Central Fund | 79,120,080 | 5,398,915 | 50,071,376 | 28,516,136 | 1.0% |
Fidelity Health Care Central Fund | 199,695,136 | 5,101,702 | 15,566,287 | 189,610,749 | 28.2% |
Fidelity High Income Central Fund 1 | 49,300,279 | 32,892,896 | 509,694 | 89,525,548 | 17.6% |
Fidelity Industrials Central Fund | 186,734,449 | 10,436,485 | 17,757,347 | 169,985,596 | 28.3% |
Fidelity Information Technology Central Fund | 232,695,598 | 17,589,970 | 24,956,058 | 283,273,466 | 28.2% |
Fidelity International Equity Central Fund | 213,497,810 | 6,312,951 | 9,136,396 | 204,250,748 | 31.9% |
Fidelity Materials Central Fund | 56,702,977 | 5,615,014 | 6,792,060 | 64,035,028 | 27.9% |
Fidelity Tactical Income Central Fund | 500,674,871 | 93,039,043 | 75,374,963 | 543,780,680 | 12.4% |
Fidelity Telecom Services Central Fund | 46,819,800 | 2,380,481 | 5,488,782 | 48,675,698 | 28.0% |
Fidelity Utilities Central Fund | 57,097,620 | 2,633,055 | 5,399,221 | 50,755,053 | 28.1% |
Total | $ 2,358,624,392 | $ 266,947,990 | $ 267,250,954 | $ 2,398,571,006 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 13.4% |
AAA,AA,A | 5.0% |
BBB | 4.4% |
BB | 2.4% |
B | 2.0% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 70.3% |
Short-Term Investments and Net Other Assets | 1.6% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 77.8% |
United Kingdom | 3.0% |
Switzerland | 2.2% |
Japan | 1.6% |
Bermuda | 1.4% |
China | 1.2% |
Netherlands | 1.2% |
France | 1.0% |
Others (individually less than 1%) | 10.6% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $408,374,215 of which $99,963,409 and $308,410,806 will expire on September 30, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $277,136,959 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investments in securities, at value (cost $2,698,290,220) - See accompanying schedule: | | $ 2,434,094,188 |
Receivable for investments sold | | 1,067,550 |
Receivable for fund shares sold | | 3,098,864 |
Distributions receivable from Fidelity Central Funds | | 2,609,604 |
Prepaid expenses | | 11,816 |
Other receivables | | 61,958 |
Total assets | | 2,440,943,980 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,420,288 | |
Payable for fund shares redeemed | 2,086,584 | |
Accrued management fee | 1,119,902 | |
Transfer agent fee payable | 429,475 | |
Distribution fees payable | 81,393 | |
Other affiliated payables | 77,307 | |
Other payables and accrued expenses | 91,283 | |
Total liabilities | | 7,306,232 |
| | |
Net Assets | | $ 2,433,637,748 |
Net Assets consist of: | | |
Paid in capital | | $ 2,957,877,976 |
Undistributed net investment income | | 30,469,293 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (290,514,142) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (264,195,379) |
Net Assets | | $ 2,433,637,748 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($88,969,208 ÷ 6,383,262 shares) | | $ 13.94 |
| | |
Maximum offering price per share (100/94.25 of $13.94) | | $ 14.79 |
Class T:
Net Asset Value and redemption price per share ($46,623,929 ÷ 3,351,294 shares) | | $ 13.91 |
| | |
Maximum offering price per share (100/96.50 of $13.91) | | $ 14.41 |
Class B:
Net Asset Value and offering price per share ($18,407,214 ÷ 1,328,069 shares)A | | $ 13.86 |
| | |
Class C:
Net Asset Value and offering price per share ($34,632,784 ÷ 2,498,411 shares)A | | $ 13.86 |
| | |
Asset Manager 70%:
Net Asset Value, offering price and redemption price per share ($2,214,929,112 ÷ 158,557,795 shares) | | $ 13.97 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($30,075,501 ÷ 2,153,113 shares) | | $ 13.97 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Financial Statements - continued
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 6,934 |
Income from Fidelity Central Funds | | 61,844,046 |
Total income | | 61,850,980 |
| | |
Expenses | | |
Management fee | $ 11,390,699 | |
Transfer agent fees | 5,151,165 | |
Distribution fees | 844,028 | |
Accounting fees and expenses | 781,924 | |
Custodian fees and expenses | 5,269 | |
Independent trustees' compensation | 7,918 | |
Depreciation in deferred trustee compensation account | (761) | |
Registration fees | 235,685 | |
Audit | 67,761 | |
Legal | 26,601 | |
Miscellaneous | 128,455 | |
Total expenses before reductions | 18,638,744 | |
Expense reductions | (223,186) | 18,415,558 |
Net investment income (loss) | | 43,435,422 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 14,607,742 | |
Fidelity Central Funds | (41,556,458) | |
Foreign currency transactions | 524 | |
Futures contracts | (13,233,029) | |
Total net realized gain (loss) | | (40,181,221) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 81,790,326 | |
Assets and liabilities in foreign currencies | (225) | |
Futures contracts | 2,377,530 | |
Total change in net unrealized appreciation (depreciation) | | 84,167,631 |
Net gain (loss) | | 43,986,410 |
Net increase (decrease) in net assets resulting from operations | | $ 87,421,832 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 43,435,422 | $ 58,379,001 |
Net realized gain (loss) | (40,181,221) | (21,106,617) |
Change in net unrealized appreciation (depreciation) | 84,167,631 | (689,432,540) |
Net increase (decrease) in net assets resulting from operations | 87,421,832 | (652,160,156) |
Distributions to shareholders from net investment income | (54,439,794) | (72,024,349) |
Distributions to shareholders from net realized gain | - | (3,513,384) |
Total distributions | (54,439,794) | (75,537,733) |
Share transactions - net increase (decrease) | (97,287,296) | (36,451,983) |
Total increase (decrease) in net assets | (64,305,258) | (764,149,872) |
| | |
Net Assets | | |
Beginning of period | 2,497,943,006 | 3,262,092,878 |
End of period (including undistributed net investment income of $30,469,293 and undistributed net investment income of $41,473,665, respectively) | $ 2,433,637,748 | $ 2,497,943,006 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .22 | - J |
Net realized and unrealized gain (loss) | .40 | (.52) |
Total from investment operations | .62 | (.52) |
Distributions from net investment income | (.30) | - |
Net asset value, end of period | $ 13.94 | $ 13.62 |
Total Return B,C,D | 5.28% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.19% | 1.31% A |
Expenses net of fee waivers, if any | 1.19% | 1.25% A |
Expenses net of all reductions | 1.18% | 1.24% A |
Net investment income (loss) | 1.88% | 1.60% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 88,969 | $ 89,034 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .19 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .58 | (.52) |
Distributions from net investment income | (.29) | - |
Net asset value, end of period | $ 13.91 | $ 13.62 |
Total Return B,C,D | 4.98% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.44% | 1.56% A |
Expenses net of fee waivers, if any | 1.44% | 1.50% A |
Expenses net of all reductions | 1.43% | 1.49% A |
Net investment income (loss) | 1.63% | 1.35% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 46,624 | $ 52,478 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .52 | (.52) |
Distributions from net investment income | (.28) | - |
Net asset value, end of period | $ 13.86 | $ 13.62 |
Total Return B,C,D | 4.45% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.95% | 2.06% A |
Expenses net of fee waivers, if any | 1.95% | 2.00% A |
Expenses net of all reductions | 1.94% | 1.99% A |
Net investment income (loss) | 1.13% | .85% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 18,407 | $ 23,526 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .52 | (.52) |
Distributions from net investment income | (.28) | - |
Net asset value, end of period | $ 13.86 | $ 13.62 |
Total Return B,C,D | 4.46% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.92% | 2.07% A |
Expenses net of fee waivers, if any | 1.92% | 2.00% A |
Expenses net of all reductions | 1.91% | 1.99% A |
Net investment income (loss) | 1.15% | .85% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 34,633 | $ 37,762 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 70%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.62 | $ 17.78 | $ 15.82 | $ 14.94 | $ 14.10 |
Income from Investment Operations | | | | | |
Net investment income (loss)B | .25 | .33 | .38 | .34 | .31 D |
Net realized and unrealized gain (loss) | .41 | (4.06) | 1.97 | .84 | .85 |
Total from investment operations | .66 | (3.73) | 2.35 | 1.18 | 1.16 |
Distributions from net investment income | (.31) | (.41) | (.39) | (.29) | (.32) |
Distributions from net realized gain | - | (.02) | - | (.01) | - |
Total distributions | (.31) | (.43) | (.39) | (.30) | (.32) |
Net asset value, end of period | $ 13.97 | $ 13.62 | $ 17.78 | $ 15.82 | $ 14.94 |
Total ReturnA | 5.59% | (21.46)% | 15.07% | 7.98% | 8.28% |
Ratios to Average Net AssetsE | | | | | |
Expenses before reductions | .88% | .79% | .80% | .81% | .82% |
Expenses net of fee waivers, if any | .88% | .79% | .80% | .81% | .82% |
Expenses net of all reductions | .86% | .78% | .78% | .79% | .80% |
Net investment income (loss) | 2.20% | 2.07% | 2.26% | 2.20% | 2.11% D |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 2,215 | $ 2,269 | $ 3,262 | $ 3,137 | $ 3,284 |
Portfolio turnover rateC | 13% | 14%F | 14% | 82%G | 37%G |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend the ratio of net investment income (loss) to average net assets would have been 1.73%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F The portfolio turnover rate does not include the assets acquired in the merger.
G Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss)D | .25 | -I |
Net realized and unrealized gain (loss) | .41 | (.52) |
Total from investment operations | .66 | (.52) |
Distributions from net investment income | (.31) | - |
Net asset value, end of period | $ 13.97 | $ 13.62 |
Total ReturnB,C | 5.58% | (3.68)% |
Ratios to Average Net AssetsG | | |
Expenses before reductions | .90% | 1.06% A |
Expenses net of fee waivers, if any | .90% | 1.00%A |
Expenses net of all reductions | .89% | .99%A |
Net investment income (loss) | 2.17% | 1.85%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 30,076 | $ 25,717 |
Portfolio turnover rateE | 13% | 14%H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
H The portfolio turnover rate does not include the assets acquired in the merger.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 85%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 1.1 | 0.6 |
Procter & Gamble Co. | 0.8 | 1.1 |
Google, Inc. Class A | 0.8 | 0.6 |
Pfizer, Inc. | 0.7 | 0.4 |
Charles Schwab Corp. | 0.7 | 0.0 |
CVS Caremark Corp. | 0.6 | 0.6 |
Microsoft Corp. | 0.6 | 0.6 |
CME Group, Inc. | 0.6 | 0.3 |
Morgan Stanley | 0.6 | 0.1 |
Covidien PLC | 0.5 | 0.0 |
| 7.0 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stocks Class and
Equity Futures 84.2% | | | Stocks Class and
Equity Futures 83.2% | |
| Bond Class 12.9% | | | Bond Class 14.3% | |
| Short-Term Class 2.9% | | | Short-Term Class 2.5% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 85%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 13.2 |
Fidelity International Equity Central Fund | 12.0 |
Fidelity Financials Central Fund | 11.1 |
Fidelity Health Care Central Fund | 9.1 |
Fidelity Energy Central Fund | 7.9 |
Fidelity Industrials Central Fund | 7.7 |
Fidelity Consumer Discretionary Central Fund | 7.0 |
Fidelity Consumer Staples Central Fund | 7.0 |
Fidelity Emerging Markets Equity Central Fund | 3.2 |
Fidelity Materials Central Fund | 2.8 |
Fidelity Utilities Central Fund | 2.6 |
Fidelity Telecom Services Central Fund | 2.2 |
Total Equity Central Funds | 85.8 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.2 |
Investment Grade Fixed-Income Funds | 8.1 |
Total Fixed-Income Central Funds | 13.3 |
Money Market Central Funds | 0.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 27.6% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 85%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 85.8% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (a) | 434,040 | | $ 39,979,382 |
Fidelity Consumer Staples Central Fund (a) | 347,559 | | 39,673,811 |
Fidelity Emerging Markets Equity Central Fund (a) | 106,255 | | 17,999,653 |
Fidelity Energy Central Fund (a) | 451,624 | | 44,764,935 |
Fidelity Financials Central Fund (a) | 1,088,185 | | 63,321,485 |
Fidelity Health Care Central Fund (a) | 515,191 | | 52,034,339 |
Fidelity Industrials Central Fund (a) | 429,190 | | 43,618,614 |
Fidelity Information Technology Central Fund (a) | 609,008 | | 74,871,388 |
Fidelity International Equity Central Fund (a) | 1,048,862 | | 68,228,457 |
Fidelity Materials Central Fund (a) | 128,169 | | 16,138,993 |
Fidelity Telecom Services Central Fund (a) | 123,278 | | 12,273,530 |
Fidelity Utilities Central Fund (a) | 166,862 | | 14,732,202 |
TOTAL EQUITY CENTRAL FUNDS (Cost $533,858,063) | 487,636,789 |
Fixed-Income Central Funds - 13.3% |
| | | |
High Yield Fixed-Income Funds - 5.2% |
Fidelity High Income Central Fund 1 (a) | 331,872 | | 29,367,333 |
Investment Grade Fixed-Income Funds - 8.1% |
Fidelity Tactical Income Central Fund (a) | 488,285 | | 46,186,877 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $72,294,368) | 75,554,210 |
Money Market Central Funds - 0.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (b)
(Cost $5,193,013) | 5,193,013 | | $ 5,193,013 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $611,345,444) | | 568,384,012 |
NET OTHER ASSETS - 0.0% | | 158,909 |
NET ASSETS - 100% | $ 568,542,921 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 77,032 |
Fidelity Consumer Discretionary Central Fund | 497,022 |
Fidelity Consumer Staples Central Fund | 843,175 |
Fidelity Emerging Markets Equity Central Fund | 182,190 |
Fidelity Energy Central Fund | 374,758 |
Fidelity Financials Central Fund | 1,081,702 |
Fidelity Health Care Central Fund | 522,727 |
Fidelity High Income Central Fund 1 | 2,028,072 |
Fidelity Industrials Central Fund | 687,860 |
Fidelity Information Technology Central Fund | 429,646 |
Fidelity International Equity Central Fund | 1,532,918 |
Fidelity Materials Central Fund | 220,729 |
Fidelity Tactical Income Central Fund | 1,617,146 |
Fidelity Telecom Services Central Fund | 197,837 |
Fidelity Utilities Central Fund | 450,441 |
Total | $ 10,743,255 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 32,363,171 | $ 8,552,452 | $ 1,521,243 | $ 39,979,382 | 7.7% |
Fidelity Consumer Staples Central Fund | 32,650,885 | 8,408,732 | 1,715,881 | 39,673,811 | 7.6% |
Fidelity Emerging Markets Equity Central Fund | - | 13,516,353 | 483,413 | 17,999,653 | 9.9% |
Fidelity Energy Central Fund | 34,680,962 | 13,803,178 | 1,710,593 | 44,764,935 | 7.8% |
Fidelity Financials Central Fund | 50,569,247 | 18,903,853 | 1,798,466 | 63,321,485 | 8.2% |
Fidelity Health Care Central Fund | 40,758,469 | 12,105,856 | 2,566,368 | 52,034,339 | 7.7% |
Fidelity High Income Central Fund 1 | 5,470,107 | 20,552,559 | 237,714 | 29,367,333 | 5.8% |
Fidelity Industrials Central Fund | 38,113,161 | 7,965,234 | 1,787,925 | 43,618,614 | 7.3% |
Fidelity Information Technology Central Fund | 47,494,035 | 14,156,899 | 2,206,603 | 74,871,388 | 7.4% |
Fidelity International Equity Central Fund | 59,185,813 | 9,122,538 | 774,093 | 68,228,457 | 10.6% |
Fidelity Materials Central Fund | 11,573,244 | 2,821,234 | 602,626 | 16,138,993 | 7.0% |
Fidelity Tactical Income Central Fund | 36,391,037 | 19,076,133 | 11,717,033 | 46,186,877 | 1.0% |
Fidelity Telecom Services Central Fund | 9,556,098 | 1,955,485 | 532,969 | 12,273,530 | 7.1% |
Fidelity Utilities Central Fund | 11,653,791 | 4,034,117 | 612,479 | 14,732,202 | 8.2% |
Total | $ 410,460,020 | $ 154,974,623 | $ 28,267,406 | $ 563,190,999 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 4.9% |
AAA,AA,A | 2.1% |
BBB | 1.3% |
BB | 2.3% |
B | 2.2% |
CCC,CC,C | 0.7% |
Not Rated | 0.0%* |
Equities | 84.4% |
Short-Term Investments and Net Other Assets | 2.1% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 72.4% |
United Kingdom | 3.7% |
Switzerland | 2.8% |
Japan | 2.2% |
France | 1.5% |
China | 1.4% |
Germany | 1.3% |
Bermuda | 1.3% |
Netherlands | 1.3% |
Cayman Islands | 1.1% |
Ireland | 1.0% |
Others (individually less than 1%) | 10.0% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $117,371,899 of which $36,329,826 and $81,042,073 will expire on September 30, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $50,387,129 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 85%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $611,345,444) - See accompanying schedule: | | $ 568,384,012 |
Receivable for investments sold | | 246,049 |
Receivable for fund shares sold | | 1,148,510 |
Distributions receivable from Fidelity Central Funds | | 383,124 |
Prepaid expenses | | 2,665 |
Total assets | | 570,164,360 |
| | |
Liabilities | | |
Payable for investments purchased | $ 807,530 | |
Payable for fund shares redeemed | 375,408 | |
Accrued management fee | 258,735 | |
Transfer agent fee payable | 117,326 | |
Distribution fees payable | 15,099 | |
Other affiliated payables | 17,960 | |
Other payables and accrued expenses | 29,381 | |
Total liabilities | | 1,621,439 |
| | |
Net Assets | | $ 568,542,921 |
Net Assets consist of: | | |
Paid in capital | | $ 691,333,262 |
Undistributed net investment income | | 4,914,856 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (84,748,717) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (42,956,480) |
Net Assets | | $ 568,542,921 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($22,506,089 ÷ 2,013,088 shares) | | $ 11.18 |
| | |
Maximum offering price per share (100/94.25 of $11.18) | | $ 11.86 |
Class T:
Net Asset Value and redemption price per share ($5,490,604 ÷ 492,875 shares) | | $ 11.14 |
| | |
Maximum offering price per share (100/96.50 of $11.14) | | $ 11.54 |
Class B:
Net Asset Value and offering price per share ($3,122,954 ÷ 281,479 shares)A | | $ 11.09 |
| | |
Class C:
Net Asset Value and offering price per share ($7,179,143 ÷ 648,110 shares)A | | $ 11.08 |
| | |
Asset Manager 85%:
Net Asset Value, offering price and redemption price per share ($528,720,341 ÷ 47,036,163 shares) | | $ 11.24 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,523,790 ÷ 135,613 shares) | | $ 11.24 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 1,681 |
Income from Fidelity Central Funds | | 10,743,255 |
Total income | | 10,744,936 |
| | |
Expenses | | |
Management fee | $ 2,271,513 | |
Transfer agent fees | 1,212,855 | |
Distribution fees | 127,013 | |
Accounting and security lending fees | 156,628 | |
Custodian fees and expenses | 5,027 | |
Independent trustees' compensation | 1,458 | |
Registration fees | 90,112 | |
Audit | 67,822 | |
Legal | 2,527 | |
Miscellaneous | 34,673 | |
Total expenses before reductions | 3,969,628 | |
Expense reductions | (40,635) | 3,928,993 |
Net investment income (loss) | | 6,815,943 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 875,299 | |
Fidelity Central Funds | (1,120,556) | |
Foreign currency transactions | (6,309) | |
Futures contracts | (5,201,232) | |
Total net realized gain (loss) | | (5,452,798) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 27,139,832 | |
Assets and liabilities in foreign currencies | 1,755 | |
Futures contracts | 934,495 | |
Total change in net unrealized appreciation (depreciation) | | 28,076,082 |
Net gain (loss) | | 22,623,284 |
Net increase (decrease) in net assets resulting from operations | | $ 29,439,227 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 6,815,943 | $ 8,424,465 |
Net realized gain (loss) | (5,452,798) | (12,035,813) |
Change in net unrealized appreciation (depreciation) | 28,076,082 | (147,035,741) |
Net increase (decrease) in net assets resulting from operations | 29,439,227 | (150,647,089) |
Distributions to shareholders from net investment income | (7,455,362) | (9,363,481) |
Distributions to shareholders from net realized gain | - | (1,224,803) |
Total distributions | (7,455,362) | (10,588,284) |
Share transactions - net increase (decrease) | 81,350,268 | 35,772,420 |
Total increase (decrease) in net assets | 103,334,133 | (125,462,953) |
| | |
Net Assets | | |
Beginning of period | 465,208,788 | 590,671,741 |
End of period (including undistributed net investment income of $4,914,856 and undistributed net investment income of $5,554,274, respectively) | $ 568,542,921 | $ 465,208,788 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.94 | $ 14.77 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .14 | .17 | .19 |
Net realized and unrealized gain (loss) | .27 | (3.74) | 2.05 |
Total from investment operations | .41 | (3.57) | 2.24 |
Distributions from net investment income | (.17) | (.23) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.17) | (.26) | (.22) |
Net asset value, end of period | $ 11.18 | $ 10.94 | $ 14.77 |
Total Return B,C,D | 4.30% | (24.59)% | 17.78% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.17% | 1.13% | 1.14% A |
Expenses net of fee waivers, if any | 1.17% | 1.13% | 1.14% A |
Expenses net of all reductions | 1.16% | 1.12% | 1.12% A |
Net investment income (loss) | 1.50% | 1.28% | 1.36% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 22,506 | $ 12,887 | $ 7,348 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.91 | $ 14.74 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .11 | .13 | .15 |
Net realized and unrealized gain (loss) | .27 | (3.73) | 2.06 |
Total from investment operations | .38 | (3.60) | 2.21 |
Distributions from net investment income | (.15) | (.20) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.15) | (.23) | (.22) |
Net asset value, end of period | $ 11.14 | $ 10.91 | $ 14.74 |
Total Return B,C,D | 3.98% | (24.76)% | 17.46% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.44% | 1.38% | 1.42% A |
Expenses net of fee waivers, if any | 1.44% | 1.38% | 1.42% A |
Expenses net of all reductions | 1.43% | 1.37% | 1.41% A |
Net investment income (loss) | 1.23% | 1.02% | 1.07% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 5,491 | $ 4,090 | $ 1,792 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.84 | $ 14.69 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .06 | .06 | .08 |
Net realized and unrealized gain (loss) | .28 | (3.72) | 2.07 |
Total from investment operations | .34 | (3.66) | 2.15 |
Distributions from net investment income | (.09) | (.16) | (.19) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.09) | (.19) | (.21) |
Net asset value, end of period | $ 11.09 | $ 10.84 | $ 14.69 |
Total Return B,C,D | 3.44% | (25.21)% | 16.98% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.98% | 1.93% | 1.93% A |
Expenses net of fee waivers, if any | 1.98% | 1.93% | 1.93% A |
Expenses net of all reductions | 1.97% | 1.92% | 1.92% A |
Net investment income (loss) | .69% | .47% | .56% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,123 | $ 2,452 | $ 1,632 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.82 | $ 14.67 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .07 | .07 | .08 |
Net realized and unrealized gain (loss) | .28 | (3.71) | 2.06 |
Total from investment operations | .35 | (3.64) | 2.14 |
Distributions from net investment income | (.09) | (.18) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.09) | (.21) | (.22) |
Net asset value, end of period | $ 11.08 | $ 10.82 | $ 14.67 |
Total Return B,C,D | 3.48% | (25.16)% | 16.90% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.94% | 1.90% | 1.91% A |
Expenses net of fee waivers, if any | 1.94% | 1.90% | 1.91% A |
Expenses net of all reductions | 1.93% | 1.89% | 1.90% A |
Net investment income (loss) | .73% | .51% | .58% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 7,179 | $ 5,017 | $ 3,194 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 85%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.99 | $ 14.81 | $ 12.79 | $ 11.69 | $ 10.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .16 | .20 | .23 | .18 | .06 D |
Net realized and unrealized gain (loss) | .27 | (3.76) | 2.02 | .98 | 1.40 |
Total from investment operations | .43 | (3.56) | 2.25 | 1.16 | 1.46 |
Distributions from net investment income | (.18) | (.23) | (.21) | (.06) | (.06) |
Distributions from net realized gain | - | (.03) | (.02) | - | - |
Total distributions | (.18) | (.26) | (.23) | (.06) | (.06) |
Net asset value, end of period | $ 11.24 | $ 10.99 | $ 14.81 | $ 12.79 | $ 11.69 |
Total Return A | 4.54% | (24.43)% | 17.77% | 9.95% | 14.22% |
Ratios to Average Net Assets E | | | | | |
Expenses before reductions | .95% | .87% | .89% | .91% | .92% |
Expenses net of fee waivers, if any | .95% | .87% | .87% | .91% | .92% |
Expenses net of all reductions | .94% | .86% | .86% | .87% | .89% |
Net investment income (loss) | 1.72% | 1.54% | 1.62% | 1.50% | .53% D |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 528,720 | $ 440,040 | $ 576,458 | $ 448,831 | $ 403,221 |
Portfolio turnover rate C | 7% | 20% | 31% | 187% F | 71% F |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .39%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.00 | $ 14.82 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) D | .17 | .21 | .23 |
Net realized and unrealized gain (loss) | .28 | (3.76) | 2.07 |
Total from investment operations | .45 | (3.55) | 2.30 |
Distributions from net investment income | (.21) | (.24) | (.21) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.21) | (.27) | (.23) |
Net asset value, end of period | $ 11.24 | $ 11.00 | $ 14.82 |
Total Return B,C | 4.70% | (24.35)% | 18.24% |
Ratios to Average Net Assets G | | | |
Expenses before reductions | .82% | .78% | .82% A |
Expenses net of fee waivers, if any | .82% | .78% | .82% A |
Expenses net of all reductions | .81% | .77% | .81% A |
Net investment income (loss) | 1.85% | 1.62% | 1.67% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 1,524 | $ 724 | $ 247 |
Portfolio turnover rate E | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended September 30, 2009
1. Organization.
Fidelity Asset Manager 20%, Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, Fidelity Asset Manager 50%, Fidelity Asset Manager 60%, Fidelity Asset Manager 70% and Fidelity Asset Manager 85% (the Funds) are funds of Fidelity Charles Street 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.
Each Fund offers Class A, Class T, Class B, Class C, Asset Manager and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of each Fund. These strategies are consistent with the investment objectives of each Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of each Fund. The following summarizes the Funds' investment in each Fidelity Central Fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio* |
Fidelity Equity Sector Central Funds | FMR Co., Inc. (FMRC) | Each fund seeks capital appreciation by investing primarily in common stocks, with a concentration in a particular industry. | Foreign Securities Repurchase Agreements Loans & Direct Debt Instruments | Less than .01% to ..02% |
Fidelity Emerging Markets Equity Central Fund | FMRC | Seeks capital appreciation by investing primarily in equity securities of issuers in emerging markets. | Foreign Securities Repurchase Agreements | .12% |
Fidelity International Equity Central Fund | FMRC | Seeks capital appreciation by investing primarily in non-U.S. based common stocks, including securities of issuers located in emerging markets. | Foreign Securities Repurchase Agreements | .03% |
Fidelity Floating Rate Central Fund | FMRC | Seeks a high level of income by normally investing in floating rate loans and other floating rate securities. | Delayed Delivery & When Issued Securities Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities | Less than .01% |
Fidelity High Income Central Fund 1 | FMRC | Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities. | Delayed Delivery & When Issued Securities Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities | Less than .01% |
Fidelity Tactical Income Central Fund | Fidelity Investments Money Management, Inc. (FIMM) | Seeks a high level of income by normally investing in investment-grade debt securities. | Delayed Delivery & When Issued Securities Repurchase Agreements Restricted Securities Swap Agreements | .02% |
Fidelity Money Market Central Funds | FIMM | Seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .01% |
* Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
Annual Report
Notes to Financial Statements - continued
2. Investments in Fidelity Central Funds - continued
An unaudited holdings listing for each Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through each Funds investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which contain the significant accounting policies (including security valuation policies) of those funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, November 20, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. All inputs to value investments as of September 30, 2009 for each Fund are categorized as Level 1 in the disclosure hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses of the Fidelity Central Funds. Although not included in each Fund's expenses, each Fund indirectly bears its proportionate share of the Fidelity Central Funds' expenses through the impact of these expenses on each Fidelity Central Fund's net asset value. Based on their most recent shareholder report date, expenses of the Fidelity Central Funds ranged from less than .01% to .12%.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for Fidelity Asset Manager 50% and Fidelity Asset Manager 70%, independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statements of Assets and Liabilities.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. There are no unrecognized tax benefits in the accompanying financial statements in connection with the tax positions taken by each Fund. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
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 futures transactions, foreign currency transactions, deferred trustees compensation, partnerships (including allocations from Fidelity Central Funds), market discount, capital loss carryforwards and losses deferred due to excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
| Cost for Federal
Income Tax Purposes | Unrealized
Appreciation | Unrealized
Depreciation | Net Unrealized
Appreciation/
(Depreciation) |
Fidelity Asset Manager 20% | $ 2,320,526,472 | $ 78,239,968 | $ (44,195,760) | $ 34,044,208 |
Fidelity Asset Manager 30% | 69,578,504 | 3,791,376 | (1,984,644) | 1,806,732 |
Fidelity Asset Manager 40% | 43,307,076 | 3,231,344 | (1,715,084) | 1,516,260 |
Fidelity Asset Manager 50% | 5,831,938,017 | 401,683,673 | (172,665,119) | 229,018,554 |
Fidelity Asset Manager 60% | 62,341,965 | 6,016,542 | (2,914,369) | 3,102,173 |
Fidelity Asset Manager 70% | 2,304,553,089 | 168,821,740 | (39,280,641) | 129,541,099 |
Fidelity Asset Manager 85% | 529,049,895 | 60,045,047 | (20,710,930) | 39,334,117 |
| Undistributed
Ordinary Income | Undistributed Long-term Capital Gain | Capital Loss
Carryforward |
Fidelity Asset Manager 20% | $ 3,231,942 | $ - | $ (109,929,389) |
Fidelity Asset Manager 30% | 338,932 | - | (270,253) |
Fidelity Asset Manager 40% | 420,655 | - | (565,738) |
Fidelity Asset Manager 50% | 31,305,659 | - | (544,429,664) |
Fidelity Asset Manager 60% | 807,681 | - | (1,075,548) |
Fidelity Asset Manager 70% | 31,792,709 | - | (408,374,215) |
Fidelity Asset Manager 85% | 5,634,571 | - | (117,371,899) |
The tax character of distributions paid was as follows:
September 30, 2009 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Asset Manager 20% | $ 71,793,201 | $ - | $ 71,793,201 |
Fidelity Asset Manager 30% | 1,165,886 | - | 1,165,886 |
Fidelity Asset Manager 40% | 608,662 | - | 608,662 |
Fidelity Asset Manager 50% | 183,355,430 | - | 183,355,430 |
Fidelity Asset Manager 60% | 387,880 | - | 387,880 |
Fidelity Asset Manager 70% | 54,439,794 | - | 54,439,794 |
Fidelity Asset Manager 85% | 7,455,362 | - | 7,455,362 |
September 30, 2008 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Asset Manager 20% | $ 124,816,062 | $ 15,864,447 | $ 140,680,509 |
Fidelity Asset Manager 30% | 595,233 | - | 595,233 |
Fidelity Asset Manager 40% | 228,368 | - | 228,368 |
Fidelity Asset Manager 50% | 609,187,068 | 187,189,636 | 796,376,704 |
Fidelity Asset Manager 60% | 36,701 | - | 36,701 |
Fidelity Asset Manager 70% | 75,537,733 | - | 75,537,733 |
Fidelity Asset Manager 85% | 10,588,284 | - | 10,588,284 |
Annual Report
Notes to Financial Statements - continued
4. Investments in Derivative Instruments.
Objectives and Strategies for Investing in Derivative Instruments. The Funds use derivative instruments ("derivatives"), including futures contracts, in order to meet their investment objectives. The Funds' strategy is to use derivatives as a risk management tool and as an additional way to gain exposure to certain types of assets. 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.
While utilizing derivatives in pursuit of their investment objectives, the Funds are exposed to certain financial risks relative to those derivatives. This risk is further explained below:
Equity Risk | Equity risk is the risk that the value of financial instruments will fluctuate 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 following notes provide more detailed information about each derivative type held by the Funds:
Futures Contracts. The Funds use futures contracts to manage their exposure to the stock market. 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. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument. Risks of loss may include equity risk and potential lack of liquidity in the market. Futures have minimal counterparty risk to the Funds since the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
The purchaser or seller of a futures contract is not required to pay for or deliver the instrument unless the contract is held until the delivery date. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Securities deposited to meet margin requirements are identified in each applicable Fund's Schedule of Investments. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and changes in value are recognized as unrealized gain (loss). Realized gain (loss) is recorded upon the expiration or closing of the futures contract. The net realized gain (loss) and change in unrealized gain (loss) on futures contracts during the period is included on the Statement of Operations. At the end of the period, the Funds had no open futures contracts.
5. Realized and Change in Unrealized Gain (Loss) on Derivative Instruments. A summary of each applicable Funds' value of derivatives by primary risk exposure as of period end, if any, is included at the end of each applicable Funds' Schedule of Investments. The table below reflects each applicable Funds' realized gain (loss) and change in unrealized gain (loss) for derivatives during the period.
Risk Exposure / Derivative Type | Realized Gain (Loss) | Change in Unrealized
Gain (Loss) |
Fidelity Asset Manager 20% | | |
Equity Risk | | |
Futures Contracts | $ (7,536,941) | $ 1,367,696 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (7,536,941) | $ 1,367,696 |
Fidelity Asset Manager 30% | | |
Equity Risk | | |
Futures Contracts | $ (55,838) | $ 10,142 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (55,838) | $ 10,142 |
Fidelity Asset Manager 40% | | |
Equity Risk | | |
Futures Contracts | $ (47,735) | $ 8,693 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (47,735) | $ 8,693 |
Fidelity Asset Manager 50% | | |
Equity Risk | | |
Futures Contracts | $ (35,226,589) | $ 6,392,238 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (35,226,589) | $ 6,392,238 |
Fidelity Asset Manager 60% | | |
Equity Risk | | |
Futures Contracts | $ (119,603) | $ 21,732 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (119,603) | $ 21,732 |
Annual Report
5. Realized and Change in Unrealized Gain (Loss) on Derivative Instruments - continued
Risk Exposure / Derivative Type | Realized Gain (Loss) | Change in Unrealized
Gain (Loss) |
Fidelity Asset Manager 70% | | |
Equity Risk | | |
Futures Contracts | $ (13,233,029) | $ 2,377,530 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (13,233,029) | $ 2,377,530 |
Fidelity Asset Manager 85% | | |
Equity Risk | | |
Futures Contracts | $ (5,201,232) | $ 934,495 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (5,201,232) | $ 934,495 |
(a) Derivatives realized gain (loss) and change in unrealized gain (loss) is included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities (including the Equity and Fixed-Income Central Funds), other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) |
Fidelity Asset Manager 20% | 472,453,488 | 246,669,523 |
Fidelity Asset Manager 30% | 38,456,666 | 4,211,268 |
Fidelity Asset Manager 40% | 28,946,922 | 6,608,613 |
Fidelity Asset Manager 50% | 790,779,159 | 868,896,422 |
Fidelity Asset Manager 60% | 41,798,650 | 9,935,958 |
Fidelity Asset Manager 70% | 266,947,990 | 267,250,954 |
Fidelity Asset Manager 85% | 154,974,623 | 28,267,406 |
7. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows:
| Individual Rate | Group Rate | Total |
Fidelity Asset Manager 20% | .30% | .12% | .42% |
Fidelity Asset Manager 30% | .30% | .12% | .42% |
Fidelity Asset Manager 40% | .30% | .12% | .42% |
Fidelity Asset Manager 50% | .25% | .26% | .51% |
Fidelity Asset Manager 60% | .30% | .26% | .56% |
Fidelity Asset Manager 70% | .30% | .26% | .56% |
Fidelity Asset Manager 85% | .30% | .26% | .56% |
FMR pays a portion of the management fees received from the Funds to the Fidelity Central Funds' investment advisers, who are also affiliates, for managing the assets of the Fidelity Central Funds.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Fidelity Asset Manager 20% | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 35,451 | $ 8,147 |
Class T | .25% | .25% | 31,678 | - |
Class B | .75% | .25% | 21,872 | 16,407 |
Class C | .75% | .25% | 53,115 | 23,897 |
| | | $ 142,116 | $ 48,451 |
Annual Report
Notes to Financial Statements - continued
7. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
Fidelity Asset Manager 30% | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 4,966 | $ 353 |
Class T | .25% | .25% | 6,424 | 94 |
Class B | .75% | .25% | 5,230 | 4,018 |
Class C | .75% | .25% | 16,330 | 9,418 |
| | | $ 32,950 | $ 13,883 |
Fidelity Asset Manager 40% | | | | |
Class A | -% | .25% | $ 8,469 | $ 2,038 |
Class T | .25% | .25% | 8,896 | 3,680 |
Class B | .75% | .25% | 11,215 | 10,619 |
Class C | .75% | .25% | 12,418 | 10,076 |
| | | $ 40,998 | $ 26,413 |
Fidelity Asset Manager 50% | | | | |
Class A | -% | .25% | $ 35,783 | $ 8,704 |
Class T | .25% | .25% | 32,176 | - |
Class B | .75% | .25% | 21,470 | 16,103 |
Class C | .75% | .25% | 53,845 | 18,028 |
| | | $ 143,274 | $ 42,835 |
Fidelity Asset Manager 60% | | | | |
Class A | -% | .25% | $ 9,474 | $ 2,053 |
Class T | .25% | .25% | 11,262 | 936 |
Class B | .75% | .25% | 10,869 | 8,890 |
Class C | .75% | .25% | 14,307 | 7,543 |
| | | $ 45,912 | $ 19,422 |
Fidelity Asset Manager 70% | | | | |
Class A | -% | .25% | $ 184,712 | $ 14,864 |
Class T | .25% | .25% | 198,940 | 674 |
Class B | .75% | .25% | 168,247 | 126,244 |
Class C | .75% | .25% | 292,129 | 30,776 |
| | | $ 844,028 | $ 172,558 |
Fidelity Asset Manager 85% | | | | |
Class A | -% | .25% | $ 37,197 | $ 3,132 |
Class T | .25% | .25% | 19,112 | - |
Class B | .75% | .25% | 22,375 | 16,781 |
Class C | .75% | .25% | 48,329 | 17,452 |
| | | $ 127,013 | $ 37,365 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Asset Manager 20% | Retained
by FDC |
Class A | $ 21,202 |
Class T | 4,939 |
Class B* | 4,495 |
Class C* | 1,667 |
| $ 32,303 |
Annual Report
7. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Fidelity Asset Manager 30% | Retained
by FDC |
Class A | $ 7,922 |
Class T | 1,607 |
Class B* | 103 |
Class C* | 109 |
| $ 9,741 |
Fidelity Asset Manager 40% | |
Class A | $ 5,816 |
Class T | 3,206 |
Class B* | 665 |
Class C* | 327 |
| $ 10,014 |
Fidelity Asset Manager 50% | |
Class A | $ 22,279 |
Class T | 5,098 |
Class B* | 7,545 |
Class C* | 3,234 |
| $ 38,156 |
Fidelity Asset Manager 60% | |
Class A | $ 11,714 |
Class T | 4,574 |
Class B* | 1,130 |
Class C* | 981 |
| $ 18,399 |
Fidelity Asset Manager 70% | |
Class A | $ 23,651 |
Class T | 11,239 |
Class B* | 46,808 |
Class C* | 2,881 |
| $ 84,579 |
Fidelity Asset Manager 85% | |
Class A | $ 22,099 |
Class T | 3,263 |
Class B* | 5,076 |
Class C* | 1,165 |
| $ 31,603 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
Fidelity Asset Manager 20% | Amount | % of
Average
Net Assets |
Class A | $ 22,038 | .15 |
Class T | 9,444 | .15 |
Class B | 4,821 | .22 |
Class C | 9,093 | .17 |
Asset Manager 20% | 2,166,490 | .11 |
Institutional Class | 1,976 | .09 |
| $ 2,213,862 | |
Annual Report
Notes to Financial Statements - continued
7. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
Fidelity Asset Manager 30% | Amount | % of
Average
Net Assets |
Class A | $ 3,214 | .16 |
Class T | 1,975 | .15 |
Class B | 1,079 | .21 |
Class C | 2,415 | .15 |
Asset Manager 30% | 37,691 | .11 |
Institutional Class | 627 | .13 |
| $ 47,001 | |
Fidelity Asset Manager 40% | | |
Class A | $ 5,235 | .16 |
Class T | 2,496 | .14 |
Class B | 1,289 | .11 |
Class C | 1,646 | .13 |
Asset Manager 40% | 22,448 | .12 |
Institutional Class | 879 | .09 |
| $ 33,993 | |
Fidelity Asset Manager 50% | | |
Class A | $ 31,443 | .22 |
Class T | 15,385 | .24 |
Class B | 6,570 | .31 |
Class C | 14,413 | .27 |
Asset Manager 50% | 11,688,323 | .22 |
Institutional Class | 2,121 | .14 |
| $ 11,758,255 | |
Fidelity Asset Manager 60% | | |
Class A | $ 11,127 | .29 |
Class T | 5,792 | .26 |
Class B | 3,222 | .30 |
Class C | 3,801 | .27 |
Asset Manager 60% | 56,447 | .22 |
Institutional Class | 1,391 | .20 |
| $ 81,780 | |
Fidelity Asset Manager 70% | | |
Class A | $ 231,378 | .31 |
Class T | 126,884 | .32 |
Class B | 54,231 | .32 |
Class C | 85,931 | .29 |
Asset Manager 70% | 4,591,301 | .25 |
Institutional Class | 61,440 | .28 |
| $ 5,151,165 | |
Fidelity Asset Manager 85% | | |
Class A | $ 40,659 | .27 |
Class T | 11,114 | .29 |
Class B | 7,349 | .33 |
Class C | 14,410 | .30 |
Asset Manager 85% | 1,137,645 | .30 |
Institutional Class | 1,678 | .17 |
| $ 1,212,855 | |
Annual Report
7. Fees and Other Transactions with Affiliates - continued
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains each Fund's accounting records. The accounting fee is based on the level of average net assets for the month.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the Funds, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or
Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Fidelity Asset Manager 50% | Borrower | $ 11,798,692 | .31% | $ 1,327 |
8. Committed Line of Credit.
Certain Funds participate with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Asset Manager 20% | $ 9,344 |
Fidelity Asset Manager 30% | 159 |
Fidelity Asset Manager 40% | 107 |
Fidelity Asset Manager 50% | 25,181 |
Fidelity Asset Manager 60% | 126 |
Fidelity Asset Manager 70% | 9,507 |
Fidelity Asset Manager 85% | 1,811 |
During the period, there were no borrowings on this line of credit.
9. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
| | |
Fidelity Asset Manager 20% | | |
Class B | 1.65% | $ 819 |
Fidelity Asset Manager 30% | | |
Class A | .90% | 6,168 |
Class T | 1.15% | 3,974 |
Class B | 1.65% | 1,856 |
Class C | 1.65% | 4,967 |
Asset Manager 30% | .65% | 88,074 |
Institutional Class | .65% | 1,505 |
Fidelity Asset Manager 40% | | |
Class A | .90% | 14,539 |
Class T | 1.15% | 7,904 |
Class B | 1.65% | 4,875 |
Class C | 1.65% | 5,537 |
Asset Manager 40% | .65% | 75,024 |
Institutional Class | .65% | 4,118 |
Annual Report
Notes to Financial Statements - continued
9. Expense Reductions - continued
| Expense
Limitations | Reimbursement
from adviser |
Fidelity Asset Manager 50% | | |
Class B | 1.85% | $ 109 |
Fidelity Asset Manager 60% | | |
Class A | 1.10% | 16,958 |
Class T | 1.35% | 9,424 |
Class B | 1.85% | 4,995 |
Class C | 1.85% | 6,321 |
Asset Manager 60% | .85% | 93,574 |
Institutional Class | .85% | 2,489 |
FMR voluntarily agreed to reimburse a portion of certain class' operating expenses. During the period, this reimbursement reduced these class' expenses as noted in the table below.
| Reimbursement
from adviser |
Asset Manager 70% | $ 57,925 |
Many of the brokers with whom FMR places trades on behalf of certain Funds and certain Equity Central Funds provided services to these Funds in addition to trade execution. These services included payments of expenses on behalf of each applicable Fund. In addition, through arrangements with each applicable Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage Service
reduction | Transfer
Agent
expense
reduction |
| | |
Fidelity Asset Manager 20% | $ 33,288 | $ - |
Fidelity Asset Manager 30% | 1,023 | - |
Fidelity Asset Manager 40% | 1,096 | - |
Fidelity Asset Manager 50% | 290,234 | - |
Fidelity Asset Manager 60% | 2,262 | - |
Fidelity Asset Manager 70% | 165,252 | - |
Institutional Class | - | 9 |
Fidelity Asset Manager 85% | 40,635 | - |
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 20% | | |
From net investment income | | |
Class A | $ 437,282 | $ 217,282 |
Class T | 183,229 | 139,471 |
Class B | 54,423 | 38,980 |
Class C | 126,202 | 66,883 |
Asset Manager 20% | 70,916,093 | 90,572,886 |
Institutional Class | 75,972 | 68,611 |
Total | $ 71,793,201 | $ 91,104,113 |
From net realized gain | | |
Class A | $ - | $ 111,897 |
Class T | - | 88,892 |
Class B | - | 24,291 |
Class C | - | 35,012 |
Asset Manager 20% | - | 49,278,678 |
Institutional Class | - | 37,626 |
Total | $ - | $ 49,576,396 |
Annual Report
10. Distributions to Shareholders - continued
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 30% A | | |
From net investment income | | |
Class A | $ 52,355 | $ 15,489 |
Class T | 32,661 | 9,224 |
Class B | 11,038 | 3,594 |
Class C | 34,391 | 12,880 |
Asset Manager 30% | 1,021,321 | 550,353 |
Institutional Class | 14,120 | 3,693 |
Total | $ 1,165,886 | $ 595,233 |
Fidelity Asset Manager 40% A | | |
From net investment income | | |
Class A | $ 72,060 | $ 27,725 |
Class T | 39,765 | 24,685 |
Class B | 20,040 | 15,306 |
Class C | 21,439 | 15,599 |
Asset Manager 40% | 425,812 | 119,398 |
Institutional Class | 29,546 | 25,655 |
Total | $ 608,662 | $ 228,368 |
Fidelity Asset Manager 50% | | |
From net investment income | | |
Class A | $ 397,973 | $ 185,719 |
Class T | 166,065 | 112,972 |
Class B | 46,365 | 29,127 |
Class C | 113,113 | 67,942 |
Asset Manager 50% | 177,932,255 | 239,444,583 |
Institutional Class | 38,741 | 26,633 |
Total | $ 178,694,512 | $ 239,866,976 |
From net realized gain | | |
Class A | $ 8,976 | $ 359,333 |
Class T | 4,405 | 290,067 |
Class B | 1,523 | 98,729 |
Class C | 3,756 | 225,372 |
Asset Manager 50% | 4,641,464 | 555,465,189 |
Institutional Class | 794 | 71,038 |
Total | $ 4,660,918 | $ 556,509,728 |
Fidelity Asset Manager 60% A | | |
From net investment income | | |
Class A | $ 47,042 | $ 7,307 |
Class T | 27,701 | 2,841 |
Class B | 7,436 | 1,840 |
Class C | 11,096 | 1,840 |
Asset Manager 60% | 284,188 | 18,398 |
Institutional Class | 10,417 | 4,475 |
Total | $ 387,880 | $ 36,701 |
Fidelity Asset Manager 70% | | |
From net investment income | | |
Class A B | $ 1,931,219 | $ - |
Class T B | 1,065,951 | - |
Class B B | 447,034 | - |
Class C B | 727,522 | - |
Asset Manager 70% | 49,684,258 | 72,024,349 |
Institutional Class B | 583,810 | - |
Total | $ 54,439,794 | $ 72,024,349 |
From net realized gain | | |
Asset Manager 70% | $ - | $ 3,513,384 |
Annual Report
Notes to Financial Statements - continued
10. Distributions to Shareholders - continued
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 85% | | |
From net investment income | | |
Class A | $ 236,401 | $ 150,986 |
Class T | 60,047 | 34,666 |
Class B | 22,565 | 23,020 |
Class C | 40,556 | 54,595 |
Asset Manager 85% | 7,078,878 | 9,096,274 |
Institutional Class | 16,915 | 3,940 |
Total | $ 7,455,362 | $ 9,363,481 |
From net realized gain | | |
Class A | $ - | $ 20,022 |
Class T | - | 5,093 |
Class B | - | 4,288 |
Class C | - | 9,298 |
Asset Manager 85% | - | 1,185,614 |
Institutional Class | - | 488 |
Total | $ - | $ 1,224,803 |
A Prior period distributions are for the period October 9, 2007 (commencement of operations) to September 30, 2008.
B Prior period distributions are for the period September 23, 2008 (commencement of operations) to September 30, 2008.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Fidelity Asset Manager 20% | | | | |
Class A | | | | |
Shares sold | 1,881,552 | 723,971 | $ 20,262,428 | $ 8,907,277 |
Reinvestment of distributions | 36,721 | 20,064 | 395,323 | 246,151 |
Shares redeemed | (551,418) | (301,654) | (5,902,669) | (3,651,098) |
Net increase (decrease) | 1,366,855 | 442,381 | $ 14,755,082 | $ 5,502,330 |
Class T | | | | |
Shares sold | 556,534 | 207,033 | $ 5,957,883 | $ 2,528,153 |
Reinvestment of distributions | 15,725 | 16,854 | 167,994 | 207,671 |
Shares redeemed | (154,805) | (97,145) | (1,648,787) | (1,189,971) |
Net increase (decrease) | 417,454 | 126,742 | $ 4,477,090 | $ 1,545,853 |
Class B | | | | |
Shares sold | 172,271 | 148,755 | $ 1,835,013 | $ 1,806,819 |
Reinvestment of distributions | 4,084 | 4,541 | 43,418 | 55,799 |
Shares redeemed | (120,458) | (55,802) | (1,269,080) | (672,403) |
Net increase (decrease) | 55,897 | 97,494 | $ 609,351 | $ 1,190,215 |
Class C | | | | |
Shares sold | 590,588 | 269,755 | $ 6,323,524 | $ 3,257,302 |
Reinvestment of distributions | 8,209 | 5,896 | 87,576 | 72,166 |
Shares redeemed | (141,658) | (83,185) | (1,492,459) | (1,003,632) |
Net increase (decrease) | 457,139 | 192,466 | $ 4,918,641 | $ 2,325,836 |
Asset Manager 20% | | | | |
Shares sold | 58,768,202 | 58,898,445 | $ 637,513,025 | $ 723,714,675 |
Reinvestment of distributions | 6,354,880 | 10,897,714 | 67,864,384 | 134,543,532 |
Shares redeemed | (69,477,950) | (64,781,528) | (731,982,311) | (791,199,186) |
Net increase (decrease) | (4,354,868) | 5,014,631 | $ (26,604,902) | $ 67,059,021 |
Institutional Class | | | | |
Shares sold | 137,005 | 180,834 | $ 1,434,782 | $ 2,308,608 |
Reinvestment of distributions | 6,581 | 8,001 | 70,199 | 98,769 |
Shares redeemed | (66,987) | (56,367) | (711,929) | (687,919) |
Net increase (decrease) | 76,599 | 132,468 | $ 793,052 | $ 1,719,458 |
Annual Report
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Fidelity Asset Manager 30% A | | | | |
Class A | | | | |
Shares sold | 414,025 | 144,653 | $ 3,417,018 | $ 1,379,463 |
Reinvestment of distributions | 5,517 | 1,332 | 44,542 | 12,471 |
Shares redeemed | (76,929) | (12,117) | (581,256) | (111,408) |
Net increase (decrease) | 342,613 | 133,868 | $ 2,880,304 | $ 1,280,526 |
Class T | | | | |
Shares sold | 161,111 | 133,157 | $ 1,317,197 | $ 1,249,065 |
Reinvestment of distributions | 4,011 | 983 | 32,253 | 9,168 |
Shares redeemed | (47,688) | (10,072) | (365,440) | (93,877) |
Net increase (decrease) | 117,434 | 124,068 | $ 984,010 | $ 1,164,356 |
Class B | | | | |
Shares sold | 79,409 | 55,559 | $ 635,086 | $ 524,350 |
Reinvestment of distributions | 1,314 | 382 | 10,518 | 3,594 |
Shares redeemed | (50,703) | (392) | (394,045) | (3,644) |
Net increase (decrease) | 30,020 | 55,549 | $ 251,559 | $ 524,300 |
Class C | | | | |
Shares sold | 174,653 | 186,960 | $ 1,440,050 | $ 1,749,175 |
Reinvestment of distributions | 4,010 | 1,370 | 32,219 | 12,797 |
Shares redeemed | (74,546) | (15,226) | (607,066) | (143,734) |
Net increase (decrease) | 104,117 | 173,104 | $ 865,203 | $ 1,618,238 |
Asset Manager 30% | | | | |
Shares sold | 6,904,812 | 5,359,391 | $ 55,910,068 | $ 50,914,907 |
Reinvestment of distributions | 123,690 | 56,102 | 996,564 | 525,162 |
Shares redeemed | (3,262,135) | (2,411,599) | (25,731,823) | (22,329,751) |
Net increase (decrease) | 3,766,367 | 3,003,894 | $ 31,174,809 | $ 29,110,318 |
Institutional Class | | | | |
Shares sold | 85,817 | 23,759 | $ 690,781 | $ 231,444 |
Reinvestment of distributions | 1,745 | 391 | 13,913 | 3,693 |
Shares redeemed | (26,231) | - | (202,728) | - |
Net increase (decrease) | 61,331 | 24,150 | $ 501,966 | $ 235,137 |
Fidelity Asset Manager 40%A | | | | |
Class A | | | | |
Shares sold | 949,479 | 250,703 | $ 6,910,670 | $ 2,436,280 |
Reinvestment of distributions | 9,317 | 2,933 | 69,821 | 27,298 |
Shares redeemed | (867,182) | (12,251) | (6,423,492) | (109,719) |
Net increase (decrease) | 91,614 | 241,385 | $ 556,999 | $ 2,353,859 |
Class T | | | | |
Shares sold | 151,870 | 227,454 | $ 1,163,455 | $ 2,214,040 |
Reinvestment of distributions | 5,024 | 2,641 | 38,279 | 24,648 |
Shares redeemed | (137,056) | (11,458) | (1,041,565) | (102,562) |
Net increase (decrease) | 19,838 | 218,637 | $ 160,169 | $ 2,136,126 |
Class B | | | | |
Shares sold | 75,414 | 164,587 | $ 591,777 | $ 1,626,346 |
Reinvestment of distributions | 2,558 | 1,632 | 19,564 | 15,307 |
Shares redeemed | (97,756) | (2,203) | (742,267) | (19,407) |
Net increase (decrease) | (19,784) | 164,016 | $ (130,926) | $ 1,622,246 |
Class C | | | | |
Shares sold | 99,725 | 185,184 | $ 770,448 | $ 1,826,153 |
Reinvestment of distributions | 2,748 | 1,654 | 20,997 | 15,523 |
Shares redeemed | (99,318) | (22,232) | (755,114) | (200,684) |
Net increase (decrease) | 3,155 | 164,606 | $ 36,331 | $ 1,640,992 |
Annual Report
Notes to Financial Statements - continued
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Asset Manager 40% | | | | |
Shares sold | 3,849,199 | 1,762,049 | $ 29,825,562 | $ 16,509,845 |
Reinvestment of distributions | 55,087 | 12,657 | 419,676 | 116,657 |
Shares redeemed | (1,075,285) | (477,589) | (8,018,930) | (4,363,370) |
Net increase (decrease) | 2,829,001 | 1,297,117 | $ 22,226,308 | $ 12,263,132 |
Institutional Class | | | | |
Shares sold | 13,481 | 156,120 | $ 108,903 | $ 1,556,663 |
Reinvestment of distributions | 3,839 | 2,743 | 29,314 | 25,655 |
Shares redeemed | (70,040) | - | (528,051) | - |
Net increase (decrease) | (52,720) | 158,863 | $ (389,834) | $ 1,582,318 |
Fidelity Asset Manager 50% | | | | |
Class A | | | | |
Shares sold | 1,405,280 | 701,937 | $ 16,539,899 | $ 10,522,398 |
Reinvestment of distributions | 33,431 | 34,512 | 384,422 | 528,926 |
Shares redeemed | (364,826) | (176,302) | (4,155,231) | (2,573,190) |
Net increase (decrease) | 1,073,885 | 560,147 | $ 12,769,090 | $ 8,478,134 |
Class T | | | | |
Shares sold | 545,417 | 321,333 | $ 6,332,321 | $ 4,828,159 |
Reinvestment of distributions | 13,658 | 25,741 | 157,088 | 396,949 |
Shares redeemed | (169,205) | (108,476) | (1,916,167) | (1,580,570) |
Net increase (decrease) | 389,870 | 238,598 | $ 4,573,242 | $ 3,644,538 |
Class B | | | | |
Shares sold | 180,306 | 140,799 | $ 2,100,830 | $ 2,118,896 |
Reinvestment of distributions | 3,715 | 6,699 | 42,668 | 103,082 |
Shares redeemed | (85,486) | (45,273) | (956,143) | (662,500) |
Net increase (decrease) | 98,535 | 102,225 | $ 1,187,355 | $ 1,559,478 |
Class C | | | | |
Shares sold | 485,121 | 230,335 | $ 5,631,940 | $ 3,467,980 |
Reinvestment of distributions | 6,698 | 14,272 | 76,866 | 220,179 |
Shares redeemed | (159,202) | (78,688) | (1,747,618) | (1,165,992) |
Net increase (decrease) | 332,617 | 165,919 | $ 3,961,188 | $ 2,522,167 |
Asset Manager 50% | | | | |
Shares sold | 32,974,289 | 28,976,509 | $ 383,017,644 | $ 439,124,893 |
Reinvestment of distributions | 15,343,644 | 49,866,308 | 176,555,039 | 772,727,250 |
Shares redeemed | (89,247,824) | (116,862,705) | (998,197,300) | (1,770,033,572) |
Net increase (decrease) | (40,929,891) | (38,019,888) | $ (438,624,617) | $ (558,181,429) |
Institutional Class | | | | |
Shares sold | 160,648 | 64,415 | $ 1,795,413 | $ 1,084,439 |
Reinvestment of distributions | 3,452 | 6,272 | 39,144 | 97,072 |
Shares redeemed | (20,390) | (45,377) | (236,895) | (667,764) |
Net increase (decrease) | 143,710 | 25,310 | $ 1,597,662 | $ 513,747 |
Fidelity Asset Manager 60% A | | | | |
Class A | | | | |
Shares sold | 626,963 | 508,064 | $ 4,408,112 | $ 4,661,791 |
Reinvestment of distributions | 7,097 | 761 | 46,058 | 7,307 |
Shares redeemed | (310,140) | (114,471) | (2,115,814) | (1,028,696) |
Net increase (decrease) | 323,920 | 394,354 | $ 2,338,356 | $ 3,640,402 |
Class T | | | | |
Shares sold | 416,315 | 186,969 | $ 2,870,184 | $ 1,747,896 |
Reinvestment of distributions | 3,579 | 283 | 23,192 | 2,720 |
Shares redeemed | (152,802) | (32,399) | (1,011,101) | (277,952) |
Net increase (decrease) | 267,092 | 154,853 | $ 1,882,275 | $ 1,472,664 |
Class B | | | | |
Shares sold | 142,861 | 138,223 | $ 1,024,160 | $ 1,314,613 |
Reinvestment of distributions | 1,109 | 192 | 7,209 | 1,840 |
Shares redeemed | (97,132) | (2,557) | (678,465) | (22,565) |
Net increase (decrease) | 46,838 | 135,858 | $ 352,904 | $ 1,293,888 |
Annual Report
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Class C | | | | |
Shares sold | 185,591 | 210,884 | $ 1,330,330 | $ 1,970,860 |
Reinvestment of distributions | 1,710 | 192 | 11,096 | 1,840 |
Shares redeemed | (149,285) | (3,246) | (992,160) | (27,889) |
Net increase (decrease) | 38,016 | 207,830 | $ 349,266 | $ 1,944,811 |
Asset Manager 60% | | | | |
Shares sold | 6,524,913 | 3,150,368 | $ 46,957,848 | $ 28,160,474 |
Reinvestment of distributions | 42,505 | 1,882 | 275,857 | 18,064 |
Shares redeemed | (3,253,446) | (362,700) | (22,687,629) | (3,178,965) |
Net increase (decrease) | 3,313,972 | 2,789,550 | $ 24,546,076 | $ 24,999,573 |
Institutional Class | | | | |
Shares sold | 54,932 | 99,914 | $ 380,285 | $ 989,544 |
Reinvestment of distributions | 1,605 | 466 | 10,417 | 4,475 |
Shares redeemed | (55,951) | (916) | (394,752) | (7,979) |
Net increase (decrease) | 586 | 99,464 | $ (4,050) | $ 986,040 |
Fidelity Asset Manager 70% | | | | |
Class A B | | | | |
Shares sold | 2,173,509 | 20,467 | $ 24,367,312 | $ 370,778 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 6,533,497 | - | 92,514,323 |
Reinvestment of distributions | 173,733 | - | 1,832,882 | - |
Shares redeemed | (2,500,085) | (17,859) | (28,216,639) | (315,305) |
Net increase (decrease) | (152,843) | 6,536,105 | $ (2,016,445) | $ 92,569,796 |
Class T B | | | | |
Shares sold | 558,875 | 5,194 | $ 6,345,694 | $ 138,458 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 3,860,173 | - | 54,660,040 |
Reinvestment of distributions | 97,734 | - | 1,031,095 | - |
Shares redeemed | (1,157,915) | (12,767) | (12,984,993) | (237,608) |
Net increase (decrease) | (501,306) | 3,852,600 | $ (5,608,204) | $ 54,560,890 |
Class B B | | | | |
Shares sold | 175,683 | 8,599 | $ 1,996,401 | $ 132,691 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 1,725,798 | - | 24,437,297 |
Reinvestment of distributions | 39,046 | - | 411,939 | - |
Shares redeemed | (614,001) | (7,056) | (6,696,000) | (105,755) |
Net increase (decrease) | (399,272) | 1,727,341 | $ (4,287,660) | $ 24,464,233 |
Class C B | | | | |
Shares sold | 421,289 | 2,918 | $ 4,898,274 | $ 217,647 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 2,780,313 | - | 39,369,233 |
Reinvestment of distributions | 60,708 | - | 640,464 | - |
Shares redeemed | (756,167) | (10,650) | (8,424,208) | (326,514) |
Net increase (decrease) | (274,170) | 2,772,581 | $ (2,885,470) | $ 39,260,366 |
Asset Manager 70% | | | | |
Shares sold | 15,475,772 | 12,436,796 | $ 179,846,118 | $ 201,255,406 |
Reinvestment of distributions | 4,628,030 | 4,363,853 | 48,825,720 | 74,272,772 |
Shares redeemed | (28,165,016) | (33,660,002) | (314,686,965) | (549,568,450) |
Net increase (decrease) | (8,061,214) | (16,859,353) | $ (86,015,127) | $ (274,040,272) |
Institutional Class B | | | | |
Shares sold | 711,407 | 10,330 | $ 8,732,520 | $ 152,572 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 1,881,221 | - | 26,638,086 |
Reinvestment of distributions | 55,050 | - | 580,778 | - |
Shares redeemed | (501,161) | (3,734) | (5,787,688) | (57,654) |
Net increase (decrease) | 265,296 | 1,887,817 | $ 3,525,610 | $ 26,733,004 |
Fidelity Asset Manager 85% | | | | |
Class A | | | | |
Shares sold | 1,227,157 | 881,000 | $ 11,123,956 | $ 11,708,813 |
Reinvestment of distributions | 27,818 | 11,613 | 230,607 | 164,450 |
Shares redeemed | (419,528) | (212,398) | (3,964,719) | (2,755,503) |
Net increase (decrease) | 835,447 | 680,215 | $ 7,389,844 | $ 9,117,760 |
Annual Report
Notes to Financial Statements - continued
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Class T | | | | |
Shares sold | 219,201 | 302,865 | $ 1,968,756 | $ 3,973,155 |
Reinvestment of distributions | 6,419 | 2,802 | 53,147 | 39,626 |
Shares redeemed | (107,692) | (52,286) | (922,904) | (680,328) |
Net increase (decrease) | 117,928 | 253,381 | $ 1,098,999 | $ 3,332,453 |
Class B | | | | |
Shares sold | 128,701 | 152,342 | $ 1,146,718 | $ 2,031,969 |
Reinvestment of distributions | 2,567 | 1,841 | 21,255 | 26,000 |
Shares redeemed | (75,871) | (39,226) | (628,100) | (510,836) |
Net increase (decrease) | 55,397 | 114,957 | $ 539,873 | $ 1,547,133 |
Class C | | | | |
Shares sold | 396,579 | 329,559 | $ 3,589,931 | $ 4,362,588 |
Reinvestment of distributions | 3,717 | 3,034 | 30,743 | 42,720 |
Shares redeemed | (215,928) | (86,632) | (1,937,775) | (1,115,724) |
Net increase (decrease) | 184,368 | 245,961 | $ 1,682,899 | $ 3,289,584 |
Asset Manager 85% | | | | |
Shares sold | 16,408,620 | 11,096,127 | $ 153,803,706 | $ 149,870,831 |
Reinvestment of distributions | 831,961 | 709,187 | 6,921,914 | 10,063,914 |
Shares redeemed | (10,231,882) | (10,707,014) | (90,681,889) | (142,112,234) |
Net increase (decrease) | 7,008,699 | 1,098,300 | $ 70,043,731 | $ 17,822,511 |
Institutional Class | | | | |
Shares sold | 106,499 | 62,723 | $ 906,473 | $ 834,204 |
Reinvestment of distributions | 1,865 | 180 | 15,502 | 2,553 |
Shares redeemed | (38,520) | (13,803) | (327,053) | (173,778) |
Net increase (decrease) | 69,844 | 49,100 | $ 594,922 | $ 662,979 |
A Prior period amounts are for the period October 9, 2007 (commencement of operations) to September 30, 2008.
B Prior period amounts are for the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
12. 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.
13. Merger Information.
On September 26, 2008, Fidelity Asset Manager 70% acquired all of the assets and assumed all of the liabilities of Fidelity Advisor Asset Manager 70% Fund pursuant to an agreement and plan of reorganization approved by the Board of Trustees on May 15, 2008. The acquisition was accomplished by an exchange of 6,533,497, 3,860,173, 1,725,798, 2,780,313 and 1,881,221 shares of Class A, Class T, Class B, Class C and Institutional Class of the Fund, respectively, for 9,324,617, 5,534,757, 2,486,431, 4,011,919, and 2,679,998 shares then outstanding of Class A, Class T, Class B, Class C and Institutional Class (valued at $9.92, $9.88, $9.83, $9.81, and $9.94, per share for Class A, Class T, Class B, Class C and Institutional Class, respectively) of the Fidelity Advisor Asset Manager 70% Fund. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Fidelity Advisor Asset Manager 70% Fund's net assets, including $21,261,054 of unrealized depreciation, were combined with the Fund's net assets of $2,365,472,024 for total net assets after the acquisition of $2,603,091,003.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Charles Street Trust and the Shareholders of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85%:
We have audited the accompanying statements of assets and liabilities of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85% (the Funds), each a fund of Fidelity Charles Street Trust, including the schedules of investments, as of September 30, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2009, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85% as of September 30, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 20, 2009
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Charles Street Trust and the Shareholders of Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, Fidelity Asset Manager 60%:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial positions of Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, and Fidelity Asset Manager 60% (funds of Fidelity Charles Street Trust)at September 30, 2009, and the results of each of their operations for the year then ended, the changes in each of their net assets for each of the periods indicated and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Charles Street Trust and Fidelity Charles Street Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2009 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 20, 2009
Annual Report
The Trustees and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 188 funds advised by FMR or an affiliate. Mr. Curvey oversees 408 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Abigail P. Johnson (47) |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal and Workplace Investing (2005-present). Ms. Johnson is a Director of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (74) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Albert R. Gamper, Jr. (67) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President. Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Arthur E. Johnson (62) |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present) and AGL Resources, Inc. (holding company). Previously, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009), and on the Board of Directors of IKON Office Solutions, Inc. (1999-2008). Mr. Arthur E. Johnson and Ms. Abigail P. Johnson are not related. |
Michael E. Kenneally (55) |
| Year of Election or Appointment: 2009 Mr. Kenneally also serves as Trustee (2009-present) or Member of the Advisory Board (2008-present) of other Fidelity Fixed Income and Asset Allocation Funds. Previously, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of The Credit Suisse Funds (U.S. Mutual Fund, 2004-2008) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (69) |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). Previously, Mr. Keyes served as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (62) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director of McKesson Corporation (healthcare service). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (70) |
| Year of Election or Appointment: 2005 Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer of Hershey Foods Corporation, and as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (2004-2009). |
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
John R. Hebble (51) |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Boyce I. Greer (53) |
| Year of Election or Appointment: 2005 or 2006 Vice President of Fidelity's Fixed Income Funds (2006) and Asset Allocation Funds (2005). Mr. Greer is also a Trustee of other investment companies advised by FMR. Mr. Greer is President of the Asset Allocation Division (2008-present), President and a Director of Strategic Advisers, Inc. (2008-present), President and a Director of Fidelity Investments Money Management, Inc. (2007-present), and an Executive Vice President of FMR and FMR Co., Inc. (2005-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005). |
Derek L. Young (45) |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Asset Allocation Funds. Mr. Young also serves as Chief Investment Officers of the Global Asset Allocation Group (2009-present). Previously, Mr. Young served as a portfolio manager. |
Scott C. Goebel (41) |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
Holly C. Laurent (55) |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (51) |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (42) |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (47) |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009) and as Vice President of Business Analysis (2003-2004). |
Bryan A. Mehrmann (48) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Stephanie J. Dorsey (40) |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Paul M. Murphy (62) |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Kenneth B. Robins (40) |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds and is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004). |
Gary W. Ryan (51) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
A percentage of the dividends distributed during the fiscal year for the following funds was derived from interest on U.S. Government securities which is generally exempt from state income tax:
Fund | |
Asset Manager 20% | 2.31% |
Asset Manager 30% | 2.42% |
Asset Manager 40% | 2.29% |
Asset Manager 50% | 1.47% |
Asset Manager 60% | 1.48% |
Asset Manager 70% | 1.10% |
Asset Manager 85% | 0.82% |
The funds hereby designate the amounts noted below as distributions paid during the period January 1, 2009 to September 30, 2009 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders:
Fund | |
Asset Manager 20% | $55,754,842 |
Asset Manager 30% | $1,165,886 |
Asset Manager 40% | $608,662 |
Asset Manager 50% | $106,168,575 |
Asset Manager 60% | $387,880 |
Asset Manager 70% | $23,253,756 |
Asset Manager 85% | $2,399,390 |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
| Retail Class |
Asset Manager 20% | |
October 2008 | 8% |
November 2008 | 8% |
December 2008 | 8% |
February 2009 | 9% |
March 2009 | 9% |
April 2009 | 9% |
May 2009 | 9% |
June 2009 | 9% |
July 2009 | 9% |
August 2009 | 9% |
September 2009 | 9% |
| Retail Class |
Asset Manager 30% | |
October 2008 | 1% |
November 2008 | 14% |
December 2008 | 14% |
February 2009 | 16% |
March 2009 | 16% |
April 2009 | 16% |
May 2009 | 15% |
June 2009 | 16% |
July 2009 | 16% |
August 2009 | 15% |
September 2009 | 16% |
| |
| Retail Class |
Asset Manager 40% | |
October 2008 | 1% |
December 2008 | 17% |
April 2009 | 28% |
July 2009 | 29% |
| |
| Retail Class |
Asset Manager 50% | |
December 2008 | 20% |
April 2009 | 32% |
July 2009 | 32% |
| |
| Retail Class |
Asset Manager 60% | |
December 2008 | 29% |
| |
| Retail Class |
Asset Manager 70% | |
December 2008 | 32% |
| |
| Retail Class |
Asset Manager 85% | |
December 2008 | 50% |
Annual Report
Distributions - continued
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Retail Class |
Asset Manager 20% | |
November 2008 | 9% |
December 2008 | 10% |
February 2009 | 11% |
March 2009 | 11% |
April 2009 | 11% |
May 2009 | 11% |
June 2009 | 11% |
July 2009 | 11% |
August 2009 | 11% |
September 2009 | 11% |
| |
| Retail Class |
Asset Manager 30% | |
October 2008 | 1% |
November 2008 | 15% |
December 2008 | 15% |
February 2009 | 18% |
March 2009 | 18% |
April 2009 | 18% |
May 2009 | 18% |
June 2009 | 18% |
July 2009 | 18% |
August 2009 | 18% |
September 2009 | 18% |
| |
| Retail Class |
Asset Manager 40% | |
October 2008 | 1% |
December 2008 | 20% |
April 2009 | 37% |
July 2009 | 39% |
| |
| Retail Class |
Asset Manager 50% | |
December 2008 | 23% |
April 2009 | 41% |
July 2009 | 41% |
| |
| Retail Class |
Asset Manager 60% | |
December 2008 | 40% |
| Retail Class |
Asset Manager 70% | |
December 2008 | 45% |
| |
| Retail Class |
Asset Manager 85% | |
December 2008 | 74% |
The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
A special meeting of each fund's shareholders was held on July 15, 2009. 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.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 4,660,446,788.00 | 93.389 |
Withheld | 329,898,915.93 | 6.611 |
TOTAL | 4,990,345,703.93 | 100.000 |
Albert R. Gamper, Jr. |
Affirmative | 4,697,750,297.49 | 94.137 |
Withheld | 292,595,406.44 | 5.863 |
TOTAL | 4,990,345,703.93 | 100.000 |
Abigail P. Johnson |
Affirmative | 4,656,658,858.01 | 93.313 |
Withheld | 333,686,845.92 | 6.687 |
TOTAL | 4,990,345,703.93 | 100.000 |
Arthur E. Johnson |
Affirmative | 4,686,159,283.49 | 93.905 |
Withheld | 304,186,420.44 | 6.095 |
TOTAL | 4,990,345,703.93 | 100.000 |
Michael E. Kenneally |
Affirmative | 4,709,830,377.70 | 94.379 |
Withheld | 280,515,326.23 | 5.621 |
TOTAL | 4,990,345,703.93 | 100.000 |
James H. Keyes |
Affirmative | 4,703,388,873.28 | 94.250 |
Withheld | 286,956,830.65 | 5.750 |
TOTAL | 4,990,345,703.93 | 100.000 |
Marie L. Knowles |
Affirmative | 4,693,994,899.89 | 94.062 |
Withheld | 296,350,804.04 | 5.938 |
TOTAL | 4,990,345,703.93 | 100.000 |
Kenneth L. Wolfe |
Affirmative | 4,685,695,252.60 | 93.895 |
Withheld | 304,650,451.33 | 6.105 |
TOTAL | 4,990,345,703.93 | 100.000 |
PROPOSAL 3 |
For Fidelity Asset Manager 50%, a shareholder proposal concerning "procedures to prevent holding investments in companies that, in the judgement of the Board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights." |
| # of
Votes | % of
Votes |
Affirmative | 539,153,192.91 | 20.836 |
Against | 1,835,063,285.57 | 70.918 |
Abstain | 99,089,558.45 | 3.830 |
Broker Non-Votes | 114,273,518.88 | 4.416 |
TOTAL | 2,587,579,555.81 | 100.000 |
PROPOSAL 3 |
For Fidelity Asset Manager 70%, a shareholder proposal concerning "procedures to prevent holding investments in companies that, in the judgement of the Board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights." |
| # of
Votes | % of
Votes |
Affirmative | 194,624,056.06 | 22.806 |
Against | 548,661,062.57 | 64.291 |
Abstain | 49,188,619.67 | 5.764 |
Broker Non-Votes | 60,927,022.52 | 7.139 |
TOTAL | 853,400,760.82 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Asset Manager 20%
Fidelity Asset Manager 30%
Fidelity Asset Manager 40%
Fidelity Asset Manager 50%
Fidelity Asset Manager 60%
Fidelity Asset Manager 70%
Fidelity Asset Manager 85%
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.
On May 21, 2009, the Board voted to continue each fund's Advisory Contracts for four months, through September 30, 2009, in connection with the reorganization of the Board's new meeting schedule. The Board considered that the contractual terms of and fees payable under each fund's Advisory Contracts involve no changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the nature or level of services provided under the fund's Advisory Contracts; or (iii) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that each fund's Advisory Contracts are fair and reasonable, and that each fund's Advisory Contracts should be renewed, without modification, through September 30, 2009, with the understanding that the Board would consider their renewal in September 2009.
At its September 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to the recent financial crisis, Fidelity took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board specifically noted Fidelity's response to the 2008 credit market crisis. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance for each class (for the retail class in the case of Asset Manager 70%), as well as each fund's relative investment performance for each class (for the retail class in the case of Asset Manager 70%) measured against (i) a proprietary custom index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods, as available.
For each of Asset Manager 20% and Asset Manager 50%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, as available, the cumulative total returns of the retail class and Class B of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class B show the performance of the highest performing class (based on five-year performance) and the lowest performing class (based on one-year performance), respectively. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
For each of Asset Manager 30%, Asset Manager 40%, and Asset Manager 60%, because the fund had been in existence less than three calendar years, the following chart considered by the Board shows, for the one-year period ended December 31, 2008, the total returns of the retail class and Class C of the fund, the cumulative total return of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively. The box within the chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below the chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
For Asset Manager 70%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Fidelity Asset Manager 70% (retail class) of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. (The Advisor classes of the fund had less than one year of performance as of December 31, 2008.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of Fidelity Asset Manager 70% (retail class).
For Asset Manager 85%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, as available, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class C show the performance of the highest performing class (based on five-year performance) and the lowest performing class (based on one-year performance), respectively. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Each fund's proprietary custom index is an index developed by FMR that represents the performance of the fund's three asset classes according to their respective weightings in the fund's neutral mix.
Fidelity Asset Manager 20%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 20% (retail class) of the fund was in the first quartile for the one- and five-year periods and the second quartile for the three-year period. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
Fidelity Asset Manager 30%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 30% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Annual Report
Fidelity Asset Manager 40%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 40% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Fidelity Asset Manager 50%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 50% (retail class) of the fund was in the second quartile for the one-year period and the third quartile for the three- and five-year periods. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 60%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 60% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Fidelity Asset Manager 70%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 70% (retail class) of the fund was in the fourth quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions that have been taken by FMR to improve the fund's disappointing performance relative to its peer group and benchmark. The Board also reviewed the fund's performance during 2009. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.
Annual Report
Fidelity Asset Manager 85%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 85% (retail class) of the fund was in the second quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
For each fund, the Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented recent market events, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG%" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG% of 26% would mean that 74% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 20%
Fidelity Asset Manager 30%
Annual Report
Fidelity Asset Manager 40%
Fidelity Asset Manager 50%
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 60%
Fidelity Asset Manager 70%
Annual Report
Fidelity Asset Manager 85%
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008.
Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of the total expenses of each class of each fund, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of each fund compared to competitive fund median expenses. Each class of each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes of each fund vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
The Board noted that the total expenses of each class of Asset Manager 20% ranked below its competitive median for 2008.
The Board noted that the total expenses of each class of Asset Manager 30% ranked below its competitive median for 2008.
The Board noted that the total expenses of each class of Asset Manager 40% ranked below its competitive median for 2008.
The Board noted that the total expenses of each of Class A, Class B, Class C, Institutional Class, and Fidelity Asset Manager 50% (retail class) of Fidelity Asset Manager 50% ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class B, Class C, Institutional Class, and Fidelity Asset Manager 60% (retail class) of Fidelity Asset Manager 60% ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class C, Institutional Class, and Fidelity Asset Manager 70% (retail class) of Fidelity Asset Manager 70% ranked below its competitive median for the period and the total expenses of each of Class T and Class B ranked above its competitive median for the period. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class C, Institutional Class, and Fidelity Asset Manager 85% (retail class) of Fidelity Asset Manager 85% ranked below its competitive median for 2008 and the total expenses of each of Class T and Class B ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
In its review, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of each fund were reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.
In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability, and the extent to which current market conditions have affected retention and recruitment; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Investments Money Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments
Japan Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
AR-UANNPRO-1109
1.878276.101
Fidelity Advisor Asset Manager® Funds -
20%, 30%, 40%, 50%, 60%, 70%, 85% -
Class A, Class T, Class B, and Class C
Annual Report
September 30, 2009
Each Class A, Class T, Class B and Class C are
classes of Fidelity Asset Manager® Funds
(2_fidelity_logos) (Registered_Trademark)
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
We've seen a welcome uptick in the global equity markets this spring and summer, as signs of stabilization in some economic indicators have brought many investors back into the marketplace. But there remain other key measures - notably high unemployment and slack consumer spending - that suggest the road back to economic health could still be a bumpy ride. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Abigail P. Johnson
Abigail P. Johnson
Annual Report
Fidelity Advisor Asset Manager 20% - Class A, T, B, and C
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Past 5
years | Past 10
years |
Class A (incl. 5.75% sales charge) A | 1.33% | 3.17% | 3.98% |
Class T (incl. 3.50% sales charge) B | 3.51% | 3.50% | 4.15% |
Class B (incl. contingent deferred sales charge) C | 1.70% | 3.58% | 4.35% |
Class C (incl. contingent deferred sales charge) D | 5.75% | 3.93% | 4.36% |
A Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 20%, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower.
B Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 20%, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower.
C Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 20%, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower. Class B shares' contingent deferred sales charge included in the past one year, past 5 years, and past 10 years total return figures are 5%, 2%, and 0%, respectively.
D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 20%, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past 5 years, and past 10 years total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager® 20% - Class A on September 30, 1999, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period. The initial offering of Class A took place on October 2, 2006. See above for additional information regarding the performance of Class A.
Annual Report
Fidelity Advisor Asset Manager 30% - Class A, T, B, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Life of
fund A |
Class A (incl. 5.75% sales charge) | 1.32% | -5.43% |
Class T (incl. 3.50% sales charge) | 3.49% | -4.56% |
Class B (incl. contingent deferred sales charge) B | 1.73% | -5.19% |
Class C (incl. contingent deferred sales charge) C | 5.62% | -3.34% |
A From October 9, 2007.
B Class B shares' contingent deferred sales charge included in the past one year and life of fund total return figures are 5% and 4%, respectively.
C Class C shares' contingent deferred sales charge included in the past one year and life of fund total return figures are 1% and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 30% - Class A on October 9, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Asset Manager 40% - Class A, T, B, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Life of
fund A |
Class A (incl. 5.75% sales charge) | 0.66% | -7.26% |
Class T (incl. 3.50% sales charge) | 2.86% | -6.39% |
Class B (incl. contingent deferred sales charge) B | 1.02% | -7.06% |
Class C (incl. contingent deferred sales charge) C | 5.00% | -5.14% |
A From October 9, 2007.
B Class B shares' contingent deferred sales charge included in the past one year and life of fund total return figures are 5% and 4%, respectively.
C Class C shares' contingent deferred sales charge included in the past one year and life of fund total return figures are 1% and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 40% - Class A on October 9, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Asset Manager 50% - Class A, T, B, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Past 5
years | Past 10
years |
Class A (incl. 5.75% sales charge) A | 1.31% | 1.70% | 2.53% |
Class T (incl. 3.50% sales charge) B | 3.46% | 2.03% | 2.70% |
Class B (incl. contingent deferred sales charge) C | 1.64% | 2.11% | 2.90% |
Class C (incl. contingent deferred sales charge) D | 5.59% | 2.43% | 2.90% |
A Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 50%, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower.
B Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 50%, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower.
C Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 50%, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower. Class B shares' contingent deferred sales charge included in the past one year, past five years, and past ten years total return figures are 5%, 2%, and 0%, respectively.
D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 50%, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years, and past ten years total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 50% - Class A on September 30, 1999, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period. The initial offering of Class A took place on October 2, 2006. See above for additional information regarding the performance of Class A.
Annual Report
Fidelity Advisor Asset Manager 60% - Class A, T, B, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Life of
fund A |
Class A (incl. 5.75% sales charge) | 1.30% | -10.17% |
Class T (incl. 3.50% sales charge) | 3.49% | -9.35% |
Class B (incl. contingent deferred sales charge) B | 1.78% | -9.99% |
Class C (incl. contingent deferred sales charge) C | 5.83% | -8.11% |
A From October 9, 2007.
B Class B shares' contingent deferred sales charge included in the past one year and life of fund total return figures are 5% and 4%, respectively.
C Class C shares' contingent deferred sales charge included in the past one year and life of fund total return figures are 1% and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 60% - Class A on October 9, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 performed over the same period.
Annual Report
Fidelity Advisor Asset Manager 70% - Class A, T, B, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Past 5
years | Past 10
years |
Class A (incl. 5.75% sales charge) A | -0.77% | 0.95% | 0.82% |
Class T (incl. 3.50% sales charge) B | 1.30% | 1.37% | 1.03% |
Class B (incl. contingent deferred sales charge)C | -0.55% | 1.63% | 1.34% |
Class C (incl. contingent deferred sales charge) D | 3.46% | 2.00% | 1.34% |
A Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on September 23, 2008. Returns prior to September 23, 2008 are those of Asset Manager 70%, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to September 23, 2008 would have been lower.
B Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on September 23, 2008. Returns prior to September 23, 2008 are those of Asset Manager 70%, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to September 23, 2008 would have been lower.
C Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on September 23, 2008. Returns prior to September 23, 2008 are those of Asset Manager 70%, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to September 23, 2008 would have been lower. Class B shares' contingent deferred sales charge included in the past one year, past five years, and past 10 years total return figures are 5%, 2%, and 0%, respectively.
D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on September 23, 2008. Returns prior to September 23, 2008 are those of Asset Manager 70%, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to September 23, 2008 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years, and past 10 years total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 70% - Class A on September 30, 1999, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 performed over the same period. The initial offering of Class A took place on September 23, 2008. See above for additional information regarding the performance of Class A.
Annual Report
Fidelity Advisor Asset Manager 85% - Class A, T, B, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Past 5
years | Past 10
years |
Class A (incl. 5.75% sales charge) A | -1.70% | 1.80% | 1.96% |
Class T (incl. 3.50% sales charge) B | 0.34% | 2.11% | 2.12% |
Class B (incl. contingent deferred sales charge) C | -1.56% | 2.16% | 2.32% |
Class C (incl. contingent deferred sales charge) D | 2.48% | 2.54% | 2.33% |
A Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 85%, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower.
B Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 85%, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower.
C Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 85%, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower. Class B shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 5%, 2%, and 0%, respectively.
D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 85%, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to October 2, 2006 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 85% - Class A on September 30, 1999, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 performed over the same period. The initial offering of Class A took place on October 2, 2006. See above for additional information regarding the performance of Class A.
Annual Report
Market Recap: Global equity markets came almost full circle during the 12 months ending September 30, 2009, recouping large portions of the deep losses suffered in last fall's big sell-off, as unprecedented government intervention programs to shore up the credit markets and stimulate economic growth began to take root. In early March, as signs of improvement were emerging, equity markets began to rally sharply. The Standard & Poor's 500SM Index returned -6.91% for the year, the blue-chip Dow Jones Industrial AverageSM returned -7.38% and the technology-laden Nasdaq Composite® Index gained 2.53%. International equities, which had fared worse than their domestic counterparts during the sell-off, outperformed for the year as a whole, with the MSCI® EAFE® Index (Europe, Australasia, Far East) - a measure of developed markets outside the U.S. and Canada - advancing 3.37%, bolstered in part by a weaker dollar. Within the bond space, spread-based products replaced Treasuries later in the period as the favored sector for fixed-income investors. For the year, the overall investment-grade bond universe, as measured by the Barclays Capital U.S. Aggregate Bond Index, returned 10.56%, while high-yield corporate bonds finished the period with an advance of 22.73%, as gauged by the Merrill Lynch® U.S. High Yield Master II Constrained Index.
Comments from Geoff Stein, who became Portfolio Manager of Fidelity Advisor Asset Manager® Funds on June 1, 2009: In the midst of a dramatically improved market environment during most of the period for both stocks and credit-sensitive bonds, all seven of the Advisor Asset Manager funds outperformed their Composite benchmarks by substantial margins, excluding sales charges, for the year ending September 30, 2009. Strong domestic-equity stock selection and favorable asset-allocation positioning overall fueled the funds' solid relative results. Shifting into higher-beta - meaning more-volatile - stocks during the first quarter of 2009 proved to be the right strategy at the right time to capitalize on the ensuing market rally. In total, nine of the 10 underlying domestic equity sector central funds beat their respective components of the Composite index, with consumer discretionary performing in line with its benchmark component. Within the domestic equity sector central funds, favorable security selection in technology contributed the most to relative returns, followed by picks in financials, health care, industrials and energy. From a market-capitalization perspective, overweighting mid- and small-cap stocks - particularly in the $1 billion to $10 billion range - was the correct positioning, as stocks in these capitalization tiers outperformed their large-cap counterparts amid a sustained market rebound during the period's second half. Concerning our equity and fixed-income asset-allocation strategies, by continually rebalancing our domestic equity stakes early in the period, our allocations were positioned to rebound as the market bottomed in March and then rallied sharply, which aided performance in most of the funds. In addition to domestic equities, out-of-index positions in emerging-markets (EM) equities, high-yield bonds and floating-rate bank-loan securities also contributed. In order to fund our allocations to high-yield and floating-rate debt and EM equities, we underweighted cash across all of the funds - except Advisor Asset Manager 85% - which also boosted relative returns. In Advisor Asset Manager 85%, an out-of-benchmark cash position of roughly 2% actually helped on a relative basis because the positive return generated by the cash beat the negative return of the fund's benchmark. In terms of detractors, stock selection in international equity dampened returns across all funds, but the negative impact was minimal in Advisor Asset Manager 20% and 30%, where the allocation to foreign equities was very small. In addition, our generally underweighted exposure to investment-grade bonds detracted from performance in most of the funds, despite the underlying central fund outperforming its benchmark.
Note to shareholders: In conjunction with an adjustment to Fidelity's planning and guidance methodology, Fidelity will modify the international equity exposure within the Advisor Asset Manager funds' target asset allocations. Effective October 2, 2009, each Advisor Asset Manager fund will increase the international equity exposure within its target asset allocation to 30% of total equity, and modify its composite performance benchmark accordingly. Fidelity believes this change improves the risk and return characteristics of the funds.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
The Funds invest in Fidelity Central Funds, which are open-end investment companies with similar investment objectives to those of the Funds, available only to other mutual funds and accounts managed by Fidelity Management & Research Company, (FMR) and its affiliates. In addition to the direct expenses incurred by the Funds presented in the table, as a shareholder of the underlying Fidelity Central Funds, the Funds also indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. These expenses are not included in the Funds' annualized expense ratio used to calculate either the actual or hypothetical expense estimates presented in the table but are summarized in a footnote to the table.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2009 to September 30, 2009).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
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 | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 20% | | | | |
Class A | .86% | | | |
Actual | | $ 1,000.00 | $ 1,168.60 | $ 4.68 |
HypotheticalA | | $ 1,000.00 | $ 1,020.76 | $ 4.36 |
Class T | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,166.30 | $ 5.97 |
HypotheticalA | | $ 1,000.00 | $ 1,019.55 | $ 5.57 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,164.50 | $ 8.95 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.63% | | | |
Actual | | $ 1,000.00 | $ 1,164.90 | $ 8.85 |
HypotheticalA | | $ 1,000.00 | $ 1,016.90 | $ 8.24 |
Asset Manager 20% | .58% | | | |
Actual | | $ 1,000.00 | $ 1,170.90 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,022.16 | $ 2.94 |
Institutional Class | .55% | | | |
Actual | | $ 1,000.00 | $ 1,171.00 | $ 2.99 |
HypotheticalA | | $ 1,000.00 | $ 1,022.31 | $ 2.79 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 30% | | | | |
Class A | .90% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 4.99 |
HypotheticalA | | $ 1,000.00 | $ 1,020.56 | $ 4.56 |
Class T | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,210.20 | $ 6.37 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,207.00 | $ 9.13 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,206.20 | $ 9.13 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Asset Manager 30% | .65% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 3.61 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Institutional Class | .65% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 3.61 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Fidelity Asset Manager 40% | | | | |
Class A | .90% | | | |
Actual | | $ 1,000.00 | $ 1,248.50 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,020.56 | $ 4.56 |
Class T | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,246.40 | $ 6.48 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,241.80 | $ 9.27 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,243.10 | $ 9.28 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Asset Manager 40% | .65% | | | |
Actual | | $ 1,000.00 | $ 1,249.20 | $ 3.66 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Institutional Class | .65% | | | |
Actual | | $ 1,000.00 | $ 1,249.20 | $ 3.66 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Fidelity Asset Manager 50% | | | | |
Class A | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,293.90 | $ 5.75 |
HypotheticalA | | $ 1,000.00 | $ 1,020.05 | $ 5.06 |
Class T | 1.27% | | | |
Actual | | $ 1,000.00 | $ 1,292.40 | $ 7.30 |
HypotheticalA | | $ 1,000.00 | $ 1,018.70 | $ 6.43 |
Class B | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,288.80 | $ 10.61 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Class C | 1.80% | | | |
Actual | | $ 1,000.00 | $ 1,288.20 | $ 10.33 |
HypotheticalA | | $ 1,000.00 | $ 1,016.04 | $ 9.10 |
Asset Manager 50% | .76% | | | |
Actual | | $ 1,000.00 | $ 1,295.20 | $ 4.37 |
HypotheticalA | | $ 1,000.00 | $ 1,021.26 | $ 3.85 |
Institutional Class | .69% | | | |
Actual | | $ 1,000.00 | $ 1,296.10 | $ 3.97 |
HypotheticalA | | $ 1,000.00 | $ 1,021.61 | $ 3.50 |
Fidelity Asset Manager 60% | | | | |
Class A | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,324.40 | $ 6.41 |
HypotheticalA | | $ 1,000.00 | $ 1,019.55 | $ 5.57 |
Class T | 1.35% | | | |
Actual | | $ 1,000.00 | $ 1,323.90 | $ 7.86 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.83 |
Class B | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,320.20 | $ 10.76 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
Class C | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,322.30 | $ 10.77 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
Asset Manager 60% | .85% | | | |
Actual | | $ 1,000.00 | $ 1,327.60 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Institutional Class | .85% | | | |
Actual | | $ 1,000.00 | $ 1,327.60 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Fidelity Asset Manager 70% | | | | |
Class A | 1.18% | | | |
Actual | | $ 1,000.00 | $ 1,361.30 | $ 6.98 |
HypotheticalA | | $ 1,000.00 | $ 1,019.15 | $ 5.97 |
Class T | 1.43% | | | |
Actual | | $ 1,000.00 | $ 1,358.40 | $ 8.45 |
HypotheticalA | | $ 1,000.00 | $ 1,017.90 | $ 7.23 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,356.20 | $ 11.52 |
HypotheticalA | | $ 1,000.00 | $ 1,015.29 | $ 9.85 |
Class C | 1.89% | | | |
Actual | | $ 1,000.00 | $ 1,356.20 | $ 11.16 |
HypotheticalA | | $ 1,000.00 | $ 1,015.59 | $ 9.55 |
Asset Manager 70% | .85% | | | |
Actual | | $ 1,000.00 | $ 1,362.90 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Institutional Class | .87% | | | |
Actual | | $ 1,000.00 | $ 1,362.90 | $ 5.15 |
HypotheticalA | | $ 1,000.00 | $ 1,020.71 | $ 4.41 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 85% | | | | |
Class A | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,409.80 | $ 6.95 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class T | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,408.30 | $ 8.57 |
HypotheticalA | | $ 1,000.00 | $ 1,017.95 | $ 7.18 |
Class B | 1.98% | | | |
Actual | | $ 1,000.00 | $ 1,403.80 | $ 11.93 |
HypotheticalA | | $ 1,000.00 | $ 1,015.14 | $ 10.00 |
Class C | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,404.30 | $ 11.63 |
HypotheticalA | | $ 1,000.00 | $ 1,015.39 | $ 9.75 |
Asset Manager 85% | .94% | | | |
Actual | | $ 1,000.00 | $ 1,412.10 | $ 5.68 |
HypotheticalA | | $ 1,000.00 | $ 1,020.36 | $ 4.76 |
Institutional Class | .82% | | | |
Actual | | $ 1,000.00 | $ 1,413.80 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.96 | $ 4.15 |
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 183/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Funds annualized expense ratio.
In addition to the expenses noted above, the Funds also indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying Fidelity Central Funds as of their most recent fiscal half year ranged from less than ..01% to .12%.
Annual Report
Fidelity Asset Manager 20%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 15.7 | 15.6 |
U.S. Treasury Obligations | 14.3 | 6.4 |
Freddie Mac | 2.2 | 2.6 |
Government National Mortgage Association | 0.6 | 2.6 |
JPMorgan Chase Capital XX | 0.5 | 0.4 |
| 33.3 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| U.S. Government and
U.S. Government
Agency Obligations 32.8% | | | U.S. Government and
U.S. Government
Agency Obligations 27.6% | |
| AAA,AA,A 12.4% | | | AAA,AA,A 13.3% | |
| BBB 10.7% | | | BBB 10.0% | |
| BB and Below 6.3% | | | BB and Below 7.1% | |
| Not Rated 0.2% | | | Not Rated 0.3% | |
| Equities 21.0% | | | Equities 19.4% | |
| Short-Term
Investments and
Net Other Assets 16.6% | | | Short-Term
Investments and
Net Other Assets 22.3% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.3 | 0.2 |
Google, Inc. Class A | 0.3 | 0.3 |
Procter & Gamble Co. | 0.2 | 0.3 |
Pfizer, Inc. | 0.2 | 0.1 |
Charles Schwab Corp. | 0.2 | 0.0 |
| 1.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 20.9% | | | Stock Class and
Equity Futures 19.4% | |
| Bond Class 58.4% | | | Bond Class 56.6% | |
| Short-Term Class 20.7% | | | Short-Term Class 24.0% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 20%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 3.8 |
Fidelity Financials Central Fund | 3.1 |
Fidelity Health Care Central Fund | 2.6 |
Fidelity Energy Central Fund | 2.3 |
Fidelity Industrials Central Fund | 2.2 |
Fidelity Consumer Discretionary Central Fund | 1.9 |
Fidelity Consumer Staples Central Fund | 1.9 |
Fidelity International Equity Central Fund | 1.1 |
Fidelity Materials Central Fund | 0.9 |
Fidelity Telecom Services Central Fund | 0.7 |
Fidelity Utilities Central Fund | 0.7 |
Total Equity Central Funds | 21.2 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.1 |
Investment Grade Fixed-Income Funds | 54.8 |
Total Fixed-Income Central Funds | 59.9 |
Money Market Central Funds | 18.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 9.0% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 20%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 21.2% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 485,022 | | $ 44,675,351 |
Fidelity Consumer Staples Central Fund (b) | 394,725 | | 45,057,822 |
Fidelity Energy Central Fund (b) | 546,892 | | 54,207,979 |
Fidelity Financials Central Fund (b) | 1,267,434 | | 73,751,990 |
Fidelity Health Care Central Fund (b) | 610,494 | | 61,659,926 |
Fidelity Industrials Central Fund (b) | 518,506 | | 52,695,777 |
Fidelity Information Technology Central Fund (b) | 724,762 | | 89,102,247 |
Fidelity International Equity Central Fund (b) | 409,869 | | 26,661,977 |
Fidelity Materials Central Fund (b) | 160,366 | | 20,193,264 |
Fidelity Telecom Services Central Fund (b) | 152,867 | | 15,219,399 |
Fidelity Utilities Central Fund (b) | 187,247 | | 16,532,066 |
TOTAL EQUITY CENTRAL FUNDS (Cost $525,660,348) | 499,757,798 |
Fixed-Income Central Funds - 59.9% |
| | | |
High Yield Fixed-Income Funds - 5.1% |
Fidelity Floating Rate Central Fund (b) | 295,201 | | 26,813,071 |
Fidelity High Income Central Fund 1 (b) | 1,048,404 | | 92,773,272 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 119,586,343 |
Investment Grade Fixed-Income Funds - 54.8% |
Fidelity Tactical Income Central Fund (b) | 13,649,544 | 1,291,110,352 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $1,428,182,003) | 1,410,696,695 |
Money Market Central Funds - 18.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 33,566,053 | | $ 33,566,053 |
Fidelity Money Market Central Fund, 0.60% (a) | 410,550,134 | | 410,550,134 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $444,116,187) | 444,116,187 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,397,958,538) | | 2,354,570,680 |
NET OTHER ASSETS - 0.0% | | 239,537 |
NET ASSETS - 100% | $ 2,354,810,217 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 1,171,183 |
Fidelity Consumer Discretionary Central Fund | 679,426 |
Fidelity Consumer Staples Central Fund | 1,140,450 |
Fidelity Energy Central Fund | 499,004 |
Fidelity Financials Central Fund | 1,514,306 |
Fidelity Floating Rate Central Fund | 2,459,618 |
Fidelity Health Care Central Fund | 722,757 |
Fidelity High Income Central Fund 1 | 6,546,550 |
Fidelity Industrials Central Fund | 955,918 |
Fidelity Information Technology Central Fund | 585,733 |
Fidelity International Equity Central Fund | 321,199 |
Fidelity Materials Central Fund | 309,593 |
Fidelity Money Market Central Fund | 5,109,378 |
Fidelity Tactical Income Central Fund | 53,793,437 |
Fidelity Telecom Services Central Fund | 274,648 |
Fidelity Utilities Central Fund | 589,546 |
Total | $ 76,672,746 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 42,899,299 | $ 9,187,790 | $ 7,369,840 | $ 44,675,351 | 8.6% |
Fidelity Consumer Staples Central Fund | 43,280,780 | 9,915,583 | 7,701,524 | 45,057,822 | 8.7% |
Fidelity Energy Central Fund | 45,971,670 | 19,298,823 | 8,173,672 | 54,207,979 | 9.4% |
Fidelity Financials Central Fund | 67,032,602 | 22,632,822 | 7,854,488 | 73,751,990 | 9.6% |
Fidelity Floating Rate Central Fund | 67,675,508 | 2,823,864 | 40,135,484 | 26,813,071 | 0.9% |
Fidelity Health Care Central Fund | 54,027,771 | 17,282,411 | 10,784,516 | 61,659,926 | 9.2% |
Fidelity High Income Central Fund 1 | 42,245,646 | 43,077,160 | 1,724,386 | 92,773,272 | 18.2% |
Fidelity Industrials Central Fund | 50,521,309 | 12,506,465 | 8,710,687 | 52,695,777 | 8.8% |
Fidelity Information Technology Central Fund | 62,956,141 | 18,067,661 | 11,828,955 | 89,102,247 | 8.9% |
Fidelity International Equity Central Fund | - | 22,200,728 | 193,681 | 26,661,977 | 4.2% |
Fidelity Materials Central Fund | 15,341,018 | 4,597,107 | 2,993,757 | 20,193,264 | 8.8% |
Fidelity Tactical Income Central Fund | 1,082,230,662 | 283,043,467 | 133,925,715 | 1,291,110,352 | 29.3% |
Fidelity Telecom Services Central Fund | 12,667,166 | 3,171,200 | 2,534,078 | 15,219,399 | 8.8% |
Fidelity Utilities Central Fund | 15,447,872 | 4,648,407 | 2,738,740 | 16,532,066 | 9.2% |
Total | $ 1,602,297,444 | $ 472,453,488 | $ 246,669,523 | $ 1,910,454,493 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $109,929,389 all of which will expire on September 30, 2017. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $70,092,243 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 20%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $2,397,958,538) - See accompanying schedule: | | $ 2,354,570,680 |
Receivable for investments sold | | 633,325 |
Receivable for fund shares sold | | 3,913,305 |
Distributions receivable from Fidelity Central Funds | | 5,408,210 |
Prepaid expenses | | 11,317 |
Receivable from investment adviser for expense reductions | | 95 |
Total assets | | 2,364,536,932 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,292,125 | |
Payable for fund shares redeemed | 2,324,954 | |
Accrued management fee | 801,294 | |
Distribution fees payable | 18,132 | |
Other affiliated payables | 261,399 | |
Other payables and accrued expenses | 28,811 | |
Total liabilities | | 9,726,715 |
| | |
Net Assets | | $ 2,354,810,217 |
Net Assets consist of: | | |
Paid in capital | | $ 2,497,555,882 |
Undistributed net investment income | | 3,231,753 |
Accumulated undistributed net realized gain (loss) on investments | | (102,589,560) |
Net unrealized appreciation (depreciation) on investments | | (43,387,858) |
Net Assets | | $ 2,354,810,217 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($24,487,577 ÷ 2,074,584 shares) | | $ 11.80 |
| | |
Maximum offering price per share (100/94.25 of $11.80) | | $ 12.52 |
Class T:
Net Asset Value and redemption price per share ($10,032,090 ÷ 851,260 shares) | | $ 11.78 |
| | |
Maximum offering price per share (100/96.50 of $11.78) | | $ 12.21 |
Class B:
Net Asset Value and offering price per share ($2,712,207 ÷ 230,420 shares)A | | $ 11.77 |
| | |
Class C:
Net Asset Value and offering price per share ($9,189,262 ÷ 781,554 shares)A | | $ 11.76 |
| | |
Asset Manager 20%:
Net Asset Value, offering price and redemption price per share ($2,305,691,732 ÷ 195,088,270 shares) | | $ 11.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,697,349 ÷ 228,280 shares) | | $ 11.82 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 2,448 |
Income from Fidelity Central Funds | | 76,672,746 |
Total income | | 76,675,194 |
| | |
Expenses | | |
Management fee | $ 8,288,972 | |
Transfer agent fees | 2,213,862 | |
Distribution fees | 142,116 | |
Accounting fees and expenses | 651,792 | |
Custodian fees and expenses | 5,025 | |
Independent trustees' compensation | 7,308 | |
Registration fees | 125,233 | |
Audit | 51,703 | |
Legal | 10,719 | |
Miscellaneous | 85,713 | |
Total expenses before reductions | 11,582,443 | |
Expense reductions | (34,107) | 11,548,336 |
Net investment income (loss) | | 65,126,858 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 634,279 | |
Fidelity Central Funds | (23,977,067) | |
Futures contracts | (7,536,941) | |
Total net realized gain (loss) | | (30,879,729) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 106,345,918 | |
Futures contracts | 1,367,696 | |
Total change in net unrealized appreciation (depreciation) | | 107,713,614 |
Net gain (loss) | | 76,833,885 |
Net increase (decrease) in net assets resulting from operations | | $ 141,960,743 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 65,126,858 | $ 86,585,401 |
Net realized gain (loss) | (30,879,729) | (18,069,996) |
Change in net unrealized appreciation (depreciation) | 107,713,614 | (241,275,471) |
Net increase (decrease) in net assets resulting from operations | 141,960,743 | (172,760,066) |
Distributions to shareholders from net investment income | (71,793,201) | (91,104,113) |
Distributions to shareholders from net realized gain | - | (49,576,396) |
Total distributions | (71,793,201) | (140,680,509) |
Share transactions - net increase (decrease) | (1,051,686) | 79,342,713 |
Total increase (decrease) in net assets | 69,115,856 | (234,097,862) |
| | |
Net Assets | | |
Beginning of period | 2,285,694,361 | 2,519,792,223 |
End of period (including undistributed net investment income of $3,231,753 and undistributed net investment income of $11,795,814, respectively) | $ 2,354,810,217 | $ 2,285,694,361 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.35 | $ 12.90 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .33 | .39 | .48 |
Net realized and unrealized gain (loss) | .48 | (1.27) | .40 |
Total from investment operations | .81 | (.88) | .88 |
Distributions from net investment income | (.36) | (.42) | (.52) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.36) | (.67) | (1.11) |
Net asset value, end of period | $ 11.80 | $ 11.35 | $ 12.90 |
Total Return B,C,D | 7.51% | (7.18)% | 7.03% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | .87% | .86% | .87% A |
Expenses net of fee waivers, if any | .87% | .86% | .87% A |
Expenses net of all reductions | .87% | .86% | .87% A |
Net investment income (loss) | 3.01% | 3.18% | 3.84% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 24,488 | $ 8,030 | $ 3,422 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.33 | $ 12.88 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .30 | .36 | .45 |
Net realized and unrealized gain (loss) | .48 | (1.28) | .40 |
Total from investment operations | .78 | (.92) | .85 |
Distributions from net investment income | (.33) | (.38) | (.51) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.33) | (.63) | (1.10) |
Net asset value, end of period | $ 11.78 | $ 11.33 | $ 12.88 |
Total Return B,C,D | 7.26% | (7.43)% | 6.75% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.11% | 1.12% | 1.11% A |
Expenses net of fee waivers, if any | 1.11% | 1.12% | 1.11% A |
Expenses net of all reductions | 1.11% | 1.12% | 1.11% A |
Net investment income (loss) | 2.76% | 2.93% | 3.60% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 10,032 | $ 4,915 | $ 3,954 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.32 | $ 12.87 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .24 | .29 | .39 |
Net realized and unrealized gain (loss) | .49 | (1.27) | .38 |
Total from investment operations | .73 | (.98) | .77 |
Distributions from net investment income | (.28) | (.32) | (.44) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.28) | (.57) | (1.03) |
Net asset value, end of period | $ 11.77 | $ 11.32 | $ 12.87 |
Total Return B,C,D | 6.70% | (7.89)% | 6.13% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.69% | 1.67% | 1.65% A |
Expenses net of fee waivers, if any | 1.65% | 1.66% | 1.65% A |
Expenses net of all reductions | 1.65% | 1.66% | 1.65% A |
Net investment income (loss) | 2.23% | 2.38% | 3.06% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,712 | $ 1,975 | $ 991 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.31 | $ 12.86 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .24 | .29 | .39 |
Net realized and unrealized gain (loss) | .49 | (1.26) | .38 |
Total from investment operations | .73 | (.97) | .77 |
Distributions from net investment income | (.28) | (.33) | (.45) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.28) | (.58) | (1.04) |
Net asset value, end of period | $ 11.76 | $ 11.31 | $ 12.86 |
Total Return B,C,D | 6.75% | (7.87)% | 6.15% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.63% | 1.65% | 1.64% A |
Expenses net of fee waivers, if any | 1.63% | 1.65% | 1.64% A |
Expenses net of all reductions | 1.63% | 1.64% | 1.64% A |
Net investment income (loss) | 2.24% | 2.40% | 3.07% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 9,189 | $ 3,668 | $ 1,697 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 20%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.36 | $ 12.91 | $ 13.14 | $ 13.00 | $ 12.25 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .35 | .43 | .53 | .46 | .33 |
Net realized and unrealized gain (loss) | .50 | (1.28) | .38 | .39 | .74 |
Total from investment operations | .85 | (.85) | .91 | .85 | 1.07 |
Distributions from net investment income | (.39) | (.45) | (.55) | (.43) | (.32) |
Distributions from net realized gain | - | (.25) | (.59) | (.28) | - |
Total distributions | (.39) | (.70) | (1.14) | (.71) | (.32) |
Net asset value, end of period | $ 11.82 | $ 11.36 | $ 12.91 | $ 13.14 | $ 13.00 |
Total Return A | 7.90% | (6.90)% | 7.26% | 6.77% | 8.85% |
Ratios to Average Net Assets D | | | | | |
Expenses before reductions | .58% | .56% | .57% | .58% | .60% |
Expenses net of fee waivers, if any | .58% | .56% | .57% | .58% | .60% |
Expenses net of all reductions | .58% | .56% | .57% | .57% | .58% |
Net investment income (loss) | 3.30% | 3.48% | 4.15% | 3.58% | 2.64% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,305,692 | $ 2,265,384 | $ 2,509,481 | $ 2,130,750 | $ 1,724,038 |
Portfolio turnover rate C | 16% | 5% | 6% | 81% E | 81% E |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
E Portfolio turnover rate excludes securities received or delivered in kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.35 | $ 12.90 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) D | .36 | .42 | .53 |
Net realized and unrealized gain (loss) | .50 | (1.27) | .38 |
Total from investment operations | .86 | (.85) | .91 |
Distributions from net investment income | (.39) | (.45) | (.55) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.39) | (.70) | (1.14) |
Net asset value, end of period | $ 11.82 | $ 11.35 | $ 12.90 |
Total Return B,C | 8.00% | (6.91)% | 7.24% |
Ratios to Average Net AssetsG | | | |
Expenses before reductions | .56% | .57% | .59% A |
Expenses net of fee waivers, if any | .56% | .57% | .59% A |
Expenses net of all reductions | .56% | .56% | .59% A |
Net investment income (loss) | 3.32% | 3.48% | 4.13% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,697 | $ 1,722 | $ 248 |
Portfolio turnover rate E | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 30%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 15.2 | 15.6 |
U.S. Treasury Obligations | 13.8 | 6.3 |
Freddie Mac | 2.2 | 2.5 |
Government National Mortgage Association | 0.6 | 2.6 |
JPMorgan Chase Capital XX | 0.5 | 0.4 |
| 32.3 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| U.S. Government and
U.S. Government
Agency Obligations 31.8% | | | U.S. Government and
U.S. Government
Agency Obligations 27.4% | |
| AAA,AA,A 11.5% | | | AAA,AA,A 13.3% | |
| BBB 10.5% | | | BBB 9.9% | |
| BB and Below 6.3% | | | BB and Below 7.0% | |
| Not Rated 0.2% | | | Not Rated 0.3% | |
| Equities 30.3% | | | Equities 29.2% | |
| Short-Term
Investments and
Net Other Assets 9.4% | | | Short-Term
Investments and
Net Other Assets 12.9% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.5 | 0.3 |
Procter & Gamble Co. | 0.3 | 0.5 |
Google, Inc. Class A | 0.4 | 0.3 |
Pfizer, Inc. | 0.3 | 0.2 |
Charles Schwab Corp. | 0.3 | 0.0 |
| 1.8 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 30.3% | | | Stock Class and
Equity Futures 29.1% | |
| Bond Class 56.6% | | | Bond Class 56.3% | |
| Short-Term Class 13.1% | | | Short-Term Class 14.6% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 30%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 5.5 |
Fidelity Financials Central Fund | 4.7 |
Fidelity Health Care Central Fund | 3.9 |
Fidelity Energy Central Fund | 3.3 |
Fidelity Industrials Central Fund | 3.3 |
Fidelity Consumer Discretionary Central Fund | 3.0 |
Fidelity Consumer Staples Central Fund | 3.0 |
Fidelity Materials Central Fund | 1.1 |
Fidelity Utilities Central Fund | 1.1 |
Fidelity International Equity Central Fund | 1.0 |
Fidelity Telecom Services Central Fund | 0.9 |
Total Equity Central Funds | 30.8 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 52.9 |
Total Fixed-Income Central Funds | 57.9 |
Money Market Central Funds | 10.8 |
Net Other Assets | 0.5 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 10.0% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 30%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 30.8% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 23,380 | | $ 2,153,509 |
Fidelity Consumer Staples Central Fund (b) | 18,603 | | 2,123,558 |
Fidelity Energy Central Fund (b) | 24,181 | | 2,396,832 |
Fidelity Financials Central Fund (b) | 58,285 | | 3,391,587 |
Fidelity Health Care Central Fund (b) | 27,628 | | 2,790,440 |
Fidelity Industrials Central Fund (b) | 23,091 | | 2,346,736 |
Fidelity Information Technology Central Fund (b) | 32,258 | | 3,965,785 |
Fidelity International Equity Central Fund (b) | 10,964 | | 713,202 |
Fidelity Materials Central Fund (b) | 6,531 | | 822,400 |
Fidelity Telecom Services Central Fund (b) | 6,114 | | 608,687 |
Fidelity Utilities Central Fund (b) | 9,153 | | 808,087 |
TOTAL EQUITY CENTRAL FUNDS (Cost $21,739,032) | 22,120,823 |
Fixed-Income Central Funds - 57.9% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 9,421 | | 855,694 |
Fidelity High Income Central Fund 1 (b) | 30,811 | | 2,726,495 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 3,582,189 |
Investment Grade Fixed-Income Funds - 52.9% |
Fidelity Tactical Income Central Fund (b) | 401,473 | 37,975,333 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $40,331,741) | 41,557,522 |
Money Market Central Funds - 10.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 2,806,891 | | $ 2,806,891 |
Fidelity Money Market Central Fund, 0.60% (a) | 4,900,000 | | 4,900,000 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $7,706,891) | 7,706,891 |
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $69,777,664) | | 71,385,236 |
NET OTHER ASSETS - 0.5% | | 352,745 |
NET ASSETS - 100% | $ 71,737,981 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 34,180 |
Fidelity Consumer Discretionary Central Fund | 20,707 |
Fidelity Consumer Staples Central Fund | 35,542 |
Fidelity Energy Central Fund | 15,925 |
Fidelity Financials Central Fund | 43,582 |
Fidelity Floating Rate Central Fund | 43,117 |
Fidelity Health Care Central Fund | 21,112 |
Fidelity High Income Central Fund 1 | 128,645 |
Fidelity Industrials Central Fund | 27,423 |
Fidelity Information Technology Central Fund | 17,972 |
Fidelity International Equity Central Fund | 7,870 |
Fidelity Materials Central Fund | 8,710 |
Fidelity Money Market Central Fund | 19,579 |
Fidelity Tactical Income Central Fund | 1,021,832 |
Fidelity Telecom Services Central Fund | 7,558 |
Fidelity Utilities Central Fund | 19,034 |
Total | $ 1,472,788 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 965,072 | $ 1,096,230 | $ 104,201 | $ 2,153,509 | 0.4% |
Fidelity Consumer Staples Central Fund | 973,588 | 1,142,631 | 125,944 | 2,123,558 | 0.4% |
Fidelity Energy Central Fund | 1,034,093 | 1,465,600 | 285,882 | 2,396,832 | 0.4% |
Fidelity Financials Central Fund | 1,507,852 | 1,859,405 | 155,397 | 3,391,587 | 0.4% |
Fidelity Floating Rate Central Fund | 1,013,697 | 479,453 | 643,329 | 855,694 | 0.0% |
Fidelity Health Care Central Fund | 1,215,308 | 1,495,210 | 151,841 | 2,790,440 | 0.4% |
Fidelity High Income Central Fund 1 | 637,595 | 1,977,307 | 134,779 | 2,726,495 | 0.5% |
Fidelity Industrials Central Fund | 1,136,447 | 1,200,534 | 177,539 | 2,346,736 | 0.4% |
Fidelity Information Technology Central Fund | 1,416,220 | 1,873,725 | 272,651 | 3,965,785 | 0.4% |
Fidelity International Equity Central Fund | - | 597,081 | - | 713,202 | 0.1% |
Fidelity Materials Central Fund | 345,142 | 423,490 | 108,398 | 822,400 | 0.4% |
Fidelity Tactical Income Central Fund | 13,876,261 | 24,063,360 | 1,942,435 | 37,975,333 | 0.9% |
Fidelity Telecom Services Central Fund | 285,000 | 299,689 | 67,672 | 608,687 | 0.4% |
Fidelity Utilities Central Fund | 347,516 | 482,951 | 41,200 | 808,087 | 0.4% |
Total | $ 24,753,791 | $ 38,456,666 | $ 4,211,268 | $ 63,678,345 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 90.0% |
United Kingdom | 1.3% |
Bermuda | 1.2% |
Canada | 1.1% |
Others (individually less than 1%) | 6.4% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $270,253 of which $10,213 and $260,040 will expire on September 30, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $728,141 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 30%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $69,777,664) - See accompanying schedule: | | $ 71,385,236 |
Receivable for investments sold | | 22,364 |
Receivable for fund shares sold | | 442,379 |
Distributions receivable from Fidelity Central Funds | | 150,197 |
Prepaid expenses | | 310 |
Receivable from investment adviser for expense reductions | | 38,129 |
Total assets | | 72,038,615 |
| | |
Liabilities | | |
Payable for investments purchased | $ 210,887 | |
Payable for fund shares redeemed | 14,349 | |
Accrued management fee | 23,512 | |
Distribution fees payable | 4,380 | |
Other affiliated payables | 7,745 | |
Other payables and accrued expenses | 39,761 | |
Total liabilities | | 300,634 |
| | |
Net Assets | | $ 71,737,981 |
Net Assets consist of: | | |
Paid in capital | | $ 70,590,710 |
Undistributed net investment income | | 157,639 |
Accumulated undistributed net realized gain (loss) on investments | | (617,940) |
Net unrealized appreciation (depreciation) on investments | | 1,607,572 |
Net Assets | | $ 71,737,981 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($4,305,301 ÷ 476,481 shares) | | $ 9.04 |
| | |
Maximum offering price per share (100/94.25 of $9.04) | | $ 9.59 |
Class T:
Net Asset Value and redemption price per share ($2,181,202 ÷ 241,502 shares) | | $ 9.03 |
| | |
Maximum offering price per share (100/96.50 of $9.03) | | $ 9.36 |
Class B:
Net Asset Value and offering price per share ($772,519 ÷ 85,569 shares)A | | $ 9.03 |
| | |
Class C:
Net Asset Value and offering price per share ($2,498,914 ÷ 277,221 shares)A | | $ 9.01 |
| | |
Asset Manager 30%:
Net Asset Value, offering price and redemption price per share ($61,207,289 ÷ 6,770,261 shares) | | $ 9.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($772,756 ÷ 85,481 shares) | | $ 9.04 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 657 |
Income from Fidelity Central Funds | | 1,472,788 |
Total income | | 1,473,445 |
| | |
Expenses | | |
Management fee | $ 168,728 | |
Transfer agent fees | 47,001 | |
Distribution fees | 32,950 | |
Accounting fees and expenses | 16,708 | |
Custodian fees and expenses | 5,008 | |
Independent trustees' compensation | 134 | |
Registration fees | 67,768 | |
Audit | 61,448 | |
Legal | 137 | |
Miscellaneous | 1,521 | |
Total expenses before reductions | 401,403 | |
Expense reductions | (107,567) | 293,836 |
Net investment income (loss) | | 1,179,609 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 98 | |
Fidelity Central Funds | 63,714 | |
Futures contracts | (55,838) | |
Total net realized gain (loss) | | 7,974 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 4,615,333 | |
Futures contracts | 10,142 | |
Total change in net unrealized appreciation (depreciation) | | 4,625,475 |
Net gain (loss) | | 4,633,449 |
Net increase (decrease) in net assets resulting from operations | | $ 5,813,058 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | For the period October 9, 2007 (commencement of operations) to September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,179,609 | $ 697,480 |
Net realized gain (loss) | 7,974 | (584,261) |
Change in net unrealized appreciation (depreciation) | 4,625,475 | (3,017,903) |
Net increase (decrease) in net assets resulting from operations | 5,813,058 | (2,904,684) |
Distributions to shareholders from net investment income | (1,165,886) | (595,233) |
Share transactions - net increase (decrease) | 36,657,851 | 33,932,875 |
Total increase (decrease) in net assets | 41,305,023 | 30,432,958 |
| | |
Net Assets | | |
Beginning of period | 30,432,958 | - |
End of period (including undistributed net investment income of $157,639 and undistributed net investment income of $143,916, respectively) | $ 71,737,981 | $ 30,432,958 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .22 | .24 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .62 | (1.15) |
Distributions from net investment income | (.24) | (.19) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C,D | 7.50% | (11.63)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.21% | 1.66% A |
Expenses net of fee waivers, if any | .90% | .98% A |
Expenses net of all reductions | .89% | .98% A |
Net investment income (loss) | 2.75% | 2.63% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 4,305 | $ 1,159 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.65 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .22 |
Net realized and unrealized gain (loss) | .40 | (1.40) |
Total from investment operations | .60 | (1.18) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 9.03 | $ 8.65 |
Total Return B,C,D | 7.25% | (11.91)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.46% | 1.97% A |
Expenses net of fee waivers, if any | 1.15% | 1.20% A |
Expenses net of all reductions | 1.14% | 1.20% A |
Net investment income (loss) | 2.50% | 2.41% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,181 | $ 1,074 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.65 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .16 | .17 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .56 | (1.22) |
Distributions from net investment income | (.18) | (.13) |
Net asset value, end of period | $ 9.03 | $ 8.65 |
Total Return B,C,D | 6.73% | (12.30)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.00% | 2.71% A |
Expenses net of fee waivers, if any | 1.65% | 1.73% A |
Expenses net of all reductions | 1.65% | 1.73% A |
Net investment income (loss) | 2.00% | 1.87% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 773 | $ 480 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.64 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .16 | .17 |
Net realized and unrealized gain (loss) | .39 | (1.39) |
Total from investment operations | .55 | (1.22) |
Distributions from net investment income | (.18) | (.14) |
Net asset value, end of period | $ 9.01 | $ 8.64 |
Total Return B,C,D | 6.62% | (12.30)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.95% | 2.37% A |
Expenses net of fee waivers, if any | 1.65% | 1.70% A |
Expenses net of all reductions | 1.64% | 1.70% A |
Net investment income (loss) | 2.00% | 1.91% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,499 | $ 1,495 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 30%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .24 | .26 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .64 | (1.13) |
Distributions from net investment income | (.26) | (.21) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C | 7.77% | (11.43)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | .90% | 1.24% A |
Expenses net of fee waivers, if any | .65% | .73% A |
Expenses net of all reductions | .65% | .72% A |
Net investment income (loss) | 3.00% | 2.88% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 61,207 | $ 26,016 |
Portfolio turnover rate E | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .24 | .26 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .64 | (1.13) |
Distributions from net investment income | (.26) | (.21) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C | 7.77% | (11.45)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | .97% | 1.76% A |
Expenses net of fee waivers, if any | .65% | .75% A |
Expenses net of all reductions | .65% | .75% A |
Net investment income (loss) | 3.00% | 2.86% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 773 | $ 209 |
Portfolio turnover rate E | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 40%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 13.2 | 13.7 |
U.S. Treasury Obligations | 12.0 | 5.6 |
Freddie Mac | 1.9 | 2.2 |
Government National Mortgage Association | 0.5 | 2.3 |
JPMorgan Chase Capital XX | 0.4 | 0.4 |
| 28.0 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| U.S. Government and
U.S. Government
Agency Obligations 27.6% | | | U.S. Government and
U.S. Government
Agency Obligations 24.1% | |
| AAA,AA,A 10.0% | | | AAA,AA,A 11.6% | |
| BBB 9.1% | | | BBB 9.0% | |
| BB and Below 6.0% | | | BB and Below 6.4% | |
| Not Rated 0.2% | | | Not Rated 0.3% | |
| Equities 40.4% | | | Equities 38.2% | |
| Short-Term
Investments and
Net Other Assets 6.7% | | | Short-Term
Investments and
Net Other Assets 10.4% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.6 | 0.3 |
Procter & Gamble Co. | 0.4 | 0.5 |
Google, Inc. Class A | 0.5 | 0.3 |
Pfizer, Inc. | 0.4 | 0.2 |
Charles Schwab Corp. | 0.3 | 0.0 |
| 2.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 40.3% | | | Stock Class and
Equity Futures 38.0% | |
| Bond Class 49.7% | | | Bond Class 50.0% | |
| Short-Term Class 10.0% | | | Short-Term Class 12.0% | |
| | | | | |
| | | | | |
Asset Allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 40%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 6.7 |
Fidelity Financials Central Fund | 5.7 |
Fidelity Health Care Central Fund | 4.7 |
Fidelity Energy Central Fund | 4.0 |
Fidelity International Equity Central Fund | 4.0 |
Fidelity Industrials Central Fund | 3.9 |
Fidelity Consumer Discretionary Central Fund | 3.6 |
Fidelity Consumer Staples Central Fund | 3.6 |
Fidelity Materials Central Fund | 1.4 |
Fidelity Utilities Central Fund | 1.4 |
Fidelity Telecom Services Central Fund | 1.0 |
Fidelity Emerging Markets Equity Central Fund | 1.0 |
Total Equity Central Funds | 41.0 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 46.0 |
Total Fixed-Income Central Funds | 51.0 |
Money Market Central Funds | 7.9 |
Net Other Assets | 0.1 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 14.4% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 40%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 41.0% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 17,636 | | $ 1,624,457 |
Fidelity Consumer Staples Central Fund (b) | 14,066 | | 1,605,623 |
Fidelity Emerging Markets Equity Central Fund (b) | 2,640 | | 447,179 |
Fidelity Energy Central Fund (b) | 18,341 | | 1,817,976 |
Fidelity Financials Central Fund (b) | 43,792 | | 2,548,251 |
Fidelity Health Care Central Fund (b) | 20,864 | | 2,107,215 |
Fidelity Industrials Central Fund (b) | 17,380 | | 1,766,313 |
Fidelity Information Technology Central Fund (b) | 24,312 | | 2,988,886 |
Fidelity International Equity Central Fund (b) | 27,536 | | 1,791,219 |
Fidelity Materials Central Fund (b) | 4,961 | | 624,751 |
Fidelity Telecom Services Central Fund (b) | 4,608 | | 458,806 |
Fidelity Utilities Central Fund (b) | 6,980 | | 616,276 |
TOTAL EQUITY CENTRAL FUNDS (Cost $18,575,895) | 18,396,952 |
Fixed-Income Central Funds - 51.0% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 5,988 | | 543,882 |
Fidelity High Income Central Fund 1 (b) | 19,200 | | 1,698,998 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 2,242,880 |
Investment Grade Fixed-Income Funds - 46.0% |
Fidelity Tactical Income Central Fund (b) | 218,192 | | 20,638,811 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $22,148,418) | 22,881,691 |
Money Market Central Funds - 7.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 1,644,693 | | $ 1,644,693 |
Fidelity Money Market Central Fund, 0.60% (a) | 1,900,000 | | 1,900,000 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $3,544,693) | 3,544,693 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $44,269,006) | | 44,823,336 |
NET OTHER ASSETS - 0.1% | | 47,993 |
NET ASSETS - 100% | $ 44,871,329 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 20,714 |
Fidelity Consumer Discretionary Central Fund | 16,422 |
Fidelity Consumer Staples Central Fund | 28,228 |
Fidelity Emerging Markets Equity Central Fund | 5,556 |
Fidelity Energy Central Fund | 12,591 |
Fidelity Financials Central Fund | 33,996 |
Fidelity Floating Rate Central Fund | 25,021 |
Fidelity Health Care Central Fund | 17,369 |
Fidelity High Income Central Fund 1 | 87,205 |
Fidelity Industrials Central Fund | 22,123 |
Fidelity Information Technology Central Fund | 14,346 |
Fidelity International Equity Central Fund | 29,117 |
Fidelity Materials Central Fund | 7,164 |
Fidelity Money Market Central Fund | 7,597 |
Fidelity Tactical Income Central Fund | 599,939 |
Fidelity Telecom Services Central Fund | 6,007 |
Fidelity Utilities Central Fund | 15,057 |
Total | $ 948,452 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 687,216 | $ 1,098,688 | $ 302,723 | $ 1,624,457 | 0.3% |
Fidelity Consumer Staples Central Fund | 693,355 | 1,177,953 | 350,495 | 1,605,623 | 0.3% |
Fidelity Emerging Markets Equity Central Fund | - | 382,781 | 112,949 | 447,179 | 0.2% |
Fidelity Energy Central Fund | 736,460 | 1,471,989 | 544,824 | 1,817,976 | 0.3% |
Fidelity Financials Central Fund | 1,073,867 | 1,867,725 | 460,906 | 2,548,251 | 0.3% |
Fidelity Floating Rate Central Fund | 504,178 | 398,655 | 388,969 | 543,882 | 0.0% |
Fidelity Health Care Central Fund | 865,513 | 1,488,253 | 416,843 | 2,107,215 | 0.3% |
Fidelity High Income Central Fund 1 | 316,276 | 1,381,623 | 175,217 | 1,698,998 | 0.3% |
Fidelity Industrials Central Fund | 809,331 | 1,187,737 | 352,138 | 1,766,313 | 0.3% |
Fidelity Information Technology Central Fund | 1,008,502 | 1,865,627 | 640,306 | 2,988,886 | 0.3% |
Fidelity International Equity Central Fund | 745,109 | 913,693 | 22,819 | 1,791,219 | 0.3% |
Fidelity Materials Central Fund | 245,701 | 382,559 | 131,381 | 624,751 | 0.3% |
Fidelity Tactical Income Central Fund | 7,380,508 | 14,534,743 | 2,452,732 | 20,638,811 | 0.5% |
Fidelity Telecom Services Central Fund | 202,857 | 315,366 | 138,517 | 458,806 | 0.3% |
Fidelity Utilities Central Fund | 247,387 | 479,530 | 117,794 | 616,276 | 0.3% |
Total | $ 15,516,260 | $ 28,946,922 | $ 6,608,613 | $ 41,278,643 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 85.6% |
United Kingdom | 1.8% |
Switzerland | 1.2% |
Canada | 1.2% |
Bermuda | 1.2% |
Others (individually less than 1%) | 9.0% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $565,738 of which $101,011 and $464,727 will expire on September 30, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $557,564 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 40%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $44,269,006) - See accompanying schedule: | | $ 44,823,336 |
Cash | | 12,739 |
Receivable for investments sold | | 14,251 |
Receivable for fund shares sold | | 66,869 |
Distributions receivable from Fidelity Central Funds | | 84,340 |
Prepaid expenses | | 195 |
Receivable from investment adviser for expense reductions | | 37,055 |
Total assets | | 45,038,785 |
| | |
Liabilities | | |
Payable for investments purchased | $ 85,109 | |
Payable for fund shares redeemed | 18,735 | |
Accrued management fee | 14,982 | |
Distribution fees payable | 3,740 | |
Other affiliated payables | 5,125 | |
Other payables and accrued expenses | 39,765 | |
Total liabilities | | 167,456 |
| | |
Net Assets | | $ 44,871,329 |
Net Assets consist of: | | |
Paid in capital | | $ 44,057,719 |
Undistributed net investment income | | 256,838 |
Accumulated undistributed net realized gain (loss) on investments | | 2,442 |
Net unrealized appreciation (depreciation) on investments | | 554,330 |
Net Assets | | $ 44,871,329 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($2,921,246 ÷ 332,999 shares) | | $ 8.77 |
| | |
Maximum offering price per share (100/94.25 of $8.77) | | $ 9.31 |
Class T:
Net Asset Value and redemption price per share ($2,089,341 ÷ 238,475 shares) | | $ 8.76 |
| | |
Maximum offering price per share (100/96.50 of $8.76) | | $ 9.08 |
Class B:
Net Asset Value and offering price per share ($1,262,680 ÷ 144,232 shares)A | | $ 8.75 |
| | |
Class C:
Net Asset Value and offering price per share ($1,469,210 ÷ 167,761 shares)A | | $ 8.76 |
| | |
| | |
Asset Manager 40%:
Net Asset Value, offering price and redemption price per share ($36,197,605 ÷ 4,126,118 shares) | | $ 8.77 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($931,247 ÷ 106,143 shares) | | $ 8.77 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 75 |
Income from Fidelity Central Funds | | 948,452 |
Total income | | 948,527 |
| | |
Expenses | | |
Management fee | $ 112,805 | |
Transfer agent fees | 33,993 | |
Distribution fees | 40,998 | |
Accounting fees and expenses | 11,167 | |
Custodian fees and expenses | 5,007 | |
Independent trustees' compensation | 88 | |
Registration fees | 59,383 | |
Audit | 61,436 | |
Legal | 1,856 | |
Miscellaneous | 1,028 | |
Total expenses before reductions | 327,761 | |
Expense reductions | (113,093) | 214,668 |
Net investment income (loss) | | 733,859 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 17 | |
Fidelity Central Funds | 128,703 | |
Futures contracts | (47,735) | |
Total net realized gain (loss) | | 80,985 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 3,295,362 | |
Futures contracts | 8,693 | |
Total change in net unrealized appreciation (depreciation) | | 3,304,055 |
Net gain (loss) | | 3,385,040 |
Net increase (decrease) in net assets resulting from operations | | $ 4,118,899 |
Statement of Changes in Net Assets
| Year ended
September 30, 2009 | For the period October 9, 2007 (commencement of operations) to
September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 733,859 | $ 363,871 |
Net realized gain (loss) | 80,985 | (82,406) |
Change in net unrealized appreciation (depreciation) | 3,304,055 | (2,749,725) |
Net increase (decrease) in net assets resulting from operations | 4,118,899 | (2,468,260) |
Distributions to shareholders from net investment income | (608,662) | (228,368) |
Share transactions - net increase (decrease) | 22,459,047 | 21,598,673 |
Total increase (decrease) in net assets | 25,969,284 | 18,902,045 |
| | |
Net Assets | | |
Beginning of period | 18,902,045 | - |
End of period (including undistributed net investment income of $256,838 and undistributed net investment income of $131,642, respectively) | $ 44,871,329 | $ 18,902,045 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.42 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .23 |
Net realized and unrealized gain (loss) | .34 | (1.66) |
Total from investment operations | .54 | (1.43) |
Distributions from net investment income | (.19) | (.15) |
Net asset value, end of period | $ 8.77 | $ 8.42 |
Total Return B, C, D | 6.80% | (14.43)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.33% | 1.91% A |
Expenses net of fee waivers, if any | .90% | 1.00% A |
Expenses net of all reductions | .90% | 1.00% A |
Net investment income (loss) | 2.62% | 2.52% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,921 | $ 2,033 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.41 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .18 | .21 |
Net realized and unrealized gain (loss) | .35 | (1.66) |
Total from investment operations | .53 | (1.45) |
Distributions from net investment income | (.18) | (.14) |
Net asset value, end of period | $ 8.76 | $ 8.41 |
Total Return B, C, D | 6.59% | (14.67)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.59% | 2.15% A |
Expenses net of fee waivers, if any | 1.15% | 1.25% A |
Expenses net of all reductions | 1.15% | 1.25% A |
Net investment income (loss) | 2.37% | 2.27% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,089 | $ 1,840 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.40 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .14 | .16 |
Net realized and unrealized gain (loss) | .35 | (1.66) |
Total from investment operations | .49 | (1.50) |
Distributions from net investment income | (.14) | (.10) |
Net asset value, end of period | $ 8.75 | $ 8.40 |
Total Return B, C, D | 6.02% | (15.09)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.08% | 2.64%A |
Expenses net of fee waivers, if any | 1.65% | 1.77%A |
Expenses net of all reductions | 1.65% | 1.77%A |
Net investment income (loss) | 1.87% | 1.76%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,263 | $ 1,378 |
Portfolio turnover rate F | 27% | 1%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.41 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .14 | .16 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .48 | (1.49) |
Distributions from net investment income | (.13) | (.10) |
Net asset value, end of period | $ 8.76 | $ 8.41 |
Total Return B, C, D | 6.00% | (15.01)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.09% | 2.66% A |
Expenses net of fee waivers, if any | 1.65% | 1.76% A |
Expenses net of all reductions | 1.65% | 1.76% A |
Net investment income (loss) | 1.87% | 1.76% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,469 | $ 1,384 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 40%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.43 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .22 | .25 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .56 | (1.40) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 8.77 | $ 8.43 |
Total Return B, C | 7.00% | (14.18)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.05% | 1.68% A |
Expenses net of fee waivers, if any | .65% | .72% A |
Expenses net of all reductions | .64% | .72% A |
Net investment income (loss) | 2.88% | 2.80% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 36,198 | $ 10,929 |
Portfolio turnover rate E | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.43 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .22 | .25 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .56 | (1.40) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 8.77 | $ 8.43 |
Total Return B, C | 7.00% | (14.18)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.07% | 1.63% A |
Expenses net of fee waivers, if any | .65% | .76% A |
Expenses net of all reductions | .65% | .76% A |
Net investment income (loss) | 2.87% | 2.76% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 931 | $ 1,339 |
Portfolio turnover rate E | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.8 | 0.4 |
Procter & Gamble Co. | 0.5 | 0.7 |
Google, Inc. Class A | 0.6 | 0.4 |
Pfizer, Inc. | 0.5 | 0.2 |
Microsoft Corp. | 0.4 | 0.4 |
CVS Caremark Corp. | 0.4 | 0.5 |
Charles Schwab Corp. | 0.4 | 0.0 |
PepsiCo, Inc. | 0.4 | 0.5 |
CME Group, Inc. | 0.4 | 0.2 |
AT&T, Inc. | 0.4 | 0.2 |
| 4.8 | |
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 11.6 | 12.5 |
U.S. Treasury Obligations | 10.5 | 5.1 |
Freddie Mac | 1.7 | 2.0 |
Government National Mortgage Association | 0.4 | 2.1 |
JPMorgan Chase Capital XX | 0.4 | 0.4 |
| 24.6 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 51.0% | | | Stock Class and
Equity Futures 49.7% | |
| Bond Class 44.1% | | | Bond Class 46.2% | |
| Short-Term Class 4.9% | | | Short-Term Class 4.1% | |
| | | | | |
| | | | | |
Asset Allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 50%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 9.0 |
Fidelity Financials Central Fund | 6.7 |
Fidelity Health Care Central Fund | 5.9 |
Fidelity Industrials Central Fund | 5.4 |
Fidelity Energy Central Fund | 5.1 |
Fidelity Consumer Discretionary Central Fund | 4.6 |
Fidelity Consumer Staples Central Fund | 4.6 |
Fidelity International Equity Central Fund | 4.2 |
Fidelity Materials Central Fund | 2.1 |
Fidelity Telecom Services Central Fund | 1.6 |
Fidelity Utilities Central Fund | 1.6 |
Fidelity Emerging Markets Equity Central Fund | 1.1 |
Total Equity Central Funds | 51.9 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 40.2 |
Total Fixed-Income Central Funds | 45.2 |
Money Market Central Funds | 2.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 15.8% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 50%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 51.9% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 3,029,232 | | $ 279,022,577 |
Fidelity Consumer Staples Central Fund (b) | 2,460,441 | | 280,859,348 |
Fidelity Emerging Markets Equity Central Fund (b) | 406,259 | | 68,820,196 |
Fidelity Energy Central Fund (b) | 3,085,999 | | 305,884,194 |
Fidelity Financials Central Fund (b) | 6,988,302 | | 406,649,295 |
Fidelity Health Care Central Fund (b) | 3,550,643 | | 358,614,937 |
Fidelity Industrials Central Fund (b) | 3,219,787 | | 327,227,002 |
Fidelity Information Technology Central Fund (b) | 4,427,896 | | 544,365,539 |
Fidelity International Equity Central Fund (b) | 3,945,473 | | 256,653,011 |
Fidelity Materials Central Fund (b) | 1,001,691 | | 126,132,911 |
Fidelity Telecom Services Central Fund (b) | 960,011 | | 95,578,669 |
Fidelity Utilities Central Fund (b) | 1,082,411 | | 95,566,059 |
TOTAL EQUITY CENTRAL FUNDS (Cost $3,360,316,375) | 3,145,373,738 |
Fixed-Income Central Funds - 45.2% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 786,110 | | 71,402,355 |
Fidelity High Income Central
Fund 1 (b) | 2,609,210 | | 230,888,991 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 302,291,346 |
Investment Grade Fixed-Income Funds - 40.2% |
Fidelity Tactical Income Central
Fund (b) | 25,772,766 | | 2,437,845,914 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $2,788,750,133) | 2,740,137,260 |
Money Market Central Funds - 2.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 49,432,131 | | $ 49,432,131 |
Fidelity Money Market Central Fund, 0.60% (a) | 126,013,442 | | 126,013,442 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $175,445,573) | 175,445,573 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,324,512,081) | | 6,060,956,571 |
NET OTHER ASSETS - 0.0% | | (1,542,421) |
NET ASSETS - 100% | $ 6,059,414,150 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 464,023 |
Fidelity Consumer Discretionary Central Fund | 4,215,855 |
Fidelity Consumer Staples Central Fund | 7,075,528 |
Fidelity Emerging Markets Equity Central Fund | 1,049,697 |
Fidelity Energy Central Fund | 3,019,057 |
Fidelity Financials Central Fund | 9,222,939 |
Fidelity Floating Rate Central Fund | 6,828,917 |
Fidelity Health Care Central Fund | 4,418,293 |
Fidelity High Income Central Fund 1 | 16,409,991 |
Fidelity Industrials Central Fund | 5,924,860 |
Fidelity Information Technology Central Fund | 3,624,660 |
Fidelity International Equity Central Fund | 6,192,750 |
Fidelity Materials Central Fund | 1,919,595 |
Fidelity Money Market Central Fund | 2,740,511 |
Fidelity Tactical Income Central Fund | 111,942,431 |
Fidelity Telecom Services Central Fund | 1,707,733 |
Fidelity Utilities Central Fund | 3,589,225 |
Total | $ 190,346,065 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 293,016,928 | $ 21,117,173 | $ 33,091,644 | $ 279,022,577 | 53.9% |
Fidelity Consumer Staples Central Fund | 295,622,548 | 23,544,674 | 34,680,458 | 280,859,348 | 54.0% |
Fidelity Emerging Markets Equity Central Fund | - | 50,554,550 | 13,711,909 | 68,820,196 | 37.9% |
Fidelity Energy Central Fund | 314,002,263 | 59,506,751 | 38,198,317 | 305,884,194 | 53.1% |
Fidelity Financials Central Fund | 457,855,099 | 42,983,016 | 37,439,314 | 406,649,295 | 52.7% |
Fidelity Floating Rate Central Fund | 196,167,573 | 6,857,895 | 118,525,861 | 71,402,355 | 2.4% |
Fidelity Health Care Central Fund | 369,027,997 | 28,522,552 | 42,011,830 | 358,614,937 | 53.4% |
Fidelity High Income Central Fund 1 | 122,947,937 | 89,937,301 | 2,846,909 | 230,888,991 | 45.4% |
Fidelity Industrials Central Fund | 345,077,478 | 36,996,811 | 42,160,881 | 327,227,002 | 54.4% |
Fidelity Information Technology Central Fund | 430,011,894 | 55,816,417 | 60,444,300 | 544,365,539 | 54.1% |
Fidelity International Equity Central Fund | 267,067,885 | 6,675,795 | 7,232,349 | 256,653,011 | 40.0% |
Fidelity Materials Central Fund | 104,784,844 | 15,974,799 | 13,584,556 | 126,132,911 | 55.0% |
Fidelity Tactical Income Central Fund | 2,390,712,422 | 334,181,062 | 401,233,861 | 2,437,845,914 | 55.4% |
Fidelity Telecom Services Central Fund | 86,521,154 | 9,116,697 | 10,946,734 | 95,578,669 | 55.0% |
Fidelity Utilities Central Fund | 105,514,101 | 8,993,666 | 12,787,499 | 95,566,059 | 53.0% |
Total | $ 5,778,330,123 | $ 790,779,159 | $ 868,896,422 | $ 5,885,510,998 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 24.2% |
AAA,AA,A | 8.9% |
BBB | 7.9% |
BB | 3.0% |
B | 2.1% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 50.8% |
Short-Term Investments and Net Other Assets | 2.2% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 84.2% |
United Kingdom | 1.8% |
Switzerland | 1.5% |
Bermuda | 1.3% |
Canada | 1.1% |
Others (individually less than 1%) | 10.1% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $544,429,664 all of which will expire on September 30, 2017. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $471,148,356 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investments in securities, at value (cost $6,324,512,081) - See accompanying schedule: | | $ 6,060,956,571 |
Receivable for investments sold | | 2,532,471 |
Receivable for fund shares sold | | 3,637,725 |
Distributions receivable from Fidelity Central Funds | | 10,407,884 |
Prepaid expenses | | 29,850 |
Other receivables | | 195,210 |
Total assets | | 6,077,759,711 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,886,559 | |
Payable for fund shares redeemed | 3,581,999 | |
Accrued management fee | 2,552,053 | |
Transfer agent fee payable | 957,569 | |
Distribution fees payable | 19,489 | |
Other affiliated payables | 122,673 | |
Other payables and accrued expenses | 225,219 | |
Total liabilities | | 18,345,561 |
| | |
Net Assets | | $ 6,059,414,150 |
Net Assets consist of: | | |
Paid in capital | | $ 6,814,868,526 |
Undistributed net investment income | | 31,105,092 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (523,003,958) |
Net unrealized appreciation (depreciation) on investments | | (263,555,510) |
Net Assets | | $ 6,059,414,150 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($25,521,634 ÷ 1,893,435 shares) | | $ 13.48 |
| | |
Maximum offering price per share (100/94.25 of $13.48) | | $ 14.30 |
Class T:
Net Asset Value and redemption price per share ($10,950,329 ÷ 812,987 shares) | | $ 13.47 |
| | |
Maximum offering price per share (100/96.50 of $13.47) | | $ 13.96 |
Class B:
Net Asset Value and offering price per share ($3,492,784 ÷ 259,960 shares)A | | $ 13.44 |
| | |
Class C:
Net Asset Value and offering price per share ($8,934,598 ÷ 665,589 shares)A | | $ 13.42 |
| | |
| | |
Asset Manager 50%:
Net Asset Value, offering price and redemption price per share ($6,008,085,981 ÷ 444,611,136 shares) | | $ 13.51 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,428,824 ÷ 179,869 shares) | | $ 13.50 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Financial Statements - continued
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 10,941 |
Income from Fidelity Central Funds | | 190,346,065 |
Total income | | 190,357,006 |
| | |
Expenses | | |
Management fee | $ 27,008,211 | |
Transfer agent fees | 11,758,255 | |
Distribution fees | 143,274 | |
Accounting and security lending fees | 1,376,748 | |
Custodian fees and expenses | 5,062 | |
Independent trustees' compensation | 20,831 | |
Depreciation in deferred trustee compensation account | (3,047) | |
Registration fees | 103,387 | |
Audit | 63,577 | |
Legal | 48,581 | |
Interest | 1,327 | |
Miscellaneous | 259,937 | |
Total expenses before reductions | 40,786,143 | |
Expense reductions | (290,343) | 40,495,800 |
Net investment income (loss) | | 149,861,206 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 29,338,355 | |
Fidelity Central Funds | (73,806,596) | |
Foreign currency transactions | (352,959) | |
Futures contracts | (35,226,589) | |
Total net realized gain (loss) | | (80,047,789) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 259,085,538 | |
Futures contracts | 6,392,238 | |
Total change in net unrealized appreciation (depreciation) | | 265,477,776 |
Net gain (loss) | | 185,429,987 |
Net increase (decrease) in net assets resulting from operations | | $ 335,291,193 |
Statement of Changes in Net Assets
| Year ended
September 30, 2009 | Year ended
September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 149,861,206 | $ 213,491,172 |
Net realized gain (loss) | (80,047,789) | (58,382,609) |
Change in net unrealized appreciation (depreciation) | 265,477,776 | (1,461,977,490) |
Net increase (decrease) in net assets resulting from operations | 335,291,193 | (1,306,868,927) |
Distributions to shareholders from net investment income | (178,694,512) | (239,866,976) |
Distributions to shareholders from net realized gain | (4,660,918) | (556,509,728) |
Total distributions | (183,355,430) | (796,376,704) |
Share transactions - net increase (decrease) | (414,536,080) | (541,463,365) |
Total increase (decrease) in net assets | (262,600,317) | (2,644,708,996) |
| | |
Net Assets | | |
Beginning of period | 6,322,014,467 | 8,966,723,463 |
End of period (including undistributed net investment income of $31,105,092 and undistributed net investment income of $64,010,831, respectively) | $ 6,059,414,150 | $ 6,322,014,467 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.95 | $ 17.08 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .30 | .36 | .43 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.45 |
Total from investment operations | .90 | (2.60) | 1.88 |
Distributions from net investment income | (.36) | (.43) | (.47) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.37) | (1.53) | (1.37) |
Net asset value, end of period | $ 13.48 | $ 12.95 | $ 17.08 |
Total Return B, C, D | 7.49% | (16.56)% | 11.93% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.02% | .99% | 1.01% A |
Expenses net of fee waivers, if any | 1.02% | .99% | 1.01% A |
Expenses net of all reductions | 1.01% | .98% | 1.00% A |
Net investment income (loss) | 2.61% | 2.46% | 2.62% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 25,522 | $ 10,611 | $ 4,432 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.94 | $ 17.06 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .27 | .33 | .39 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.46 |
Total from investment operations | .87 | (2.63) | 1.85 |
Distributions from net investment income | (.33) | (.39) | (.46) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.34) | (1.49) | (1.36) |
Net asset value, end of period | $ 13.47 | $ 12.94 | $ 17.06 |
Total Return B, C, D | 7.21% | (16.76)% | 11.68% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.29% | 1.24% | 1.24% A |
Expenses net of fee waivers, if any | 1.29% | 1.24% | 1.24% A |
Expenses net of all reductions | 1.28% | 1.23% | 1.23% A |
Net investment income (loss) | 2.34% | 2.21% | 2.40% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 10,950 | $ 5,475 | $ 3,148 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.91 | $ 17.02 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .21 | .24 | .30 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.46 |
Total from investment operations | .81 | (2.72) | 1.76 |
Distributions from net investment income | (.27) | (.29) | (.41) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.28) | (1.39) | (1.31) |
Net asset value, end of period | $ 13.44 | $ 12.91 | $ 17.02 |
Total Return B, C, D | 6.64% | (17.26)% | 11.03% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.85% | 1.79% | 1.79% A |
Expenses net of fee waivers, if any | 1.85% | 1.79% | 1.79% A |
Expenses net of all reductions | 1.84% | 1.79% | 1.78% A |
Net investment income (loss) | 1.78% | 1.65% | 1.84% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,493 | $ 2,084 | $ 1,007 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.90 | $ 17.00 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .21 | .25 | .31 |
Net realized and unrealized gain (loss) | .59 | (2.95) | 1.45 |
Total from investment operations | .80 | (2.70) | 1.76 |
Distributions from net investment income | (.27) | (.30) | (.43) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.28) | (1.40) | (1.33) |
Net asset value, end of period | $ 13.42 | $ 12.90 | $ 17.00 |
Total Return B, C, D | 6.59% | (17.18)% | 11.08% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.81% | 1.76% | 1.75% A |
Expenses net of fee waivers, if any | 1.81% | 1.76% | 1.75% A |
Expenses net of all reductions | 1.81% | 1.76% | 1.74% A |
Net investment income (loss) | 1.81% | 1.68% | 1.88% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 8,935 | $ 4,294 | $ 2,840 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 50%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.97 | $ 17.10 | $ 16.60 | $ 16.28 | $ 15.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .33 | .41 | .49 | .45 | .41 D |
Net realized and unrealized gain (loss) | .60 | (2.97) | 1.41 | .73 | .69 |
Total from investment operations | .93 | (2.56) | 1.90 | 1.18 | 1.10 |
Distributions from net investment income | (.38) | (.47) | (.50) | (.45) | (.40) |
Distributions from net realized gain | (.01) | (1.10) | (.90) | (.41) | - |
Total distributions | (.39) | (1.57) | (1.40) | (.86) | (.40) |
Net asset value, end of period | $ 13.51 | $ 12.97 | $ 17.10 | $ 16.60 | $ 16.28 |
Total Return A | 7.78% | (16.34)% | 12.02% | 7.50% | 7.15% |
Ratios to Average Net Assets E | | | | | |
Expenses before reductions | .77% | .71% | .71% | .72% | .73% |
Expenses net of fee waivers, if any | .77% | .71% | .71% | .72% | .73% |
Expenses net of all reductions | .77% | .70% | .70% | .71% | .72% |
Net investment income (loss) | 2.85% | 2.74% | 2.93% | 2.79% | 2.55% D |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,008,086 | $ 6,299,082 | $ 8,955,110 | $ 9,204,214 | $ 10,189,947 |
Portfolio turnover rate C | 15% | 8% | 12% | 65% F | 32% F |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $0.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 2.28%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.97 | $ 17.11 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) D | .34 | .42 | .48 |
Net realized and unrealized gain (loss) | .59 | (2.98) | 1.46 |
Total from investment operations | .93 | (2.56) | 1.94 |
Distributions from net investment income | (.39) | (.48) | (.50) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.40) | (1.58) | (1.40) |
Net asset value, end of period | $ 13.50 | $ 12.97 | $ 17.11 |
Total Return B, C | 7.80% | (16.30)% | 12.20% |
Ratios to Average Net Assets G | | | |
Expenses before reductions | .69% | .67% | .72% A |
Expenses net of fee waivers, if any | .69% | .67% | .72% A |
Expenses net of all reductions | .69% | .67% | .72% A |
Net investment income (loss) | 2.93% | 2.77% | 2.91% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,429 | $ 469 | $ 186 |
Portfolio turnover rate E | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 60%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds. |
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.8 | 0.4 |
Procter & Gamble Co. | 0.6 | 0.8 |
Google, Inc. Class A | 0.6 | 0.4 |
Pfizer, Inc. | 0.5 | 0.3 |
Charles Schwab Corp. | 0.5 | 0.0 |
CVS Caremark Corp. | 0.5 | 0.4 |
Microsoft Corp. | 0.5 | 0.4 |
CME Group, Inc. | 0.4 | 0.2 |
Morgan Stanley | 0.4 | 0.1 |
Covidien PLC | 0.4 | 0.0 |
| 5.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 59.3% | | | Stock Class and
Equity Futures 57.6% | |
| Bond Class 37.0% | | | Bond Class 37.7% | |
 | Short-Term Class 3.7% | | | Short-Term Class 4.7% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 60%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 9.4 |
Fidelity Financials Central Fund | 8.0 |
Fidelity International Equity Central Fund | 8.0 |
Fidelity Health Care Central Fund | 6.6 |
Fidelity Energy Central Fund | 5.7 |
Fidelity Industrials Central Fund | 5.5 |
Fidelity Consumer Discretionary Central Fund | 5.1 |
Fidelity Consumer Staples Central Fund | 5.0 |
Fidelity Emerging Markets Equity Central Fund | 2.0 |
Fidelity Materials Central Fund | 1.9 |
Fidelity Utilities Central Fund | 1.9 |
Fidelity Telecom Services Central Fund | 1.4 |
Total Equity Central Funds | 60.5 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 4.9 |
Investment Grade Fixed-Income Funds | 33.0 |
Total Fixed-Income Central Funds | 37.9 |
Money Market Central Funds | 1.6 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 20.8% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 60%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 60.5% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (a) | 36,132 | | $ 3,328,127 |
Fidelity Consumer Staples Central Fund (a) | 28,697 | | 3,275,772 |
Fidelity Emerging Markets Equity Central Fund (a) | 7,775 | | 1,317,003 |
Fidelity Energy Central Fund (a) | 37,657 | | 3,732,559 |
Fidelity Financials Central Fund (a) | 90,259 | | 5,252,184 |
Fidelity Health Care Central Fund (a) | 42,801 | | 4,322,878 |
Fidelity Industrials Central Fund (a) | 35,710 | | 3,629,170 |
Fidelity Information Technology Central Fund (a) | 49,908 | | 6,135,680 |
Fidelity International Equity Central Fund (a) | 80,036 | | 5,206,373 |
Fidelity Materials Central Fund (a) | 10,007 | | 1,260,092 |
Fidelity Telecom Services Central Fund (a) | 9,413 | | 937,166 |
Fidelity Utilities Central Fund (a) | 14,050 | | 1,240,459 |
TOTAL EQUITY CENTRAL FUNDS (Cost $38,456,565) | 39,637,463 |
Fixed-Income Central Funds - 37.9% |
| | | |
High Yield Fixed-Income Funds - 4.9% |
Fidelity Floating Rate Central Fund (a) | 8,325 | | 756,173 |
Fidelity High Income Central Fund 1 (a) | 27,774 | | 2,457,724 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 3,213,897 |
Investment Grade Fixed-Income Funds - 33.0% |
Fidelity Tactical Income Central Fund (a) | 228,009 | | 21,567,412 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $23,876,290) | 24,781,309 |
Money Market Central Funds - 1.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (b)
(Cost $1,025,366) | 1,025,366 | | $ 1,025,366 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $63,358,221) | | 65,444,138 |
NET OTHER ASSETS - 0.0% | | 29,708 |
NET ASSETS - 100% | $ 65,473,846 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 11,601 |
Fidelity Consumer Discretionary Central Fund | 29,828 |
Fidelity Consumer Staples Central Fund | 52,342 |
Fidelity Emerging Markets Equity Central Fund | 13,764 |
Fidelity Energy Central Fund | 23,471 |
Fidelity Financials Central Fund | 61,886 |
Fidelity Floating Rate Central Fund | 31,367 |
Fidelity Health Care Central Fund | 30,379 |
Fidelity High Income Central Fund 1 | 107,281 |
Fidelity Industrials Central Fund | 40,685 |
Fidelity Information Technology Central Fund | 26,780 |
Fidelity International Equity Central Fund | 84,475 |
Fidelity Materials Central Fund | 12,783 |
Fidelity Tactical Income Central Fund | 551,185 |
Fidelity Telecom Services Central Fund | 11,456 |
Fidelity Utilities Central Fund | 28,377 |
Total | $ 1,117,660 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 1,621,243 | $ 1,818,798 | $ 362,689 | $ 3,328,127 | 0.6% |
Fidelity Consumer Staples Central Fund | 1,635,731 | 1,965,471 | 523,505 | 3,275,772 | 0.6% |
Fidelity Emerging Markets Equity Central Fund | - | 1,083,164 | 184,190 | 1,317,003 | 0.7% |
Fidelity Energy Central Fund | 1,737,408 | 2,378,238 | 600,039 | 3,732,559 | 0.6% |
Fidelity Financials Central Fund | 2,533,356 | 3,020,645 | 621,956 | 5,252,184 | 0.7% |
Fidelity Floating Rate Central Fund | 599,148 | 502,516 | 397,331 | 756,173 | 0.0% |
Fidelity Health Care Central Fund | 2,041,880 | 2,509,422 | 588,425 | 4,322,878 | 0.6% |
Fidelity High Income Central Fund 1 | 376,783 | 1,984,375 | 146,926 | 2,457,724 | 0.5% |
Fidelity Industrials Central Fund | 1,909,359 | 1,976,806 | 514,964 | 3,629,170 | 0.6% |
Fidelity Information Technology Central Fund | 2,379,293 | 3,022,499 | 633,418 | 6,135,680 | 0.6% |
Fidelity International Equity Central Fund | 1,762,191 | 3,441,483 | 450,735 | 5,206,373 | 0.8% |
Fidelity Materials Central Fund | 579,741 | 593,182 | 137,516 | 1,260,092 | 0.5% |
Fidelity Tactical Income Central Fund | 8,688,176 | 16,279,121 | 4,514,601 | 21,567,412 | 0.5% |
Fidelity Telecom Services Central Fund | 478,691 | 472,131 | 132,770 | 937,166 | 0.5% |
Fidelity Utilities Central Fund | 583,808 | 750,799 | 126,893 | 1,240,459 | 0.7% |
Total | $ 26,926,808 | $ 41,798,650 | $ 9,935,958 | $ 64,418,772 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 19.8% |
AAA,AA,A | 7.3% |
BBB | 6.5% |
BB | 2.7% |
B | 2.1% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 59.6% |
Short-Term Investments and Net Other Assets | 1.1% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 79.2% |
United Kingdom | 2.7% |
Switzerland | 1.9% |
Japan | 1.5% |
Bermuda | 1.3% |
Canada | 1.2% |
China | 1.0% |
Netherlands | 1.0% |
Others (individually less than 1%) | 10.2% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $1,075,548 of which $76,825 and $998,723 will expire on September 30, 2016 and September 30, 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $1,162,635 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 60%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $63,358,221) - See accompanying schedule: | | $ 65,444,138 |
Receivable for fund shares sold | | 456,989 |
Distributions receivable from Fidelity Central Funds | | 92,258 |
Prepaid expenses | | 289 |
Receivable from investment adviser for expense reductions | | 40,517 |
Other receivables | | 271 |
Total assets | | 66,034,462 |
| | |
Liabilities | | |
Payable for investments purchased | $ 458,510 | |
Payable for fund shares redeemed | 15,696 | |
Accrued management fee | 29,387 | |
Distribution fees payable | 5,511 | |
Other affiliated payables | 11,751 | |
Other payables and accrued expenses | 39,761 | |
Total liabilities | | 560,616 |
| | |
Net Assets | | $ 65,473,846 |
Net Assets consist of: | | |
Paid in capital | | $ 63,802,175 |
Undistributed net investment income | | 626,213 |
Accumulated undistributed net realized gain (loss) on investments | | (1,040,459) |
Net unrealized appreciation (depreciation) on investments | | 2,085,917 |
Net Assets | | $ 65,473,846 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($6,043,685 ÷ 718,274 shares) | | $ 8.41 |
| | |
Maximum offering price per share (100/94.25 of $8.41) | | $ 8.92 |
Class T:
Net Asset Value and redemption price per share ($3,537,055 ÷ 421,945 shares) | | $ 8.38 |
| | |
Maximum offering price per share (100/96.50 of $8.38) | | $ 8.68 |
Class B:
Net Asset Value and offering price per share ($1,529,045 ÷ 182,696 shares)A | | $ 8.37 |
| | |
Class C:
Net Asset Value and offering price per share ($2,056,668 ÷ 245,846 shares)A | | $ 8.37 |
| | |
Asset Manager 60%:
Net Asset Value, offering price and redemption price per share ($51,463,751 ÷ 6,103,522 shares) | | $ 8.43 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($843,642 ÷ 100,050 shares) | | $ 8.43 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 148 |
Income from Fidelity Central Funds | | 1,117,660 |
Total income | | 1,117,808 |
| | |
Expenses | | |
Management fee | $ 193,551 | |
Transfer agent fees | 81,780 | |
Distribution fees | 45,912 | |
Accounting fees and expenses | 14,351 | |
Custodian fees and expenses | 5,127 | |
Independent trustees' compensation | 111 | |
Registration fees | 67,369 | |
Audit | 61,443 | |
Legal | 106 | |
Miscellaneous | 1,826 | |
Total expenses before reductions | 471,576 | |
Expense reductions | (136,023) | 335,553 |
Net investment income (loss) | | 782,255 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 161 | |
Fidelity Central Funds | (729,944) | |
Futures contracts | (119,603) | |
Total net realized gain (loss) | | (849,386) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 6,359,183 | |
Futures contracts | 21,732 | |
Total change in net unrealized appreciation (depreciation) | | 6,380,915 |
Net gain (loss) | | 5,531,529 |
Net increase (decrease) in net assets resulting from operations | | $ 6,313,784 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | For the period October 9, 2007 (commencement of operations) to September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 782,255 | $ 304,088 |
Net realized gain (loss) | (849,386) | (226,652) |
Change in net unrealized appreciation (depreciation) | 6,380,915 | (4,294,998) |
Net increase (decrease) in net assets resulting from operations | 6,313,784 | (4,217,562) |
Distributions to shareholders from net investment income | (387,880) | (36,701) |
Share transactions - net increase (decrease) | 29,464,827 | 34,337,378 |
Total increase (decrease) in net assets | 35,390,731 | 30,083,115 |
| | |
Net Assets | | |
Beginning of period | 30,083,115 | - |
End of period (including undistributed net investment income of $626,213 and undistributed net investment income of $231,837, respectively) | $ 65,473,846 | $ 30,083,115 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.95 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .15 | .17 |
Net realized and unrealized gain (loss) | .41 | (2.18) |
Total from investment operations | .56 | (2.01) |
Distributions from net investment income | (.10) | (.04) |
Net asset value, end of period | $ 8.41 | $ 7.95 |
Total Return B,C,D | 7.48% | (20.16)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.54% | 2.18% A |
Expenses net of fee waivers, if any | 1.10% | 1.16%A |
Expenses net of all reductions | 1.09% | 1.16%A |
Net investment income (loss) | 2.15% | 1.99%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 6,044 | $ 3,135 |
Portfolio turnover rateF | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.93 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | .15 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .55 | (2.04) |
Distributions from net investment income | (.10) | (.03) |
Net asset value, end of period | $ 8.38 | $ 7.93 |
Total Return B,C,D | 7.24% | (20.42)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.77% | 2.34% A |
Expenses net of fee waivers, if any | 1.35% | 1.42% A |
Expenses net of all reductions | 1.34% | 1.42% A |
Net investment income (loss) | 1.90% | 1.73% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 3,537 | $ 1,228 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.90 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .10 | .11 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .52 | (2.08) |
Distributions from net investment income | (.05) | (.02) |
Net asset value, end of period | $ 8.37 | $ 7.90 |
Total Return B,C,D | 6.78% | (20.81)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.31% | 2.85% A |
Expenses net of fee waivers, if any | 1.85% | 1.92% A |
Expenses net of all reductions | 1.84% | 1.92% A |
Net investment income (loss) | 1.40% | 1.23% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,529 | $ 1,074 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.90 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .10 | .11 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .52 | (2.08) |
Distributions from net investment income | (.05) | (.02) |
Net asset value, end of period | $ 8.37 | $ 7.90 |
Total Return B,C,D | 6.83% | (20.81)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.29% | 2.80% A |
Expenses net of fee waivers, if any | 1.85% | 1.91% A |
Expenses net of all reductions | 1.84% | 1.91% A |
Net investment income (loss) | 1.40% | 1.24% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,057 | $ 1,643 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 60%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.96 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .17 | .19 |
Net realized and unrealized gain (loss) | .42 | (2.18) |
Total from investment operations | .59 | (1.99) |
Distributions from net investment income | (.12) | (.05) |
Net asset value, end of period | $ 8.43 | $ 7.96 |
Total Return B,C | 7.81% | (20.03)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.22% | 1.87% A |
Expenses net of fee waivers, if any | .85% | .89% A |
Expenses net of all reductions | .84% | .89% A |
Net investment income (loss) | 2.40% | 2.26% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 51,464 | $ 22,212 |
Portfolio turnover rate E | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.96 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .17 | .20 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .59 | (1.99) |
Distributions from net investment income | (.12) | (.05) |
Net asset value, end of period | $ 8.43 | $ 7.96 |
Total Return B,C | 7.81% | (20.03)% |
Ratios to Average Net AssetsG | | |
Expenses before reductions | 1.21% | 1.86% A |
Expenses net of fee waivers, if any | .85% | .94% A |
Expenses net of all reductions | .84% | .93% A |
Net investment income (loss) | 2.40% | 2.22% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 844 | $ 792 |
Portfolio turnover rate E | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds. |
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 1.0 | 0.5 |
Procter & Gamble Co. | 0.7 | 1.0 |
Google, Inc. Class A | 0.7 | 0.5 |
Pfizer, Inc. | 0.6 | 0.3 |
Microsoft Corp. | 0.6 | 0.5 |
CVS Caremark Corp. | 0.5 | 0.5 |
Charles Schwab Corp. | 0.5 | 0.0 |
Covidien PLC | 0.4 | 0.0 |
CME Group, Inc. | 0.5 | 0.2 |
PepsiCo, Inc. | 0.5 | 0.6 |
| 6.0 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 70.1% | | | Stock Class and
Equity Futures 68.6% | |
| Bond Class 26.5% | | | Bond Class 28.6% | |
| Short-Term Class 3.4% | | | Short-Term Class 2.8% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 70%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 11.6 |
Fidelity Financials Central Fund | 8.9 |
Fidelity International Equity Central Fund | 8.4 |
Fidelity Health Care Central Fund | 7.8 |
Fidelity Industrials Central Fund | 7.0 |
Fidelity Energy Central Fund | 6.7 |
Fidelity Consumer Staples Central Fund | 6.1 |
Fidelity Consumer Discretionary Central Fund | 6.0 |
Fidelity Materials Central Fund | 2.6 |
Fidelity Emerging Markets Equity Central Fund | 2.2 |
Fidelity Utilities Central Fund | 2.1 |
Fidelity Telecom Services Central Fund | 2.0 |
Total Equity Central Funds | 71.4 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 4.9 |
Investment Grade Fixed-Income Funds | 22.3 |
Total Fixed-Income Central Funds | 27.2 |
Money Market Central Funds | 1.4 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 22.2% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 70%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 71.4% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 1,587,920 | | $ 146,263,309 |
Fidelity Consumer Staples Central Fund (b) | 1,291,253 | | 147,396,511 |
Fidelity Emerging Markets Equity Central Fund (b) | 313,516 | | 53,109,628 |
Fidelity Energy Central Fund (b) | 1,641,979 | | 162,752,963 |
Fidelity Financials Central Fund (b) | 3,722,975 | | 216,639,893 |
Fidelity Health Care Central Fund (b) | 1,877,334 | | 189,610,749 |
Fidelity Industrials Central Fund (b) | 1,672,593 | | 169,985,596 |
Fidelity Information Technology Central Fund (b) | 2,304,160 | | 283,273,466 |
Fidelity International Equity Central Fund (b) | 3,139,904 | | 204,250,748 |
Fidelity Materials Central Fund (b) | 508,537 | | 64,035,028 |
Fidelity Telecom Services Central Fund (b) | 488,908 | | 48,675,698 |
Fidelity Utilities Central Fund (b) | 574,868 | | 50,755,053 |
TOTAL EQUITY CENTRAL FUNDS (Cost $1,986,597,980) | 1,736,748,642 |
Fixed-Income Central Funds - 27.2% |
| | | |
High Yield Fixed-Income Funds - 4.9% |
Fidelity Floating Rate Central Fund (b) | 313,951 | | 28,516,136 |
Fidelity High Income Central
Fund 1 (b) | 1,011,702 | | 89,525,548 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 118,041,684 |
Investment Grade Fixed-Income Funds - 22.3% |
Fidelity Tactical Income Central Fund (b) | 5,748,818 | | 543,780,680 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $676,169,058) | 661,822,364 |
Money Market Central Funds - 1.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 23,467,063 | | $ 23,467,063 |
Fidelity Money Market Central Fund, 0.60% (a) | 12,056,119 | | 12,056,119 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $35,523,182) | 35,523,182 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,698,290,220) | 2,434,094,188 |
NET OTHER ASSETS - 0.0% | | (456,440) |
NET ASSETS - 100% | $ 2,433,637,748 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 199,470 |
Fidelity Consumer Discretionary Central Fund | 2,159,424 |
Fidelity Consumer Staples Central Fund | 3,628,414 |
Fidelity Emerging Markets Equity Central Fund | 571,197 |
Fidelity Energy Central Fund | 1,561,087 |
Fidelity Financials Central Fund | 4,719,488 |
Fidelity Floating Rate Central Fund | 2,710,444 |
Fidelity Health Care Central Fund | 2,275,378 |
Fidelity High Income Central Fund 1 | 6,151,502 |
Fidelity Industrials Central Fund | 3,048,386 |
Fidelity Information Technology Central Fund | 1,860,873 |
Fidelity International Equity Central Fund | 5,047,251 |
Fidelity Materials Central Fund | 978,911 |
Fidelity Money Market Central Fund | 78,280 |
Fidelity Tactical Income Central Fund | 24,125,450 |
Fidelity Telecom Services Central Fund | 870,788 |
Fidelity Utilities Central Fund | 1,857,703 |
Total | $ 61,844,046 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 158,562,571 | $ 3,268,653 | $ 12,674,988 | $ 146,263,309 | 28.3% |
Fidelity Consumer Staples Central Fund | 159,972,498 | 3,921,158 | 13,622,565 | 147,396,511 | 28.3% |
Fidelity Emerging Markets Equity Central Fund | - | 37,188,519 | 152,680 | 53,109,628 | 29.2% |
Fidelity Energy Central Fund | 169,988,020 | 25,045,736 | 14,586,834 | 162,752,963 | 28.3% |
Fidelity Financials Central Fund | 247,762,683 | 16,123,412 | 15,161,703 | 216,639,893 | 28.1% |
Fidelity Floating Rate Central Fund | 79,120,080 | 5,398,915 | 50,071,376 | 28,516,136 | 1.0% |
Fidelity Health Care Central Fund | 199,695,136 | 5,101,702 | 15,566,287 | 189,610,749 | 28.2% |
Fidelity High Income Central Fund 1 | 49,300,279 | 32,892,896 | 509,694 | 89,525,548 | 17.6% |
Fidelity Industrials Central Fund | 186,734,449 | 10,436,485 | 17,757,347 | 169,985,596 | 28.3% |
Fidelity Information Technology Central Fund | 232,695,598 | 17,589,970 | 24,956,058 | 283,273,466 | 28.2% |
Fidelity International Equity Central Fund | 213,497,810 | 6,312,951 | 9,136,396 | 204,250,748 | 31.9% |
Fidelity Materials Central Fund | 56,702,977 | 5,615,014 | 6,792,060 | 64,035,028 | 27.9% |
Fidelity Tactical Income Central Fund | 500,674,871 | 93,039,043 | 75,374,963 | 543,780,680 | 12.4% |
Fidelity Telecom Services Central Fund | 46,819,800 | 2,380,481 | 5,488,782 | 48,675,698 | 28.0% |
Fidelity Utilities Central Fund | 57,097,620 | 2,633,055 | 5,399,221 | 50,755,053 | 28.1% |
Total | $ 2,358,624,392 | $ 266,947,990 | $ 267,250,954 | $ 2,398,571,006 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 13.4% |
AAA,AA,A | 5.0% |
BBB | 4.4% |
BB | 2.4% |
B | 2.0% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 70.3% |
Short-Term Investments and Net Other Assets | 1.6% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 77.8% |
United Kingdom | 3.0% |
Switzerland | 2.2% |
Japan | 1.6% |
Bermuda | 1.4% |
China | 1.2% |
Netherlands | 1.2% |
France | 1.0% |
Others (individually less than 1%) | 10.6% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $408,374,215 of which $99,963,409 and $308,410,806 will expire on September 30, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $277,136,959 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investments in securities, at value (cost $2,698,290,220) - See accompanying schedule: | | $ 2,434,094,188 |
Receivable for investments sold | | 1,067,550 |
Receivable for fund shares sold | | 3,098,864 |
Distributions receivable from Fidelity Central Funds | | 2,609,604 |
Prepaid expenses | | 11,816 |
Other receivables | | 61,958 |
Total assets | | 2,440,943,980 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,420,288 | |
Payable for fund shares redeemed | 2,086,584 | |
Accrued management fee | 1,119,902 | |
Transfer agent fee payable | 429,475 | |
Distribution fees payable | 81,393 | |
Other affiliated payables | 77,307 | |
Other payables and accrued expenses | 91,283 | |
Total liabilities | | 7,306,232 |
| | |
Net Assets | | $ 2,433,637,748 |
Net Assets consist of: | | |
Paid in capital | | $ 2,957,877,976 |
Undistributed net investment income | | 30,469,293 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (290,514,142) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (264,195,379) |
Net Assets | | $ 2,433,637,748 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($88,969,208 ÷ 6,383,262 shares) | | $ 13.94 |
| | |
Maximum offering price per share (100/94.25 of $13.94) | | $ 14.79 |
Class T:
Net Asset Value and redemption price per share ($46,623,929 ÷ 3,351,294 shares) | | $ 13.91 |
| | |
Maximum offering price per share (100/96.50 of $13.91) | | $ 14.41 |
Class B:
Net Asset Value and offering price per share ($18,407,214 ÷ 1,328,069 shares)A | | $ 13.86 |
| | |
Class C:
Net Asset Value and offering price per share ($34,632,784 ÷ 2,498,411 shares)A | | $ 13.86 |
| | |
Asset Manager 70%:
Net Asset Value, offering price and redemption price per share ($2,214,929,112 ÷ 158,557,795 shares) | | $ 13.97 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($30,075,501 ÷ 2,153,113 shares) | | $ 13.97 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Financial Statements - continued
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 6,934 |
Income from Fidelity Central Funds | | 61,844,046 |
Total income | | 61,850,980 |
| | |
Expenses | | |
Management fee | $ 11,390,699 | |
Transfer agent fees | 5,151,165 | |
Distribution fees | 844,028 | |
Accounting fees and expenses | 781,924 | |
Custodian fees and expenses | 5,269 | |
Independent trustees' compensation | 7,918 | |
Depreciation in deferred trustee compensation account | (761) | |
Registration fees | 235,685 | |
Audit | 67,761 | |
Legal | 26,601 | |
Miscellaneous | 128,455 | |
Total expenses before reductions | 18,638,744 | |
Expense reductions | (223,186) | 18,415,558 |
Net investment income (loss) | | 43,435,422 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 14,607,742 | |
Fidelity Central Funds | (41,556,458) | |
Foreign currency transactions | 524 | |
Futures contracts | (13,233,029) | |
Total net realized gain (loss) | | (40,181,221) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 81,790,326 | |
Assets and liabilities in foreign currencies | (225) | |
Futures contracts | 2,377,530 | |
Total change in net unrealized appreciation (depreciation) | | 84,167,631 |
Net gain (loss) | | 43,986,410 |
Net increase (decrease) in net assets resulting from operations | | $ 87,421,832 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 43,435,422 | $ 58,379,001 |
Net realized gain (loss) | (40,181,221) | (21,106,617) |
Change in net unrealized appreciation (depreciation) | 84,167,631 | (689,432,540) |
Net increase (decrease) in net assets resulting from operations | 87,421,832 | (652,160,156) |
Distributions to shareholders from net investment income | (54,439,794) | (72,024,349) |
Distributions to shareholders from net realized gain | - | (3,513,384) |
Total distributions | (54,439,794) | (75,537,733) |
Share transactions - net increase (decrease) | (97,287,296) | (36,451,983) |
Total increase (decrease) in net assets | (64,305,258) | (764,149,872) |
| | |
Net Assets | | |
Beginning of period | 2,497,943,006 | 3,262,092,878 |
End of period (including undistributed net investment income of $30,469,293 and undistributed net investment income of $41,473,665, respectively) | $ 2,433,637,748 | $ 2,497,943,006 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .22 | - J |
Net realized and unrealized gain (loss) | .40 | (.52) |
Total from investment operations | .62 | (.52) |
Distributions from net investment income | (.30) | - |
Net asset value, end of period | $ 13.94 | $ 13.62 |
Total Return B,C,D | 5.28% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.19% | 1.31% A |
Expenses net of fee waivers, if any | 1.19% | 1.25% A |
Expenses net of all reductions | 1.18% | 1.24% A |
Net investment income (loss) | 1.88% | 1.60% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 88,969 | $ 89,034 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .19 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .58 | (.52) |
Distributions from net investment income | (.29) | - |
Net asset value, end of period | $ 13.91 | $ 13.62 |
Total Return B,C,D | 4.98% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.44% | 1.56% A |
Expenses net of fee waivers, if any | 1.44% | 1.50% A |
Expenses net of all reductions | 1.43% | 1.49% A |
Net investment income (loss) | 1.63% | 1.35% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 46,624 | $ 52,478 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .52 | (.52) |
Distributions from net investment income | (.28) | - |
Net asset value, end of period | $ 13.86 | $ 13.62 |
Total Return B,C,D | 4.45% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.95% | 2.06% A |
Expenses net of fee waivers, if any | 1.95% | 2.00% A |
Expenses net of all reductions | 1.94% | 1.99% A |
Net investment income (loss) | 1.13% | .85% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 18,407 | $ 23,526 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .52 | (.52) |
Distributions from net investment income | (.28) | - |
Net asset value, end of period | $ 13.86 | $ 13.62 |
Total Return B,C,D | 4.46% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.92% | 2.07% A |
Expenses net of fee waivers, if any | 1.92% | 2.00% A |
Expenses net of all reductions | 1.91% | 1.99% A |
Net investment income (loss) | 1.15% | .85% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 34,633 | $ 37,762 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 70%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.62 | $ 17.78 | $ 15.82 | $ 14.94 | $ 14.10 |
Income from Investment Operations | | | | | |
Net investment income (loss)B | .25 | .33 | .38 | .34 | .31 D |
Net realized and unrealized gain (loss) | .41 | (4.06) | 1.97 | .84 | .85 |
Total from investment operations | .66 | (3.73) | 2.35 | 1.18 | 1.16 |
Distributions from net investment income | (.31) | (.41) | (.39) | (.29) | (.32) |
Distributions from net realized gain | - | (.02) | - | (.01) | - |
Total distributions | (.31) | (.43) | (.39) | (.30) | (.32) |
Net asset value, end of period | $ 13.97 | $ 13.62 | $ 17.78 | $ 15.82 | $ 14.94 |
Total ReturnA | 5.59% | (21.46)% | 15.07% | 7.98% | 8.28% |
Ratios to Average Net AssetsE | | | | | |
Expenses before reductions | .88% | .79% | .80% | .81% | .82% |
Expenses net of fee waivers, if any | .88% | .79% | .80% | .81% | .82% |
Expenses net of all reductions | .86% | .78% | .78% | .79% | .80% |
Net investment income (loss) | 2.20% | 2.07% | 2.26% | 2.20% | 2.11% D |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 2,215 | $ 2,269 | $ 3,262 | $ 3,137 | $ 3,284 |
Portfolio turnover rateC | 13% | 14%F | 14% | 82%G | 37%G |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend the ratio of net investment income (loss) to average net assets would have been 1.73%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F The portfolio turnover rate does not include the assets acquired in the merger.
G Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss)D | .25 | -I |
Net realized and unrealized gain (loss) | .41 | (.52) |
Total from investment operations | .66 | (.52) |
Distributions from net investment income | (.31) | - |
Net asset value, end of period | $ 13.97 | $ 13.62 |
Total ReturnB,C | 5.58% | (3.68)% |
Ratios to Average Net AssetsG | | |
Expenses before reductions | .90% | 1.06% A |
Expenses net of fee waivers, if any | .90% | 1.00%A |
Expenses net of all reductions | .89% | .99%A |
Net investment income (loss) | 2.17% | 1.85%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 30,076 | $ 25,717 |
Portfolio turnover rateE | 13% | 14%H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
H The portfolio turnover rate does not include the assets acquired in the merger.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 85%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 1.1 | 0.6 |
Procter & Gamble Co. | 0.8 | 1.1 |
Google, Inc. Class A | 0.8 | 0.6 |
Pfizer, Inc. | 0.7 | 0.4 |
Charles Schwab Corp. | 0.7 | 0.0 |
CVS Caremark Corp. | 0.6 | 0.6 |
Microsoft Corp. | 0.6 | 0.6 |
CME Group, Inc. | 0.6 | 0.3 |
Morgan Stanley | 0.6 | 0.1 |
Covidien PLC | 0.5 | 0.0 |
| 7.0 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stocks Class and
Equity Futures 84.2% | | | Stocks Class and
Equity Futures 83.2% | |
| Bond Class 12.9% | | | Bond Class 14.3% | |
| Short-Term Class 2.9% | | | Short-Term Class 2.5% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 85%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 13.2 |
Fidelity International Equity Central Fund | 12.0 |
Fidelity Financials Central Fund | 11.1 |
Fidelity Health Care Central Fund | 9.1 |
Fidelity Energy Central Fund | 7.9 |
Fidelity Industrials Central Fund | 7.7 |
Fidelity Consumer Discretionary Central Fund | 7.0 |
Fidelity Consumer Staples Central Fund | 7.0 |
Fidelity Emerging Markets Equity Central Fund | 3.2 |
Fidelity Materials Central Fund | 2.8 |
Fidelity Utilities Central Fund | 2.6 |
Fidelity Telecom Services Central Fund | 2.2 |
Total Equity Central Funds | 85.8 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.2 |
Investment Grade Fixed-Income Funds | 8.1 |
Total Fixed-Income Central Funds | 13.3 |
Money Market Central Funds | 0.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 27.6% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 85%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 85.8% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (a) | 434,040 | | $ 39,979,382 |
Fidelity Consumer Staples Central Fund (a) | 347,559 | | 39,673,811 |
Fidelity Emerging Markets Equity Central Fund (a) | 106,255 | | 17,999,653 |
Fidelity Energy Central Fund (a) | 451,624 | | 44,764,935 |
Fidelity Financials Central Fund (a) | 1,088,185 | | 63,321,485 |
Fidelity Health Care Central Fund (a) | 515,191 | | 52,034,339 |
Fidelity Industrials Central Fund (a) | 429,190 | | 43,618,614 |
Fidelity Information Technology Central Fund (a) | 609,008 | | 74,871,388 |
Fidelity International Equity Central Fund (a) | 1,048,862 | | 68,228,457 |
Fidelity Materials Central Fund (a) | 128,169 | | 16,138,993 |
Fidelity Telecom Services Central Fund (a) | 123,278 | | 12,273,530 |
Fidelity Utilities Central Fund (a) | 166,862 | | 14,732,202 |
TOTAL EQUITY CENTRAL FUNDS (Cost $533,858,063) | 487,636,789 |
Fixed-Income Central Funds - 13.3% |
| | | |
High Yield Fixed-Income Funds - 5.2% |
Fidelity High Income Central Fund 1 (a) | 331,872 | | 29,367,333 |
Investment Grade Fixed-Income Funds - 8.1% |
Fidelity Tactical Income Central Fund (a) | 488,285 | | 46,186,877 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $72,294,368) | 75,554,210 |
Money Market Central Funds - 0.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (b)
(Cost $5,193,013) | 5,193,013 | | $ 5,193,013 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $611,345,444) | | 568,384,012 |
NET OTHER ASSETS - 0.0% | | 158,909 |
NET ASSETS - 100% | $ 568,542,921 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 77,032 |
Fidelity Consumer Discretionary Central Fund | 497,022 |
Fidelity Consumer Staples Central Fund | 843,175 |
Fidelity Emerging Markets Equity Central Fund | 182,190 |
Fidelity Energy Central Fund | 374,758 |
Fidelity Financials Central Fund | 1,081,702 |
Fidelity Health Care Central Fund | 522,727 |
Fidelity High Income Central Fund 1 | 2,028,072 |
Fidelity Industrials Central Fund | 687,860 |
Fidelity Information Technology Central Fund | 429,646 |
Fidelity International Equity Central Fund | 1,532,918 |
Fidelity Materials Central Fund | 220,729 |
Fidelity Tactical Income Central Fund | 1,617,146 |
Fidelity Telecom Services Central Fund | 197,837 |
Fidelity Utilities Central Fund | 450,441 |
Total | $ 10,743,255 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 32,363,171 | $ 8,552,452 | $ 1,521,243 | $ 39,979,382 | 7.7% |
Fidelity Consumer Staples Central Fund | 32,650,885 | 8,408,732 | 1,715,881 | 39,673,811 | 7.6% |
Fidelity Emerging Markets Equity Central Fund | - | 13,516,353 | 483,413 | 17,999,653 | 9.9% |
Fidelity Energy Central Fund | 34,680,962 | 13,803,178 | 1,710,593 | 44,764,935 | 7.8% |
Fidelity Financials Central Fund | 50,569,247 | 18,903,853 | 1,798,466 | 63,321,485 | 8.2% |
Fidelity Health Care Central Fund | 40,758,469 | 12,105,856 | 2,566,368 | 52,034,339 | 7.7% |
Fidelity High Income Central Fund 1 | 5,470,107 | 20,552,559 | 237,714 | 29,367,333 | 5.8% |
Fidelity Industrials Central Fund | 38,113,161 | 7,965,234 | 1,787,925 | 43,618,614 | 7.3% |
Fidelity Information Technology Central Fund | 47,494,035 | 14,156,899 | 2,206,603 | 74,871,388 | 7.4% |
Fidelity International Equity Central Fund | 59,185,813 | 9,122,538 | 774,093 | 68,228,457 | 10.6% |
Fidelity Materials Central Fund | 11,573,244 | 2,821,234 | 602,626 | 16,138,993 | 7.0% |
Fidelity Tactical Income Central Fund | 36,391,037 | 19,076,133 | 11,717,033 | 46,186,877 | 1.0% |
Fidelity Telecom Services Central Fund | 9,556,098 | 1,955,485 | 532,969 | 12,273,530 | 7.1% |
Fidelity Utilities Central Fund | 11,653,791 | 4,034,117 | 612,479 | 14,732,202 | 8.2% |
Total | $ 410,460,020 | $ 154,974,623 | $ 28,267,406 | $ 563,190,999 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 4.9% |
AAA,AA,A | 2.1% |
BBB | 1.3% |
BB | 2.3% |
B | 2.2% |
CCC,CC,C | 0.7% |
Not Rated | 0.0%* |
Equities | 84.4% |
Short-Term Investments and Net Other Assets | 2.1% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 72.4% |
United Kingdom | 3.7% |
Switzerland | 2.8% |
Japan | 2.2% |
France | 1.5% |
China | 1.4% |
Germany | 1.3% |
Bermuda | 1.3% |
Netherlands | 1.3% |
Cayman Islands | 1.1% |
Ireland | 1.0% |
Others (individually less than 1%) | 10.0% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $117,371,899 of which $36,329,826 and $81,042,073 will expire on September 30, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $50,387,129 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 85%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $611,345,444) - See accompanying schedule: | | $ 568,384,012 |
Receivable for investments sold | | 246,049 |
Receivable for fund shares sold | | 1,148,510 |
Distributions receivable from Fidelity Central Funds | | 383,124 |
Prepaid expenses | | 2,665 |
Total assets | | 570,164,360 |
| | |
Liabilities | | |
Payable for investments purchased | $ 807,530 | |
Payable for fund shares redeemed | 375,408 | |
Accrued management fee | 258,735 | |
Transfer agent fee payable | 117,326 | |
Distribution fees payable | 15,099 | |
Other affiliated payables | 17,960 | |
Other payables and accrued expenses | 29,381 | |
Total liabilities | | 1,621,439 |
| | |
Net Assets | | $ 568,542,921 |
Net Assets consist of: | | |
Paid in capital | | $ 691,333,262 |
Undistributed net investment income | | 4,914,856 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (84,748,717) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (42,956,480) |
Net Assets | | $ 568,542,921 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($22,506,089 ÷ 2,013,088 shares) | | $ 11.18 |
| | |
Maximum offering price per share (100/94.25 of $11.18) | | $ 11.86 |
Class T:
Net Asset Value and redemption price per share ($5,490,604 ÷ 492,875 shares) | | $ 11.14 |
| | |
Maximum offering price per share (100/96.50 of $11.14) | | $ 11.54 |
Class B:
Net Asset Value and offering price per share ($3,122,954 ÷ 281,479 shares)A | | $ 11.09 |
| | |
Class C:
Net Asset Value and offering price per share ($7,179,143 ÷ 648,110 shares)A | | $ 11.08 |
| | |
Asset Manager 85%:
Net Asset Value, offering price and redemption price per share ($528,720,341 ÷ 47,036,163 shares) | | $ 11.24 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,523,790 ÷ 135,613 shares) | | $ 11.24 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 1,681 |
Income from Fidelity Central Funds | | 10,743,255 |
Total income | | 10,744,936 |
| | |
Expenses | | |
Management fee | $ 2,271,513 | |
Transfer agent fees | 1,212,855 | |
Distribution fees | 127,013 | |
Accounting and security lending fees | 156,628 | |
Custodian fees and expenses | 5,027 | |
Independent trustees' compensation | 1,458 | |
Registration fees | 90,112 | |
Audit | 67,822 | |
Legal | 2,527 | |
Miscellaneous | 34,673 | |
Total expenses before reductions | 3,969,628 | |
Expense reductions | (40,635) | 3,928,993 |
Net investment income (loss) | | 6,815,943 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 875,299 | |
Fidelity Central Funds | (1,120,556) | |
Foreign currency transactions | (6,309) | |
Futures contracts | (5,201,232) | |
Total net realized gain (loss) | | (5,452,798) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 27,139,832 | |
Assets and liabilities in foreign currencies | 1,755 | |
Futures contracts | 934,495 | |
Total change in net unrealized appreciation (depreciation) | | 28,076,082 |
Net gain (loss) | | 22,623,284 |
Net increase (decrease) in net assets resulting from operations | | $ 29,439,227 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 6,815,943 | $ 8,424,465 |
Net realized gain (loss) | (5,452,798) | (12,035,813) |
Change in net unrealized appreciation (depreciation) | 28,076,082 | (147,035,741) |
Net increase (decrease) in net assets resulting from operations | 29,439,227 | (150,647,089) |
Distributions to shareholders from net investment income | (7,455,362) | (9,363,481) |
Distributions to shareholders from net realized gain | - | (1,224,803) |
Total distributions | (7,455,362) | (10,588,284) |
Share transactions - net increase (decrease) | 81,350,268 | 35,772,420 |
Total increase (decrease) in net assets | 103,334,133 | (125,462,953) |
| | |
Net Assets | | |
Beginning of period | 465,208,788 | 590,671,741 |
End of period (including undistributed net investment income of $4,914,856 and undistributed net investment income of $5,554,274, respectively) | $ 568,542,921 | $ 465,208,788 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.94 | $ 14.77 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .14 | .17 | .19 |
Net realized and unrealized gain (loss) | .27 | (3.74) | 2.05 |
Total from investment operations | .41 | (3.57) | 2.24 |
Distributions from net investment income | (.17) | (.23) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.17) | (.26) | (.22) |
Net asset value, end of period | $ 11.18 | $ 10.94 | $ 14.77 |
Total Return B,C,D | 4.30% | (24.59)% | 17.78% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.17% | 1.13% | 1.14% A |
Expenses net of fee waivers, if any | 1.17% | 1.13% | 1.14% A |
Expenses net of all reductions | 1.16% | 1.12% | 1.12% A |
Net investment income (loss) | 1.50% | 1.28% | 1.36% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 22,506 | $ 12,887 | $ 7,348 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.91 | $ 14.74 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .11 | .13 | .15 |
Net realized and unrealized gain (loss) | .27 | (3.73) | 2.06 |
Total from investment operations | .38 | (3.60) | 2.21 |
Distributions from net investment income | (.15) | (.20) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.15) | (.23) | (.22) |
Net asset value, end of period | $ 11.14 | $ 10.91 | $ 14.74 |
Total Return B,C,D | 3.98% | (24.76)% | 17.46% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.44% | 1.38% | 1.42% A |
Expenses net of fee waivers, if any | 1.44% | 1.38% | 1.42% A |
Expenses net of all reductions | 1.43% | 1.37% | 1.41% A |
Net investment income (loss) | 1.23% | 1.02% | 1.07% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 5,491 | $ 4,090 | $ 1,792 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.84 | $ 14.69 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .06 | .06 | .08 |
Net realized and unrealized gain (loss) | .28 | (3.72) | 2.07 |
Total from investment operations | .34 | (3.66) | 2.15 |
Distributions from net investment income | (.09) | (.16) | (.19) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.09) | (.19) | (.21) |
Net asset value, end of period | $ 11.09 | $ 10.84 | $ 14.69 |
Total Return B,C,D | 3.44% | (25.21)% | 16.98% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.98% | 1.93% | 1.93% A |
Expenses net of fee waivers, if any | 1.98% | 1.93% | 1.93% A |
Expenses net of all reductions | 1.97% | 1.92% | 1.92% A |
Net investment income (loss) | .69% | .47% | .56% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,123 | $ 2,452 | $ 1,632 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.82 | $ 14.67 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .07 | .07 | .08 |
Net realized and unrealized gain (loss) | .28 | (3.71) | 2.06 |
Total from investment operations | .35 | (3.64) | 2.14 |
Distributions from net investment income | (.09) | (.18) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.09) | (.21) | (.22) |
Net asset value, end of period | $ 11.08 | $ 10.82 | $ 14.67 |
Total Return B,C,D | 3.48% | (25.16)% | 16.90% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.94% | 1.90% | 1.91% A |
Expenses net of fee waivers, if any | 1.94% | 1.90% | 1.91% A |
Expenses net of all reductions | 1.93% | 1.89% | 1.90% A |
Net investment income (loss) | .73% | .51% | .58% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 7,179 | $ 5,017 | $ 3,194 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 85%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.99 | $ 14.81 | $ 12.79 | $ 11.69 | $ 10.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .16 | .20 | .23 | .18 | .06 D |
Net realized and unrealized gain (loss) | .27 | (3.76) | 2.02 | .98 | 1.40 |
Total from investment operations | .43 | (3.56) | 2.25 | 1.16 | 1.46 |
Distributions from net investment income | (.18) | (.23) | (.21) | (.06) | (.06) |
Distributions from net realized gain | - | (.03) | (.02) | - | - |
Total distributions | (.18) | (.26) | (.23) | (.06) | (.06) |
Net asset value, end of period | $ 11.24 | $ 10.99 | $ 14.81 | $ 12.79 | $ 11.69 |
Total Return A | 4.54% | (24.43)% | 17.77% | 9.95% | 14.22% |
Ratios to Average Net Assets E | | | | | |
Expenses before reductions | .95% | .87% | .89% | .91% | .92% |
Expenses net of fee waivers, if any | .95% | .87% | .87% | .91% | .92% |
Expenses net of all reductions | .94% | .86% | .86% | .87% | .89% |
Net investment income (loss) | 1.72% | 1.54% | 1.62% | 1.50% | .53% D |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 528,720 | $ 440,040 | $ 576,458 | $ 448,831 | $ 403,221 |
Portfolio turnover rate C | 7% | 20% | 31% | 187% F | 71% F |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .39%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.00 | $ 14.82 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) D | .17 | .21 | .23 |
Net realized and unrealized gain (loss) | .28 | (3.76) | 2.07 |
Total from investment operations | .45 | (3.55) | 2.30 |
Distributions from net investment income | (.21) | (.24) | (.21) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.21) | (.27) | (.23) |
Net asset value, end of period | $ 11.24 | $ 11.00 | $ 14.82 |
Total Return B,C | 4.70% | (24.35)% | 18.24% |
Ratios to Average Net Assets G | | | |
Expenses before reductions | .82% | .78% | .82% A |
Expenses net of fee waivers, if any | .82% | .78% | .82% A |
Expenses net of all reductions | .81% | .77% | .81% A |
Net investment income (loss) | 1.85% | 1.62% | 1.67% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 1,524 | $ 724 | $ 247 |
Portfolio turnover rate E | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended September 30, 2009
1. Organization.
Fidelity Asset Manager 20%, Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, Fidelity Asset Manager 50%, Fidelity Asset Manager 60%, Fidelity Asset Manager 70% and Fidelity Asset Manager 85% (the Funds) are funds of Fidelity Charles Street 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.
Each Fund offers Class A, Class T, Class B, Class C, Asset Manager and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of each Fund. These strategies are consistent with the investment objectives of each Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of each Fund. The following summarizes the Funds' investment in each Fidelity Central Fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio* |
Fidelity Equity Sector Central Funds | FMR Co., Inc. (FMRC) | Each fund seeks capital appreciation by investing primarily in common stocks, with a concentration in a particular industry. | Foreign Securities Repurchase Agreements Loans & Direct Debt Instruments | Less than .01% to ..02% |
Fidelity Emerging Markets Equity Central Fund | FMRC | Seeks capital appreciation by investing primarily in equity securities of issuers in emerging markets. | Foreign Securities Repurchase Agreements | .12% |
Fidelity International Equity Central Fund | FMRC | Seeks capital appreciation by investing primarily in non-U.S. based common stocks, including securities of issuers located in emerging markets. | Foreign Securities Repurchase Agreements | .03% |
Fidelity Floating Rate Central Fund | FMRC | Seeks a high level of income by normally investing in floating rate loans and other floating rate securities. | Delayed Delivery & When Issued Securities Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities | Less than .01% |
Fidelity High Income Central Fund 1 | FMRC | Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities. | Delayed Delivery & When Issued Securities Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities | Less than .01% |
Fidelity Tactical Income Central Fund | Fidelity Investments Money Management, Inc. (FIMM) | Seeks a high level of income by normally investing in investment-grade debt securities. | Delayed Delivery & When Issued Securities Repurchase Agreements Restricted Securities Swap Agreements | .02% |
Fidelity Money Market Central Funds | FIMM | Seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .01% |
* Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
Annual Report
Notes to Financial Statements - continued
2. Investments in Fidelity Central Funds - continued
An unaudited holdings listing for each Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through each Funds investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which contain the significant accounting policies (including security valuation policies) of those funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, November 20, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. All inputs to value investments as of September 30, 2009 for each Fund are categorized as Level 1 in the disclosure hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses of the Fidelity Central Funds. Although not included in each Fund's expenses, each Fund indirectly bears its proportionate share of the Fidelity Central Funds' expenses through the impact of these expenses on each Fidelity Central Fund's net asset value. Based on their most recent shareholder report date, expenses of the Fidelity Central Funds ranged from less than .01% to .12%.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for Fidelity Asset Manager 50% and Fidelity Asset Manager 70%, independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statements of Assets and Liabilities.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. There are no unrecognized tax benefits in the accompanying financial statements in connection with the tax positions taken by each Fund. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
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 futures transactions, foreign currency transactions, deferred trustees compensation, partnerships (including allocations from Fidelity Central Funds), market discount, capital loss carryforwards and losses deferred due to excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
| Cost for Federal
Income Tax Purposes | Unrealized
Appreciation | Unrealized
Depreciation | Net Unrealized
Appreciation/
(Depreciation) |
Fidelity Asset Manager 20% | $ 2,320,526,472 | $ 78,239,968 | $ (44,195,760) | $ 34,044,208 |
Fidelity Asset Manager 30% | 69,578,504 | 3,791,376 | (1,984,644) | 1,806,732 |
Fidelity Asset Manager 40% | 43,307,076 | 3,231,344 | (1,715,084) | 1,516,260 |
Fidelity Asset Manager 50% | 5,831,938,017 | 401,683,673 | (172,665,119) | 229,018,554 |
Fidelity Asset Manager 60% | 62,341,965 | 6,016,542 | (2,914,369) | 3,102,173 |
Fidelity Asset Manager 70% | 2,304,553,089 | 168,821,740 | (39,280,641) | 129,541,099 |
Fidelity Asset Manager 85% | 529,049,895 | 60,045,047 | (20,710,930) | 39,334,117 |
| Undistributed
Ordinary Income | Undistributed Long-term Capital Gain | Capital Loss
Carryforward |
Fidelity Asset Manager 20% | $ 3,231,942 | $ - | $ (109,929,389) |
Fidelity Asset Manager 30% | 338,932 | - | (270,253) |
Fidelity Asset Manager 40% | 420,655 | - | (565,738) |
Fidelity Asset Manager 50% | 31,305,659 | - | (544,429,664) |
Fidelity Asset Manager 60% | 807,681 | - | (1,075,548) |
Fidelity Asset Manager 70% | 31,792,709 | - | (408,374,215) |
Fidelity Asset Manager 85% | 5,634,571 | - | (117,371,899) |
The tax character of distributions paid was as follows:
September 30, 2009 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Asset Manager 20% | $ 71,793,201 | $ - | $ 71,793,201 |
Fidelity Asset Manager 30% | 1,165,886 | - | 1,165,886 |
Fidelity Asset Manager 40% | 608,662 | - | 608,662 |
Fidelity Asset Manager 50% | 183,355,430 | - | 183,355,430 |
Fidelity Asset Manager 60% | 387,880 | - | 387,880 |
Fidelity Asset Manager 70% | 54,439,794 | - | 54,439,794 |
Fidelity Asset Manager 85% | 7,455,362 | - | 7,455,362 |
September 30, 2008 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Asset Manager 20% | $ 124,816,062 | $ 15,864,447 | $ 140,680,509 |
Fidelity Asset Manager 30% | 595,233 | - | 595,233 |
Fidelity Asset Manager 40% | 228,368 | - | 228,368 |
Fidelity Asset Manager 50% | 609,187,068 | 187,189,636 | 796,376,704 |
Fidelity Asset Manager 60% | 36,701 | - | 36,701 |
Fidelity Asset Manager 70% | 75,537,733 | - | 75,537,733 |
Fidelity Asset Manager 85% | 10,588,284 | - | 10,588,284 |
Annual Report
Notes to Financial Statements - continued
4. Investments in Derivative Instruments.
Objectives and Strategies for Investing in Derivative Instruments. The Funds use derivative instruments ("derivatives"), including futures contracts, in order to meet their investment objectives. The Funds' strategy is to use derivatives as a risk management tool and as an additional way to gain exposure to certain types of assets. 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.
While utilizing derivatives in pursuit of their investment objectives, the Funds are exposed to certain financial risks relative to those derivatives. This risk is further explained below:
Equity Risk | Equity risk is the risk that the value of financial instruments will fluctuate 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 following notes provide more detailed information about each derivative type held by the Funds:
Futures Contracts. The Funds use futures contracts to manage their exposure to the stock market. 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. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument. Risks of loss may include equity risk and potential lack of liquidity in the market. Futures have minimal counterparty risk to the Funds since the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
The purchaser or seller of a futures contract is not required to pay for or deliver the instrument unless the contract is held until the delivery date. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Securities deposited to meet margin requirements are identified in each applicable Fund's Schedule of Investments. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and changes in value are recognized as unrealized gain (loss). Realized gain (loss) is recorded upon the expiration or closing of the futures contract. The net realized gain (loss) and change in unrealized gain (loss) on futures contracts during the period is included on the Statement of Operations. At the end of the period, the Funds had no open futures contracts.
5. Realized and Change in Unrealized Gain (Loss) on Derivative Instruments. A summary of each applicable Funds' value of derivatives by primary risk exposure as of period end, if any, is included at the end of each applicable Funds' Schedule of Investments. The table below reflects each applicable Funds' realized gain (loss) and change in unrealized gain (loss) for derivatives during the period.
Risk Exposure / Derivative Type | Realized Gain (Loss) | Change in Unrealized
Gain (Loss) |
Fidelity Asset Manager 20% | | |
Equity Risk | | |
Futures Contracts | $ (7,536,941) | $ 1,367,696 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (7,536,941) | $ 1,367,696 |
Fidelity Asset Manager 30% | | |
Equity Risk | | |
Futures Contracts | $ (55,838) | $ 10,142 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (55,838) | $ 10,142 |
Fidelity Asset Manager 40% | | |
Equity Risk | | |
Futures Contracts | $ (47,735) | $ 8,693 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (47,735) | $ 8,693 |
Fidelity Asset Manager 50% | | |
Equity Risk | | |
Futures Contracts | $ (35,226,589) | $ 6,392,238 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (35,226,589) | $ 6,392,238 |
Fidelity Asset Manager 60% | | |
Equity Risk | | |
Futures Contracts | $ (119,603) | $ 21,732 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (119,603) | $ 21,732 |
Annual Report
5. Realized and Change in Unrealized Gain (Loss) on Derivative Instruments - continued
Risk Exposure / Derivative Type | Realized Gain (Loss) | Change in Unrealized
Gain (Loss) |
Fidelity Asset Manager 70% | | |
Equity Risk | | |
Futures Contracts | $ (13,233,029) | $ 2,377,530 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (13,233,029) | $ 2,377,530 |
Fidelity Asset Manager 85% | | |
Equity Risk | | |
Futures Contracts | $ (5,201,232) | $ 934,495 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (5,201,232) | $ 934,495 |
(a) Derivatives realized gain (loss) and change in unrealized gain (loss) is included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities (including the Equity and Fixed-Income Central Funds), other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) |
Fidelity Asset Manager 20% | 472,453,488 | 246,669,523 |
Fidelity Asset Manager 30% | 38,456,666 | 4,211,268 |
Fidelity Asset Manager 40% | 28,946,922 | 6,608,613 |
Fidelity Asset Manager 50% | 790,779,159 | 868,896,422 |
Fidelity Asset Manager 60% | 41,798,650 | 9,935,958 |
Fidelity Asset Manager 70% | 266,947,990 | 267,250,954 |
Fidelity Asset Manager 85% | 154,974,623 | 28,267,406 |
7. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows:
| Individual Rate | Group Rate | Total |
Fidelity Asset Manager 20% | .30% | .12% | .42% |
Fidelity Asset Manager 30% | .30% | .12% | .42% |
Fidelity Asset Manager 40% | .30% | .12% | .42% |
Fidelity Asset Manager 50% | .25% | .26% | .51% |
Fidelity Asset Manager 60% | .30% | .26% | .56% |
Fidelity Asset Manager 70% | .30% | .26% | .56% |
Fidelity Asset Manager 85% | .30% | .26% | .56% |
FMR pays a portion of the management fees received from the Funds to the Fidelity Central Funds' investment advisers, who are also affiliates, for managing the assets of the Fidelity Central Funds.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Fidelity Asset Manager 20% | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 35,451 | $ 8,147 |
Class T | .25% | .25% | 31,678 | - |
Class B | .75% | .25% | 21,872 | 16,407 |
Class C | .75% | .25% | 53,115 | 23,897 |
| | | $ 142,116 | $ 48,451 |
Annual Report
Notes to Financial Statements - continued
7. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
Fidelity Asset Manager 30% | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 4,966 | $ 353 |
Class T | .25% | .25% | 6,424 | 94 |
Class B | .75% | .25% | 5,230 | 4,018 |
Class C | .75% | .25% | 16,330 | 9,418 |
| | | $ 32,950 | $ 13,883 |
Fidelity Asset Manager 40% | | | | |
Class A | -% | .25% | $ 8,469 | $ 2,038 |
Class T | .25% | .25% | 8,896 | 3,680 |
Class B | .75% | .25% | 11,215 | 10,619 |
Class C | .75% | .25% | 12,418 | 10,076 |
| | | $ 40,998 | $ 26,413 |
Fidelity Asset Manager 50% | | | | |
Class A | -% | .25% | $ 35,783 | $ 8,704 |
Class T | .25% | .25% | 32,176 | - |
Class B | .75% | .25% | 21,470 | 16,103 |
Class C | .75% | .25% | 53,845 | 18,028 |
| | | $ 143,274 | $ 42,835 |
Fidelity Asset Manager 60% | | | | |
Class A | -% | .25% | $ 9,474 | $ 2,053 |
Class T | .25% | .25% | 11,262 | 936 |
Class B | .75% | .25% | 10,869 | 8,890 |
Class C | .75% | .25% | 14,307 | 7,543 |
| | | $ 45,912 | $ 19,422 |
Fidelity Asset Manager 70% | | | | |
Class A | -% | .25% | $ 184,712 | $ 14,864 |
Class T | .25% | .25% | 198,940 | 674 |
Class B | .75% | .25% | 168,247 | 126,244 |
Class C | .75% | .25% | 292,129 | 30,776 |
| | | $ 844,028 | $ 172,558 |
Fidelity Asset Manager 85% | | | | |
Class A | -% | .25% | $ 37,197 | $ 3,132 |
Class T | .25% | .25% | 19,112 | - |
Class B | .75% | .25% | 22,375 | 16,781 |
Class C | .75% | .25% | 48,329 | 17,452 |
| | | $ 127,013 | $ 37,365 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Asset Manager 20% | Retained
by FDC |
Class A | $ 21,202 |
Class T | 4,939 |
Class B* | 4,495 |
Class C* | 1,667 |
| $ 32,303 |
Annual Report
7. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Fidelity Asset Manager 30% | Retained
by FDC |
Class A | $ 7,922 |
Class T | 1,607 |
Class B* | 103 |
Class C* | 109 |
| $ 9,741 |
Fidelity Asset Manager 40% | |
Class A | $ 5,816 |
Class T | 3,206 |
Class B* | 665 |
Class C* | 327 |
| $ 10,014 |
Fidelity Asset Manager 50% | |
Class A | $ 22,279 |
Class T | 5,098 |
Class B* | 7,545 |
Class C* | 3,234 |
| $ 38,156 |
Fidelity Asset Manager 60% | |
Class A | $ 11,714 |
Class T | 4,574 |
Class B* | 1,130 |
Class C* | 981 |
| $ 18,399 |
Fidelity Asset Manager 70% | |
Class A | $ 23,651 |
Class T | 11,239 |
Class B* | 46,808 |
Class C* | 2,881 |
| $ 84,579 |
Fidelity Asset Manager 85% | |
Class A | $ 22,099 |
Class T | 3,263 |
Class B* | 5,076 |
Class C* | 1,165 |
| $ 31,603 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
Fidelity Asset Manager 20% | Amount | % of
Average
Net Assets |
Class A | $ 22,038 | .15 |
Class T | 9,444 | .15 |
Class B | 4,821 | .22 |
Class C | 9,093 | .17 |
Asset Manager 20% | 2,166,490 | .11 |
Institutional Class | 1,976 | .09 |
| $ 2,213,862 | |
Annual Report
Notes to Financial Statements - continued
7. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
Fidelity Asset Manager 30% | Amount | % of
Average
Net Assets |
Class A | $ 3,214 | .16 |
Class T | 1,975 | .15 |
Class B | 1,079 | .21 |
Class C | 2,415 | .15 |
Asset Manager 30% | 37,691 | .11 |
Institutional Class | 627 | .13 |
| $ 47,001 | |
Fidelity Asset Manager 40% | | |
Class A | $ 5,235 | .16 |
Class T | 2,496 | .14 |
Class B | 1,289 | .11 |
Class C | 1,646 | .13 |
Asset Manager 40% | 22,448 | .12 |
Institutional Class | 879 | .09 |
| $ 33,993 | |
Fidelity Asset Manager 50% | | |
Class A | $ 31,443 | .22 |
Class T | 15,385 | .24 |
Class B | 6,570 | .31 |
Class C | 14,413 | .27 |
Asset Manager 50% | 11,688,323 | .22 |
Institutional Class | 2,121 | .14 |
| $ 11,758,255 | |
Fidelity Asset Manager 60% | | |
Class A | $ 11,127 | .29 |
Class T | 5,792 | .26 |
Class B | 3,222 | .30 |
Class C | 3,801 | .27 |
Asset Manager 60% | 56,447 | .22 |
Institutional Class | 1,391 | .20 |
| $ 81,780 | |
Fidelity Asset Manager 70% | | |
Class A | $ 231,378 | .31 |
Class T | 126,884 | .32 |
Class B | 54,231 | .32 |
Class C | 85,931 | .29 |
Asset Manager 70% | 4,591,301 | .25 |
Institutional Class | 61,440 | .28 |
| $ 5,151,165 | |
Fidelity Asset Manager 85% | | |
Class A | $ 40,659 | .27 |
Class T | 11,114 | .29 |
Class B | 7,349 | .33 |
Class C | 14,410 | .30 |
Asset Manager 85% | 1,137,645 | .30 |
Institutional Class | 1,678 | .17 |
| $ 1,212,855 | |
Annual Report
7. Fees and Other Transactions with Affiliates - continued
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains each Fund's accounting records. The accounting fee is based on the level of average net assets for the month.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the Funds, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or
Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Fidelity Asset Manager 50% | Borrower | $ 11,798,692 | .31% | $ 1,327 |
8. Committed Line of Credit.
Certain Funds participate with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Asset Manager 20% | $ 9,344 |
Fidelity Asset Manager 30% | 159 |
Fidelity Asset Manager 40% | 107 |
Fidelity Asset Manager 50% | 25,181 |
Fidelity Asset Manager 60% | 126 |
Fidelity Asset Manager 70% | 9,507 |
Fidelity Asset Manager 85% | 1,811 |
During the period, there were no borrowings on this line of credit.
9. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
| | |
Fidelity Asset Manager 20% | | |
Class B | 1.65% | $ 819 |
Fidelity Asset Manager 30% | | |
Class A | .90% | 6,168 |
Class T | 1.15% | 3,974 |
Class B | 1.65% | 1,856 |
Class C | 1.65% | 4,967 |
Asset Manager 30% | .65% | 88,074 |
Institutional Class | .65% | 1,505 |
Fidelity Asset Manager 40% | | |
Class A | .90% | 14,539 |
Class T | 1.15% | 7,904 |
Class B | 1.65% | 4,875 |
Class C | 1.65% | 5,537 |
Asset Manager 40% | .65% | 75,024 |
Institutional Class | .65% | 4,118 |
Annual Report
Notes to Financial Statements - continued
9. Expense Reductions - continued
| Expense
Limitations | Reimbursement
from adviser |
Fidelity Asset Manager 50% | | |
Class B | 1.85% | $ 109 |
Fidelity Asset Manager 60% | | |
Class A | 1.10% | 16,958 |
Class T | 1.35% | 9,424 |
Class B | 1.85% | 4,995 |
Class C | 1.85% | 6,321 |
Asset Manager 60% | .85% | 93,574 |
Institutional Class | .85% | 2,489 |
FMR voluntarily agreed to reimburse a portion of certain class' operating expenses. During the period, this reimbursement reduced these class' expenses as noted in the table below.
| Reimbursement
from adviser |
Asset Manager 70% | $ 57,925 |
Many of the brokers with whom FMR places trades on behalf of certain Funds and certain Equity Central Funds provided services to these Funds in addition to trade execution. These services included payments of expenses on behalf of each applicable Fund. In addition, through arrangements with each applicable Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage Service
reduction | Transfer
Agent
expense
reduction |
| | |
Fidelity Asset Manager 20% | $ 33,288 | $ - |
Fidelity Asset Manager 30% | 1,023 | - |
Fidelity Asset Manager 40% | 1,096 | - |
Fidelity Asset Manager 50% | 290,234 | - |
Fidelity Asset Manager 60% | 2,262 | - |
Fidelity Asset Manager 70% | 165,252 | - |
Institutional Class | - | 9 |
Fidelity Asset Manager 85% | 40,635 | - |
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 20% | | |
From net investment income | | |
Class A | $ 437,282 | $ 217,282 |
Class T | 183,229 | 139,471 |
Class B | 54,423 | 38,980 |
Class C | 126,202 | 66,883 |
Asset Manager 20% | 70,916,093 | 90,572,886 |
Institutional Class | 75,972 | 68,611 |
Total | $ 71,793,201 | $ 91,104,113 |
From net realized gain | | |
Class A | $ - | $ 111,897 |
Class T | - | 88,892 |
Class B | - | 24,291 |
Class C | - | 35,012 |
Asset Manager 20% | - | 49,278,678 |
Institutional Class | - | 37,626 |
Total | $ - | $ 49,576,396 |
Annual Report
10. Distributions to Shareholders - continued
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 30% A | | |
From net investment income | | |
Class A | $ 52,355 | $ 15,489 |
Class T | 32,661 | 9,224 |
Class B | 11,038 | 3,594 |
Class C | 34,391 | 12,880 |
Asset Manager 30% | 1,021,321 | 550,353 |
Institutional Class | 14,120 | 3,693 |
Total | $ 1,165,886 | $ 595,233 |
Fidelity Asset Manager 40% A | | |
From net investment income | | |
Class A | $ 72,060 | $ 27,725 |
Class T | 39,765 | 24,685 |
Class B | 20,040 | 15,306 |
Class C | 21,439 | 15,599 |
Asset Manager 40% | 425,812 | 119,398 |
Institutional Class | 29,546 | 25,655 |
Total | $ 608,662 | $ 228,368 |
Fidelity Asset Manager 50% | | |
From net investment income | | |
Class A | $ 397,973 | $ 185,719 |
Class T | 166,065 | 112,972 |
Class B | 46,365 | 29,127 |
Class C | 113,113 | 67,942 |
Asset Manager 50% | 177,932,255 | 239,444,583 |
Institutional Class | 38,741 | 26,633 |
Total | $ 178,694,512 | $ 239,866,976 |
From net realized gain | | |
Class A | $ 8,976 | $ 359,333 |
Class T | 4,405 | 290,067 |
Class B | 1,523 | 98,729 |
Class C | 3,756 | 225,372 |
Asset Manager 50% | 4,641,464 | 555,465,189 |
Institutional Class | 794 | 71,038 |
Total | $ 4,660,918 | $ 556,509,728 |
Fidelity Asset Manager 60% A | | |
From net investment income | | |
Class A | $ 47,042 | $ 7,307 |
Class T | 27,701 | 2,841 |
Class B | 7,436 | 1,840 |
Class C | 11,096 | 1,840 |
Asset Manager 60% | 284,188 | 18,398 |
Institutional Class | 10,417 | 4,475 |
Total | $ 387,880 | $ 36,701 |
Fidelity Asset Manager 70% | | |
From net investment income | | |
Class A B | $ 1,931,219 | $ - |
Class T B | 1,065,951 | - |
Class B B | 447,034 | - |
Class C B | 727,522 | - |
Asset Manager 70% | 49,684,258 | 72,024,349 |
Institutional Class B | 583,810 | - |
Total | $ 54,439,794 | $ 72,024,349 |
From net realized gain | | |
Asset Manager 70% | $ - | $ 3,513,384 |
Annual Report
Notes to Financial Statements - continued
10. Distributions to Shareholders - continued
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 85% | | |
From net investment income | | |
Class A | $ 236,401 | $ 150,986 |
Class T | 60,047 | 34,666 |
Class B | 22,565 | 23,020 |
Class C | 40,556 | 54,595 |
Asset Manager 85% | 7,078,878 | 9,096,274 |
Institutional Class | 16,915 | 3,940 |
Total | $ 7,455,362 | $ 9,363,481 |
From net realized gain | | |
Class A | $ - | $ 20,022 |
Class T | - | 5,093 |
Class B | - | 4,288 |
Class C | - | 9,298 |
Asset Manager 85% | - | 1,185,614 |
Institutional Class | - | 488 |
Total | $ - | $ 1,224,803 |
A Prior period distributions are for the period October 9, 2007 (commencement of operations) to September 30, 2008.
B Prior period distributions are for the period September 23, 2008 (commencement of operations) to September 30, 2008.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Fidelity Asset Manager 20% | | | | |
Class A | | | | |
Shares sold | 1,881,552 | 723,971 | $ 20,262,428 | $ 8,907,277 |
Reinvestment of distributions | 36,721 | 20,064 | 395,323 | 246,151 |
Shares redeemed | (551,418) | (301,654) | (5,902,669) | (3,651,098) |
Net increase (decrease) | 1,366,855 | 442,381 | $ 14,755,082 | $ 5,502,330 |
Class T | | | | |
Shares sold | 556,534 | 207,033 | $ 5,957,883 | $ 2,528,153 |
Reinvestment of distributions | 15,725 | 16,854 | 167,994 | 207,671 |
Shares redeemed | (154,805) | (97,145) | (1,648,787) | (1,189,971) |
Net increase (decrease) | 417,454 | 126,742 | $ 4,477,090 | $ 1,545,853 |
Class B | | | | |
Shares sold | 172,271 | 148,755 | $ 1,835,013 | $ 1,806,819 |
Reinvestment of distributions | 4,084 | 4,541 | 43,418 | 55,799 |
Shares redeemed | (120,458) | (55,802) | (1,269,080) | (672,403) |
Net increase (decrease) | 55,897 | 97,494 | $ 609,351 | $ 1,190,215 |
Class C | | | | |
Shares sold | 590,588 | 269,755 | $ 6,323,524 | $ 3,257,302 |
Reinvestment of distributions | 8,209 | 5,896 | 87,576 | 72,166 |
Shares redeemed | (141,658) | (83,185) | (1,492,459) | (1,003,632) |
Net increase (decrease) | 457,139 | 192,466 | $ 4,918,641 | $ 2,325,836 |
Asset Manager 20% | | | | |
Shares sold | 58,768,202 | 58,898,445 | $ 637,513,025 | $ 723,714,675 |
Reinvestment of distributions | 6,354,880 | 10,897,714 | 67,864,384 | 134,543,532 |
Shares redeemed | (69,477,950) | (64,781,528) | (731,982,311) | (791,199,186) |
Net increase (decrease) | (4,354,868) | 5,014,631 | $ (26,604,902) | $ 67,059,021 |
Institutional Class | | | | |
Shares sold | 137,005 | 180,834 | $ 1,434,782 | $ 2,308,608 |
Reinvestment of distributions | 6,581 | 8,001 | 70,199 | 98,769 |
Shares redeemed | (66,987) | (56,367) | (711,929) | (687,919) |
Net increase (decrease) | 76,599 | 132,468 | $ 793,052 | $ 1,719,458 |
Annual Report
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Fidelity Asset Manager 30% A | | | | |
Class A | | | | |
Shares sold | 414,025 | 144,653 | $ 3,417,018 | $ 1,379,463 |
Reinvestment of distributions | 5,517 | 1,332 | 44,542 | 12,471 |
Shares redeemed | (76,929) | (12,117) | (581,256) | (111,408) |
Net increase (decrease) | 342,613 | 133,868 | $ 2,880,304 | $ 1,280,526 |
Class T | | | | |
Shares sold | 161,111 | 133,157 | $ 1,317,197 | $ 1,249,065 |
Reinvestment of distributions | 4,011 | 983 | 32,253 | 9,168 |
Shares redeemed | (47,688) | (10,072) | (365,440) | (93,877) |
Net increase (decrease) | 117,434 | 124,068 | $ 984,010 | $ 1,164,356 |
Class B | | | | |
Shares sold | 79,409 | 55,559 | $ 635,086 | $ 524,350 |
Reinvestment of distributions | 1,314 | 382 | 10,518 | 3,594 |
Shares redeemed | (50,703) | (392) | (394,045) | (3,644) |
Net increase (decrease) | 30,020 | 55,549 | $ 251,559 | $ 524,300 |
Class C | | | | |
Shares sold | 174,653 | 186,960 | $ 1,440,050 | $ 1,749,175 |
Reinvestment of distributions | 4,010 | 1,370 | 32,219 | 12,797 |
Shares redeemed | (74,546) | (15,226) | (607,066) | (143,734) |
Net increase (decrease) | 104,117 | 173,104 | $ 865,203 | $ 1,618,238 |
Asset Manager 30% | | | | |
Shares sold | 6,904,812 | 5,359,391 | $ 55,910,068 | $ 50,914,907 |
Reinvestment of distributions | 123,690 | 56,102 | 996,564 | 525,162 |
Shares redeemed | (3,262,135) | (2,411,599) | (25,731,823) | (22,329,751) |
Net increase (decrease) | 3,766,367 | 3,003,894 | $ 31,174,809 | $ 29,110,318 |
Institutional Class | | | | |
Shares sold | 85,817 | 23,759 | $ 690,781 | $ 231,444 |
Reinvestment of distributions | 1,745 | 391 | 13,913 | 3,693 |
Shares redeemed | (26,231) | - | (202,728) | - |
Net increase (decrease) | 61,331 | 24,150 | $ 501,966 | $ 235,137 |
Fidelity Asset Manager 40%A | | | | |
Class A | | | | |
Shares sold | 949,479 | 250,703 | $ 6,910,670 | $ 2,436,280 |
Reinvestment of distributions | 9,317 | 2,933 | 69,821 | 27,298 |
Shares redeemed | (867,182) | (12,251) | (6,423,492) | (109,719) |
Net increase (decrease) | 91,614 | 241,385 | $ 556,999 | $ 2,353,859 |
Class T | | | | |
Shares sold | 151,870 | 227,454 | $ 1,163,455 | $ 2,214,040 |
Reinvestment of distributions | 5,024 | 2,641 | 38,279 | 24,648 |
Shares redeemed | (137,056) | (11,458) | (1,041,565) | (102,562) |
Net increase (decrease) | 19,838 | 218,637 | $ 160,169 | $ 2,136,126 |
Class B | | | | |
Shares sold | 75,414 | 164,587 | $ 591,777 | $ 1,626,346 |
Reinvestment of distributions | 2,558 | 1,632 | 19,564 | 15,307 |
Shares redeemed | (97,756) | (2,203) | (742,267) | (19,407) |
Net increase (decrease) | (19,784) | 164,016 | $ (130,926) | $ 1,622,246 |
Class C | | | | |
Shares sold | 99,725 | 185,184 | $ 770,448 | $ 1,826,153 |
Reinvestment of distributions | 2,748 | 1,654 | 20,997 | 15,523 |
Shares redeemed | (99,318) | (22,232) | (755,114) | (200,684) |
Net increase (decrease) | 3,155 | 164,606 | $ 36,331 | $ 1,640,992 |
Annual Report
Notes to Financial Statements - continued
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Asset Manager 40% | | | | |
Shares sold | 3,849,199 | 1,762,049 | $ 29,825,562 | $ 16,509,845 |
Reinvestment of distributions | 55,087 | 12,657 | 419,676 | 116,657 |
Shares redeemed | (1,075,285) | (477,589) | (8,018,930) | (4,363,370) |
Net increase (decrease) | 2,829,001 | 1,297,117 | $ 22,226,308 | $ 12,263,132 |
Institutional Class | | | | |
Shares sold | 13,481 | 156,120 | $ 108,903 | $ 1,556,663 |
Reinvestment of distributions | 3,839 | 2,743 | 29,314 | 25,655 |
Shares redeemed | (70,040) | - | (528,051) | - |
Net increase (decrease) | (52,720) | 158,863 | $ (389,834) | $ 1,582,318 |
Fidelity Asset Manager 50% | | | | |
Class A | | | | |
Shares sold | 1,405,280 | 701,937 | $ 16,539,899 | $ 10,522,398 |
Reinvestment of distributions | 33,431 | 34,512 | 384,422 | 528,926 |
Shares redeemed | (364,826) | (176,302) | (4,155,231) | (2,573,190) |
Net increase (decrease) | 1,073,885 | 560,147 | $ 12,769,090 | $ 8,478,134 |
Class T | | | | |
Shares sold | 545,417 | 321,333 | $ 6,332,321 | $ 4,828,159 |
Reinvestment of distributions | 13,658 | 25,741 | 157,088 | 396,949 |
Shares redeemed | (169,205) | (108,476) | (1,916,167) | (1,580,570) |
Net increase (decrease) | 389,870 | 238,598 | $ 4,573,242 | $ 3,644,538 |
Class B | | | | |
Shares sold | 180,306 | 140,799 | $ 2,100,830 | $ 2,118,896 |
Reinvestment of distributions | 3,715 | 6,699 | 42,668 | 103,082 |
Shares redeemed | (85,486) | (45,273) | (956,143) | (662,500) |
Net increase (decrease) | 98,535 | 102,225 | $ 1,187,355 | $ 1,559,478 |
Class C | | | | |
Shares sold | 485,121 | 230,335 | $ 5,631,940 | $ 3,467,980 |
Reinvestment of distributions | 6,698 | 14,272 | 76,866 | 220,179 |
Shares redeemed | (159,202) | (78,688) | (1,747,618) | (1,165,992) |
Net increase (decrease) | 332,617 | 165,919 | $ 3,961,188 | $ 2,522,167 |
Asset Manager 50% | | | | |
Shares sold | 32,974,289 | 28,976,509 | $ 383,017,644 | $ 439,124,893 |
Reinvestment of distributions | 15,343,644 | 49,866,308 | 176,555,039 | 772,727,250 |
Shares redeemed | (89,247,824) | (116,862,705) | (998,197,300) | (1,770,033,572) |
Net increase (decrease) | (40,929,891) | (38,019,888) | $ (438,624,617) | $ (558,181,429) |
Institutional Class | | | | |
Shares sold | 160,648 | 64,415 | $ 1,795,413 | $ 1,084,439 |
Reinvestment of distributions | 3,452 | 6,272 | 39,144 | 97,072 |
Shares redeemed | (20,390) | (45,377) | (236,895) | (667,764) |
Net increase (decrease) | 143,710 | 25,310 | $ 1,597,662 | $ 513,747 |
Fidelity Asset Manager 60% A | | | | |
Class A | | | | |
Shares sold | 626,963 | 508,064 | $ 4,408,112 | $ 4,661,791 |
Reinvestment of distributions | 7,097 | 761 | 46,058 | 7,307 |
Shares redeemed | (310,140) | (114,471) | (2,115,814) | (1,028,696) |
Net increase (decrease) | 323,920 | 394,354 | $ 2,338,356 | $ 3,640,402 |
Class T | | | | |
Shares sold | 416,315 | 186,969 | $ 2,870,184 | $ 1,747,896 |
Reinvestment of distributions | 3,579 | 283 | 23,192 | 2,720 |
Shares redeemed | (152,802) | (32,399) | (1,011,101) | (277,952) |
Net increase (decrease) | 267,092 | 154,853 | $ 1,882,275 | $ 1,472,664 |
Class B | | | | |
Shares sold | 142,861 | 138,223 | $ 1,024,160 | $ 1,314,613 |
Reinvestment of distributions | 1,109 | 192 | 7,209 | 1,840 |
Shares redeemed | (97,132) | (2,557) | (678,465) | (22,565) |
Net increase (decrease) | 46,838 | 135,858 | $ 352,904 | $ 1,293,888 |
Annual Report
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Class C | | | | |
Shares sold | 185,591 | 210,884 | $ 1,330,330 | $ 1,970,860 |
Reinvestment of distributions | 1,710 | 192 | 11,096 | 1,840 |
Shares redeemed | (149,285) | (3,246) | (992,160) | (27,889) |
Net increase (decrease) | 38,016 | 207,830 | $ 349,266 | $ 1,944,811 |
Asset Manager 60% | | | | |
Shares sold | 6,524,913 | 3,150,368 | $ 46,957,848 | $ 28,160,474 |
Reinvestment of distributions | 42,505 | 1,882 | 275,857 | 18,064 |
Shares redeemed | (3,253,446) | (362,700) | (22,687,629) | (3,178,965) |
Net increase (decrease) | 3,313,972 | 2,789,550 | $ 24,546,076 | $ 24,999,573 |
Institutional Class | | | | |
Shares sold | 54,932 | 99,914 | $ 380,285 | $ 989,544 |
Reinvestment of distributions | 1,605 | 466 | 10,417 | 4,475 |
Shares redeemed | (55,951) | (916) | (394,752) | (7,979) |
Net increase (decrease) | 586 | 99,464 | $ (4,050) | $ 986,040 |
Fidelity Asset Manager 70% | | | | |
Class A B | | | | |
Shares sold | 2,173,509 | 20,467 | $ 24,367,312 | $ 370,778 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 6,533,497 | - | 92,514,323 |
Reinvestment of distributions | 173,733 | - | 1,832,882 | - |
Shares redeemed | (2,500,085) | (17,859) | (28,216,639) | (315,305) |
Net increase (decrease) | (152,843) | 6,536,105 | $ (2,016,445) | $ 92,569,796 |
Class T B | | | | |
Shares sold | 558,875 | 5,194 | $ 6,345,694 | $ 138,458 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 3,860,173 | - | 54,660,040 |
Reinvestment of distributions | 97,734 | - | 1,031,095 | - |
Shares redeemed | (1,157,915) | (12,767) | (12,984,993) | (237,608) |
Net increase (decrease) | (501,306) | 3,852,600 | $ (5,608,204) | $ 54,560,890 |
Class B B | | | | |
Shares sold | 175,683 | 8,599 | $ 1,996,401 | $ 132,691 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 1,725,798 | - | 24,437,297 |
Reinvestment of distributions | 39,046 | - | 411,939 | - |
Shares redeemed | (614,001) | (7,056) | (6,696,000) | (105,755) |
Net increase (decrease) | (399,272) | 1,727,341 | $ (4,287,660) | $ 24,464,233 |
Class C B | | | | |
Shares sold | 421,289 | 2,918 | $ 4,898,274 | $ 217,647 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 2,780,313 | - | 39,369,233 |
Reinvestment of distributions | 60,708 | - | 640,464 | - |
Shares redeemed | (756,167) | (10,650) | (8,424,208) | (326,514) |
Net increase (decrease) | (274,170) | 2,772,581 | $ (2,885,470) | $ 39,260,366 |
Asset Manager 70% | | | | |
Shares sold | 15,475,772 | 12,436,796 | $ 179,846,118 | $ 201,255,406 |
Reinvestment of distributions | 4,628,030 | 4,363,853 | 48,825,720 | 74,272,772 |
Shares redeemed | (28,165,016) | (33,660,002) | (314,686,965) | (549,568,450) |
Net increase (decrease) | (8,061,214) | (16,859,353) | $ (86,015,127) | $ (274,040,272) |
Institutional Class B | | | | |
Shares sold | 711,407 | 10,330 | $ 8,732,520 | $ 152,572 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 1,881,221 | - | 26,638,086 |
Reinvestment of distributions | 55,050 | - | 580,778 | - |
Shares redeemed | (501,161) | (3,734) | (5,787,688) | (57,654) |
Net increase (decrease) | 265,296 | 1,887,817 | $ 3,525,610 | $ 26,733,004 |
Fidelity Asset Manager 85% | | | | |
Class A | | | | |
Shares sold | 1,227,157 | 881,000 | $ 11,123,956 | $ 11,708,813 |
Reinvestment of distributions | 27,818 | 11,613 | 230,607 | 164,450 |
Shares redeemed | (419,528) | (212,398) | (3,964,719) | (2,755,503) |
Net increase (decrease) | 835,447 | 680,215 | $ 7,389,844 | $ 9,117,760 |
Annual Report
Notes to Financial Statements - continued
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Class T | | | | |
Shares sold | 219,201 | 302,865 | $ 1,968,756 | $ 3,973,155 |
Reinvestment of distributions | 6,419 | 2,802 | 53,147 | 39,626 |
Shares redeemed | (107,692) | (52,286) | (922,904) | (680,328) |
Net increase (decrease) | 117,928 | 253,381 | $ 1,098,999 | $ 3,332,453 |
Class B | | | | |
Shares sold | 128,701 | 152,342 | $ 1,146,718 | $ 2,031,969 |
Reinvestment of distributions | 2,567 | 1,841 | 21,255 | 26,000 |
Shares redeemed | (75,871) | (39,226) | (628,100) | (510,836) |
Net increase (decrease) | 55,397 | 114,957 | $ 539,873 | $ 1,547,133 |
Class C | | | | |
Shares sold | 396,579 | 329,559 | $ 3,589,931 | $ 4,362,588 |
Reinvestment of distributions | 3,717 | 3,034 | 30,743 | 42,720 |
Shares redeemed | (215,928) | (86,632) | (1,937,775) | (1,115,724) |
Net increase (decrease) | 184,368 | 245,961 | $ 1,682,899 | $ 3,289,584 |
Asset Manager 85% | | | | |
Shares sold | 16,408,620 | 11,096,127 | $ 153,803,706 | $ 149,870,831 |
Reinvestment of distributions | 831,961 | 709,187 | 6,921,914 | 10,063,914 |
Shares redeemed | (10,231,882) | (10,707,014) | (90,681,889) | (142,112,234) |
Net increase (decrease) | 7,008,699 | 1,098,300 | $ 70,043,731 | $ 17,822,511 |
Institutional Class | | | | |
Shares sold | 106,499 | 62,723 | $ 906,473 | $ 834,204 |
Reinvestment of distributions | 1,865 | 180 | 15,502 | 2,553 |
Shares redeemed | (38,520) | (13,803) | (327,053) | (173,778) |
Net increase (decrease) | 69,844 | 49,100 | $ 594,922 | $ 662,979 |
A Prior period amounts are for the period October 9, 2007 (commencement of operations) to September 30, 2008.
B Prior period amounts are for the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
12. 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.
13. Merger Information.
On September 26, 2008, Fidelity Asset Manager 70% acquired all of the assets and assumed all of the liabilities of Fidelity Advisor Asset Manager 70% Fund pursuant to an agreement and plan of reorganization approved by the Board of Trustees on May 15, 2008. The acquisition was accomplished by an exchange of 6,533,497, 3,860,173, 1,725,798, 2,780,313 and 1,881,221 shares of Class A, Class T, Class B, Class C and Institutional Class of the Fund, respectively, for 9,324,617, 5,534,757, 2,486,431, 4,011,919, and 2,679,998 shares then outstanding of Class A, Class T, Class B, Class C and Institutional Class (valued at $9.92, $9.88, $9.83, $9.81, and $9.94, per share for Class A, Class T, Class B, Class C and Institutional Class, respectively) of the Fidelity Advisor Asset Manager 70% Fund. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Fidelity Advisor Asset Manager 70% Fund's net assets, including $21,261,054 of unrealized depreciation, were combined with the Fund's net assets of $2,365,472,024 for total net assets after the acquisition of $2,603,091,003.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Charles Street Trust and the Shareholders of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85%:
We have audited the accompanying statements of assets and liabilities of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85% (the Funds), each a fund of Fidelity Charles Street Trust, including the schedules of investments, as of September 30, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2009, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85% as of September 30, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 20, 2009
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Charles Street Trust and the Shareholders of Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, Fidelity Asset Manager 60%:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial positions of Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, and Fidelity Asset Manager 60% (funds of Fidelity Charles Street Trust)at September 30, 2009, and the results of each of their operations for the year then ended, the changes in each of their net assets for each of the periods indicated and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Charles Street Trust and Fidelity Charles Street Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2009 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 20, 2009
Annual Report
The Trustees and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 188 funds advised by FMR or an affiliate. Mr. Curvey oversees 408 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Abigail P. Johnson (47) |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal and Workplace Investing (2005-present). Ms. Johnson is a Director of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (74) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Albert R. Gamper, Jr. (67) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President. Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Arthur E. Johnson (62) |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present) and AGL Resources, Inc. (holding company). Previously, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009), and on the Board of Directors of IKON Office Solutions, Inc. (1999-2008). Mr. Arthur E. Johnson and Ms. Abigail P. Johnson are not related. |
Michael E. Kenneally (55) |
| Year of Election or Appointment: 2009 Mr. Kenneally also serves as Trustee (2009-present) or Member of the Advisory Board (2008-present) of other Fidelity Fixed Income and Asset Allocation Funds. Previously, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of The Credit Suisse Funds (U.S. Mutual Fund, 2004-2008) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (69) |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). Previously, Mr. Keyes served as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (62) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director of McKesson Corporation (healthcare service). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (70) |
| Year of Election or Appointment: 2005 Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer of Hershey Foods Corporation, and as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (2004-2009). |
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
John R. Hebble (51) |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Boyce I. Greer (53) |
| Year of Election or Appointment: 2005 or 2006 Vice President of Fidelity's Fixed Income Funds (2006) and Asset Allocation Funds (2005). Mr. Greer is also a Trustee of other investment companies advised by FMR. Mr. Greer is President of the Asset Allocation Division (2008-present), President and a Director of Strategic Advisers, Inc. (2008-present), President and a Director of Fidelity Investments Money Management, Inc. (2007-present), and an Executive Vice President of FMR and FMR Co., Inc. (2005-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005). |
Derek L. Young (45) |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Asset Allocation Funds. Mr. Young also serves as Chief Investment Officers of the Global Asset Allocation Group (2009-present). Previously, Mr. Young served as a portfolio manager. |
Scott C. Goebel (41) |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
Holly C. Laurent (55) |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (51) |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (42) |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (47) |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009) and as Vice President of Business Analysis (2003-2004). |
Bryan A. Mehrmann (48) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Stephanie J. Dorsey (40) |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Paul M. Murphy (62) |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Kenneth B. Robins (40) |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds and is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004). |
Gary W. Ryan (51) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
A percentage of the dividends distributed during the fiscal year for the following funds was derived from interest on U.S. Government securities which is generally exempt from state income tax:
Asset Manager 20% | |
Class A | 2.31% |
Class T | 2.31% |
Class B | 2.31% |
Class C | 2.31% |
Asset Manager 30% | |
Class A | 2.42% |
Class T | 2.42% |
Class B | 2.42% |
Class C | 2.42% |
Asset Manager 40% | |
Class A | 2.29% |
Class T | 2.29% |
Class B | 2.29% |
Class C | 2.29% |
Asset Manager 50% | |
Class A | 1.47% |
Class T | 1.47% |
Class B | 1.47% |
Class C | 1.47% |
Asset Manager 60% | |
Class A | 1.48% |
Class T | 1.48% |
Class B | 1.48% |
Class C | 1.48% |
Asset Manager 70% | |
Class A | 1.10% |
Class T | 1.10% |
Class B | 1.10% |
Class C | 1.10% |
Asset Manager 85% | |
Class A | 0.82% |
Class T | 0.82% |
Class B | 0.82% |
Class C | 0.82% |
The funds hereby designate the amounts noted below as distributions paid during the period January 1, 2009 to September 30, 2009 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders:
Fund | |
Asset Manager 20% | $55,754,842 |
Asset Manager 30% | $1,165,886 |
Asset Manager 40% | $608,662 |
Asset Manager 50% | $106,168,575 |
Asset Manager 60% | $387,880 |
Asset Manager 70% | $23,253,756 |
Asset Manager 85% | $2,399,380 |
Annual Report
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
| Class A | Class T | Class B | Class C |
Asset Manager 20% | | | | |
November 2008 | 9% | 10% | 11% | 11% |
December 2008 | 9% | 10% | 11% | 11% |
February 2009 | 10% | 10% | 12% | 12% |
March 2009 | 10% | 10% | 13% | 12% |
April 2009 | 10% | 11% | 12% | 12% |
May 2009 | 10% | 11% | 15% | 15% |
June 2009 | 10% | 11% | 13% | 13% |
July 2009 | 10% | 11% | 13% | 13% |
August 2009 | 10% | 11% | 16% | 15% |
September 2009 | 10% | 11% | 14% | 14% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 30% | | | | |
October 2008 | 1% | 1% | 1% | 1% |
November 2008 | 15% | 17% | 20% | 20% |
December 2008 | 15% | 16% | 20% | 20% |
February 2009 | 16% | 19% | 26% | 24% |
March 2009 | 17% | 19% | 21% | 25% |
April 2009 | 17% | 18% | 24% | 21% |
May 2009 | 18% | 20% | 24% | 27% |
June 2009 | 17% | 19% | 23% | 23% |
July 2009 | 17% | 18% | 23% | 23% |
August 2009 | 18% | 20% | 27% | 27% |
September 2009 | 16% | 19% | 25% | 23% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 40% | | | | |
October 2008 | 1% | 1% | 1% | 1% |
December 2008 | 18% | 20% | 27% | 26% |
April 2009 | 33% | 35% | 49% | 52% |
July 2009 | 34% | 35% | 45% | 45% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 50% | | | | |
December 2008 | 21% | 20% | 28% | 27% |
April 2009 | 34% | 39% | 47% | 54% |
July 2009 | 33% | 36% | 46% | 43% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 60% | | | | |
December 2008 | 32% | 35% | 66% | 62% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 70% | | | | |
December 2008 | 33% | 34% | 36% | 36% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 85% | | | | |
December 2008 | 54% | 61% | 100% | 100% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Class A | Class T | Class B | Class C |
Asset Manager 20% | | | | |
November 2008 | 10% | 11% | 13% | 13% |
December 2008 | 10% | 11% | 13% | 13% |
February 2009 | 12% | 12% | 15% | 14% |
March 2009 | 12% | 13% | 16% | 15% |
April 2009 | 12% | 13% | 15% | 15% |
May 2009 | 12% | 14% | 18% | 18% |
June 2009 | 12% | 13% | 16% | 15% |
July 2009 | 12% | 13% | 16% | 16% |
August 2009 | 12% | 13% | 19% | 18% |
September 2009 | 12% | 13% | 17% | 17% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 30% | | | | |
October 2008 | 1% | 1% | 1% | 1% |
November 2008 | 17% | 18% | 22% | 22% |
December 2008 | 16% | 18% | 22% | 22% |
February 2009 | 19% | 22% | 31% | 28% |
March 2009 | 19% | 22% | 24% | 29% |
April 2009 | 20% | 21% | 28% | 25% |
May 2009 | 21% | 23% | 28% | 31% |
June 2009 | 20% | 22% | 27% | 27% |
July 2009 | 20% | 21% | 27% | 27% |
August 2009 | 21% | 23% | 31% | 31% |
September 2009 | 19% | 22% | 30% | 27% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 40% | | | | |
October 2008 | 1% | 1% | 1% | 1% |
December 2008 | 21% | 24% | 32% | 31% |
April 2009 | 44% | 47% | 65% | 68% |
July 2009 | 45% | 47% | 60% | 60% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 50% | | | | |
December 2008 | 25% | 26% | 32% | 31% |
April 2009 | 45% | 51% | 61% | 69% |
July 2009 | 43% | 47% | 60% | 55% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 60% | | | | |
December 2008 | 44% | 48% | 90% | 85% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 70% | | | | |
December 2008 | 46% | 47% | 50% | 50% |
| | | | |
| Class A | Class T | Class B | Class C |
Asset Manager 85% | | | | |
December 2008 | 79% | 89% | 100% | 100% |
The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
A special meeting of each fund's shareholders was held on July 15, 2009. 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.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 4,660,446,788.00 | 93.389 |
Withheld | 329,898,915.93 | 6.611 |
TOTAL | 4,990,345,703.93 | 100.000 |
Albert R. Gamper, Jr. |
Affirmative | 4,697,750,297.49 | 94.137 |
Withheld | 292,595,406.44 | 5.863 |
TOTAL | 4,990,345,703.93 | 100.000 |
Abigail P. Johnson |
Affirmative | 4,656,658,858.01 | 93.313 |
Withheld | 333,686,845.92 | 6.687 |
TOTAL | 4,990,345,703.93 | 100.000 |
Arthur E. Johnson |
Affirmative | 4,686,159,283.49 | 93.905 |
Withheld | 304,186,420.44 | 6.095 |
TOTAL | 4,990,345,703.93 | 100.000 |
Michael E. Kenneally |
Affirmative | 4,709,830,377.70 | 94.379 |
Withheld | 280,515,326.23 | 5.621 |
TOTAL | 4,990,345,703.93 | 100.000 |
James H. Keyes |
Affirmative | 4,703,388,873.28 | 94.250 |
Withheld | 286,956,830.65 | 5.750 |
TOTAL | 4,990,345,703.93 | 100.000 |
Marie L. Knowles |
Affirmative | 4,693,994,899.89 | 94.062 |
Withheld | 296,350,804.04 | 5.938 |
TOTAL | 4,990,345,703.93 | 100.000 |
Kenneth L. Wolfe |
Affirmative | 4,685,695,252.60 | 93.895 |
Withheld | 304,650,451.33 | 6.105 |
TOTAL | 4,990,345,703.93 | 100.000 |
PROPOSAL 3 |
For Fidelity Asset Manager 50%, a shareholder proposal concerning "procedures to prevent holding investments in companies that, in the judgement of the Board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights." |
| # of
Votes | % of
Votes |
Affirmative | 539,153,192.91 | 20.836 |
Against | 1,835,063,285.57 | 70.918 |
Abstain | 99,089,558.45 | 3.830 |
Broker Non-Votes | 114,273,518.88 | 4.416 |
TOTAL | 2,587,579,555.81 | 100.000 |
PROPOSAL 3 |
For Fidelity Asset Manager 70%, a shareholder proposal concerning "procedures to prevent holding investments in companies that, in the judgement of the Board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights." |
| # of
Votes | % of
Votes |
Affirmative | 194,624,056.06 | 22.806 |
Against | 548,661,062.57 | 64.291 |
Abstain | 49,188,619.67 | 5.764 |
Broker Non-Votes | 60,927,022.52 | 7.139 |
TOTAL | 853,400,760.82 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Asset Manager 20%
Fidelity Asset Manager 30%
Fidelity Asset Manager 40%
Fidelity Asset Manager 50%
Fidelity Asset Manager 60%
Fidelity Asset Manager 70%
Fidelity Asset Manager 85%
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.
On May 21, 2009, the Board voted to continue each fund's Advisory Contracts for four months, through September 30, 2009, in connection with the reorganization of the Board's new meeting schedule. The Board considered that the contractual terms of and fees payable under each fund's Advisory Contracts involve no changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the nature or level of services provided under the fund's Advisory Contracts; or (iii) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that each fund's Advisory Contracts are fair and reasonable, and that each fund's Advisory Contracts should be renewed, without modification, through September 30, 2009, with the understanding that the Board would consider their renewal in September 2009.
At its September 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to the recent financial crisis, Fidelity took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board specifically noted Fidelity's response to the 2008 credit market crisis. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance for each class (for the retail class in the case of Asset Manager 70%), as well as each fund's relative investment performance for each class (for the retail class in the case of Asset Manager 70%) measured against (i) a proprietary custom index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods, as available.
For each of Asset Manager 20% and Asset Manager 50%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, as available, the cumulative total returns of the retail class and Class B of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class B show the performance of the highest performing class (based on five-year performance) and the lowest performing class (based on one-year performance), respectively. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
For each of Asset Manager 30%, Asset Manager 40%, and Asset Manager 60%, because the fund had been in existence less than three calendar years, the following chart considered by the Board shows, for the one-year period ended December 31, 2008, the total returns of the retail class and Class C of the fund, the cumulative total return of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively. The box within the chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below the chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
For Asset Manager 70%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Fidelity Asset Manager 70% (retail class) of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. (The Advisor classes of the fund had less than one year of performance as of December 31, 2008.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of Fidelity Asset Manager 70% (retail class).
For Asset Manager 85%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, as available, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class C show the performance of the highest performing class (based on five-year performance) and the lowest performing class (based on one-year performance), respectively. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Each fund's proprietary custom index is an index developed by FMR that represents the performance of the fund's three asset classes according to their respective weightings in the fund's neutral mix.
Fidelity Asset Manager 20%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 20% (retail class) of the fund was in the first quartile for the one- and five-year periods and the second quartile for the three-year period. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
Fidelity Asset Manager 30%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 30% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Annual Report
Fidelity Asset Manager 40%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 40% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Fidelity Asset Manager 50%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 50% (retail class) of the fund was in the second quartile for the one-year period and the third quartile for the three- and five-year periods. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 60%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 60% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Fidelity Asset Manager 70%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 70% (retail class) of the fund was in the fourth quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions that have been taken by FMR to improve the fund's disappointing performance relative to its peer group and benchmark. The Board also reviewed the fund's performance during 2009. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.
Annual Report
Fidelity Asset Manager 85%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 85% (retail class) of the fund was in the second quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
For each fund, the Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented recent market events, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG%" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG% of 26% would mean that 74% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 20%
Fidelity Asset Manager 30%
Annual Report
Fidelity Asset Manager 40%
Fidelity Asset Manager 50%
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 60%
Fidelity Asset Manager 70%
Annual Report
Fidelity Asset Manager 85%
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008.
Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of the total expenses of each class of each fund, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of each fund compared to competitive fund median expenses. Each class of each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes of each fund vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
The Board noted that the total expenses of each class of Asset Manager 20% ranked below its competitive median for 2008.
The Board noted that the total expenses of each class of Asset Manager 30% ranked below its competitive median for 2008.
The Board noted that the total expenses of each class of Asset Manager 40% ranked below its competitive median for 2008.
The Board noted that the total expenses of each of Class A, Class B, Class C, Institutional Class, and Fidelity Asset Manager 50% (retail class) of Fidelity Asset Manager 50% ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class B, Class C, Institutional Class, and Fidelity Asset Manager 60% (retail class) of Fidelity Asset Manager 60% ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class C, Institutional Class, and Fidelity Asset Manager 70% (retail class) of Fidelity Asset Manager 70% ranked below its competitive median for the period and the total expenses of each of Class T and Class B ranked above its competitive median for the period. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class C, Institutional Class, and Fidelity Asset Manager 85% (retail class) of Fidelity Asset Manager 85% ranked below its competitive median for 2008 and the total expenses of each of Class T and Class B ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
In its review, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of each fund were reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.
In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability, and the extent to which current market conditions have affected retention and recruitment; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Investments Money Management, Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
AAR-UANNPRO-1109
1.878288.101
Fidelity Advisor Asset Manager® Funds -
20%, 30%, 40%, 50%, 60%, 70%, 85% -
Institutional Class
Annual Report
September 30, 2009
Each Institutional Class is a class
of Fidelity Asset Manager® Funds
(2_fidelity_logos) (Registered_Trademark)
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
We've seen a welcome uptick in the global equity markets this spring and summer, as signs of stabilization in some economic indicators have brought many investors back into the marketplace. But there remain other key measures - notably high unemployment and slack consumer spending - that suggest the road back to economic health could still be a bumpy ride. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Abigail P. Johnson
Abigail P. Johnson
Annual Report
Fidelity Advisor Asset Manager 20% - Institutional Class
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | | Past 1
year | Past 5
years | Past 10
years |
Institutional Class A | | 8.00% | 4.60% | 4.70% |
A The initial offering of Institutional Class shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 20%, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager® 20% - Institutional Class on September 30, 1999. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period. The initial offering of Institutional Class took place on October 2, 2006. See above for additional information regarding the performance of Institutional Class.
Annual Report
Fidelity Advisor Asset Manager 30% - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | | Past 1
year | Life of
fund A |
Institutional Class | | 7.77% | -2.34% |
A From October 9, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 30% - Institutional Class on October 9, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Asset Manager 40% - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | | Past 1
year | Life of
fund A |
Institutional Class | | 7.00% | -4.22% |
A From October 9, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 40% - Institutional Class on October 9, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Asset Manager 50% - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | | Past 1
year | Past 5
years | Past 10
years |
Institutional Class A | | 7.80% | 3.10% | 3.24% |
A The initial offering of Institutional Class shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 50%, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 50% - Institutional Class on September 30, 1999. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period. The initial offering of Institutional Class took place on October 2, 2006. See above for additional information regarding the performance of the Institutional Class.
Annual Report
Fidelity Advisor Asset Manager 60% - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | | Past 1
year | Life of
fund A |
Institutional Class | | 7.81% | -7.22% |
A From October 9, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 60% - Institutional Class on October 9, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 performed over the same period.
Annual Report
Fidelity Advisor Asset Manager 70% - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | | Past 1
year | Past 5
years | Past 10
years |
Institutional Class A | | 5.58% | 2.21% | 1.45% |
A The initial offering of Institutional Class shares took place on September 23, 2008. Returns prior to September 23, 2008 are those of Asset Manager 70%, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 70% - Institutional Class on September 30, 1999. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 performed over the same period. The initial offering of Institutional Class took place on September 30, 2008. See above for additional information regarding the performance of Institutional Class.
Annual Report
Fidelity Advisor Asset Manager 85% - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | | Past 1
year | Past 5
years | Past 10
years |
Institutional Class A | | 4.70% | 3.23% | 2.67% |
A The initial offering of Institutional Class shares took place on October 2, 2006. Returns prior to October 2, 2006 are those of Asset Manager 85%, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Asset Manager 85% - Institutional Class on September 30, 1999. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 performed over the same period. The initial offering of Institutional Class took place on October 2, 2006. See above for additional information regarding the performance of Institutional Class.
Annual Report
Market Recap: Global equity markets came almost full circle during the 12 months ending September 30, 2009, recouping large portions of the deep losses suffered in last fall's big sell-off, as unprecedented government intervention programs to shore up the credit markets and stimulate economic growth began to take root. In early March, as signs of improvement were emerging, equity markets began to rally sharply. The Standard & Poor's 500SM Index returned -6.91% for the year, the blue-chip Dow Jones Industrial AverageSM returned -7.38% and the technology-laden Nasdaq Composite® Index gained 2.53%. International equities, which had fared worse than their domestic counterparts during the sell-off, outperformed for the year as a whole, with the MSCI® EAFE® Index (Europe, Australasia, Far East) - a measure of developed markets outside the U.S. and Canada - advancing 3.37%, bolstered in part by a weaker dollar. Within the bond space, spread-based products replaced Treasuries later in the period as the favored sector for fixed-income investors. For the year, the overall investment-grade bond universe, as measured by the Barclays Capital U.S. Aggregate Bond Index, returned 10.56%, while high-yield corporate bonds finished the period with an advance of 22.73%, as gauged by the Merrill Lynch® U.S. High Yield Master II Constrained Index.
Comments from Geoff Stein, who became Portfolio Manager of Fidelity Advisor Asset Manager® Funds on June 1, 2009: In the midst of a dramatically improved market environment during most of the period for both stocks and credit-sensitive bonds, all seven of the Advisor Asset Manager funds outperformed their Composite benchmarks by substantial margins for the year ending September 30, 2009. Strong domestic-equity stock selection and favorable asset-allocation positioning overall fueled the funds' solid relative results. Shifting into higher-beta - meaning more-volatile - stocks during the first quarter of 2009 proved to be the right strategy at the right time to capitalize on the ensuing market rally. In total, nine of the 10 underlying domestic equity sector central funds beat their respective components of the Composite index, with consumer discretionary performing in line with its benchmark component. Within the domestic equity sector central funds, favorable security selection in technology contributed the most to relative returns, followed by picks in financials, health care, industrials and energy. From a market-capitalization perspective, overweighting mid- and small-cap stocks - particularly in the $1 billion to $10 billion range - was the correct positioning, as stocks in these capitalization tiers outperformed their large-cap counterparts amid a sustained market rebound during the period's second half. Concerning our equity and fixed-income asset-allocation strategies, by continually rebalancing our domestic equity stakes early in the period, our allocations were positioned to rebound as the market bottomed in March and then rallied sharply, which aided performance in most of the funds. In addition to domestic equities, out-of-index positions in emerging-markets (EM) equities, high-yield bonds and floating-rate bank-loan securities also contributed. In order to fund our allocations to high-yield and floating-rate debt and EM equities, we underweighted cash across all of the funds - except Advisor Asset Manager 85% - - which also boosted relative returns. In Advisor Asset Manager 85%, an out-of-benchmark cash position of roughly 2% actually helped on a relative basis because the positive return generated by the cash beat the negative return of the fund's benchmark. In terms of detractors, stock selection in international equity dampened returns across all funds, but the negative impact was minimal in Advisor Asset Manager 20% and 30%, where the allocation to foreign equities was very small. In addition, our generally underweighted exposure to investment-grade bonds detracted from performance in most of the funds, despite the underlying central fund outperforming its benchmark.
Note to shareholders: In conjunction with an adjustment to Fidelity's planning and guidance methodology, Fidelity will modify the international equity exposure within the Advisor Asset Manager funds' target asset allocations. Effective October 2, 2009, each Advisor Asset Manager fund will increase the international equity exposure within its target asset allocation to 30% of total equity, and modify its composite performance benchmark accordingly. Fidelity believes this change improves the risk and return characteristics of the funds.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
The Funds invest in Fidelity Central Funds, which are open-end investment companies with similar investment objectives to those of the Funds, available only to other mutual funds and accounts managed by Fidelity Management & Research Company, (FMR) and its affiliates. In addition to the direct expenses incurred by the Funds presented in the table, as a shareholder of the underlying Fidelity Central Funds, the Funds also indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. These expenses are not included in the Funds' annualized expense ratio used to calculate either the actual or hypothetical expense estimates presented in the table but are summarized in a footnote to the table.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2009 to September 30, 2009).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
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 | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 20% | | | | |
Class A | .86% | | | |
Actual | | $ 1,000.00 | $ 1,168.60 | $ 4.68 |
HypotheticalA | | $ 1,000.00 | $ 1,020.76 | $ 4.36 |
Class T | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,166.30 | $ 5.97 |
HypotheticalA | | $ 1,000.00 | $ 1,019.55 | $ 5.57 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,164.50 | $ 8.95 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.63% | | | |
Actual | | $ 1,000.00 | $ 1,164.90 | $ 8.85 |
HypotheticalA | | $ 1,000.00 | $ 1,016.90 | $ 8.24 |
Asset Manager 20% | .58% | | | |
Actual | | $ 1,000.00 | $ 1,170.90 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,022.16 | $ 2.94 |
Institutional Class | .55% | | | |
Actual | | $ 1,000.00 | $ 1,171.00 | $ 2.99 |
HypotheticalA | | $ 1,000.00 | $ 1,022.31 | $ 2.79 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 30% | | | | |
Class A | .90% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 4.99 |
HypotheticalA | | $ 1,000.00 | $ 1,020.56 | $ 4.56 |
Class T | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,210.20 | $ 6.37 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,207.00 | $ 9.13 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,206.20 | $ 9.13 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Asset Manager 30% | .65% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 3.61 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Institutional Class | .65% | | | |
Actual | | $ 1,000.00 | $ 1,212.70 | $ 3.61 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Fidelity Asset Manager 40% | | | | |
Class A | .90% | | | |
Actual | | $ 1,000.00 | $ 1,248.50 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,020.56 | $ 4.56 |
Class T | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,246.40 | $ 6.48 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class B | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,241.80 | $ 9.27 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Class C | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,243.10 | $ 9.28 |
HypotheticalA | | $ 1,000.00 | $ 1,016.80 | $ 8.34 |
Asset Manager 40% | .65% | | | |
Actual | | $ 1,000.00 | $ 1,249.20 | $ 3.66 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Institutional Class | .65% | | | |
Actual | | $ 1,000.00 | $ 1,249.20 | $ 3.66 |
HypotheticalA | | $ 1,000.00 | $ 1,021.81 | $ 3.29 |
Fidelity Asset Manager 50% | | | | |
Class A | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,293.90 | $ 5.75 |
HypotheticalA | | $ 1,000.00 | $ 1,020.05 | $ 5.06 |
Class T | 1.27% | | | |
Actual | | $ 1,000.00 | $ 1,292.40 | $ 7.30 |
HypotheticalA | | $ 1,000.00 | $ 1,018.70 | $ 6.43 |
Class B | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,288.80 | $ 10.61 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Class C | 1.80% | | | |
Actual | | $ 1,000.00 | $ 1,288.20 | $ 10.33 |
HypotheticalA | | $ 1,000.00 | $ 1,016.04 | $ 9.10 |
Asset Manager 50% | .76% | | | |
Actual | | $ 1,000.00 | $ 1,295.20 | $ 4.37 |
HypotheticalA | | $ 1,000.00 | $ 1,021.26 | $ 3.85 |
Institutional Class | .69% | | | |
Actual | | $ 1,000.00 | $ 1,296.10 | $ 3.97 |
HypotheticalA | | $ 1,000.00 | $ 1,021.61 | $ 3.50 |
Fidelity Asset Manager 60% | | | | |
Class A | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,324.40 | $ 6.41 |
HypotheticalA | | $ 1,000.00 | $ 1,019.55 | $ 5.57 |
Class T | 1.35% | | | |
Actual | | $ 1,000.00 | $ 1,323.90 | $ 7.86 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.83 |
Class B | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,320.20 | $ 10.76 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
Class C | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,322.30 | $ 10.77 |
HypotheticalA | | $ 1,000.00 | $ 1,015.79 | $ 9.35 |
Asset Manager 60% | .85% | | | |
Actual | | $ 1,000.00 | $ 1,327.60 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Institutional Class | .85% | | | |
Actual | | $ 1,000.00 | $ 1,327.60 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Fidelity Asset Manager 70% | | | | |
Class A | 1.18% | | | |
Actual | | $ 1,000.00 | $ 1,361.30 | $ 6.98 |
HypotheticalA | | $ 1,000.00 | $ 1,019.15 | $ 5.97 |
Class T | 1.43% | | | |
Actual | | $ 1,000.00 | $ 1,358.40 | $ 8.45 |
HypotheticalA | | $ 1,000.00 | $ 1,017.90 | $ 7.23 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,356.20 | $ 11.52 |
HypotheticalA | | $ 1,000.00 | $ 1,015.29 | $ 9.85 |
Class C | 1.89% | | | |
Actual | | $ 1,000.00 | $ 1,356.20 | $ 11.16 |
HypotheticalA | | $ 1,000.00 | $ 1,015.59 | $ 9.55 |
Asset Manager 70% | .85% | | | |
Actual | | $ 1,000.00 | $ 1,362.90 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,020.81 | $ 4.31 |
Institutional Class | .87% | | | |
Actual | | $ 1,000.00 | $ 1,362.90 | $ 5.15 |
HypotheticalA | | $ 1,000.00 | $ 1,020.71 | $ 4.41 |
| Annualized
Expense Ratio | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Fidelity Asset Manager 85% | | | | |
Class A | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,409.80 | $ 6.95 |
HypotheticalA | | $ 1,000.00 | $ 1,019.30 | $ 5.82 |
Class T | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,408.30 | $ 8.57 |
HypotheticalA | | $ 1,000.00 | $ 1,017.95 | $ 7.18 |
Class B | 1.98% | | | |
Actual | | $ 1,000.00 | $ 1,403.80 | $ 11.93 |
HypotheticalA | | $ 1,000.00 | $ 1,015.14 | $ 10.00 |
Class C | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,404.30 | $ 11.63 |
HypotheticalA | | $ 1,000.00 | $ 1,015.39 | $ 9.75 |
Asset Manager 85% | .94% | | | |
Actual | | $ 1,000.00 | $ 1,412.10 | $ 5.68 |
HypotheticalA | | $ 1,000.00 | $ 1,020.36 | $ 4.76 |
Institutional Class | .82% | | | |
Actual | | $ 1,000.00 | $ 1,413.80 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.96 | $ 4.15 |
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 183/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Funds annualized expense ratio.
In addition to the expenses noted above, the Funds also indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying Fidelity Central Funds as of their most recent fiscal half year ranged from less than ..01% to .12%.
Annual Report
Fidelity Asset Manager 20%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 15.7 | 15.6 |
U.S. Treasury Obligations | 14.3 | 6.4 |
Freddie Mac | 2.2 | 2.6 |
Government National Mortgage Association | 0.6 | 2.6 |
JPMorgan Chase Capital XX | 0.5 | 0.4 |
| 33.3 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| U.S. Government and
U.S. Government
Agency Obligations 32.8% | | | U.S. Government and
U.S. Government
Agency Obligations 27.6% | |
| AAA,AA,A 12.4% | | | AAA,AA,A 13.3% | |
| BBB 10.7% | | | BBB 10.0% | |
| BB and Below 6.3% | | | BB and Below 7.1% | |
| Not Rated 0.2% | | | Not Rated 0.3% | |
| Equities 21.0% | | | Equities 19.4% | |
| Short-Term
Investments and
Net Other Assets 16.6% | | | Short-Term
Investments and
Net Other Assets 22.3% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.3 | 0.2 |
Google, Inc. Class A | 0.3 | 0.3 |
Procter & Gamble Co. | 0.2 | 0.3 |
Pfizer, Inc. | 0.2 | 0.1 |
Charles Schwab Corp. | 0.2 | 0.0 |
| 1.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 20.9% | | | Stock Class and
Equity Futures 19.4% | |
| Bond Class 58.4% | | | Bond Class 56.6% | |
| Short-Term Class 20.7% | | | Short-Term Class 24.0% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 20%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 3.8 |
Fidelity Financials Central Fund | 3.1 |
Fidelity Health Care Central Fund | 2.6 |
Fidelity Energy Central Fund | 2.3 |
Fidelity Industrials Central Fund | 2.2 |
Fidelity Consumer Discretionary Central Fund | 1.9 |
Fidelity Consumer Staples Central Fund | 1.9 |
Fidelity International Equity Central Fund | 1.1 |
Fidelity Materials Central Fund | 0.9 |
Fidelity Telecom Services Central Fund | 0.7 |
Fidelity Utilities Central Fund | 0.7 |
Total Equity Central Funds | 21.2 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.1 |
Investment Grade Fixed-Income Funds | 54.8 |
Total Fixed-Income Central Funds | 59.9 |
Money Market Central Funds | 18.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 9.0% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 20%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 21.2% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 485,022 | | $ 44,675,351 |
Fidelity Consumer Staples Central Fund (b) | 394,725 | | 45,057,822 |
Fidelity Energy Central Fund (b) | 546,892 | | 54,207,979 |
Fidelity Financials Central Fund (b) | 1,267,434 | | 73,751,990 |
Fidelity Health Care Central Fund (b) | 610,494 | | 61,659,926 |
Fidelity Industrials Central Fund (b) | 518,506 | | 52,695,777 |
Fidelity Information Technology Central Fund (b) | 724,762 | | 89,102,247 |
Fidelity International Equity Central Fund (b) | 409,869 | | 26,661,977 |
Fidelity Materials Central Fund (b) | 160,366 | | 20,193,264 |
Fidelity Telecom Services Central Fund (b) | 152,867 | | 15,219,399 |
Fidelity Utilities Central Fund (b) | 187,247 | | 16,532,066 |
TOTAL EQUITY CENTRAL FUNDS (Cost $525,660,348) | 499,757,798 |
Fixed-Income Central Funds - 59.9% |
| | | |
High Yield Fixed-Income Funds - 5.1% |
Fidelity Floating Rate Central Fund (b) | 295,201 | | 26,813,071 |
Fidelity High Income Central Fund 1 (b) | 1,048,404 | | 92,773,272 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 119,586,343 |
Investment Grade Fixed-Income Funds - 54.8% |
Fidelity Tactical Income Central Fund (b) | 13,649,544 | 1,291,110,352 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $1,428,182,003) | 1,410,696,695 |
Money Market Central Funds - 18.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 33,566,053 | | $ 33,566,053 |
Fidelity Money Market Central Fund, 0.60% (a) | 410,550,134 | | 410,550,134 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $444,116,187) | 444,116,187 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,397,958,538) | | 2,354,570,680 |
NET OTHER ASSETS - 0.0% | | 239,537 |
NET ASSETS - 100% | $ 2,354,810,217 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 1,171,183 |
Fidelity Consumer Discretionary Central Fund | 679,426 |
Fidelity Consumer Staples Central Fund | 1,140,450 |
Fidelity Energy Central Fund | 499,004 |
Fidelity Financials Central Fund | 1,514,306 |
Fidelity Floating Rate Central Fund | 2,459,618 |
Fidelity Health Care Central Fund | 722,757 |
Fidelity High Income Central Fund 1 | 6,546,550 |
Fidelity Industrials Central Fund | 955,918 |
Fidelity Information Technology Central Fund | 585,733 |
Fidelity International Equity Central Fund | 321,199 |
Fidelity Materials Central Fund | 309,593 |
Fidelity Money Market Central Fund | 5,109,378 |
Fidelity Tactical Income Central Fund | 53,793,437 |
Fidelity Telecom Services Central Fund | 274,648 |
Fidelity Utilities Central Fund | 589,546 |
Total | $ 76,672,746 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 42,899,299 | $ 9,187,790 | $ 7,369,840 | $ 44,675,351 | 8.6% |
Fidelity Consumer Staples Central Fund | 43,280,780 | 9,915,583 | 7,701,524 | 45,057,822 | 8.7% |
Fidelity Energy Central Fund | 45,971,670 | 19,298,823 | 8,173,672 | 54,207,979 | 9.4% |
Fidelity Financials Central Fund | 67,032,602 | 22,632,822 | 7,854,488 | 73,751,990 | 9.6% |
Fidelity Floating Rate Central Fund | 67,675,508 | 2,823,864 | 40,135,484 | 26,813,071 | 0.9% |
Fidelity Health Care Central Fund | 54,027,771 | 17,282,411 | 10,784,516 | 61,659,926 | 9.2% |
Fidelity High Income Central Fund 1 | 42,245,646 | 43,077,160 | 1,724,386 | 92,773,272 | 18.2% |
Fidelity Industrials Central Fund | 50,521,309 | 12,506,465 | 8,710,687 | 52,695,777 | 8.8% |
Fidelity Information Technology Central Fund | 62,956,141 | 18,067,661 | 11,828,955 | 89,102,247 | 8.9% |
Fidelity International Equity Central Fund | - | 22,200,728 | 193,681 | 26,661,977 | 4.2% |
Fidelity Materials Central Fund | 15,341,018 | 4,597,107 | 2,993,757 | 20,193,264 | 8.8% |
Fidelity Tactical Income Central Fund | 1,082,230,662 | 283,043,467 | 133,925,715 | 1,291,110,352 | 29.3% |
Fidelity Telecom Services Central Fund | 12,667,166 | 3,171,200 | 2,534,078 | 15,219,399 | 8.8% |
Fidelity Utilities Central Fund | 15,447,872 | 4,648,407 | 2,738,740 | 16,532,066 | 9.2% |
Total | $ 1,602,297,444 | $ 472,453,488 | $ 246,669,523 | $ 1,910,454,493 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $109,929,389 all of which will expire on September 30, 2017. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $70,092,243 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 20%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $2,397,958,538) - See accompanying schedule: | | $ 2,354,570,680 |
Receivable for investments sold | | 633,325 |
Receivable for fund shares sold | | 3,913,305 |
Distributions receivable from Fidelity Central Funds | | 5,408,210 |
Prepaid expenses | | 11,317 |
Receivable from investment adviser for expense reductions | | 95 |
Total assets | | 2,364,536,932 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,292,125 | |
Payable for fund shares redeemed | 2,324,954 | |
Accrued management fee | 801,294 | |
Distribution fees payable | 18,132 | |
Other affiliated payables | 261,399 | |
Other payables and accrued expenses | 28,811 | |
Total liabilities | | 9,726,715 |
| | |
Net Assets | | $ 2,354,810,217 |
Net Assets consist of: | | |
Paid in capital | | $ 2,497,555,882 |
Undistributed net investment income | | 3,231,753 |
Accumulated undistributed net realized gain (loss) on investments | | (102,589,560) |
Net unrealized appreciation (depreciation) on investments | | (43,387,858) |
Net Assets | | $ 2,354,810,217 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($24,487,577 ÷ 2,074,584 shares) | | $ 11.80 |
| | |
Maximum offering price per share (100/94.25 of $11.80) | | $ 12.52 |
Class T:
Net Asset Value and redemption price per share ($10,032,090 ÷ 851,260 shares) | | $ 11.78 |
| | |
Maximum offering price per share (100/96.50 of $11.78) | | $ 12.21 |
Class B:
Net Asset Value and offering price per share ($2,712,207 ÷ 230,420 shares)A | | $ 11.77 |
| | |
Class C:
Net Asset Value and offering price per share ($9,189,262 ÷ 781,554 shares)A | | $ 11.76 |
| | |
Asset Manager 20%:
Net Asset Value, offering price and redemption price per share ($2,305,691,732 ÷ 195,088,270 shares) | | $ 11.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,697,349 ÷ 228,280 shares) | | $ 11.82 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 2,448 |
Income from Fidelity Central Funds | | 76,672,746 |
Total income | | 76,675,194 |
| | |
Expenses | | |
Management fee | $ 8,288,972 | |
Transfer agent fees | 2,213,862 | |
Distribution fees | 142,116 | |
Accounting fees and expenses | 651,792 | |
Custodian fees and expenses | 5,025 | |
Independent trustees' compensation | 7,308 | |
Registration fees | 125,233 | |
Audit | 51,703 | |
Legal | 10,719 | |
Miscellaneous | 85,713 | |
Total expenses before reductions | 11,582,443 | |
Expense reductions | (34,107) | 11,548,336 |
Net investment income (loss) | | 65,126,858 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 634,279 | |
Fidelity Central Funds | (23,977,067) | |
Futures contracts | (7,536,941) | |
Total net realized gain (loss) | | (30,879,729) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 106,345,918 | |
Futures contracts | 1,367,696 | |
Total change in net unrealized appreciation (depreciation) | | 107,713,614 |
Net gain (loss) | | 76,833,885 |
Net increase (decrease) in net assets resulting from operations | | $ 141,960,743 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 65,126,858 | $ 86,585,401 |
Net realized gain (loss) | (30,879,729) | (18,069,996) |
Change in net unrealized appreciation (depreciation) | 107,713,614 | (241,275,471) |
Net increase (decrease) in net assets resulting from operations | 141,960,743 | (172,760,066) |
Distributions to shareholders from net investment income | (71,793,201) | (91,104,113) |
Distributions to shareholders from net realized gain | - | (49,576,396) |
Total distributions | (71,793,201) | (140,680,509) |
Share transactions - net increase (decrease) | (1,051,686) | 79,342,713 |
Total increase (decrease) in net assets | 69,115,856 | (234,097,862) |
| | |
Net Assets | | |
Beginning of period | 2,285,694,361 | 2,519,792,223 |
End of period (including undistributed net investment income of $3,231,753 and undistributed net investment income of $11,795,814, respectively) | $ 2,354,810,217 | $ 2,285,694,361 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.35 | $ 12.90 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .33 | .39 | .48 |
Net realized and unrealized gain (loss) | .48 | (1.27) | .40 |
Total from investment operations | .81 | (.88) | .88 |
Distributions from net investment income | (.36) | (.42) | (.52) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.36) | (.67) | (1.11) |
Net asset value, end of period | $ 11.80 | $ 11.35 | $ 12.90 |
Total Return B,C,D | 7.51% | (7.18)% | 7.03% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | .87% | .86% | .87% A |
Expenses net of fee waivers, if any | .87% | .86% | .87% A |
Expenses net of all reductions | .87% | .86% | .87% A |
Net investment income (loss) | 3.01% | 3.18% | 3.84% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 24,488 | $ 8,030 | $ 3,422 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.33 | $ 12.88 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .30 | .36 | .45 |
Net realized and unrealized gain (loss) | .48 | (1.28) | .40 |
Total from investment operations | .78 | (.92) | .85 |
Distributions from net investment income | (.33) | (.38) | (.51) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.33) | (.63) | (1.10) |
Net asset value, end of period | $ 11.78 | $ 11.33 | $ 12.88 |
Total Return B,C,D | 7.26% | (7.43)% | 6.75% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.11% | 1.12% | 1.11% A |
Expenses net of fee waivers, if any | 1.11% | 1.12% | 1.11% A |
Expenses net of all reductions | 1.11% | 1.12% | 1.11% A |
Net investment income (loss) | 2.76% | 2.93% | 3.60% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 10,032 | $ 4,915 | $ 3,954 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.32 | $ 12.87 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .24 | .29 | .39 |
Net realized and unrealized gain (loss) | .49 | (1.27) | .38 |
Total from investment operations | .73 | (.98) | .77 |
Distributions from net investment income | (.28) | (.32) | (.44) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.28) | (.57) | (1.03) |
Net asset value, end of period | $ 11.77 | $ 11.32 | $ 12.87 |
Total Return B,C,D | 6.70% | (7.89)% | 6.13% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.69% | 1.67% | 1.65% A |
Expenses net of fee waivers, if any | 1.65% | 1.66% | 1.65% A |
Expenses net of all reductions | 1.65% | 1.66% | 1.65% A |
Net investment income (loss) | 2.23% | 2.38% | 3.06% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,712 | $ 1,975 | $ 991 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.31 | $ 12.86 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) E | .24 | .29 | .39 |
Net realized and unrealized gain (loss) | .49 | (1.26) | .38 |
Total from investment operations | .73 | (.97) | .77 |
Distributions from net investment income | (.28) | (.33) | (.45) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.28) | (.58) | (1.04) |
Net asset value, end of period | $ 11.76 | $ 11.31 | $ 12.86 |
Total Return B,C,D | 6.75% | (7.87)% | 6.15% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.63% | 1.65% | 1.64% A |
Expenses net of fee waivers, if any | 1.63% | 1.65% | 1.64% A |
Expenses net of all reductions | 1.63% | 1.64% | 1.64% A |
Net investment income (loss) | 2.24% | 2.40% | 3.07% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 9,189 | $ 3,668 | $ 1,697 |
Portfolio turnover rate F | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 20%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.36 | $ 12.91 | $ 13.14 | $ 13.00 | $ 12.25 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .35 | .43 | .53 | .46 | .33 |
Net realized and unrealized gain (loss) | .50 | (1.28) | .38 | .39 | .74 |
Total from investment operations | .85 | (.85) | .91 | .85 | 1.07 |
Distributions from net investment income | (.39) | (.45) | (.55) | (.43) | (.32) |
Distributions from net realized gain | - | (.25) | (.59) | (.28) | - |
Total distributions | (.39) | (.70) | (1.14) | (.71) | (.32) |
Net asset value, end of period | $ 11.82 | $ 11.36 | $ 12.91 | $ 13.14 | $ 13.00 |
Total Return A | 7.90% | (6.90)% | 7.26% | 6.77% | 8.85% |
Ratios to Average Net Assets D | | | | | |
Expenses before reductions | .58% | .56% | .57% | .58% | .60% |
Expenses net of fee waivers, if any | .58% | .56% | .57% | .58% | .60% |
Expenses net of all reductions | .58% | .56% | .57% | .57% | .58% |
Net investment income (loss) | 3.30% | 3.48% | 4.15% | 3.58% | 2.64% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,305,692 | $ 2,265,384 | $ 2,509,481 | $ 2,130,750 | $ 1,724,038 |
Portfolio turnover rate C | 16% | 5% | 6% | 81% E | 81% E |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
E Portfolio turnover rate excludes securities received or delivered in kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.35 | $ 12.90 | $ 13.13 |
Income from Investment Operations | | | |
Net investment income (loss) D | .36 | .42 | .53 |
Net realized and unrealized gain (loss) | .50 | (1.27) | .38 |
Total from investment operations | .86 | (.85) | .91 |
Distributions from net investment income | (.39) | (.45) | (.55) |
Distributions from net realized gain | - | (.25) | (.59) |
Total distributions | (.39) | (.70) | (1.14) |
Net asset value, end of period | $ 11.82 | $ 11.35 | $ 12.90 |
Total Return B,C | 8.00% | (6.91)% | 7.24% |
Ratios to Average Net AssetsG | | | |
Expenses before reductions | .56% | .57% | .59% A |
Expenses net of fee waivers, if any | .56% | .57% | .59% A |
Expenses net of all reductions | .56% | .56% | .59% A |
Net investment income (loss) | 3.32% | 3.48% | 4.13% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,697 | $ 1,722 | $ 248 |
Portfolio turnover rate E | 16% | 5% | 6% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 30%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 15.2 | 15.6 |
U.S. Treasury Obligations | 13.8 | 6.3 |
Freddie Mac | 2.2 | 2.5 |
Government National Mortgage Association | 0.6 | 2.6 |
JPMorgan Chase Capital XX | 0.5 | 0.4 |
| 32.3 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| U.S. Government and
U.S. Government
Agency Obligations 31.8% | | | U.S. Government and
U.S. Government
Agency Obligations 27.4% | |
| AAA,AA,A 11.5% | | | AAA,AA,A 13.3% | |
| BBB 10.5% | | | BBB 9.9% | |
| BB and Below 6.3% | | | BB and Below 7.0% | |
| Not Rated 0.2% | | | Not Rated 0.3% | |
| Equities 30.3% | | | Equities 29.2% | |
| Short-Term
Investments and
Net Other Assets 9.4% | | | Short-Term
Investments and
Net Other Assets 12.9% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.5 | 0.3 |
Procter & Gamble Co. | 0.3 | 0.5 |
Google, Inc. Class A | 0.4 | 0.3 |
Pfizer, Inc. | 0.3 | 0.2 |
Charles Schwab Corp. | 0.3 | 0.0 |
| 1.8 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 30.3% | | | Stock Class and
Equity Futures 29.1% | |
| Bond Class 56.6% | | | Bond Class 56.3% | |
| Short-Term Class 13.1% | | | Short-Term Class 14.6% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 30%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 5.5 |
Fidelity Financials Central Fund | 4.7 |
Fidelity Health Care Central Fund | 3.9 |
Fidelity Energy Central Fund | 3.3 |
Fidelity Industrials Central Fund | 3.3 |
Fidelity Consumer Discretionary Central Fund | 3.0 |
Fidelity Consumer Staples Central Fund | 3.0 |
Fidelity Materials Central Fund | 1.1 |
Fidelity Utilities Central Fund | 1.1 |
Fidelity International Equity Central Fund | 1.0 |
Fidelity Telecom Services Central Fund | 0.9 |
Total Equity Central Funds | 30.8 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 52.9 |
Total Fixed-Income Central Funds | 57.9 |
Money Market Central Funds | 10.8 |
Net Other Assets | 0.5 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 10.0% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 30%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 30.8% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 23,380 | | $ 2,153,509 |
Fidelity Consumer Staples Central Fund (b) | 18,603 | | 2,123,558 |
Fidelity Energy Central Fund (b) | 24,181 | | 2,396,832 |
Fidelity Financials Central Fund (b) | 58,285 | | 3,391,587 |
Fidelity Health Care Central Fund (b) | 27,628 | | 2,790,440 |
Fidelity Industrials Central Fund (b) | 23,091 | | 2,346,736 |
Fidelity Information Technology Central Fund (b) | 32,258 | | 3,965,785 |
Fidelity International Equity Central Fund (b) | 10,964 | | 713,202 |
Fidelity Materials Central Fund (b) | 6,531 | | 822,400 |
Fidelity Telecom Services Central Fund (b) | 6,114 | | 608,687 |
Fidelity Utilities Central Fund (b) | 9,153 | | 808,087 |
TOTAL EQUITY CENTRAL FUNDS (Cost $21,739,032) | 22,120,823 |
Fixed-Income Central Funds - 57.9% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 9,421 | | 855,694 |
Fidelity High Income Central Fund 1 (b) | 30,811 | | 2,726,495 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 3,582,189 |
Investment Grade Fixed-Income Funds - 52.9% |
Fidelity Tactical Income Central Fund (b) | 401,473 | 37,975,333 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $40,331,741) | 41,557,522 |
Money Market Central Funds - 10.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 2,806,891 | | $ 2,806,891 |
Fidelity Money Market Central Fund, 0.60% (a) | 4,900,000 | | 4,900,000 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $7,706,891) | 7,706,891 |
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $69,777,664) | | 71,385,236 |
NET OTHER ASSETS - 0.5% | | 352,745 |
NET ASSETS - 100% | $ 71,737,981 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 34,180 |
Fidelity Consumer Discretionary Central Fund | 20,707 |
Fidelity Consumer Staples Central Fund | 35,542 |
Fidelity Energy Central Fund | 15,925 |
Fidelity Financials Central Fund | 43,582 |
Fidelity Floating Rate Central Fund | 43,117 |
Fidelity Health Care Central Fund | 21,112 |
Fidelity High Income Central Fund 1 | 128,645 |
Fidelity Industrials Central Fund | 27,423 |
Fidelity Information Technology Central Fund | 17,972 |
Fidelity International Equity Central Fund | 7,870 |
Fidelity Materials Central Fund | 8,710 |
Fidelity Money Market Central Fund | 19,579 |
Fidelity Tactical Income Central Fund | 1,021,832 |
Fidelity Telecom Services Central Fund | 7,558 |
Fidelity Utilities Central Fund | 19,034 |
Total | $ 1,472,788 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 965,072 | $ 1,096,230 | $ 104,201 | $ 2,153,509 | 0.4% |
Fidelity Consumer Staples Central Fund | 973,588 | 1,142,631 | 125,944 | 2,123,558 | 0.4% |
Fidelity Energy Central Fund | 1,034,093 | 1,465,600 | 285,882 | 2,396,832 | 0.4% |
Fidelity Financials Central Fund | 1,507,852 | 1,859,405 | 155,397 | 3,391,587 | 0.4% |
Fidelity Floating Rate Central Fund | 1,013,697 | 479,453 | 643,329 | 855,694 | 0.0% |
Fidelity Health Care Central Fund | 1,215,308 | 1,495,210 | 151,841 | 2,790,440 | 0.4% |
Fidelity High Income Central Fund 1 | 637,595 | 1,977,307 | 134,779 | 2,726,495 | 0.5% |
Fidelity Industrials Central Fund | 1,136,447 | 1,200,534 | 177,539 | 2,346,736 | 0.4% |
Fidelity Information Technology Central Fund | 1,416,220 | 1,873,725 | 272,651 | 3,965,785 | 0.4% |
Fidelity International Equity Central Fund | - | 597,081 | - | 713,202 | 0.1% |
Fidelity Materials Central Fund | 345,142 | 423,490 | 108,398 | 822,400 | 0.4% |
Fidelity Tactical Income Central Fund | 13,876,261 | 24,063,360 | 1,942,435 | 37,975,333 | 0.9% |
Fidelity Telecom Services Central Fund | 285,000 | 299,689 | 67,672 | 608,687 | 0.4% |
Fidelity Utilities Central Fund | 347,516 | 482,951 | 41,200 | 808,087 | 0.4% |
Total | $ 24,753,791 | $ 38,456,666 | $ 4,211,268 | $ 63,678,345 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 90.0% |
United Kingdom | 1.3% |
Bermuda | 1.2% |
Canada | 1.1% |
Others (individually less than 1%) | 6.4% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $270,253 of which $10,213 and $260,040 will expire on September 30, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $728,141 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 30%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $69,777,664) - See accompanying schedule: | | $ 71,385,236 |
Receivable for investments sold | | 22,364 |
Receivable for fund shares sold | | 442,379 |
Distributions receivable from Fidelity Central Funds | | 150,197 |
Prepaid expenses | | 310 |
Receivable from investment adviser for expense reductions | | 38,129 |
Total assets | | 72,038,615 |
| | |
Liabilities | | |
Payable for investments purchased | $ 210,887 | |
Payable for fund shares redeemed | 14,349 | |
Accrued management fee | 23,512 | |
Distribution fees payable | 4,380 | |
Other affiliated payables | 7,745 | |
Other payables and accrued expenses | 39,761 | |
Total liabilities | | 300,634 |
| | |
Net Assets | | $ 71,737,981 |
Net Assets consist of: | | |
Paid in capital | | $ 70,590,710 |
Undistributed net investment income | | 157,639 |
Accumulated undistributed net realized gain (loss) on investments | | (617,940) |
Net unrealized appreciation (depreciation) on investments | | 1,607,572 |
Net Assets | | $ 71,737,981 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($4,305,301 ÷ 476,481 shares) | | $ 9.04 |
| | |
Maximum offering price per share (100/94.25 of $9.04) | | $ 9.59 |
Class T:
Net Asset Value and redemption price per share ($2,181,202 ÷ 241,502 shares) | | $ 9.03 |
| | |
Maximum offering price per share (100/96.50 of $9.03) | | $ 9.36 |
Class B:
Net Asset Value and offering price per share ($772,519 ÷ 85,569 shares)A | | $ 9.03 |
| | |
Class C:
Net Asset Value and offering price per share ($2,498,914 ÷ 277,221 shares)A | | $ 9.01 |
| | |
Asset Manager 30%:
Net Asset Value, offering price and redemption price per share ($61,207,289 ÷ 6,770,261 shares) | | $ 9.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($772,756 ÷ 85,481 shares) | | $ 9.04 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 657 |
Income from Fidelity Central Funds | | 1,472,788 |
Total income | | 1,473,445 |
| | |
Expenses | | |
Management fee | $ 168,728 | |
Transfer agent fees | 47,001 | |
Distribution fees | 32,950 | |
Accounting fees and expenses | 16,708 | |
Custodian fees and expenses | 5,008 | |
Independent trustees' compensation | 134 | |
Registration fees | 67,768 | |
Audit | 61,448 | |
Legal | 137 | |
Miscellaneous | 1,521 | |
Total expenses before reductions | 401,403 | |
Expense reductions | (107,567) | 293,836 |
Net investment income (loss) | | 1,179,609 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 98 | |
Fidelity Central Funds | 63,714 | |
Futures contracts | (55,838) | |
Total net realized gain (loss) | | 7,974 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 4,615,333 | |
Futures contracts | 10,142 | |
Total change in net unrealized appreciation (depreciation) | | 4,625,475 |
Net gain (loss) | | 4,633,449 |
Net increase (decrease) in net assets resulting from operations | | $ 5,813,058 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | For the period October 9, 2007 (commencement of operations) to September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,179,609 | $ 697,480 |
Net realized gain (loss) | 7,974 | (584,261) |
Change in net unrealized appreciation (depreciation) | 4,625,475 | (3,017,903) |
Net increase (decrease) in net assets resulting from operations | 5,813,058 | (2,904,684) |
Distributions to shareholders from net investment income | (1,165,886) | (595,233) |
Share transactions - net increase (decrease) | 36,657,851 | 33,932,875 |
Total increase (decrease) in net assets | 41,305,023 | 30,432,958 |
| | |
Net Assets | | |
Beginning of period | 30,432,958 | - |
End of period (including undistributed net investment income of $157,639 and undistributed net investment income of $143,916, respectively) | $ 71,737,981 | $ 30,432,958 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .22 | .24 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .62 | (1.15) |
Distributions from net investment income | (.24) | (.19) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C,D | 7.50% | (11.63)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.21% | 1.66% A |
Expenses net of fee waivers, if any | .90% | .98% A |
Expenses net of all reductions | .89% | .98% A |
Net investment income (loss) | 2.75% | 2.63% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 4,305 | $ 1,159 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.65 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .22 |
Net realized and unrealized gain (loss) | .40 | (1.40) |
Total from investment operations | .60 | (1.18) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 9.03 | $ 8.65 |
Total Return B,C,D | 7.25% | (11.91)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.46% | 1.97% A |
Expenses net of fee waivers, if any | 1.15% | 1.20% A |
Expenses net of all reductions | 1.14% | 1.20% A |
Net investment income (loss) | 2.50% | 2.41% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,181 | $ 1,074 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.65 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .16 | .17 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .56 | (1.22) |
Distributions from net investment income | (.18) | (.13) |
Net asset value, end of period | $ 9.03 | $ 8.65 |
Total Return B,C,D | 6.73% | (12.30)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.00% | 2.71% A |
Expenses net of fee waivers, if any | 1.65% | 1.73% A |
Expenses net of all reductions | 1.65% | 1.73% A |
Net investment income (loss) | 2.00% | 1.87% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 773 | $ 480 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.64 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .16 | .17 |
Net realized and unrealized gain (loss) | .39 | (1.39) |
Total from investment operations | .55 | (1.22) |
Distributions from net investment income | (.18) | (.14) |
Net asset value, end of period | $ 9.01 | $ 8.64 |
Total Return B,C,D | 6.62% | (12.30)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.95% | 2.37% A |
Expenses net of fee waivers, if any | 1.65% | 1.70% A |
Expenses net of all reductions | 1.64% | 1.70% A |
Net investment income (loss) | 2.00% | 1.91% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,499 | $ 1,495 |
Portfolio turnover rate F | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 30%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .24 | .26 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .64 | (1.13) |
Distributions from net investment income | (.26) | (.21) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C | 7.77% | (11.43)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | .90% | 1.24% A |
Expenses net of fee waivers, if any | .65% | .73% A |
Expenses net of all reductions | .65% | .72% A |
Net investment income (loss) | 3.00% | 2.88% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 61,207 | $ 26,016 |
Portfolio turnover rate E | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.66 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .24 | .26 |
Net realized and unrealized gain (loss) | .40 | (1.39) |
Total from investment operations | .64 | (1.13) |
Distributions from net investment income | (.26) | (.21) |
Net asset value, end of period | $ 9.04 | $ 8.66 |
Total Return B,C | 7.77% | (11.45)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | .97% | 1.76% A |
Expenses net of fee waivers, if any | .65% | .75% A |
Expenses net of all reductions | .65% | .75% A |
Net investment income (loss) | 3.00% | 2.86% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 773 | $ 209 |
Portfolio turnover rate E | 12% | 24% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .03%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 40%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 13.2 | 13.7 |
U.S. Treasury Obligations | 12.0 | 5.6 |
Freddie Mac | 1.9 | 2.2 |
Government National Mortgage Association | 0.5 | 2.3 |
JPMorgan Chase Capital XX | 0.4 | 0.4 |
| 28.0 | |
Quality Diversification (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| U.S. Government and
U.S. Government
Agency Obligations 27.6% | | | U.S. Government and
U.S. Government
Agency Obligations 24.1% | |
| AAA,AA,A 10.0% | | | AAA,AA,A 11.6% | |
| BBB 9.1% | | | BBB 9.0% | |
| BB and Below 6.0% | | | BB and Below 6.4% | |
| Not Rated 0.2% | | | Not Rated 0.3% | |
| Equities 40.4% | | | Equities 38.2% | |
| Short-Term
Investments and
Net Other Assets 6.7% | | | Short-Term
Investments and
Net Other Assets 10.4% | |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Top Five Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.6 | 0.3 |
Procter & Gamble Co. | 0.4 | 0.5 |
Google, Inc. Class A | 0.5 | 0.3 |
Pfizer, Inc. | 0.4 | 0.2 |
Charles Schwab Corp. | 0.3 | 0.0 |
| 2.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 40.3% | | | Stock Class and
Equity Futures 38.0% | |
| Bond Class 49.7% | | | Bond Class 50.0% | |
| Short-Term Class 10.0% | | | Short-Term Class 12.0% | |
| | | | | |
| | | | | |
Asset Allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 40%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 6.7 |
Fidelity Financials Central Fund | 5.7 |
Fidelity Health Care Central Fund | 4.7 |
Fidelity Energy Central Fund | 4.0 |
Fidelity International Equity Central Fund | 4.0 |
Fidelity Industrials Central Fund | 3.9 |
Fidelity Consumer Discretionary Central Fund | 3.6 |
Fidelity Consumer Staples Central Fund | 3.6 |
Fidelity Materials Central Fund | 1.4 |
Fidelity Utilities Central Fund | 1.4 |
Fidelity Telecom Services Central Fund | 1.0 |
Fidelity Emerging Markets Equity Central Fund | 1.0 |
Total Equity Central Funds | 41.0 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 46.0 |
Total Fixed-Income Central Funds | 51.0 |
Money Market Central Funds | 7.9 |
Net Other Assets | 0.1 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 14.4% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 40%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 41.0% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 17,636 | | $ 1,624,457 |
Fidelity Consumer Staples Central Fund (b) | 14,066 | | 1,605,623 |
Fidelity Emerging Markets Equity Central Fund (b) | 2,640 | | 447,179 |
Fidelity Energy Central Fund (b) | 18,341 | | 1,817,976 |
Fidelity Financials Central Fund (b) | 43,792 | | 2,548,251 |
Fidelity Health Care Central Fund (b) | 20,864 | | 2,107,215 |
Fidelity Industrials Central Fund (b) | 17,380 | | 1,766,313 |
Fidelity Information Technology Central Fund (b) | 24,312 | | 2,988,886 |
Fidelity International Equity Central Fund (b) | 27,536 | | 1,791,219 |
Fidelity Materials Central Fund (b) | 4,961 | | 624,751 |
Fidelity Telecom Services Central Fund (b) | 4,608 | | 458,806 |
Fidelity Utilities Central Fund (b) | 6,980 | | 616,276 |
TOTAL EQUITY CENTRAL FUNDS (Cost $18,575,895) | 18,396,952 |
Fixed-Income Central Funds - 51.0% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 5,988 | | 543,882 |
Fidelity High Income Central Fund 1 (b) | 19,200 | | 1,698,998 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 2,242,880 |
Investment Grade Fixed-Income Funds - 46.0% |
Fidelity Tactical Income Central Fund (b) | 218,192 | | 20,638,811 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $22,148,418) | 22,881,691 |
Money Market Central Funds - 7.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 1,644,693 | | $ 1,644,693 |
Fidelity Money Market Central Fund, 0.60% (a) | 1,900,000 | | 1,900,000 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $3,544,693) | 3,544,693 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $44,269,006) | | 44,823,336 |
NET OTHER ASSETS - 0.1% | | 47,993 |
NET ASSETS - 100% | $ 44,871,329 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 20,714 |
Fidelity Consumer Discretionary Central Fund | 16,422 |
Fidelity Consumer Staples Central Fund | 28,228 |
Fidelity Emerging Markets Equity Central Fund | 5,556 |
Fidelity Energy Central Fund | 12,591 |
Fidelity Financials Central Fund | 33,996 |
Fidelity Floating Rate Central Fund | 25,021 |
Fidelity Health Care Central Fund | 17,369 |
Fidelity High Income Central Fund 1 | 87,205 |
Fidelity Industrials Central Fund | 22,123 |
Fidelity Information Technology Central Fund | 14,346 |
Fidelity International Equity Central Fund | 29,117 |
Fidelity Materials Central Fund | 7,164 |
Fidelity Money Market Central Fund | 7,597 |
Fidelity Tactical Income Central Fund | 599,939 |
Fidelity Telecom Services Central Fund | 6,007 |
Fidelity Utilities Central Fund | 15,057 |
Total | $ 948,452 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 687,216 | $ 1,098,688 | $ 302,723 | $ 1,624,457 | 0.3% |
Fidelity Consumer Staples Central Fund | 693,355 | 1,177,953 | 350,495 | 1,605,623 | 0.3% |
Fidelity Emerging Markets Equity Central Fund | - | 382,781 | 112,949 | 447,179 | 0.2% |
Fidelity Energy Central Fund | 736,460 | 1,471,989 | 544,824 | 1,817,976 | 0.3% |
Fidelity Financials Central Fund | 1,073,867 | 1,867,725 | 460,906 | 2,548,251 | 0.3% |
Fidelity Floating Rate Central Fund | 504,178 | 398,655 | 388,969 | 543,882 | 0.0% |
Fidelity Health Care Central Fund | 865,513 | 1,488,253 | 416,843 | 2,107,215 | 0.3% |
Fidelity High Income Central Fund 1 | 316,276 | 1,381,623 | 175,217 | 1,698,998 | 0.3% |
Fidelity Industrials Central Fund | 809,331 | 1,187,737 | 352,138 | 1,766,313 | 0.3% |
Fidelity Information Technology Central Fund | 1,008,502 | 1,865,627 | 640,306 | 2,988,886 | 0.3% |
Fidelity International Equity Central Fund | 745,109 | 913,693 | 22,819 | 1,791,219 | 0.3% |
Fidelity Materials Central Fund | 245,701 | 382,559 | 131,381 | 624,751 | 0.3% |
Fidelity Tactical Income Central Fund | 7,380,508 | 14,534,743 | 2,452,732 | 20,638,811 | 0.5% |
Fidelity Telecom Services Central Fund | 202,857 | 315,366 | 138,517 | 458,806 | 0.3% |
Fidelity Utilities Central Fund | 247,387 | 479,530 | 117,794 | 616,276 | 0.3% |
Total | $ 15,516,260 | $ 28,946,922 | $ 6,608,613 | $ 41,278,643 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 85.6% |
United Kingdom | 1.8% |
Switzerland | 1.2% |
Canada | 1.2% |
Bermuda | 1.2% |
Others (individually less than 1%) | 9.0% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $565,738 of which $101,011 and $464,727 will expire on September 30, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $557,564 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 40%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $44,269,006) - See accompanying schedule: | | $ 44,823,336 |
Cash | | 12,739 |
Receivable for investments sold | | 14,251 |
Receivable for fund shares sold | | 66,869 |
Distributions receivable from Fidelity Central Funds | | 84,340 |
Prepaid expenses | | 195 |
Receivable from investment adviser for expense reductions | | 37,055 |
Total assets | | 45,038,785 |
| | |
Liabilities | | |
Payable for investments purchased | $ 85,109 | |
Payable for fund shares redeemed | 18,735 | |
Accrued management fee | 14,982 | |
Distribution fees payable | 3,740 | |
Other affiliated payables | 5,125 | |
Other payables and accrued expenses | 39,765 | |
Total liabilities | | 167,456 |
| | |
Net Assets | | $ 44,871,329 |
Net Assets consist of: | | |
Paid in capital | | $ 44,057,719 |
Undistributed net investment income | | 256,838 |
Accumulated undistributed net realized gain (loss) on investments | | 2,442 |
Net unrealized appreciation (depreciation) on investments | | 554,330 |
Net Assets | | $ 44,871,329 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($2,921,246 ÷ 332,999 shares) | | $ 8.77 |
| | |
Maximum offering price per share (100/94.25 of $8.77) | | $ 9.31 |
Class T:
Net Asset Value and redemption price per share ($2,089,341 ÷ 238,475 shares) | | $ 8.76 |
| | |
Maximum offering price per share (100/96.50 of $8.76) | | $ 9.08 |
Class B:
Net Asset Value and offering price per share ($1,262,680 ÷ 144,232 shares)A | | $ 8.75 |
| | |
Class C:
Net Asset Value and offering price per share ($1,469,210 ÷ 167,761 shares)A | | $ 8.76 |
| | |
| | |
Asset Manager 40%:
Net Asset Value, offering price and redemption price per share ($36,197,605 ÷ 4,126,118 shares) | | $ 8.77 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($931,247 ÷ 106,143 shares) | | $ 8.77 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 75 |
Income from Fidelity Central Funds | | 948,452 |
Total income | | 948,527 |
| | |
Expenses | | |
Management fee | $ 112,805 | |
Transfer agent fees | 33,993 | |
Distribution fees | 40,998 | |
Accounting fees and expenses | 11,167 | |
Custodian fees and expenses | 5,007 | |
Independent trustees' compensation | 88 | |
Registration fees | 59,383 | |
Audit | 61,436 | |
Legal | 1,856 | |
Miscellaneous | 1,028 | |
Total expenses before reductions | 327,761 | |
Expense reductions | (113,093) | 214,668 |
Net investment income (loss) | | 733,859 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 17 | |
Fidelity Central Funds | 128,703 | |
Futures contracts | (47,735) | |
Total net realized gain (loss) | | 80,985 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 3,295,362 | |
Futures contracts | 8,693 | |
Total change in net unrealized appreciation (depreciation) | | 3,304,055 |
Net gain (loss) | | 3,385,040 |
Net increase (decrease) in net assets resulting from operations | | $ 4,118,899 |
Statement of Changes in Net Assets
| Year ended
September 30, 2009 | For the period October 9, 2007 (commencement of operations) to
September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 733,859 | $ 363,871 |
Net realized gain (loss) | 80,985 | (82,406) |
Change in net unrealized appreciation (depreciation) | 3,304,055 | (2,749,725) |
Net increase (decrease) in net assets resulting from operations | 4,118,899 | (2,468,260) |
Distributions to shareholders from net investment income | (608,662) | (228,368) |
Share transactions - net increase (decrease) | 22,459,047 | 21,598,673 |
Total increase (decrease) in net assets | 25,969,284 | 18,902,045 |
| | |
Net Assets | | |
Beginning of period | 18,902,045 | - |
End of period (including undistributed net investment income of $256,838 and undistributed net investment income of $131,642, respectively) | $ 44,871,329 | $ 18,902,045 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.42 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .23 |
Net realized and unrealized gain (loss) | .34 | (1.66) |
Total from investment operations | .54 | (1.43) |
Distributions from net investment income | (.19) | (.15) |
Net asset value, end of period | $ 8.77 | $ 8.42 |
Total Return B, C, D | 6.80% | (14.43)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.33% | 1.91% A |
Expenses net of fee waivers, if any | .90% | 1.00% A |
Expenses net of all reductions | .90% | 1.00% A |
Net investment income (loss) | 2.62% | 2.52% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,921 | $ 2,033 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.41 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .18 | .21 |
Net realized and unrealized gain (loss) | .35 | (1.66) |
Total from investment operations | .53 | (1.45) |
Distributions from net investment income | (.18) | (.14) |
Net asset value, end of period | $ 8.76 | $ 8.41 |
Total Return B, C, D | 6.59% | (14.67)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.59% | 2.15% A |
Expenses net of fee waivers, if any | 1.15% | 1.25% A |
Expenses net of all reductions | 1.15% | 1.25% A |
Net investment income (loss) | 2.37% | 2.27% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,089 | $ 1,840 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.40 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .14 | .16 |
Net realized and unrealized gain (loss) | .35 | (1.66) |
Total from investment operations | .49 | (1.50) |
Distributions from net investment income | (.14) | (.10) |
Net asset value, end of period | $ 8.75 | $ 8.40 |
Total Return B, C, D | 6.02% | (15.09)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.08% | 2.64%A |
Expenses net of fee waivers, if any | 1.65% | 1.77%A |
Expenses net of all reductions | 1.65% | 1.77%A |
Net investment income (loss) | 1.87% | 1.76%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,263 | $ 1,378 |
Portfolio turnover rate F | 27% | 1%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.41 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .14 | .16 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .48 | (1.49) |
Distributions from net investment income | (.13) | (.10) |
Net asset value, end of period | $ 8.76 | $ 8.41 |
Total Return B, C, D | 6.00% | (15.01)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.09% | 2.66% A |
Expenses net of fee waivers, if any | 1.65% | 1.76% A |
Expenses net of all reductions | 1.65% | 1.76% A |
Net investment income (loss) | 1.87% | 1.76% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,469 | $ 1,384 |
Portfolio turnover rate F | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 40%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.43 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .22 | .25 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .56 | (1.40) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 8.77 | $ 8.43 |
Total Return B, C | 7.00% | (14.18)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.05% | 1.68% A |
Expenses net of fee waivers, if any | .65% | .72% A |
Expenses net of all reductions | .64% | .72% A |
Net investment income (loss) | 2.88% | 2.80% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 36,198 | $ 10,929 |
Portfolio turnover rate E | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 8.43 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .22 | .25 |
Net realized and unrealized gain (loss) | .34 | (1.65) |
Total from investment operations | .56 | (1.40) |
Distributions from net investment income | (.22) | (.17) |
Net asset value, end of period | $ 8.77 | $ 8.43 |
Total Return B, C | 7.00% | (14.18)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.07% | 1.63% A |
Expenses net of fee waivers, if any | .65% | .76% A |
Expenses net of all reductions | .65% | .76% A |
Net investment income (loss) | 2.87% | 2.76% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 931 | $ 1,339 |
Portfolio turnover rate E | 27% | 1% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.8 | 0.4 |
Procter & Gamble Co. | 0.5 | 0.7 |
Google, Inc. Class A | 0.6 | 0.4 |
Pfizer, Inc. | 0.5 | 0.2 |
Microsoft Corp. | 0.4 | 0.4 |
CVS Caremark Corp. | 0.4 | 0.5 |
Charles Schwab Corp. | 0.4 | 0.0 |
PepsiCo, Inc. | 0.4 | 0.5 |
CME Group, Inc. | 0.4 | 0.2 |
AT&T, Inc. | 0.4 | 0.2 |
| 4.8 | |
Top Five Bond Issuers as of September 30, 2009 |
(with maturities greater than one year) | % of fund's
net assets | % of fund's net assets
6 months ago |
Fannie Mae | 11.6 | 12.5 |
U.S. Treasury Obligations | 10.5 | 5.1 |
Freddie Mac | 1.7 | 2.0 |
Government National Mortgage Association | 0.4 | 2.1 |
JPMorgan Chase Capital XX | 0.4 | 0.4 |
| 24.6 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 51.0% | | | Stock Class and
Equity Futures 49.7% | |
| Bond Class 44.1% | | | Bond Class 46.2% | |
| Short-Term Class 4.9% | | | Short-Term Class 4.1% | |
| | | | | |
| | | | | |
Asset Allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 50%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 9.0 |
Fidelity Financials Central Fund | 6.7 |
Fidelity Health Care Central Fund | 5.9 |
Fidelity Industrials Central Fund | 5.4 |
Fidelity Energy Central Fund | 5.1 |
Fidelity Consumer Discretionary Central Fund | 4.6 |
Fidelity Consumer Staples Central Fund | 4.6 |
Fidelity International Equity Central Fund | 4.2 |
Fidelity Materials Central Fund | 2.1 |
Fidelity Telecom Services Central Fund | 1.6 |
Fidelity Utilities Central Fund | 1.6 |
Fidelity Emerging Markets Equity Central Fund | 1.1 |
Total Equity Central Funds | 51.9 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.0 |
Investment Grade Fixed-Income Funds | 40.2 |
Total Fixed-Income Central Funds | 45.2 |
Money Market Central Funds | 2.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 15.8% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 50%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 51.9% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 3,029,232 | | $ 279,022,577 |
Fidelity Consumer Staples Central Fund (b) | 2,460,441 | | 280,859,348 |
Fidelity Emerging Markets Equity Central Fund (b) | 406,259 | | 68,820,196 |
Fidelity Energy Central Fund (b) | 3,085,999 | | 305,884,194 |
Fidelity Financials Central Fund (b) | 6,988,302 | | 406,649,295 |
Fidelity Health Care Central Fund (b) | 3,550,643 | | 358,614,937 |
Fidelity Industrials Central Fund (b) | 3,219,787 | | 327,227,002 |
Fidelity Information Technology Central Fund (b) | 4,427,896 | | 544,365,539 |
Fidelity International Equity Central Fund (b) | 3,945,473 | | 256,653,011 |
Fidelity Materials Central Fund (b) | 1,001,691 | | 126,132,911 |
Fidelity Telecom Services Central Fund (b) | 960,011 | | 95,578,669 |
Fidelity Utilities Central Fund (b) | 1,082,411 | | 95,566,059 |
TOTAL EQUITY CENTRAL FUNDS (Cost $3,360,316,375) | 3,145,373,738 |
Fixed-Income Central Funds - 45.2% |
| | | |
High Yield Fixed-Income Funds - 5.0% |
Fidelity Floating Rate Central Fund (b) | 786,110 | | 71,402,355 |
Fidelity High Income Central
Fund 1 (b) | 2,609,210 | | 230,888,991 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 302,291,346 |
Investment Grade Fixed-Income Funds - 40.2% |
Fidelity Tactical Income Central
Fund (b) | 25,772,766 | | 2,437,845,914 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $2,788,750,133) | 2,740,137,260 |
Money Market Central Funds - 2.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 49,432,131 | | $ 49,432,131 |
Fidelity Money Market Central Fund, 0.60% (a) | 126,013,442 | | 126,013,442 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $175,445,573) | 175,445,573 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,324,512,081) | | 6,060,956,571 |
NET OTHER ASSETS - 0.0% | | (1,542,421) |
NET ASSETS - 100% | $ 6,059,414,150 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 464,023 |
Fidelity Consumer Discretionary Central Fund | 4,215,855 |
Fidelity Consumer Staples Central Fund | 7,075,528 |
Fidelity Emerging Markets Equity Central Fund | 1,049,697 |
Fidelity Energy Central Fund | 3,019,057 |
Fidelity Financials Central Fund | 9,222,939 |
Fidelity Floating Rate Central Fund | 6,828,917 |
Fidelity Health Care Central Fund | 4,418,293 |
Fidelity High Income Central Fund 1 | 16,409,991 |
Fidelity Industrials Central Fund | 5,924,860 |
Fidelity Information Technology Central Fund | 3,624,660 |
Fidelity International Equity Central Fund | 6,192,750 |
Fidelity Materials Central Fund | 1,919,595 |
Fidelity Money Market Central Fund | 2,740,511 |
Fidelity Tactical Income Central Fund | 111,942,431 |
Fidelity Telecom Services Central Fund | 1,707,733 |
Fidelity Utilities Central Fund | 3,589,225 |
Total | $ 190,346,065 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 293,016,928 | $ 21,117,173 | $ 33,091,644 | $ 279,022,577 | 53.9% |
Fidelity Consumer Staples Central Fund | 295,622,548 | 23,544,674 | 34,680,458 | 280,859,348 | 54.0% |
Fidelity Emerging Markets Equity Central Fund | - | 50,554,550 | 13,711,909 | 68,820,196 | 37.9% |
Fidelity Energy Central Fund | 314,002,263 | 59,506,751 | 38,198,317 | 305,884,194 | 53.1% |
Fidelity Financials Central Fund | 457,855,099 | 42,983,016 | 37,439,314 | 406,649,295 | 52.7% |
Fidelity Floating Rate Central Fund | 196,167,573 | 6,857,895 | 118,525,861 | 71,402,355 | 2.4% |
Fidelity Health Care Central Fund | 369,027,997 | 28,522,552 | 42,011,830 | 358,614,937 | 53.4% |
Fidelity High Income Central Fund 1 | 122,947,937 | 89,937,301 | 2,846,909 | 230,888,991 | 45.4% |
Fidelity Industrials Central Fund | 345,077,478 | 36,996,811 | 42,160,881 | 327,227,002 | 54.4% |
Fidelity Information Technology Central Fund | 430,011,894 | 55,816,417 | 60,444,300 | 544,365,539 | 54.1% |
Fidelity International Equity Central Fund | 267,067,885 | 6,675,795 | 7,232,349 | 256,653,011 | 40.0% |
Fidelity Materials Central Fund | 104,784,844 | 15,974,799 | 13,584,556 | 126,132,911 | 55.0% |
Fidelity Tactical Income Central Fund | 2,390,712,422 | 334,181,062 | 401,233,861 | 2,437,845,914 | 55.4% |
Fidelity Telecom Services Central Fund | 86,521,154 | 9,116,697 | 10,946,734 | 95,578,669 | 55.0% |
Fidelity Utilities Central Fund | 105,514,101 | 8,993,666 | 12,787,499 | 95,566,059 | 53.0% |
Total | $ 5,778,330,123 | $ 790,779,159 | $ 868,896,422 | $ 5,885,510,998 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 24.2% |
AAA,AA,A | 8.9% |
BBB | 7.9% |
BB | 3.0% |
B | 2.1% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 50.8% |
Short-Term Investments and Net Other Assets | 2.2% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 84.2% |
United Kingdom | 1.8% |
Switzerland | 1.5% |
Bermuda | 1.3% |
Canada | 1.1% |
Others (individually less than 1%) | 10.1% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $544,429,664 all of which will expire on September 30, 2017. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $471,148,356 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investments in securities, at value (cost $6,324,512,081) - See accompanying schedule: | | $ 6,060,956,571 |
Receivable for investments sold | | 2,532,471 |
Receivable for fund shares sold | | 3,637,725 |
Distributions receivable from Fidelity Central Funds | | 10,407,884 |
Prepaid expenses | | 29,850 |
Other receivables | | 195,210 |
Total assets | | 6,077,759,711 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,886,559 | |
Payable for fund shares redeemed | 3,581,999 | |
Accrued management fee | 2,552,053 | |
Transfer agent fee payable | 957,569 | |
Distribution fees payable | 19,489 | |
Other affiliated payables | 122,673 | |
Other payables and accrued expenses | 225,219 | |
Total liabilities | | 18,345,561 |
| | |
Net Assets | | $ 6,059,414,150 |
Net Assets consist of: | | |
Paid in capital | | $ 6,814,868,526 |
Undistributed net investment income | | 31,105,092 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (523,003,958) |
Net unrealized appreciation (depreciation) on investments | | (263,555,510) |
Net Assets | | $ 6,059,414,150 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($25,521,634 ÷ 1,893,435 shares) | | $ 13.48 |
| | |
Maximum offering price per share (100/94.25 of $13.48) | | $ 14.30 |
Class T:
Net Asset Value and redemption price per share ($10,950,329 ÷ 812,987 shares) | | $ 13.47 |
| | |
Maximum offering price per share (100/96.50 of $13.47) | | $ 13.96 |
Class B:
Net Asset Value and offering price per share ($3,492,784 ÷ 259,960 shares)A | | $ 13.44 |
| | |
Class C:
Net Asset Value and offering price per share ($8,934,598 ÷ 665,589 shares)A | | $ 13.42 |
| | |
| | |
Asset Manager 50%:
Net Asset Value, offering price and redemption price per share ($6,008,085,981 ÷ 444,611,136 shares) | | $ 13.51 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,428,824 ÷ 179,869 shares) | | $ 13.50 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 50%
Financial Statements - continued
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 10,941 |
Income from Fidelity Central Funds | | 190,346,065 |
Total income | | 190,357,006 |
| | |
Expenses | | |
Management fee | $ 27,008,211 | |
Transfer agent fees | 11,758,255 | |
Distribution fees | 143,274 | |
Accounting and security lending fees | 1,376,748 | |
Custodian fees and expenses | 5,062 | |
Independent trustees' compensation | 20,831 | |
Depreciation in deferred trustee compensation account | (3,047) | |
Registration fees | 103,387 | |
Audit | 63,577 | |
Legal | 48,581 | |
Interest | 1,327 | |
Miscellaneous | 259,937 | |
Total expenses before reductions | 40,786,143 | |
Expense reductions | (290,343) | 40,495,800 |
Net investment income (loss) | | 149,861,206 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 29,338,355 | |
Fidelity Central Funds | (73,806,596) | |
Foreign currency transactions | (352,959) | |
Futures contracts | (35,226,589) | |
Total net realized gain (loss) | | (80,047,789) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 259,085,538 | |
Futures contracts | 6,392,238 | |
Total change in net unrealized appreciation (depreciation) | | 265,477,776 |
Net gain (loss) | | 185,429,987 |
Net increase (decrease) in net assets resulting from operations | | $ 335,291,193 |
Statement of Changes in Net Assets
| Year ended
September 30, 2009 | Year ended
September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 149,861,206 | $ 213,491,172 |
Net realized gain (loss) | (80,047,789) | (58,382,609) |
Change in net unrealized appreciation (depreciation) | 265,477,776 | (1,461,977,490) |
Net increase (decrease) in net assets resulting from operations | 335,291,193 | (1,306,868,927) |
Distributions to shareholders from net investment income | (178,694,512) | (239,866,976) |
Distributions to shareholders from net realized gain | (4,660,918) | (556,509,728) |
Total distributions | (183,355,430) | (796,376,704) |
Share transactions - net increase (decrease) | (414,536,080) | (541,463,365) |
Total increase (decrease) in net assets | (262,600,317) | (2,644,708,996) |
| | |
Net Assets | | |
Beginning of period | 6,322,014,467 | 8,966,723,463 |
End of period (including undistributed net investment income of $31,105,092 and undistributed net investment income of $64,010,831, respectively) | $ 6,059,414,150 | $ 6,322,014,467 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.95 | $ 17.08 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .30 | .36 | .43 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.45 |
Total from investment operations | .90 | (2.60) | 1.88 |
Distributions from net investment income | (.36) | (.43) | (.47) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.37) | (1.53) | (1.37) |
Net asset value, end of period | $ 13.48 | $ 12.95 | $ 17.08 |
Total Return B, C, D | 7.49% | (16.56)% | 11.93% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.02% | .99% | 1.01% A |
Expenses net of fee waivers, if any | 1.02% | .99% | 1.01% A |
Expenses net of all reductions | 1.01% | .98% | 1.00% A |
Net investment income (loss) | 2.61% | 2.46% | 2.62% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 25,522 | $ 10,611 | $ 4,432 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.94 | $ 17.06 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .27 | .33 | .39 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.46 |
Total from investment operations | .87 | (2.63) | 1.85 |
Distributions from net investment income | (.33) | (.39) | (.46) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.34) | (1.49) | (1.36) |
Net asset value, end of period | $ 13.47 | $ 12.94 | $ 17.06 |
Total Return B, C, D | 7.21% | (16.76)% | 11.68% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.29% | 1.24% | 1.24% A |
Expenses net of fee waivers, if any | 1.29% | 1.24% | 1.24% A |
Expenses net of all reductions | 1.28% | 1.23% | 1.23% A |
Net investment income (loss) | 2.34% | 2.21% | 2.40% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 10,950 | $ 5,475 | $ 3,148 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.91 | $ 17.02 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .21 | .24 | .30 |
Net realized and unrealized gain (loss) | .60 | (2.96) | 1.46 |
Total from investment operations | .81 | (2.72) | 1.76 |
Distributions from net investment income | (.27) | (.29) | (.41) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.28) | (1.39) | (1.31) |
Net asset value, end of period | $ 13.44 | $ 12.91 | $ 17.02 |
Total Return B, C, D | 6.64% | (17.26)% | 11.03% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.85% | 1.79% | 1.79% A |
Expenses net of fee waivers, if any | 1.85% | 1.79% | 1.79% A |
Expenses net of all reductions | 1.84% | 1.79% | 1.78% A |
Net investment income (loss) | 1.78% | 1.65% | 1.84% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,493 | $ 2,084 | $ 1,007 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.90 | $ 17.00 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) E | .21 | .25 | .31 |
Net realized and unrealized gain (loss) | .59 | (2.95) | 1.45 |
Total from investment operations | .80 | (2.70) | 1.76 |
Distributions from net investment income | (.27) | (.30) | (.43) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.28) | (1.40) | (1.33) |
Net asset value, end of period | $ 13.42 | $ 12.90 | $ 17.00 |
Total Return B, C, D | 6.59% | (17.18)% | 11.08% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.81% | 1.76% | 1.75% A |
Expenses net of fee waivers, if any | 1.81% | 1.76% | 1.75% A |
Expenses net of all reductions | 1.81% | 1.76% | 1.74% A |
Net investment income (loss) | 1.81% | 1.68% | 1.88% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 8,935 | $ 4,294 | $ 2,840 |
Portfolio turnover rate F | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 50%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.97 | $ 17.10 | $ 16.60 | $ 16.28 | $ 15.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .33 | .41 | .49 | .45 | .41 D |
Net realized and unrealized gain (loss) | .60 | (2.97) | 1.41 | .73 | .69 |
Total from investment operations | .93 | (2.56) | 1.90 | 1.18 | 1.10 |
Distributions from net investment income | (.38) | (.47) | (.50) | (.45) | (.40) |
Distributions from net realized gain | (.01) | (1.10) | (.90) | (.41) | - |
Total distributions | (.39) | (1.57) | (1.40) | (.86) | (.40) |
Net asset value, end of period | $ 13.51 | $ 12.97 | $ 17.10 | $ 16.60 | $ 16.28 |
Total Return A | 7.78% | (16.34)% | 12.02% | 7.50% | 7.15% |
Ratios to Average Net Assets E | | | | | |
Expenses before reductions | .77% | .71% | .71% | .72% | .73% |
Expenses net of fee waivers, if any | .77% | .71% | .71% | .72% | .73% |
Expenses net of all reductions | .77% | .70% | .70% | .71% | .72% |
Net investment income (loss) | 2.85% | 2.74% | 2.93% | 2.79% | 2.55% D |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,008,086 | $ 6,299,082 | $ 8,955,110 | $ 9,204,214 | $ 10,189,947 |
Portfolio turnover rate C | 15% | 8% | 12% | 65% F | 32% F |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $0.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 2.28%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.97 | $ 17.11 | $ 16.57 |
Income from Investment Operations | | | |
Net investment income (loss) D | .34 | .42 | .48 |
Net realized and unrealized gain (loss) | .59 | (2.98) | 1.46 |
Total from investment operations | .93 | (2.56) | 1.94 |
Distributions from net investment income | (.39) | (.48) | (.50) |
Distributions from net realized gain | (.01) | (1.10) | (.90) |
Total distributions | (.40) | (1.58) | (1.40) |
Net asset value, end of period | $ 13.50 | $ 12.97 | $ 17.11 |
Total Return B, C | 7.80% | (16.30)% | 12.20% |
Ratios to Average Net Assets G | | | |
Expenses before reductions | .69% | .67% | .72% A |
Expenses net of fee waivers, if any | .69% | .67% | .72% A |
Expenses net of all reductions | .69% | .67% | .72% A |
Net investment income (loss) | 2.93% | 2.77% | 2.91% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 2,429 | $ 469 | $ 186 |
Portfolio turnover rate E | 15% | 8% | 12% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 60%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds. |
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 0.8 | 0.4 |
Procter & Gamble Co. | 0.6 | 0.8 |
Google, Inc. Class A | 0.6 | 0.4 |
Pfizer, Inc. | 0.5 | 0.3 |
Charles Schwab Corp. | 0.5 | 0.0 |
CVS Caremark Corp. | 0.5 | 0.4 |
Microsoft Corp. | 0.5 | 0.4 |
CME Group, Inc. | 0.4 | 0.2 |
Morgan Stanley | 0.4 | 0.1 |
Covidien PLC | 0.4 | 0.0 |
| 5.2 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 59.3% | | | Stock Class and
Equity Futures 57.6% | |
| Bond Class 37.0% | | | Bond Class 37.7% | |
| Short-Term Class 3.7% | | | Short-Term Class 4.7% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 60%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 9.4 |
Fidelity Financials Central Fund | 8.0 |
Fidelity International Equity Central Fund | 8.0 |
Fidelity Health Care Central Fund | 6.6 |
Fidelity Energy Central Fund | 5.7 |
Fidelity Industrials Central Fund | 5.5 |
Fidelity Consumer Discretionary Central Fund | 5.1 |
Fidelity Consumer Staples Central Fund | 5.0 |
Fidelity Emerging Markets Equity Central Fund | 2.0 |
Fidelity Materials Central Fund | 1.9 |
Fidelity Utilities Central Fund | 1.9 |
Fidelity Telecom Services Central Fund | 1.4 |
Total Equity Central Funds | 60.5 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 4.9 |
Investment Grade Fixed-Income Funds | 33.0 |
Total Fixed-Income Central Funds | 37.9 |
Money Market Central Funds | 1.6 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 20.8% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 60%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 60.5% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (a) | 36,132 | | $ 3,328,127 |
Fidelity Consumer Staples Central Fund (a) | 28,697 | | 3,275,772 |
Fidelity Emerging Markets Equity Central Fund (a) | 7,775 | | 1,317,003 |
Fidelity Energy Central Fund (a) | 37,657 | | 3,732,559 |
Fidelity Financials Central Fund (a) | 90,259 | | 5,252,184 |
Fidelity Health Care Central Fund (a) | 42,801 | | 4,322,878 |
Fidelity Industrials Central Fund (a) | 35,710 | | 3,629,170 |
Fidelity Information Technology Central Fund (a) | 49,908 | | 6,135,680 |
Fidelity International Equity Central Fund (a) | 80,036 | | 5,206,373 |
Fidelity Materials Central Fund (a) | 10,007 | | 1,260,092 |
Fidelity Telecom Services Central Fund (a) | 9,413 | | 937,166 |
Fidelity Utilities Central Fund (a) | 14,050 | | 1,240,459 |
TOTAL EQUITY CENTRAL FUNDS (Cost $38,456,565) | 39,637,463 |
Fixed-Income Central Funds - 37.9% |
| | | |
High Yield Fixed-Income Funds - 4.9% |
Fidelity Floating Rate Central Fund (a) | 8,325 | | 756,173 |
Fidelity High Income Central Fund 1 (a) | 27,774 | | 2,457,724 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 3,213,897 |
Investment Grade Fixed-Income Funds - 33.0% |
Fidelity Tactical Income Central Fund (a) | 228,009 | | 21,567,412 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $23,876,290) | 24,781,309 |
Money Market Central Funds - 1.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (b)
(Cost $1,025,366) | 1,025,366 | | $ 1,025,366 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $63,358,221) | | 65,444,138 |
NET OTHER ASSETS - 0.0% | | 29,708 |
NET ASSETS - 100% | $ 65,473,846 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 11,601 |
Fidelity Consumer Discretionary Central Fund | 29,828 |
Fidelity Consumer Staples Central Fund | 52,342 |
Fidelity Emerging Markets Equity Central Fund | 13,764 |
Fidelity Energy Central Fund | 23,471 |
Fidelity Financials Central Fund | 61,886 |
Fidelity Floating Rate Central Fund | 31,367 |
Fidelity Health Care Central Fund | 30,379 |
Fidelity High Income Central Fund 1 | 107,281 |
Fidelity Industrials Central Fund | 40,685 |
Fidelity Information Technology Central Fund | 26,780 |
Fidelity International Equity Central Fund | 84,475 |
Fidelity Materials Central Fund | 12,783 |
Fidelity Tactical Income Central Fund | 551,185 |
Fidelity Telecom Services Central Fund | 11,456 |
Fidelity Utilities Central Fund | 28,377 |
Total | $ 1,117,660 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 1,621,243 | $ 1,818,798 | $ 362,689 | $ 3,328,127 | 0.6% |
Fidelity Consumer Staples Central Fund | 1,635,731 | 1,965,471 | 523,505 | 3,275,772 | 0.6% |
Fidelity Emerging Markets Equity Central Fund | - | 1,083,164 | 184,190 | 1,317,003 | 0.7% |
Fidelity Energy Central Fund | 1,737,408 | 2,378,238 | 600,039 | 3,732,559 | 0.6% |
Fidelity Financials Central Fund | 2,533,356 | 3,020,645 | 621,956 | 5,252,184 | 0.7% |
Fidelity Floating Rate Central Fund | 599,148 | 502,516 | 397,331 | 756,173 | 0.0% |
Fidelity Health Care Central Fund | 2,041,880 | 2,509,422 | 588,425 | 4,322,878 | 0.6% |
Fidelity High Income Central Fund 1 | 376,783 | 1,984,375 | 146,926 | 2,457,724 | 0.5% |
Fidelity Industrials Central Fund | 1,909,359 | 1,976,806 | 514,964 | 3,629,170 | 0.6% |
Fidelity Information Technology Central Fund | 2,379,293 | 3,022,499 | 633,418 | 6,135,680 | 0.6% |
Fidelity International Equity Central Fund | 1,762,191 | 3,441,483 | 450,735 | 5,206,373 | 0.8% |
Fidelity Materials Central Fund | 579,741 | 593,182 | 137,516 | 1,260,092 | 0.5% |
Fidelity Tactical Income Central Fund | 8,688,176 | 16,279,121 | 4,514,601 | 21,567,412 | 0.5% |
Fidelity Telecom Services Central Fund | 478,691 | 472,131 | 132,770 | 937,166 | 0.5% |
Fidelity Utilities Central Fund | 583,808 | 750,799 | 126,893 | 1,240,459 | 0.7% |
Total | $ 26,926,808 | $ 41,798,650 | $ 9,935,958 | $ 64,418,772 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 19.8% |
AAA,AA,A | 7.3% |
BBB | 6.5% |
BB | 2.7% |
B | 2.1% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 59.6% |
Short-Term Investments and Net Other Assets | 1.1% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 79.2% |
United Kingdom | 2.7% |
Switzerland | 1.9% |
Japan | 1.5% |
Bermuda | 1.3% |
Canada | 1.2% |
China | 1.0% |
Netherlands | 1.0% |
Others (individually less than 1%) | 10.2% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $1,075,548 of which $76,825 and $998,723 will expire on September 30, 2016 and September 30, 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $1,162,635 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 60%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $63,358,221) - See accompanying schedule: | | $ 65,444,138 |
Receivable for fund shares sold | | 456,989 |
Distributions receivable from Fidelity Central Funds | | 92,258 |
Prepaid expenses | | 289 |
Receivable from investment adviser for expense reductions | | 40,517 |
Other receivables | | 271 |
Total assets | | 66,034,462 |
| | |
Liabilities | | |
Payable for investments purchased | $ 458,510 | |
Payable for fund shares redeemed | 15,696 | |
Accrued management fee | 29,387 | |
Distribution fees payable | 5,511 | |
Other affiliated payables | 11,751 | |
Other payables and accrued expenses | 39,761 | |
Total liabilities | | 560,616 |
| | |
Net Assets | | $ 65,473,846 |
Net Assets consist of: | | |
Paid in capital | | $ 63,802,175 |
Undistributed net investment income | | 626,213 |
Accumulated undistributed net realized gain (loss) on investments | | (1,040,459) |
Net unrealized appreciation (depreciation) on investments | | 2,085,917 |
Net Assets | | $ 65,473,846 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($6,043,685 ÷ 718,274 shares) | | $ 8.41 |
| | |
Maximum offering price per share (100/94.25 of $8.41) | | $ 8.92 |
Class T:
Net Asset Value and redemption price per share ($3,537,055 ÷ 421,945 shares) | | $ 8.38 |
| | |
Maximum offering price per share (100/96.50 of $8.38) | | $ 8.68 |
Class B:
Net Asset Value and offering price per share ($1,529,045 ÷ 182,696 shares)A | | $ 8.37 |
| | |
Class C:
Net Asset Value and offering price per share ($2,056,668 ÷ 245,846 shares)A | | $ 8.37 |
| | |
Asset Manager 60%:
Net Asset Value, offering price and redemption price per share ($51,463,751 ÷ 6,103,522 shares) | | $ 8.43 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($843,642 ÷ 100,050 shares) | | $ 8.43 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 148 |
Income from Fidelity Central Funds | | 1,117,660 |
Total income | | 1,117,808 |
| | |
Expenses | | |
Management fee | $ 193,551 | |
Transfer agent fees | 81,780 | |
Distribution fees | 45,912 | |
Accounting fees and expenses | 14,351 | |
Custodian fees and expenses | 5,127 | |
Independent trustees' compensation | 111 | |
Registration fees | 67,369 | |
Audit | 61,443 | |
Legal | 106 | |
Miscellaneous | 1,826 | |
Total expenses before reductions | 471,576 | |
Expense reductions | (136,023) | 335,553 |
Net investment income (loss) | | 782,255 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 161 | |
Fidelity Central Funds | (729,944) | |
Futures contracts | (119,603) | |
Total net realized gain (loss) | | (849,386) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 6,359,183 | |
Futures contracts | 21,732 | |
Total change in net unrealized appreciation (depreciation) | | 6,380,915 |
Net gain (loss) | | 5,531,529 |
Net increase (decrease) in net assets resulting from operations | | $ 6,313,784 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | For the period October 9, 2007 (commencement of operations) to September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 782,255 | $ 304,088 |
Net realized gain (loss) | (849,386) | (226,652) |
Change in net unrealized appreciation (depreciation) | 6,380,915 | (4,294,998) |
Net increase (decrease) in net assets resulting from operations | 6,313,784 | (4,217,562) |
Distributions to shareholders from net investment income | (387,880) | (36,701) |
Share transactions - net increase (decrease) | 29,464,827 | 34,337,378 |
Total increase (decrease) in net assets | 35,390,731 | 30,083,115 |
| | |
Net Assets | | |
Beginning of period | 30,083,115 | - |
End of period (including undistributed net investment income of $626,213 and undistributed net investment income of $231,837, respectively) | $ 65,473,846 | $ 30,083,115 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.95 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .15 | .17 |
Net realized and unrealized gain (loss) | .41 | (2.18) |
Total from investment operations | .56 | (2.01) |
Distributions from net investment income | (.10) | (.04) |
Net asset value, end of period | $ 8.41 | $ 7.95 |
Total Return B,C,D | 7.48% | (20.16)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.54% | 2.18% A |
Expenses net of fee waivers, if any | 1.10% | 1.16%A |
Expenses net of all reductions | 1.09% | 1.16%A |
Net investment income (loss) | 2.15% | 1.99%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 6,044 | $ 3,135 |
Portfolio turnover rateF | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.93 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | .15 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .55 | (2.04) |
Distributions from net investment income | (.10) | (.03) |
Net asset value, end of period | $ 8.38 | $ 7.93 |
Total Return B,C,D | 7.24% | (20.42)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.77% | 2.34% A |
Expenses net of fee waivers, if any | 1.35% | 1.42% A |
Expenses net of all reductions | 1.34% | 1.42% A |
Net investment income (loss) | 1.90% | 1.73% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 3,537 | $ 1,228 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.90 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .10 | .11 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .52 | (2.08) |
Distributions from net investment income | (.05) | (.02) |
Net asset value, end of period | $ 8.37 | $ 7.90 |
Total Return B,C,D | 6.78% | (20.81)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.31% | 2.85% A |
Expenses net of fee waivers, if any | 1.85% | 1.92% A |
Expenses net of all reductions | 1.84% | 1.92% A |
Net investment income (loss) | 1.40% | 1.23% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 1,529 | $ 1,074 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.90 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) E | .10 | .11 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .52 | (2.08) |
Distributions from net investment income | (.05) | (.02) |
Net asset value, end of period | $ 8.37 | $ 7.90 |
Total Return B,C,D | 6.83% | (20.81)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 2.29% | 2.80% A |
Expenses net of fee waivers, if any | 1.85% | 1.91% A |
Expenses net of all reductions | 1.84% | 1.91% A |
Net investment income (loss) | 1.40% | 1.24% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 2,057 | $ 1,643 |
Portfolio turnover rate F | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 9, 2007 (commencement of operations) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 60%
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.96 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .17 | .19 |
Net realized and unrealized gain (loss) | .42 | (2.18) |
Total from investment operations | .59 | (1.99) |
Distributions from net investment income | (.12) | (.05) |
Net asset value, end of period | $ 8.43 | $ 7.96 |
Total Return B,C | 7.81% | (20.03)% |
Ratios to Average Net Assets G | | |
Expenses before reductions | 1.22% | 1.87% A |
Expenses net of fee waivers, if any | .85% | .89% A |
Expenses net of all reductions | .84% | .89% A |
Net investment income (loss) | 2.40% | 2.26% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 51,464 | $ 22,212 |
Portfolio turnover rate E | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 7.96 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .17 | .20 |
Net realized and unrealized gain (loss) | .42 | (2.19) |
Total from investment operations | .59 | (1.99) |
Distributions from net investment income | (.12) | (.05) |
Net asset value, end of period | $ 8.43 | $ 7.96 |
Total Return B,C | 7.81% | (20.03)% |
Ratios to Average Net AssetsG | | |
Expenses before reductions | 1.21% | 1.86% A |
Expenses net of fee waivers, if any | .85% | .94% A |
Expenses net of all reductions | .84% | .93% A |
Net investment income (loss) | 2.40% | 2.22% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 844 | $ 792 |
Portfolio turnover rate E | 29% | 4%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 9, 2007 (commencement of operations) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds. |
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 1.0 | 0.5 |
Procter & Gamble Co. | 0.7 | 1.0 |
Google, Inc. Class A | 0.7 | 0.5 |
Pfizer, Inc. | 0.6 | 0.3 |
Microsoft Corp. | 0.6 | 0.5 |
CVS Caremark Corp. | 0.5 | 0.5 |
Charles Schwab Corp. | 0.5 | 0.0 |
Covidien PLC | 0.4 | 0.0 |
CME Group, Inc. | 0.5 | 0.2 |
PepsiCo, Inc. | 0.5 | 0.6 |
| 6.0 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stock Class and
Equity Futures 70.1% | | | Stock Class and
Equity Futures 68.6% | |
| Bond Class 26.5% | | | Bond Class 28.6% | |
| Short-Term Class 3.4% | | | Short-Term Class 2.8% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 70%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 11.6 |
Fidelity Financials Central Fund | 8.9 |
Fidelity International Equity Central Fund | 8.4 |
Fidelity Health Care Central Fund | 7.8 |
Fidelity Industrials Central Fund | 7.0 |
Fidelity Energy Central Fund | 6.7 |
Fidelity Consumer Staples Central Fund | 6.1 |
Fidelity Consumer Discretionary Central Fund | 6.0 |
Fidelity Materials Central Fund | 2.6 |
Fidelity Emerging Markets Equity Central Fund | 2.2 |
Fidelity Utilities Central Fund | 2.1 |
Fidelity Telecom Services Central Fund | 2.0 |
Total Equity Central Funds | 71.4 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 4.9 |
Investment Grade Fixed-Income Funds | 22.3 |
Total Fixed-Income Central Funds | 27.2 |
Money Market Central Funds | 1.4 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 22.2% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 70%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 71.4% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (b) | 1,587,920 | | $ 146,263,309 |
Fidelity Consumer Staples Central Fund (b) | 1,291,253 | | 147,396,511 |
Fidelity Emerging Markets Equity Central Fund (b) | 313,516 | | 53,109,628 |
Fidelity Energy Central Fund (b) | 1,641,979 | | 162,752,963 |
Fidelity Financials Central Fund (b) | 3,722,975 | | 216,639,893 |
Fidelity Health Care Central Fund (b) | 1,877,334 | | 189,610,749 |
Fidelity Industrials Central Fund (b) | 1,672,593 | | 169,985,596 |
Fidelity Information Technology Central Fund (b) | 2,304,160 | | 283,273,466 |
Fidelity International Equity Central Fund (b) | 3,139,904 | | 204,250,748 |
Fidelity Materials Central Fund (b) | 508,537 | | 64,035,028 |
Fidelity Telecom Services Central Fund (b) | 488,908 | | 48,675,698 |
Fidelity Utilities Central Fund (b) | 574,868 | | 50,755,053 |
TOTAL EQUITY CENTRAL FUNDS (Cost $1,986,597,980) | 1,736,748,642 |
Fixed-Income Central Funds - 27.2% |
| | | |
High Yield Fixed-Income Funds - 4.9% |
Fidelity Floating Rate Central Fund (b) | 313,951 | | 28,516,136 |
Fidelity High Income Central
Fund 1 (b) | 1,011,702 | | 89,525,548 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 118,041,684 |
Investment Grade Fixed-Income Funds - 22.3% |
Fidelity Tactical Income Central Fund (b) | 5,748,818 | | 543,780,680 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $676,169,058) | 661,822,364 |
Money Market Central Funds - 1.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (a) | 23,467,063 | | $ 23,467,063 |
Fidelity Money Market Central Fund, 0.60% (a) | 12,056,119 | | 12,056,119 |
TOTAL MONEY MARKET CENTRAL FUNDS (Cost $35,523,182) | 35,523,182 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,698,290,220) | 2,434,094,188 |
NET OTHER ASSETS - 0.0% | | (456,440) |
NET ASSETS - 100% | $ 2,433,637,748 |
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. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 | $ 199,470 |
Fidelity Consumer Discretionary Central Fund | 2,159,424 |
Fidelity Consumer Staples Central Fund | 3,628,414 |
Fidelity Emerging Markets Equity Central Fund | 571,197 |
Fidelity Energy Central Fund | 1,561,087 |
Fidelity Financials Central Fund | 4,719,488 |
Fidelity Floating Rate Central Fund | 2,710,444 |
Fidelity Health Care Central Fund | 2,275,378 |
Fidelity High Income Central Fund 1 | 6,151,502 |
Fidelity Industrials Central Fund | 3,048,386 |
Fidelity Information Technology Central Fund | 1,860,873 |
Fidelity International Equity Central Fund | 5,047,251 |
Fidelity Materials Central Fund | 978,911 |
Fidelity Money Market Central Fund | 78,280 |
Fidelity Tactical Income Central Fund | 24,125,450 |
Fidelity Telecom Services Central Fund | 870,788 |
Fidelity Utilities Central Fund | 1,857,703 |
Total | $ 61,844,046 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 158,562,571 | $ 3,268,653 | $ 12,674,988 | $ 146,263,309 | 28.3% |
Fidelity Consumer Staples Central Fund | 159,972,498 | 3,921,158 | 13,622,565 | 147,396,511 | 28.3% |
Fidelity Emerging Markets Equity Central Fund | - | 37,188,519 | 152,680 | 53,109,628 | 29.2% |
Fidelity Energy Central Fund | 169,988,020 | 25,045,736 | 14,586,834 | 162,752,963 | 28.3% |
Fidelity Financials Central Fund | 247,762,683 | 16,123,412 | 15,161,703 | 216,639,893 | 28.1% |
Fidelity Floating Rate Central Fund | 79,120,080 | 5,398,915 | 50,071,376 | 28,516,136 | 1.0% |
Fidelity Health Care Central Fund | 199,695,136 | 5,101,702 | 15,566,287 | 189,610,749 | 28.2% |
Fidelity High Income Central Fund 1 | 49,300,279 | 32,892,896 | 509,694 | 89,525,548 | 17.6% |
Fidelity Industrials Central Fund | 186,734,449 | 10,436,485 | 17,757,347 | 169,985,596 | 28.3% |
Fidelity Information Technology Central Fund | 232,695,598 | 17,589,970 | 24,956,058 | 283,273,466 | 28.2% |
Fidelity International Equity Central Fund | 213,497,810 | 6,312,951 | 9,136,396 | 204,250,748 | 31.9% |
Fidelity Materials Central Fund | 56,702,977 | 5,615,014 | 6,792,060 | 64,035,028 | 27.9% |
Fidelity Tactical Income Central Fund | 500,674,871 | 93,039,043 | 75,374,963 | 543,780,680 | 12.4% |
Fidelity Telecom Services Central Fund | 46,819,800 | 2,380,481 | 5,488,782 | 48,675,698 | 28.0% |
Fidelity Utilities Central Fund | 57,097,620 | 2,633,055 | 5,399,221 | 50,755,053 | 28.1% |
Total | $ 2,358,624,392 | $ 266,947,990 | $ 267,250,954 | $ 2,398,571,006 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 13.4% |
AAA,AA,A | 5.0% |
BBB | 4.4% |
BB | 2.4% |
B | 2.0% |
CCC,CC,C | 0.7% |
D | 0.0%* |
Not Rated | 0.2% |
Equities | 70.3% |
Short-Term Investments and Net Other Assets | 1.6% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 77.8% |
United Kingdom | 3.0% |
Switzerland | 2.2% |
Japan | 1.6% |
Bermuda | 1.4% |
China | 1.2% |
Netherlands | 1.2% |
France | 1.0% |
Others (individually less than 1%) | 10.6% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $408,374,215 of which $99,963,409 and $308,410,806 will expire on September 30, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $277,136,959 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investments in securities, at value (cost $2,698,290,220) - See accompanying schedule: | | $ 2,434,094,188 |
Receivable for investments sold | | 1,067,550 |
Receivable for fund shares sold | | 3,098,864 |
Distributions receivable from Fidelity Central Funds | | 2,609,604 |
Prepaid expenses | | 11,816 |
Other receivables | | 61,958 |
Total assets | | 2,440,943,980 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,420,288 | |
Payable for fund shares redeemed | 2,086,584 | |
Accrued management fee | 1,119,902 | |
Transfer agent fee payable | 429,475 | |
Distribution fees payable | 81,393 | |
Other affiliated payables | 77,307 | |
Other payables and accrued expenses | 91,283 | |
Total liabilities | | 7,306,232 |
| | |
Net Assets | | $ 2,433,637,748 |
Net Assets consist of: | | |
Paid in capital | | $ 2,957,877,976 |
Undistributed net investment income | | 30,469,293 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (290,514,142) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (264,195,379) |
Net Assets | | $ 2,433,637,748 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($88,969,208 ÷ 6,383,262 shares) | | $ 13.94 |
| | |
Maximum offering price per share (100/94.25 of $13.94) | | $ 14.79 |
Class T:
Net Asset Value and redemption price per share ($46,623,929 ÷ 3,351,294 shares) | | $ 13.91 |
| | |
Maximum offering price per share (100/96.50 of $13.91) | | $ 14.41 |
Class B:
Net Asset Value and offering price per share ($18,407,214 ÷ 1,328,069 shares)A | | $ 13.86 |
| | |
Class C:
Net Asset Value and offering price per share ($34,632,784 ÷ 2,498,411 shares)A | | $ 13.86 |
| | |
Asset Manager 70%:
Net Asset Value, offering price and redemption price per share ($2,214,929,112 ÷ 158,557,795 shares) | | $ 13.97 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($30,075,501 ÷ 2,153,113 shares) | | $ 13.97 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 70%
Financial Statements - continued
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 6,934 |
Income from Fidelity Central Funds | | 61,844,046 |
Total income | | 61,850,980 |
| | |
Expenses | | |
Management fee | $ 11,390,699 | |
Transfer agent fees | 5,151,165 | |
Distribution fees | 844,028 | |
Accounting fees and expenses | 781,924 | |
Custodian fees and expenses | 5,269 | |
Independent trustees' compensation | 7,918 | |
Depreciation in deferred trustee compensation account | (761) | |
Registration fees | 235,685 | |
Audit | 67,761 | |
Legal | 26,601 | |
Miscellaneous | 128,455 | |
Total expenses before reductions | 18,638,744 | |
Expense reductions | (223,186) | 18,415,558 |
Net investment income (loss) | | 43,435,422 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 14,607,742 | |
Fidelity Central Funds | (41,556,458) | |
Foreign currency transactions | 524 | |
Futures contracts | (13,233,029) | |
Total net realized gain (loss) | | (40,181,221) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 81,790,326 | |
Assets and liabilities in foreign currencies | (225) | |
Futures contracts | 2,377,530 | |
Total change in net unrealized appreciation (depreciation) | | 84,167,631 |
Net gain (loss) | | 43,986,410 |
Net increase (decrease) in net assets resulting from operations | | $ 87,421,832 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 43,435,422 | $ 58,379,001 |
Net realized gain (loss) | (40,181,221) | (21,106,617) |
Change in net unrealized appreciation (depreciation) | 84,167,631 | (689,432,540) |
Net increase (decrease) in net assets resulting from operations | 87,421,832 | (652,160,156) |
Distributions to shareholders from net investment income | (54,439,794) | (72,024,349) |
Distributions to shareholders from net realized gain | - | (3,513,384) |
Total distributions | (54,439,794) | (75,537,733) |
Share transactions - net increase (decrease) | (97,287,296) | (36,451,983) |
Total increase (decrease) in net assets | (64,305,258) | (764,149,872) |
| | |
Net Assets | | |
Beginning of period | 2,497,943,006 | 3,262,092,878 |
End of period (including undistributed net investment income of $30,469,293 and undistributed net investment income of $41,473,665, respectively) | $ 2,433,637,748 | $ 2,497,943,006 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .22 | - J |
Net realized and unrealized gain (loss) | .40 | (.52) |
Total from investment operations | .62 | (.52) |
Distributions from net investment income | (.30) | - |
Net asset value, end of period | $ 13.94 | $ 13.62 |
Total Return B,C,D | 5.28% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.19% | 1.31% A |
Expenses net of fee waivers, if any | 1.19% | 1.25% A |
Expenses net of all reductions | 1.18% | 1.24% A |
Net investment income (loss) | 1.88% | 1.60% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 88,969 | $ 89,034 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .19 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .58 | (.52) |
Distributions from net investment income | (.29) | - |
Net asset value, end of period | $ 13.91 | $ 13.62 |
Total Return B,C,D | 4.98% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.44% | 1.56% A |
Expenses net of fee waivers, if any | 1.44% | 1.50% A |
Expenses net of all reductions | 1.43% | 1.49% A |
Net investment income (loss) | 1.63% | 1.35% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 46,624 | $ 52,478 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .52 | (.52) |
Distributions from net investment income | (.28) | - |
Net asset value, end of period | $ 13.86 | $ 13.62 |
Total Return B,C,D | 4.45% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.95% | 2.06% A |
Expenses net of fee waivers, if any | 1.95% | 2.00% A |
Expenses net of all reductions | 1.94% | 1.99% A |
Net investment income (loss) | 1.13% | .85% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 18,407 | $ 23,526 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss) E | .13 | - J |
Net realized and unrealized gain (loss) | .39 | (.52) |
Total from investment operations | .52 | (.52) |
Distributions from net investment income | (.28) | - |
Net asset value, end of period | $ 13.86 | $ 13.62 |
Total Return B,C,D | 4.46% | (3.68)% |
Ratios to Average Net Assets H | | |
Expenses before reductions | 1.92% | 2.07% A |
Expenses net of fee waivers, if any | 1.92% | 2.00% A |
Expenses net of all reductions | 1.91% | 1.99% A |
Net investment income (loss) | 1.15% | .85% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 34,633 | $ 37,762 |
Portfolio turnover rate F | 13% | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 70%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.62 | $ 17.78 | $ 15.82 | $ 14.94 | $ 14.10 |
Income from Investment Operations | | | | | |
Net investment income (loss)B | .25 | .33 | .38 | .34 | .31 D |
Net realized and unrealized gain (loss) | .41 | (4.06) | 1.97 | .84 | .85 |
Total from investment operations | .66 | (3.73) | 2.35 | 1.18 | 1.16 |
Distributions from net investment income | (.31) | (.41) | (.39) | (.29) | (.32) |
Distributions from net realized gain | - | (.02) | - | (.01) | - |
Total distributions | (.31) | (.43) | (.39) | (.30) | (.32) |
Net asset value, end of period | $ 13.97 | $ 13.62 | $ 17.78 | $ 15.82 | $ 14.94 |
Total ReturnA | 5.59% | (21.46)% | 15.07% | 7.98% | 8.28% |
Ratios to Average Net AssetsE | | | | | |
Expenses before reductions | .88% | .79% | .80% | .81% | .82% |
Expenses net of fee waivers, if any | .88% | .79% | .80% | .81% | .82% |
Expenses net of all reductions | .86% | .78% | .78% | .79% | .80% |
Net investment income (loss) | 2.20% | 2.07% | 2.26% | 2.20% | 2.11% D |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 2,215 | $ 2,269 | $ 3,262 | $ 3,137 | $ 3,284 |
Portfolio turnover rateC | 13% | 14%F | 14% | 82%G | 37%G |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend the ratio of net investment income (loss) to average net assets would have been 1.73%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F The portfolio turnover rate does not include the assets acquired in the merger.
G Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.62 | $ 14.14 |
Income from Investment Operations | | |
Net investment income (loss)D | .25 | -I |
Net realized and unrealized gain (loss) | .41 | (.52) |
Total from investment operations | .66 | (.52) |
Distributions from net investment income | (.31) | - |
Net asset value, end of period | $ 13.97 | $ 13.62 |
Total ReturnB,C | 5.58% | (3.68)% |
Ratios to Average Net AssetsG | | |
Expenses before reductions | .90% | 1.06% A |
Expenses net of fee waivers, if any | .90% | 1.00%A |
Expenses net of all reductions | .89% | .99%A |
Net investment income (loss) | 2.17% | 1.85%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 30,076 | $ 25,717 |
Portfolio turnover rateE | 13% | 14%H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
H The portfolio turnover rate does not include the assets acquired in the merger.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 85%
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed-Income Central Funds.
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 1.1 | 0.6 |
Procter & Gamble Co. | 0.8 | 1.1 |
Google, Inc. Class A | 0.8 | 0.6 |
Pfizer, Inc. | 0.7 | 0.4 |
Charles Schwab Corp. | 0.7 | 0.0 |
CVS Caremark Corp. | 0.6 | 0.6 |
Microsoft Corp. | 0.6 | 0.6 |
CME Group, Inc. | 0.6 | 0.3 |
Morgan Stanley | 0.6 | 0.1 |
Covidien PLC | 0.5 | 0.0 |
| 7.0 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
| Stocks Class and
Equity Futures 84.2% | | | Stocks Class and
Equity Futures 83.2% | |
| Bond Class 12.9% | | | Bond Class 14.3% | |
| Short-Term Class 2.9% | | | Short-Term Class 2.5% | |
Asset allocations in the pie charts reflect the categorization of assets as defined in the Fund's prospectus in effect as of the time periods indicated above. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable. |
Annual Report
Fidelity Asset Manager 85%
Investment Summary (Unaudited)
The information in the following table is based on the direct investments of the Fund.
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Central Funds | |
Fidelity Information Technology Central Fund | 13.2 |
Fidelity International Equity Central Fund | 12.0 |
Fidelity Financials Central Fund | 11.1 |
Fidelity Health Care Central Fund | 9.1 |
Fidelity Energy Central Fund | 7.9 |
Fidelity Industrials Central Fund | 7.7 |
Fidelity Consumer Discretionary Central Fund | 7.0 |
Fidelity Consumer Staples Central Fund | 7.0 |
Fidelity Emerging Markets Equity Central Fund | 3.2 |
Fidelity Materials Central Fund | 2.8 |
Fidelity Utilities Central Fund | 2.6 |
Fidelity Telecom Services Central Fund | 2.2 |
Total Equity Central Funds | 85.8 |
Fixed-Income Central Funds | |
High Yield Fixed-Income Funds | 5.2 |
Investment Grade Fixed-Income Funds | 8.1 |
Total Fixed-Income Central Funds | 13.3 |
Money Market Central Funds | 0.9 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, foreign investments including the Fund's pro-rata share of the underlying Central Funds was 27.6% of net assets.
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.
Annual Report
Fidelity Asset Manager 85%
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Central Funds - 85.8% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (a) | 434,040 | | $ 39,979,382 |
Fidelity Consumer Staples Central Fund (a) | 347,559 | | 39,673,811 |
Fidelity Emerging Markets Equity Central Fund (a) | 106,255 | | 17,999,653 |
Fidelity Energy Central Fund (a) | 451,624 | | 44,764,935 |
Fidelity Financials Central Fund (a) | 1,088,185 | | 63,321,485 |
Fidelity Health Care Central Fund (a) | 515,191 | | 52,034,339 |
Fidelity Industrials Central Fund (a) | 429,190 | | 43,618,614 |
Fidelity Information Technology Central Fund (a) | 609,008 | | 74,871,388 |
Fidelity International Equity Central Fund (a) | 1,048,862 | | 68,228,457 |
Fidelity Materials Central Fund (a) | 128,169 | | 16,138,993 |
Fidelity Telecom Services Central Fund (a) | 123,278 | | 12,273,530 |
Fidelity Utilities Central Fund (a) | 166,862 | | 14,732,202 |
TOTAL EQUITY CENTRAL FUNDS (Cost $533,858,063) | 487,636,789 |
Fixed-Income Central Funds - 13.3% |
| | | |
High Yield Fixed-Income Funds - 5.2% |
Fidelity High Income Central Fund 1 (a) | 331,872 | | 29,367,333 |
Investment Grade Fixed-Income Funds - 8.1% |
Fidelity Tactical Income Central Fund (a) | 488,285 | | 46,186,877 |
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $72,294,368) | 75,554,210 |
Money Market Central Funds - 0.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.25% (b)
(Cost $5,193,013) | 5,193,013 | | $ 5,193,013 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $611,345,444) | | 568,384,012 |
NET OTHER ASSETS - 0.0% | | 158,909 |
NET ASSETS - 100% | $ 568,542,921 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 77,032 |
Fidelity Consumer Discretionary Central Fund | 497,022 |
Fidelity Consumer Staples Central Fund | 843,175 |
Fidelity Emerging Markets Equity Central Fund | 182,190 |
Fidelity Energy Central Fund | 374,758 |
Fidelity Financials Central Fund | 1,081,702 |
Fidelity Health Care Central Fund | 522,727 |
Fidelity High Income Central Fund 1 | 2,028,072 |
Fidelity Industrials Central Fund | 687,860 |
Fidelity Information Technology Central Fund | 429,646 |
Fidelity International Equity Central Fund | 1,532,918 |
Fidelity Materials Central Fund | 220,729 |
Fidelity Tactical Income Central Fund | 1,617,146 |
Fidelity Telecom Services Central Fund | 197,837 |
Fidelity Utilities Central Fund | 450,441 |
Total | $ 10,743,255 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning
of period | Purchases | Sales
Proceeds | Value,
end of period | % ownership,
end of period |
Fidelity Consumer Discretionary Central Fund | $ 32,363,171 | $ 8,552,452 | $ 1,521,243 | $ 39,979,382 | 7.7% |
Fidelity Consumer Staples Central Fund | 32,650,885 | 8,408,732 | 1,715,881 | 39,673,811 | 7.6% |
Fidelity Emerging Markets Equity Central Fund | - | 13,516,353 | 483,413 | 17,999,653 | 9.9% |
Fidelity Energy Central Fund | 34,680,962 | 13,803,178 | 1,710,593 | 44,764,935 | 7.8% |
Fidelity Financials Central Fund | 50,569,247 | 18,903,853 | 1,798,466 | 63,321,485 | 8.2% |
Fidelity Health Care Central Fund | 40,758,469 | 12,105,856 | 2,566,368 | 52,034,339 | 7.7% |
Fidelity High Income Central Fund 1 | 5,470,107 | 20,552,559 | 237,714 | 29,367,333 | 5.8% |
Fidelity Industrials Central Fund | 38,113,161 | 7,965,234 | 1,787,925 | 43,618,614 | 7.3% |
Fidelity Information Technology Central Fund | 47,494,035 | 14,156,899 | 2,206,603 | 74,871,388 | 7.4% |
Fidelity International Equity Central Fund | 59,185,813 | 9,122,538 | 774,093 | 68,228,457 | 10.6% |
Fidelity Materials Central Fund | 11,573,244 | 2,821,234 | 602,626 | 16,138,993 | 7.0% |
Fidelity Tactical Income Central Fund | 36,391,037 | 19,076,133 | 11,717,033 | 46,186,877 | 1.0% |
Fidelity Telecom Services Central Fund | 9,556,098 | 1,955,485 | 532,969 | 12,273,530 | 7.1% |
Fidelity Utilities Central Fund | 11,653,791 | 4,034,117 | 612,479 | 14,732,202 | 8.2% |
Total | $ 410,460,020 | $ 154,974,623 | $ 28,267,406 | $ 563,190,999 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity and Fixed Income Central Funds. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 4.9% |
AAA,AA,A | 2.1% |
BBB | 1.3% |
BB | 2.3% |
B | 2.2% |
CCC,CC,C | 0.7% |
Not Rated | 0.0%* |
Equities | 84.4% |
Short-Term Investments and Net Other Assets | 2.1% |
| 100.0% |
* Amount represents less than 0.1% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. Percentages are adjusted for the effect of futures contracts, if applicable. (Unaudited) |
United States of America | 72.4% |
United Kingdom | 3.7% |
Switzerland | 2.8% |
Japan | 2.2% |
France | 1.5% |
China | 1.4% |
Germany | 1.3% |
Bermuda | 1.3% |
Netherlands | 1.3% |
Cayman Islands | 1.1% |
Ireland | 1.0% |
Others (individually less than 1%) | 10.0% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $117,371,899 of which $36,329,826 and $81,042,073 will expire on September 30, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $50,387,129 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Asset Manager 85%
Financial Statements
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $611,345,444) - See accompanying schedule: | | $ 568,384,012 |
Receivable for investments sold | | 246,049 |
Receivable for fund shares sold | | 1,148,510 |
Distributions receivable from Fidelity Central Funds | | 383,124 |
Prepaid expenses | | 2,665 |
Total assets | | 570,164,360 |
| | |
Liabilities | | |
Payable for investments purchased | $ 807,530 | |
Payable for fund shares redeemed | 375,408 | |
Accrued management fee | 258,735 | |
Transfer agent fee payable | 117,326 | |
Distribution fees payable | 15,099 | |
Other affiliated payables | 17,960 | |
Other payables and accrued expenses | 29,381 | |
Total liabilities | | 1,621,439 |
| | |
Net Assets | | $ 568,542,921 |
Net Assets consist of: | | |
Paid in capital | | $ 691,333,262 |
Undistributed net investment income | | 4,914,856 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (84,748,717) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (42,956,480) |
Net Assets | | $ 568,542,921 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($22,506,089 ÷ 2,013,088 shares) | | $ 11.18 |
| | |
Maximum offering price per share (100/94.25 of $11.18) | | $ 11.86 |
Class T:
Net Asset Value and redemption price per share ($5,490,604 ÷ 492,875 shares) | | $ 11.14 |
| | |
Maximum offering price per share (100/96.50 of $11.14) | | $ 11.54 |
Class B:
Net Asset Value and offering price per share ($3,122,954 ÷ 281,479 shares)A | | $ 11.09 |
| | |
Class C:
Net Asset Value and offering price per share ($7,179,143 ÷ 648,110 shares)A | | $ 11.08 |
| | |
Asset Manager 85%:
Net Asset Value, offering price and redemption price per share ($528,720,341 ÷ 47,036,163 shares) | | $ 11.24 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,523,790 ÷ 135,613 shares) | | $ 11.24 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Interest | | $ 1,681 |
Income from Fidelity Central Funds | | 10,743,255 |
Total income | | 10,744,936 |
| | |
Expenses | | |
Management fee | $ 2,271,513 | |
Transfer agent fees | 1,212,855 | |
Distribution fees | 127,013 | |
Accounting and security lending fees | 156,628 | |
Custodian fees and expenses | 5,027 | |
Independent trustees' compensation | 1,458 | |
Registration fees | 90,112 | |
Audit | 67,822 | |
Legal | 2,527 | |
Miscellaneous | 34,673 | |
Total expenses before reductions | 3,969,628 | |
Expense reductions | (40,635) | 3,928,993 |
Net investment income (loss) | | 6,815,943 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 875,299 | |
Fidelity Central Funds | (1,120,556) | |
Foreign currency transactions | (6,309) | |
Futures contracts | (5,201,232) | |
Total net realized gain (loss) | | (5,452,798) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 27,139,832 | |
Assets and liabilities in foreign currencies | 1,755 | |
Futures contracts | 934,495 | |
Total change in net unrealized appreciation (depreciation) | | 28,076,082 |
Net gain (loss) | | 22,623,284 |
Net increase (decrease) in net assets resulting from operations | | $ 29,439,227 |
Statement of Changes in Net Assets
| Year ended
September 30,
2009 | Year ended
September 30,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 6,815,943 | $ 8,424,465 |
Net realized gain (loss) | (5,452,798) | (12,035,813) |
Change in net unrealized appreciation (depreciation) | 28,076,082 | (147,035,741) |
Net increase (decrease) in net assets resulting from operations | 29,439,227 | (150,647,089) |
Distributions to shareholders from net investment income | (7,455,362) | (9,363,481) |
Distributions to shareholders from net realized gain | - | (1,224,803) |
Total distributions | (7,455,362) | (10,588,284) |
Share transactions - net increase (decrease) | 81,350,268 | 35,772,420 |
Total increase (decrease) in net assets | 103,334,133 | (125,462,953) |
| | |
Net Assets | | |
Beginning of period | 465,208,788 | 590,671,741 |
End of period (including undistributed net investment income of $4,914,856 and undistributed net investment income of $5,554,274, respectively) | $ 568,542,921 | $ 465,208,788 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.94 | $ 14.77 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .14 | .17 | .19 |
Net realized and unrealized gain (loss) | .27 | (3.74) | 2.05 |
Total from investment operations | .41 | (3.57) | 2.24 |
Distributions from net investment income | (.17) | (.23) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.17) | (.26) | (.22) |
Net asset value, end of period | $ 11.18 | $ 10.94 | $ 14.77 |
Total Return B,C,D | 4.30% | (24.59)% | 17.78% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.17% | 1.13% | 1.14% A |
Expenses net of fee waivers, if any | 1.17% | 1.13% | 1.14% A |
Expenses net of all reductions | 1.16% | 1.12% | 1.12% A |
Net investment income (loss) | 1.50% | 1.28% | 1.36% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 22,506 | $ 12,887 | $ 7,348 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class T
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.91 | $ 14.74 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .11 | .13 | .15 |
Net realized and unrealized gain (loss) | .27 | (3.73) | 2.06 |
Total from investment operations | .38 | (3.60) | 2.21 |
Distributions from net investment income | (.15) | (.20) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.15) | (.23) | (.22) |
Net asset value, end of period | $ 11.14 | $ 10.91 | $ 14.74 |
Total Return B,C,D | 3.98% | (24.76)% | 17.46% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.44% | 1.38% | 1.42% A |
Expenses net of fee waivers, if any | 1.44% | 1.38% | 1.42% A |
Expenses net of all reductions | 1.43% | 1.37% | 1.41% A |
Net investment income (loss) | 1.23% | 1.02% | 1.07% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 5,491 | $ 4,090 | $ 1,792 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.84 | $ 14.69 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .06 | .06 | .08 |
Net realized and unrealized gain (loss) | .28 | (3.72) | 2.07 |
Total from investment operations | .34 | (3.66) | 2.15 |
Distributions from net investment income | (.09) | (.16) | (.19) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.09) | (.19) | (.21) |
Net asset value, end of period | $ 11.09 | $ 10.84 | $ 14.69 |
Total Return B,C,D | 3.44% | (25.21)% | 16.98% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.98% | 1.93% | 1.93% A |
Expenses net of fee waivers, if any | 1.98% | 1.93% | 1.93% A |
Expenses net of all reductions | 1.97% | 1.92% | 1.92% A |
Net investment income (loss) | .69% | .47% | .56% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,123 | $ 2,452 | $ 1,632 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
Financial Highlights - Class C
Years ended September 30, | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 10.82 | $ 14.67 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) E | .07 | .07 | .08 |
Net realized and unrealized gain (loss) | .28 | (3.71) | 2.06 |
Total from investment operations | .35 | (3.64) | 2.14 |
Distributions from net investment income | (.09) | (.18) | (.20) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.09) | (.21) | (.22) |
Net asset value, end of period | $ 11.08 | $ 10.82 | $ 14.67 |
Total Return B,C,D | 3.48% | (25.16)% | 16.90% |
Ratios to Average Net Assets H | | | |
Expenses before reductions | 1.94% | 1.90% | 1.91% A |
Expenses net of fee waivers, if any | 1.94% | 1.90% | 1.91% A |
Expenses net of all reductions | 1.93% | 1.89% | 1.90% A |
Net investment income (loss) | .73% | .51% | .58% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 7,179 | $ 5,017 | $ 3,194 |
Portfolio turnover rate F | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Asset Manager 85%
Years ended September 30, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.99 | $ 14.81 | $ 12.79 | $ 11.69 | $ 10.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .16 | .20 | .23 | .18 | .06 D |
Net realized and unrealized gain (loss) | .27 | (3.76) | 2.02 | .98 | 1.40 |
Total from investment operations | .43 | (3.56) | 2.25 | 1.16 | 1.46 |
Distributions from net investment income | (.18) | (.23) | (.21) | (.06) | (.06) |
Distributions from net realized gain | - | (.03) | (.02) | - | - |
Total distributions | (.18) | (.26) | (.23) | (.06) | (.06) |
Net asset value, end of period | $ 11.24 | $ 10.99 | $ 14.81 | $ 12.79 | $ 11.69 |
Total Return A | 4.54% | (24.43)% | 17.77% | 9.95% | 14.22% |
Ratios to Average Net Assets E | | | | | |
Expenses before reductions | .95% | .87% | .89% | .91% | .92% |
Expenses net of fee waivers, if any | .95% | .87% | .87% | .91% | .92% |
Expenses net of all reductions | .94% | .86% | .86% | .87% | .89% |
Net investment income (loss) | 1.72% | 1.54% | 1.62% | 1.50% | .53% D |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 528,720 | $ 440,040 | $ 576,458 | $ 448,831 | $ 403,221 |
Portfolio turnover rate C | 7% | 20% | 31% | 187% F | 71% F |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
D Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .39%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
F Portfolio turnover rate excludes securities received or delivered in-kind.
Financial Highlights - Institutional Class
Years ended September 30, | 2009 | 2008 | 2007 F |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.00 | $ 14.82 | $ 12.75 |
Income from Investment Operations | | | |
Net investment income (loss) D | .17 | .21 | .23 |
Net realized and unrealized gain (loss) | .28 | (3.76) | 2.07 |
Total from investment operations | .45 | (3.55) | 2.30 |
Distributions from net investment income | (.21) | (.24) | (.21) |
Distributions from net realized gain | - | (.03) | (.02) |
Total distributions | (.21) | (.27) | (.23) |
Net asset value, end of period | $ 11.24 | $ 11.00 | $ 14.82 |
Total Return B,C | 4.70% | (24.35)% | 18.24% |
Ratios to Average Net Assets G | | | |
Expenses before reductions | .82% | .78% | .82% A |
Expenses net of fee waivers, if any | .82% | .78% | .82% A |
Expenses net of all reductions | .81% | .77% | .81% A |
Net investment income (loss) | 1.85% | 1.62% | 1.67% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 1,524 | $ 724 | $ 247 |
Portfolio turnover rate E | 7% | 20% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period October 2, 2006 (commencement of sale of shares) to September 30, 2007.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .12%.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended September 30, 2009
1. Organization.
Fidelity Asset Manager 20%, Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, Fidelity Asset Manager 50%, Fidelity Asset Manager 60%, Fidelity Asset Manager 70% and Fidelity Asset Manager 85% (the Funds) are funds of Fidelity Charles Street 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.
Each Fund offers Class A, Class T, Class B, Class C, Asset Manager and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of each Fund. These strategies are consistent with the investment objectives of each Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of each Fund. The following summarizes the Funds' investment in each Fidelity Central Fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio* |
Fidelity Equity Sector Central Funds | FMR Co., Inc. (FMRC) | Each fund seeks capital appreciation by investing primarily in common stocks, with a concentration in a particular industry. | Foreign Securities Repurchase Agreements Loans & Direct Debt Instruments | Less than .01% to ..02% |
Fidelity Emerging Markets Equity Central Fund | FMRC | Seeks capital appreciation by investing primarily in equity securities of issuers in emerging markets. | Foreign Securities Repurchase Agreements | .12% |
Fidelity International Equity Central Fund | FMRC | Seeks capital appreciation by investing primarily in non-U.S. based common stocks, including securities of issuers located in emerging markets. | Foreign Securities Repurchase Agreements | .03% |
Fidelity Floating Rate Central Fund | FMRC | Seeks a high level of income by normally investing in floating rate loans and other floating rate securities. | Delayed Delivery & When Issued Securities Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities | Less than .01% |
Fidelity High Income Central Fund 1 | FMRC | Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities. | Delayed Delivery & When Issued Securities Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities | Less than .01% |
Fidelity Tactical Income Central Fund | Fidelity Investments Money Management, Inc. (FIMM) | Seeks a high level of income by normally investing in investment-grade debt securities. | Delayed Delivery & When Issued Securities Repurchase Agreements Restricted Securities Swap Agreements | .02% |
Fidelity Money Market Central Funds | FIMM | Seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .01% |
* Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
Annual Report
Notes to Financial Statements - continued
2. Investments in Fidelity Central Funds - continued
An unaudited holdings listing for each Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through each Funds investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which contain the significant accounting policies (including security valuation policies) of those funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, November 20, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. All inputs to value investments as of September 30, 2009 for each Fund are categorized as Level 1 in the disclosure hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses of the Fidelity Central Funds. Although not included in each Fund's expenses, each Fund indirectly bears its proportionate share of the Fidelity Central Funds' expenses through the impact of these expenses on each Fidelity Central Fund's net asset value. Based on their most recent shareholder report date, expenses of the Fidelity Central Funds ranged from less than .01% to .12%.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for Fidelity Asset Manager 50% and Fidelity Asset Manager 70%, independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statements of Assets and Liabilities.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. There are no unrecognized tax benefits in the accompanying financial statements in connection with the tax positions taken by each Fund. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
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 futures transactions, foreign currency transactions, deferred trustees compensation, partnerships (including allocations from Fidelity Central Funds), market discount, capital loss carryforwards and losses deferred due to excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
| Cost for Federal
Income Tax Purposes | Unrealized
Appreciation | Unrealized
Depreciation | Net Unrealized
Appreciation/
(Depreciation) |
Fidelity Asset Manager 20% | $ 2,320,526,472 | $ 78,239,968 | $ (44,195,760) | $ 34,044,208 |
Fidelity Asset Manager 30% | 69,578,504 | 3,791,376 | (1,984,644) | 1,806,732 |
Fidelity Asset Manager 40% | 43,307,076 | 3,231,344 | (1,715,084) | 1,516,260 |
Fidelity Asset Manager 50% | 5,831,938,017 | 401,683,673 | (172,665,119) | 229,018,554 |
Fidelity Asset Manager 60% | 62,341,965 | 6,016,542 | (2,914,369) | 3,102,173 |
Fidelity Asset Manager 70% | 2,304,553,089 | 168,821,740 | (39,280,641) | 129,541,099 |
Fidelity Asset Manager 85% | 529,049,895 | 60,045,047 | (20,710,930) | 39,334,117 |
| Undistributed
Ordinary Income | Undistributed Long-term Capital Gain | Capital Loss
Carryforward |
Fidelity Asset Manager 20% | $ 3,231,942 | $ - | $ (109,929,389) |
Fidelity Asset Manager 30% | 338,932 | - | (270,253) |
Fidelity Asset Manager 40% | 420,655 | - | (565,738) |
Fidelity Asset Manager 50% | 31,305,659 | - | (544,429,664) |
Fidelity Asset Manager 60% | 807,681 | - | (1,075,548) |
Fidelity Asset Manager 70% | 31,792,709 | - | (408,374,215) |
Fidelity Asset Manager 85% | 5,634,571 | - | (117,371,899) |
The tax character of distributions paid was as follows:
September 30, 2009 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Asset Manager 20% | $ 71,793,201 | $ - | $ 71,793,201 |
Fidelity Asset Manager 30% | 1,165,886 | - | 1,165,886 |
Fidelity Asset Manager 40% | 608,662 | - | 608,662 |
Fidelity Asset Manager 50% | 183,355,430 | - | 183,355,430 |
Fidelity Asset Manager 60% | 387,880 | - | 387,880 |
Fidelity Asset Manager 70% | 54,439,794 | - | 54,439,794 |
Fidelity Asset Manager 85% | 7,455,362 | - | 7,455,362 |
September 30, 2008 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Asset Manager 20% | $ 124,816,062 | $ 15,864,447 | $ 140,680,509 |
Fidelity Asset Manager 30% | 595,233 | - | 595,233 |
Fidelity Asset Manager 40% | 228,368 | - | 228,368 |
Fidelity Asset Manager 50% | 609,187,068 | 187,189,636 | 796,376,704 |
Fidelity Asset Manager 60% | 36,701 | - | 36,701 |
Fidelity Asset Manager 70% | 75,537,733 | - | 75,537,733 |
Fidelity Asset Manager 85% | 10,588,284 | - | 10,588,284 |
Annual Report
Notes to Financial Statements - continued
4. Investments in Derivative Instruments.
Objectives and Strategies for Investing in Derivative Instruments. The Funds use derivative instruments ("derivatives"), including futures contracts, in order to meet their investment objectives. The Funds' strategy is to use derivatives as a risk management tool and as an additional way to gain exposure to certain types of assets. 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.
While utilizing derivatives in pursuit of their investment objectives, the Funds are exposed to certain financial risks relative to those derivatives. This risk is further explained below:
Equity Risk | Equity risk is the risk that the value of financial instruments will fluctuate 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 following notes provide more detailed information about each derivative type held by the Funds:
Futures Contracts. The Funds use futures contracts to manage their exposure to the stock market. 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. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument. Risks of loss may include equity risk and potential lack of liquidity in the market. Futures have minimal counterparty risk to the Funds since the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
The purchaser or seller of a futures contract is not required to pay for or deliver the instrument unless the contract is held until the delivery date. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Securities deposited to meet margin requirements are identified in each applicable Fund's Schedule of Investments. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and changes in value are recognized as unrealized gain (loss). Realized gain (loss) is recorded upon the expiration or closing of the futures contract. The net realized gain (loss) and change in unrealized gain (loss) on futures contracts during the period is included on the Statement of Operations. At the end of the period, the Funds had no open futures contracts.
5. Realized and Change in Unrealized Gain (Loss) on Derivative Instruments. A summary of each applicable Funds' value of derivatives by primary risk exposure as of period end, if any, is included at the end of each applicable Funds' Schedule of Investments. The table below reflects each applicable Funds' realized gain (loss) and change in unrealized gain (loss) for derivatives during the period.
Risk Exposure / Derivative Type | Realized Gain (Loss) | Change in Unrealized
Gain (Loss) |
Fidelity Asset Manager 20% | | |
Equity Risk | | |
Futures Contracts | $ (7,536,941) | $ 1,367,696 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (7,536,941) | $ 1,367,696 |
Fidelity Asset Manager 30% | | |
Equity Risk | | |
Futures Contracts | $ (55,838) | $ 10,142 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (55,838) | $ 10,142 |
Fidelity Asset Manager 40% | | |
Equity Risk | | |
Futures Contracts | $ (47,735) | $ 8,693 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (47,735) | $ 8,693 |
Fidelity Asset Manager 50% | | |
Equity Risk | | |
Futures Contracts | $ (35,226,589) | $ 6,392,238 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (35,226,589) | $ 6,392,238 |
Fidelity Asset Manager 60% | | |
Equity Risk | | |
Futures Contracts | $ (119,603) | $ 21,732 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (119,603) | $ 21,732 |
Annual Report
5. Realized and Change in Unrealized Gain (Loss) on Derivative Instruments - continued
Risk Exposure / Derivative Type | Realized Gain (Loss) | Change in Unrealized
Gain (Loss) |
Fidelity Asset Manager 70% | | |
Equity Risk | | |
Futures Contracts | $ (13,233,029) | $ 2,377,530 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (13,233,029) | $ 2,377,530 |
Fidelity Asset Manager 85% | | |
Equity Risk | | |
Futures Contracts | $ (5,201,232) | $ 934,495 |
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) | $ (5,201,232) | $ 934,495 |
(a) Derivatives realized gain (loss) and change in unrealized gain (loss) is included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities (including the Equity and Fixed-Income Central Funds), other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) |
Fidelity Asset Manager 20% | 472,453,488 | 246,669,523 |
Fidelity Asset Manager 30% | 38,456,666 | 4,211,268 |
Fidelity Asset Manager 40% | 28,946,922 | 6,608,613 |
Fidelity Asset Manager 50% | 790,779,159 | 868,896,422 |
Fidelity Asset Manager 60% | 41,798,650 | 9,935,958 |
Fidelity Asset Manager 70% | 266,947,990 | 267,250,954 |
Fidelity Asset Manager 85% | 154,974,623 | 28,267,406 |
7. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows:
| Individual Rate | Group Rate | Total |
Fidelity Asset Manager 20% | .30% | .12% | .42% |
Fidelity Asset Manager 30% | .30% | .12% | .42% |
Fidelity Asset Manager 40% | .30% | .12% | .42% |
Fidelity Asset Manager 50% | .25% | .26% | .51% |
Fidelity Asset Manager 60% | .30% | .26% | .56% |
Fidelity Asset Manager 70% | .30% | .26% | .56% |
Fidelity Asset Manager 85% | .30% | .26% | .56% |
FMR pays a portion of the management fees received from the Funds to the Fidelity Central Funds' investment advisers, who are also affiliates, for managing the assets of the Fidelity Central Funds.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Fidelity Asset Manager 20% | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 35,451 | $ 8,147 |
Class T | .25% | .25% | 31,678 | - |
Class B | .75% | .25% | 21,872 | 16,407 |
Class C | .75% | .25% | 53,115 | 23,897 |
| | | $ 142,116 | $ 48,451 |
Annual Report
Notes to Financial Statements - continued
7. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
Fidelity Asset Manager 30% | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 4,966 | $ 353 |
Class T | .25% | .25% | 6,424 | 94 |
Class B | .75% | .25% | 5,230 | 4,018 |
Class C | .75% | .25% | 16,330 | 9,418 |
| | | $ 32,950 | $ 13,883 |
Fidelity Asset Manager 40% | | | | |
Class A | -% | .25% | $ 8,469 | $ 2,038 |
Class T | .25% | .25% | 8,896 | 3,680 |
Class B | .75% | .25% | 11,215 | 10,619 |
Class C | .75% | .25% | 12,418 | 10,076 |
| | | $ 40,998 | $ 26,413 |
Fidelity Asset Manager 50% | | | | |
Class A | -% | .25% | $ 35,783 | $ 8,704 |
Class T | .25% | .25% | 32,176 | - |
Class B | .75% | .25% | 21,470 | 16,103 |
Class C | .75% | .25% | 53,845 | 18,028 |
| | | $ 143,274 | $ 42,835 |
Fidelity Asset Manager 60% | | | | |
Class A | -% | .25% | $ 9,474 | $ 2,053 |
Class T | .25% | .25% | 11,262 | 936 |
Class B | .75% | .25% | 10,869 | 8,890 |
Class C | .75% | .25% | 14,307 | 7,543 |
| | | $ 45,912 | $ 19,422 |
Fidelity Asset Manager 70% | | | | |
Class A | -% | .25% | $ 184,712 | $ 14,864 |
Class T | .25% | .25% | 198,940 | 674 |
Class B | .75% | .25% | 168,247 | 126,244 |
Class C | .75% | .25% | 292,129 | 30,776 |
| | | $ 844,028 | $ 172,558 |
Fidelity Asset Manager 85% | | | | |
Class A | -% | .25% | $ 37,197 | $ 3,132 |
Class T | .25% | .25% | 19,112 | - |
Class B | .75% | .25% | 22,375 | 16,781 |
Class C | .75% | .25% | 48,329 | 17,452 |
| | | $ 127,013 | $ 37,365 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Asset Manager 20% | Retained
by FDC |
Class A | $ 21,202 |
Class T | 4,939 |
Class B* | 4,495 |
Class C* | 1,667 |
| $ 32,303 |
Annual Report
7. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Fidelity Asset Manager 30% | Retained
by FDC |
Class A | $ 7,922 |
Class T | 1,607 |
Class B* | 103 |
Class C* | 109 |
| $ 9,741 |
Fidelity Asset Manager 40% | |
Class A | $ 5,816 |
Class T | 3,206 |
Class B* | 665 |
Class C* | 327 |
| $ 10,014 |
Fidelity Asset Manager 50% | |
Class A | $ 22,279 |
Class T | 5,098 |
Class B* | 7,545 |
Class C* | 3,234 |
| $ 38,156 |
Fidelity Asset Manager 60% | |
Class A | $ 11,714 |
Class T | 4,574 |
Class B* | 1,130 |
Class C* | 981 |
| $ 18,399 |
Fidelity Asset Manager 70% | |
Class A | $ 23,651 |
Class T | 11,239 |
Class B* | 46,808 |
Class C* | 2,881 |
| $ 84,579 |
Fidelity Asset Manager 85% | |
Class A | $ 22,099 |
Class T | 3,263 |
Class B* | 5,076 |
Class C* | 1,165 |
| $ 31,603 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
Fidelity Asset Manager 20% | Amount | % of
Average
Net Assets |
Class A | $ 22,038 | .15 |
Class T | 9,444 | .15 |
Class B | 4,821 | .22 |
Class C | 9,093 | .17 |
Asset Manager 20% | 2,166,490 | .11 |
Institutional Class | 1,976 | .09 |
| $ 2,213,862 | |
Annual Report
Notes to Financial Statements - continued
7. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
Fidelity Asset Manager 30% | Amount | % of
Average
Net Assets |
Class A | $ 3,214 | .16 |
Class T | 1,975 | .15 |
Class B | 1,079 | .21 |
Class C | 2,415 | .15 |
Asset Manager 30% | 37,691 | .11 |
Institutional Class | 627 | .13 |
| $ 47,001 | |
Fidelity Asset Manager 40% | | |
Class A | $ 5,235 | .16 |
Class T | 2,496 | .14 |
Class B | 1,289 | .11 |
Class C | 1,646 | .13 |
Asset Manager 40% | 22,448 | .12 |
Institutional Class | 879 | .09 |
| $ 33,993 | |
Fidelity Asset Manager 50% | | |
Class A | $ 31,443 | .22 |
Class T | 15,385 | .24 |
Class B | 6,570 | .31 |
Class C | 14,413 | .27 |
Asset Manager 50% | 11,688,323 | .22 |
Institutional Class | 2,121 | .14 |
| $ 11,758,255 | |
Fidelity Asset Manager 60% | | |
Class A | $ 11,127 | .29 |
Class T | 5,792 | .26 |
Class B | 3,222 | .30 |
Class C | 3,801 | .27 |
Asset Manager 60% | 56,447 | .22 |
Institutional Class | 1,391 | .20 |
| $ 81,780 | |
Fidelity Asset Manager 70% | | |
Class A | $ 231,378 | .31 |
Class T | 126,884 | .32 |
Class B | 54,231 | .32 |
Class C | 85,931 | .29 |
Asset Manager 70% | 4,591,301 | .25 |
Institutional Class | 61,440 | .28 |
| $ 5,151,165 | |
Fidelity Asset Manager 85% | | |
Class A | $ 40,659 | .27 |
Class T | 11,114 | .29 |
Class B | 7,349 | .33 |
Class C | 14,410 | .30 |
Asset Manager 85% | 1,137,645 | .30 |
Institutional Class | 1,678 | .17 |
| $ 1,212,855 | |
Annual Report
7. Fees and Other Transactions with Affiliates - continued
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains each Fund's accounting records. The accounting fee is based on the level of average net assets for the month.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the Funds, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or
Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Fidelity Asset Manager 50% | Borrower | $ 11,798,692 | .31% | $ 1,327 |
8. Committed Line of Credit.
Certain Funds participate with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Asset Manager 20% | $ 9,344 |
Fidelity Asset Manager 30% | 159 |
Fidelity Asset Manager 40% | 107 |
Fidelity Asset Manager 50% | 25,181 |
Fidelity Asset Manager 60% | 126 |
Fidelity Asset Manager 70% | 9,507 |
Fidelity Asset Manager 85% | 1,811 |
During the period, there were no borrowings on this line of credit.
9. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
| | |
Fidelity Asset Manager 20% | | |
Class B | 1.65% | $ 819 |
Fidelity Asset Manager 30% | | |
Class A | .90% | 6,168 |
Class T | 1.15% | 3,974 |
Class B | 1.65% | 1,856 |
Class C | 1.65% | 4,967 |
Asset Manager 30% | .65% | 88,074 |
Institutional Class | .65% | 1,505 |
Fidelity Asset Manager 40% | | |
Class A | .90% | 14,539 |
Class T | 1.15% | 7,904 |
Class B | 1.65% | 4,875 |
Class C | 1.65% | 5,537 |
Asset Manager 40% | .65% | 75,024 |
Institutional Class | .65% | 4,118 |
Annual Report
Notes to Financial Statements - continued
9. Expense Reductions - continued
| Expense
Limitations | Reimbursement
from adviser |
Fidelity Asset Manager 50% | | |
Class B | 1.85% | $ 109 |
Fidelity Asset Manager 60% | | |
Class A | 1.10% | 16,958 |
Class T | 1.35% | 9,424 |
Class B | 1.85% | 4,995 |
Class C | 1.85% | 6,321 |
Asset Manager 60% | .85% | 93,574 |
Institutional Class | .85% | 2,489 |
FMR voluntarily agreed to reimburse a portion of certain class' operating expenses. During the period, this reimbursement reduced these class' expenses as noted in the table below.
| Reimbursement
from adviser |
Asset Manager 70% | $ 57,925 |
Many of the brokers with whom FMR places trades on behalf of certain Funds and certain Equity Central Funds provided services to these Funds in addition to trade execution. These services included payments of expenses on behalf of each applicable Fund. In addition, through arrangements with each applicable Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage Service
reduction | Transfer
Agent
expense
reduction |
| | |
Fidelity Asset Manager 20% | $ 33,288 | $ - |
Fidelity Asset Manager 30% | 1,023 | - |
Fidelity Asset Manager 40% | 1,096 | - |
Fidelity Asset Manager 50% | 290,234 | - |
Fidelity Asset Manager 60% | 2,262 | - |
Fidelity Asset Manager 70% | 165,252 | - |
Institutional Class | - | 9 |
Fidelity Asset Manager 85% | 40,635 | - |
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 20% | | |
From net investment income | | |
Class A | $ 437,282 | $ 217,282 |
Class T | 183,229 | 139,471 |
Class B | 54,423 | 38,980 |
Class C | 126,202 | 66,883 |
Asset Manager 20% | 70,916,093 | 90,572,886 |
Institutional Class | 75,972 | 68,611 |
Total | $ 71,793,201 | $ 91,104,113 |
From net realized gain | | |
Class A | $ - | $ 111,897 |
Class T | - | 88,892 |
Class B | - | 24,291 |
Class C | - | 35,012 |
Asset Manager 20% | - | 49,278,678 |
Institutional Class | - | 37,626 |
Total | $ - | $ 49,576,396 |
Annual Report
10. Distributions to Shareholders - continued
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 30% A | | |
From net investment income | | |
Class A | $ 52,355 | $ 15,489 |
Class T | 32,661 | 9,224 |
Class B | 11,038 | 3,594 |
Class C | 34,391 | 12,880 |
Asset Manager 30% | 1,021,321 | 550,353 |
Institutional Class | 14,120 | 3,693 |
Total | $ 1,165,886 | $ 595,233 |
Fidelity Asset Manager 40% A | | |
From net investment income | | |
Class A | $ 72,060 | $ 27,725 |
Class T | 39,765 | 24,685 |
Class B | 20,040 | 15,306 |
Class C | 21,439 | 15,599 |
Asset Manager 40% | 425,812 | 119,398 |
Institutional Class | 29,546 | 25,655 |
Total | $ 608,662 | $ 228,368 |
Fidelity Asset Manager 50% | | |
From net investment income | | |
Class A | $ 397,973 | $ 185,719 |
Class T | 166,065 | 112,972 |
Class B | 46,365 | 29,127 |
Class C | 113,113 | 67,942 |
Asset Manager 50% | 177,932,255 | 239,444,583 |
Institutional Class | 38,741 | 26,633 |
Total | $ 178,694,512 | $ 239,866,976 |
From net realized gain | | |
Class A | $ 8,976 | $ 359,333 |
Class T | 4,405 | 290,067 |
Class B | 1,523 | 98,729 |
Class C | 3,756 | 225,372 |
Asset Manager 50% | 4,641,464 | 555,465,189 |
Institutional Class | 794 | 71,038 |
Total | $ 4,660,918 | $ 556,509,728 |
Fidelity Asset Manager 60% A | | |
From net investment income | | |
Class A | $ 47,042 | $ 7,307 |
Class T | 27,701 | 2,841 |
Class B | 7,436 | 1,840 |
Class C | 11,096 | 1,840 |
Asset Manager 60% | 284,188 | 18,398 |
Institutional Class | 10,417 | 4,475 |
Total | $ 387,880 | $ 36,701 |
Fidelity Asset Manager 70% | | |
From net investment income | | |
Class A B | $ 1,931,219 | $ - |
Class T B | 1,065,951 | - |
Class B B | 447,034 | - |
Class C B | 727,522 | - |
Asset Manager 70% | 49,684,258 | 72,024,349 |
Institutional Class B | 583,810 | - |
Total | $ 54,439,794 | $ 72,024,349 |
From net realized gain | | |
Asset Manager 70% | $ - | $ 3,513,384 |
Annual Report
Notes to Financial Statements - continued
10. Distributions to Shareholders - continued
Years ended September 30, | 2009 | 2008 |
Fidelity Asset Manager 85% | | |
From net investment income | | |
Class A | $ 236,401 | $ 150,986 |
Class T | 60,047 | 34,666 |
Class B | 22,565 | 23,020 |
Class C | 40,556 | 54,595 |
Asset Manager 85% | 7,078,878 | 9,096,274 |
Institutional Class | 16,915 | 3,940 |
Total | $ 7,455,362 | $ 9,363,481 |
From net realized gain | | |
Class A | $ - | $ 20,022 |
Class T | - | 5,093 |
Class B | - | 4,288 |
Class C | - | 9,298 |
Asset Manager 85% | - | 1,185,614 |
Institutional Class | - | 488 |
Total | $ - | $ 1,224,803 |
A Prior period distributions are for the period October 9, 2007 (commencement of operations) to September 30, 2008.
B Prior period distributions are for the period September 23, 2008 (commencement of operations) to September 30, 2008.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Fidelity Asset Manager 20% | | | | |
Class A | | | | |
Shares sold | 1,881,552 | 723,971 | $ 20,262,428 | $ 8,907,277 |
Reinvestment of distributions | 36,721 | 20,064 | 395,323 | 246,151 |
Shares redeemed | (551,418) | (301,654) | (5,902,669) | (3,651,098) |
Net increase (decrease) | 1,366,855 | 442,381 | $ 14,755,082 | $ 5,502,330 |
Class T | | | | |
Shares sold | 556,534 | 207,033 | $ 5,957,883 | $ 2,528,153 |
Reinvestment of distributions | 15,725 | 16,854 | 167,994 | 207,671 |
Shares redeemed | (154,805) | (97,145) | (1,648,787) | (1,189,971) |
Net increase (decrease) | 417,454 | 126,742 | $ 4,477,090 | $ 1,545,853 |
Class B | | | | |
Shares sold | 172,271 | 148,755 | $ 1,835,013 | $ 1,806,819 |
Reinvestment of distributions | 4,084 | 4,541 | 43,418 | 55,799 |
Shares redeemed | (120,458) | (55,802) | (1,269,080) | (672,403) |
Net increase (decrease) | 55,897 | 97,494 | $ 609,351 | $ 1,190,215 |
Class C | | | | |
Shares sold | 590,588 | 269,755 | $ 6,323,524 | $ 3,257,302 |
Reinvestment of distributions | 8,209 | 5,896 | 87,576 | 72,166 |
Shares redeemed | (141,658) | (83,185) | (1,492,459) | (1,003,632) |
Net increase (decrease) | 457,139 | 192,466 | $ 4,918,641 | $ 2,325,836 |
Asset Manager 20% | | | | |
Shares sold | 58,768,202 | 58,898,445 | $ 637,513,025 | $ 723,714,675 |
Reinvestment of distributions | 6,354,880 | 10,897,714 | 67,864,384 | 134,543,532 |
Shares redeemed | (69,477,950) | (64,781,528) | (731,982,311) | (791,199,186) |
Net increase (decrease) | (4,354,868) | 5,014,631 | $ (26,604,902) | $ 67,059,021 |
Institutional Class | | | | |
Shares sold | 137,005 | 180,834 | $ 1,434,782 | $ 2,308,608 |
Reinvestment of distributions | 6,581 | 8,001 | 70,199 | 98,769 |
Shares redeemed | (66,987) | (56,367) | (711,929) | (687,919) |
Net increase (decrease) | 76,599 | 132,468 | $ 793,052 | $ 1,719,458 |
Annual Report
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Fidelity Asset Manager 30% A | | | | |
Class A | | | | |
Shares sold | 414,025 | 144,653 | $ 3,417,018 | $ 1,379,463 |
Reinvestment of distributions | 5,517 | 1,332 | 44,542 | 12,471 |
Shares redeemed | (76,929) | (12,117) | (581,256) | (111,408) |
Net increase (decrease) | 342,613 | 133,868 | $ 2,880,304 | $ 1,280,526 |
Class T | | | | |
Shares sold | 161,111 | 133,157 | $ 1,317,197 | $ 1,249,065 |
Reinvestment of distributions | 4,011 | 983 | 32,253 | 9,168 |
Shares redeemed | (47,688) | (10,072) | (365,440) | (93,877) |
Net increase (decrease) | 117,434 | 124,068 | $ 984,010 | $ 1,164,356 |
Class B | | | | |
Shares sold | 79,409 | 55,559 | $ 635,086 | $ 524,350 |
Reinvestment of distributions | 1,314 | 382 | 10,518 | 3,594 |
Shares redeemed | (50,703) | (392) | (394,045) | (3,644) |
Net increase (decrease) | 30,020 | 55,549 | $ 251,559 | $ 524,300 |
Class C | | | | |
Shares sold | 174,653 | 186,960 | $ 1,440,050 | $ 1,749,175 |
Reinvestment of distributions | 4,010 | 1,370 | 32,219 | 12,797 |
Shares redeemed | (74,546) | (15,226) | (607,066) | (143,734) |
Net increase (decrease) | 104,117 | 173,104 | $ 865,203 | $ 1,618,238 |
Asset Manager 30% | | | | |
Shares sold | 6,904,812 | 5,359,391 | $ 55,910,068 | $ 50,914,907 |
Reinvestment of distributions | 123,690 | 56,102 | 996,564 | 525,162 |
Shares redeemed | (3,262,135) | (2,411,599) | (25,731,823) | (22,329,751) |
Net increase (decrease) | 3,766,367 | 3,003,894 | $ 31,174,809 | $ 29,110,318 |
Institutional Class | | | | |
Shares sold | 85,817 | 23,759 | $ 690,781 | $ 231,444 |
Reinvestment of distributions | 1,745 | 391 | 13,913 | 3,693 |
Shares redeemed | (26,231) | - | (202,728) | - |
Net increase (decrease) | 61,331 | 24,150 | $ 501,966 | $ 235,137 |
Fidelity Asset Manager 40%A | | | | |
Class A | | | | |
Shares sold | 949,479 | 250,703 | $ 6,910,670 | $ 2,436,280 |
Reinvestment of distributions | 9,317 | 2,933 | 69,821 | 27,298 |
Shares redeemed | (867,182) | (12,251) | (6,423,492) | (109,719) |
Net increase (decrease) | 91,614 | 241,385 | $ 556,999 | $ 2,353,859 |
Class T | | | | |
Shares sold | 151,870 | 227,454 | $ 1,163,455 | $ 2,214,040 |
Reinvestment of distributions | 5,024 | 2,641 | 38,279 | 24,648 |
Shares redeemed | (137,056) | (11,458) | (1,041,565) | (102,562) |
Net increase (decrease) | 19,838 | 218,637 | $ 160,169 | $ 2,136,126 |
Class B | | | | |
Shares sold | 75,414 | 164,587 | $ 591,777 | $ 1,626,346 |
Reinvestment of distributions | 2,558 | 1,632 | 19,564 | 15,307 |
Shares redeemed | (97,756) | (2,203) | (742,267) | (19,407) |
Net increase (decrease) | (19,784) | 164,016 | $ (130,926) | $ 1,622,246 |
Class C | | | | |
Shares sold | 99,725 | 185,184 | $ 770,448 | $ 1,826,153 |
Reinvestment of distributions | 2,748 | 1,654 | 20,997 | 15,523 |
Shares redeemed | (99,318) | (22,232) | (755,114) | (200,684) |
Net increase (decrease) | 3,155 | 164,606 | $ 36,331 | $ 1,640,992 |
Annual Report
Notes to Financial Statements - continued
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Asset Manager 40% | | | | |
Shares sold | 3,849,199 | 1,762,049 | $ 29,825,562 | $ 16,509,845 |
Reinvestment of distributions | 55,087 | 12,657 | 419,676 | 116,657 |
Shares redeemed | (1,075,285) | (477,589) | (8,018,930) | (4,363,370) |
Net increase (decrease) | 2,829,001 | 1,297,117 | $ 22,226,308 | $ 12,263,132 |
Institutional Class | | | | |
Shares sold | 13,481 | 156,120 | $ 108,903 | $ 1,556,663 |
Reinvestment of distributions | 3,839 | 2,743 | 29,314 | 25,655 |
Shares redeemed | (70,040) | - | (528,051) | - |
Net increase (decrease) | (52,720) | 158,863 | $ (389,834) | $ 1,582,318 |
Fidelity Asset Manager 50% | | | | |
Class A | | | | |
Shares sold | 1,405,280 | 701,937 | $ 16,539,899 | $ 10,522,398 |
Reinvestment of distributions | 33,431 | 34,512 | 384,422 | 528,926 |
Shares redeemed | (364,826) | (176,302) | (4,155,231) | (2,573,190) |
Net increase (decrease) | 1,073,885 | 560,147 | $ 12,769,090 | $ 8,478,134 |
Class T | | | | |
Shares sold | 545,417 | 321,333 | $ 6,332,321 | $ 4,828,159 |
Reinvestment of distributions | 13,658 | 25,741 | 157,088 | 396,949 |
Shares redeemed | (169,205) | (108,476) | (1,916,167) | (1,580,570) |
Net increase (decrease) | 389,870 | 238,598 | $ 4,573,242 | $ 3,644,538 |
Class B | | | | |
Shares sold | 180,306 | 140,799 | $ 2,100,830 | $ 2,118,896 |
Reinvestment of distributions | 3,715 | 6,699 | 42,668 | 103,082 |
Shares redeemed | (85,486) | (45,273) | (956,143) | (662,500) |
Net increase (decrease) | 98,535 | 102,225 | $ 1,187,355 | $ 1,559,478 |
Class C | | | | |
Shares sold | 485,121 | 230,335 | $ 5,631,940 | $ 3,467,980 |
Reinvestment of distributions | 6,698 | 14,272 | 76,866 | 220,179 |
Shares redeemed | (159,202) | (78,688) | (1,747,618) | (1,165,992) |
Net increase (decrease) | 332,617 | 165,919 | $ 3,961,188 | $ 2,522,167 |
Asset Manager 50% | | | | |
Shares sold | 32,974,289 | 28,976,509 | $ 383,017,644 | $ 439,124,893 |
Reinvestment of distributions | 15,343,644 | 49,866,308 | 176,555,039 | 772,727,250 |
Shares redeemed | (89,247,824) | (116,862,705) | (998,197,300) | (1,770,033,572) |
Net increase (decrease) | (40,929,891) | (38,019,888) | $ (438,624,617) | $ (558,181,429) |
Institutional Class | | | | |
Shares sold | 160,648 | 64,415 | $ 1,795,413 | $ 1,084,439 |
Reinvestment of distributions | 3,452 | 6,272 | 39,144 | 97,072 |
Shares redeemed | (20,390) | (45,377) | (236,895) | (667,764) |
Net increase (decrease) | 143,710 | 25,310 | $ 1,597,662 | $ 513,747 |
Fidelity Asset Manager 60% A | | | | |
Class A | | | | |
Shares sold | 626,963 | 508,064 | $ 4,408,112 | $ 4,661,791 |
Reinvestment of distributions | 7,097 | 761 | 46,058 | 7,307 |
Shares redeemed | (310,140) | (114,471) | (2,115,814) | (1,028,696) |
Net increase (decrease) | 323,920 | 394,354 | $ 2,338,356 | $ 3,640,402 |
Class T | | | | |
Shares sold | 416,315 | 186,969 | $ 2,870,184 | $ 1,747,896 |
Reinvestment of distributions | 3,579 | 283 | 23,192 | 2,720 |
Shares redeemed | (152,802) | (32,399) | (1,011,101) | (277,952) |
Net increase (decrease) | 267,092 | 154,853 | $ 1,882,275 | $ 1,472,664 |
Class B | | | | |
Shares sold | 142,861 | 138,223 | $ 1,024,160 | $ 1,314,613 |
Reinvestment of distributions | 1,109 | 192 | 7,209 | 1,840 |
Shares redeemed | (97,132) | (2,557) | (678,465) | (22,565) |
Net increase (decrease) | 46,838 | 135,858 | $ 352,904 | $ 1,293,888 |
Annual Report
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Class C | | | | |
Shares sold | 185,591 | 210,884 | $ 1,330,330 | $ 1,970,860 |
Reinvestment of distributions | 1,710 | 192 | 11,096 | 1,840 |
Shares redeemed | (149,285) | (3,246) | (992,160) | (27,889) |
Net increase (decrease) | 38,016 | 207,830 | $ 349,266 | $ 1,944,811 |
Asset Manager 60% | | | | |
Shares sold | 6,524,913 | 3,150,368 | $ 46,957,848 | $ 28,160,474 |
Reinvestment of distributions | 42,505 | 1,882 | 275,857 | 18,064 |
Shares redeemed | (3,253,446) | (362,700) | (22,687,629) | (3,178,965) |
Net increase (decrease) | 3,313,972 | 2,789,550 | $ 24,546,076 | $ 24,999,573 |
Institutional Class | | | | |
Shares sold | 54,932 | 99,914 | $ 380,285 | $ 989,544 |
Reinvestment of distributions | 1,605 | 466 | 10,417 | 4,475 |
Shares redeemed | (55,951) | (916) | (394,752) | (7,979) |
Net increase (decrease) | 586 | 99,464 | $ (4,050) | $ 986,040 |
Fidelity Asset Manager 70% | | | | |
Class A B | | | | |
Shares sold | 2,173,509 | 20,467 | $ 24,367,312 | $ 370,778 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 6,533,497 | - | 92,514,323 |
Reinvestment of distributions | 173,733 | - | 1,832,882 | - |
Shares redeemed | (2,500,085) | (17,859) | (28,216,639) | (315,305) |
Net increase (decrease) | (152,843) | 6,536,105 | $ (2,016,445) | $ 92,569,796 |
Class T B | | | | |
Shares sold | 558,875 | 5,194 | $ 6,345,694 | $ 138,458 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 3,860,173 | - | 54,660,040 |
Reinvestment of distributions | 97,734 | - | 1,031,095 | - |
Shares redeemed | (1,157,915) | (12,767) | (12,984,993) | (237,608) |
Net increase (decrease) | (501,306) | 3,852,600 | $ (5,608,204) | $ 54,560,890 |
Class B B | | | | |
Shares sold | 175,683 | 8,599 | $ 1,996,401 | $ 132,691 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 1,725,798 | - | 24,437,297 |
Reinvestment of distributions | 39,046 | - | 411,939 | - |
Shares redeemed | (614,001) | (7,056) | (6,696,000) | (105,755) |
Net increase (decrease) | (399,272) | 1,727,341 | $ (4,287,660) | $ 24,464,233 |
Class C B | | | | |
Shares sold | 421,289 | 2,918 | $ 4,898,274 | $ 217,647 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 2,780,313 | - | 39,369,233 |
Reinvestment of distributions | 60,708 | - | 640,464 | - |
Shares redeemed | (756,167) | (10,650) | (8,424,208) | (326,514) |
Net increase (decrease) | (274,170) | 2,772,581 | $ (2,885,470) | $ 39,260,366 |
Asset Manager 70% | | | | |
Shares sold | 15,475,772 | 12,436,796 | $ 179,846,118 | $ 201,255,406 |
Reinvestment of distributions | 4,628,030 | 4,363,853 | 48,825,720 | 74,272,772 |
Shares redeemed | (28,165,016) | (33,660,002) | (314,686,965) | (549,568,450) |
Net increase (decrease) | (8,061,214) | (16,859,353) | $ (86,015,127) | $ (274,040,272) |
Institutional Class B | | | | |
Shares sold | 711,407 | 10,330 | $ 8,732,520 | $ 152,572 |
Issued in exchange for shares of Fidelity Advisor Asset Manager 70% | - | 1,881,221 | - | 26,638,086 |
Reinvestment of distributions | 55,050 | - | 580,778 | - |
Shares redeemed | (501,161) | (3,734) | (5,787,688) | (57,654) |
Net increase (decrease) | 265,296 | 1,887,817 | $ 3,525,610 | $ 26,733,004 |
Fidelity Asset Manager 85% | | | | |
Class A | | | | |
Shares sold | 1,227,157 | 881,000 | $ 11,123,956 | $ 11,708,813 |
Reinvestment of distributions | 27,818 | 11,613 | 230,607 | 164,450 |
Shares redeemed | (419,528) | (212,398) | (3,964,719) | (2,755,503) |
Net increase (decrease) | 835,447 | 680,215 | $ 7,389,844 | $ 9,117,760 |
Annual Report
Notes to Financial Statements - continued
11. Share Transactions - continued
| Shares | Dollars |
Years ended September 30, | 2009 | 2008 | 2009 | 2008 |
Class T | | | | |
Shares sold | 219,201 | 302,865 | $ 1,968,756 | $ 3,973,155 |
Reinvestment of distributions | 6,419 | 2,802 | 53,147 | 39,626 |
Shares redeemed | (107,692) | (52,286) | (922,904) | (680,328) |
Net increase (decrease) | 117,928 | 253,381 | $ 1,098,999 | $ 3,332,453 |
Class B | | | | |
Shares sold | 128,701 | 152,342 | $ 1,146,718 | $ 2,031,969 |
Reinvestment of distributions | 2,567 | 1,841 | 21,255 | 26,000 |
Shares redeemed | (75,871) | (39,226) | (628,100) | (510,836) |
Net increase (decrease) | 55,397 | 114,957 | $ 539,873 | $ 1,547,133 |
Class C | | | | |
Shares sold | 396,579 | 329,559 | $ 3,589,931 | $ 4,362,588 |
Reinvestment of distributions | 3,717 | 3,034 | 30,743 | 42,720 |
Shares redeemed | (215,928) | (86,632) | (1,937,775) | (1,115,724) |
Net increase (decrease) | 184,368 | 245,961 | $ 1,682,899 | $ 3,289,584 |
Asset Manager 85% | | | | |
Shares sold | 16,408,620 | 11,096,127 | $ 153,803,706 | $ 149,870,831 |
Reinvestment of distributions | 831,961 | 709,187 | 6,921,914 | 10,063,914 |
Shares redeemed | (10,231,882) | (10,707,014) | (90,681,889) | (142,112,234) |
Net increase (decrease) | 7,008,699 | 1,098,300 | $ 70,043,731 | $ 17,822,511 |
Institutional Class | | | | |
Shares sold | 106,499 | 62,723 | $ 906,473 | $ 834,204 |
Reinvestment of distributions | 1,865 | 180 | 15,502 | 2,553 |
Shares redeemed | (38,520) | (13,803) | (327,053) | (173,778) |
Net increase (decrease) | 69,844 | 49,100 | $ 594,922 | $ 662,979 |
A Prior period amounts are for the period October 9, 2007 (commencement of operations) to September 30, 2008.
B Prior period amounts are for the period September 23, 2008 (commencement of sale of shares) to September 30, 2008.
12. 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.
13. Merger Information.
On September 26, 2008, Fidelity Asset Manager 70% acquired all of the assets and assumed all of the liabilities of Fidelity Advisor Asset Manager 70% Fund pursuant to an agreement and plan of reorganization approved by the Board of Trustees on May 15, 2008. The acquisition was accomplished by an exchange of 6,533,497, 3,860,173, 1,725,798, 2,780,313 and 1,881,221 shares of Class A, Class T, Class B, Class C and Institutional Class of the Fund, respectively, for 9,324,617, 5,534,757, 2,486,431, 4,011,919, and 2,679,998 shares then outstanding of Class A, Class T, Class B, Class C and Institutional Class (valued at $9.92, $9.88, $9.83, $9.81, and $9.94, per share for Class A, Class T, Class B, Class C and Institutional Class, respectively) of the Fidelity Advisor Asset Manager 70% Fund. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Fidelity Advisor Asset Manager 70% Fund's net assets, including $21,261,054 of unrealized depreciation, were combined with the Fund's net assets of $2,365,472,024 for total net assets after the acquisition of $2,603,091,003.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Charles Street Trust and the Shareholders of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85%:
We have audited the accompanying statements of assets and liabilities of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85% (the Funds), each a fund of Fidelity Charles Street Trust, including the schedules of investments, as of September 30, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2009, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85% as of September 30, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 20, 2009
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Charles Street Trust and the Shareholders of Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, Fidelity Asset Manager 60%:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial positions of Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, and Fidelity Asset Manager 60% (funds of Fidelity Charles Street Trust)at September 30, 2009, and the results of each of their operations for the year then ended, the changes in each of their net assets for each of the periods indicated and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Charles Street Trust and Fidelity Charles Street Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2009 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 20, 2009
Annual Report
The Trustees and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 188 funds advised by FMR or an affiliate. Mr. Curvey oversees 408 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Abigail P. Johnson (47) |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal and Workplace Investing (2005-present). Ms. Johnson is a Director of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (74) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Albert R. Gamper, Jr. (67) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President. Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Arthur E. Johnson (62) |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present) and AGL Resources, Inc. (holding company). Previously, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009), and on the Board of Directors of IKON Office Solutions, Inc. (1999-2008). Mr. Arthur E. Johnson and Ms. Abigail P. Johnson are not related. |
Michael E. Kenneally (55) |
| Year of Election or Appointment: 2009 Mr. Kenneally also serves as Trustee (2009-present) or Member of the Advisory Board (2008-present) of other Fidelity Fixed Income and Asset Allocation Funds. Previously, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of The Credit Suisse Funds (U.S. Mutual Fund, 2004-2008) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (69) |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). Previously, Mr. Keyes served as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (62) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director of McKesson Corporation (healthcare service). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (70) |
| Year of Election or Appointment: 2005 Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer of Hershey Foods Corporation, and as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (2004-2009). |
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
John R. Hebble (51) |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Boyce I. Greer (53) |
| Year of Election or Appointment: 2005 or 2006 Vice President of Fidelity's Fixed Income Funds (2006) and Asset Allocation Funds (2005). Mr. Greer is also a Trustee of other investment companies advised by FMR. Mr. Greer is President of the Asset Allocation Division (2008-present), President and a Director of Strategic Advisers, Inc. (2008-present), President and a Director of Fidelity Investments Money Management, Inc. (2007-present), and an Executive Vice President of FMR and FMR Co., Inc. (2005-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005). |
Derek L. Young (45) |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Asset Allocation Funds. Mr. Young also serves as Chief Investment Officers of the Global Asset Allocation Group (2009-present). Previously, Mr. Young served as a portfolio manager. |
Scott C. Goebel (41) |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
Holly C. Laurent (55) |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (51) |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (42) |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (47) |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009) and as Vice President of Business Analysis (2003-2004). |
Bryan A. Mehrmann (48) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Stephanie J. Dorsey (40) |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Paul M. Murphy (62) |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Kenneth B. Robins (40) |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds and is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004). |
Gary W. Ryan (51) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
A percentage of the dividends distributed during the fiscal year for the following funds was derived from interest on U.S. Government securities which is generally exempt from state income tax:
Fund |
|
Asset Manager 20% | 2.31% |
Asset Manager 30% | 2.42% |
Asset Manager 40% | 2.29% |
Asset Manager 50% | 1.47% |
Asset Manager 60% | 1.48% |
Asset Manager 70% | 1.10% |
Asset Manager 85% | 0.82% |
The funds hereby designate the amounts noted below as distributions paid during the period January 1, 2009 to September 30, 2009 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders:
Fund | |
Asset Manager 20% | $55,754,842 |
Asset Manager 30% | $1,165,886 |
Asset Manager 40% | $608,662 |
Asset Manager 50% | $106,168,575 |
Asset Manager 60% | $387,880 |
Asset Manager 70% | $23,253,756 |
Asset Manager 85% | $2,399,380 |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
Asset Manager 20% | Institutional Class |
November 2008 | 8% |
December 2008 | 8% |
February 2009 | 9% |
March 2009 | 9% |
April 2009 | 9% |
May 2009 | 9% |
June 2009 | 9% |
July 2009 | 9% |
August 2009 | 9% |
September 2009 | 9% |
Asset Manager 30% | Institutional Class |
October 2008 | 1% |
November 2008 | 14% |
December 2008 | 14% |
February 2009 | 16% |
March 2009 | 16% |
April 2009 | 16% |
May 2009 | 15% |
June 2009 | 16% |
July 2009 | 16% |
August 2009 | 15% |
September 2009 | 16% |
Asset Manager 40% | Institutional Class |
October 2008 | 1% |
December 2008 | 17% |
April 2009 | 28% |
July 2009 | 29% |
Asset Manager 50% | Institutional Class |
December 2008 | 19% |
April 2009 | 30% |
July 2009 | 31% |
Asset Manager 60% | Institutional Class |
December 2008 | 29% |
Asset Manager 70% | Institutional Class |
December 2008 | 32% |
Asset Manager 85% | Institutional Class |
December 2008 | 45% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Asset Manager 20% | Institutional Class |
November 2008 | 9% |
December 2008 | 10% |
February 2009 | 11% |
March 2009 | 11% |
April 2009 | 11% |
May 2009 | 11% |
June 2009 | 11% |
July 2009 | 11% |
August 2009 | 11% |
September 2009 | 11% |
Asset Manager 30% | Institutional Class |
October 2008 | 1% |
November 2008 | 15% |
December 2008 | 15% |
February 2009 | 18% |
March 2009 | 18% |
April 2009 | 18% |
May 2009 | 18% |
June 2009 | 18% |
July 2009 | 18% |
August 2009 | 18% |
September 2009 | 18% |
Asset Manager 40% | Institutional Class |
October 2008 | 1% |
December 2008 | 20% |
April 2009 | 37% |
July 2009 | 39% |
Asset Manager 50% | Institutional Class |
December 2008 | 22% |
April 2009 | 40% |
July 2009 | 41% |
Asset Manager 60% | Institutional Class |
December 2008 | 40% |
Asset Manager 70% | Institutional Class |
December 2008 | 45% |
Asset Manager 85% | Institutional Class |
December 2008 | 66% |
The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
A special meeting of each fund's shareholders was held on July 15, 2009. 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.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 4,660,446,788.00 | 93.389 |
Withheld | 329,898,915.93 | 6.611 |
TOTAL | 4,990,345,703.93 | 100.000 |
Albert R. Gamper, Jr. |
Affirmative | 4,697,750,297.49 | 94.137 |
Withheld | 292,595,406.44 | 5.863 |
TOTAL | 4,990,345,703.93 | 100.000 |
Abigail P. Johnson |
Affirmative | 4,656,658,858.01 | 93.313 |
Withheld | 333,686,845.92 | 6.687 |
TOTAL | 4,990,345,703.93 | 100.000 |
Arthur E. Johnson |
Affirmative | 4,686,159,283.49 | 93.905 |
Withheld | 304,186,420.44 | 6.095 |
TOTAL | 4,990,345,703.93 | 100.000 |
Michael E. Kenneally |
Affirmative | 4,709,830,377.70 | 94.379 |
Withheld | 280,515,326.23 | 5.621 |
TOTAL | 4,990,345,703.93 | 100.000 |
James H. Keyes |
Affirmative | 4,703,388,873.28 | 94.250 |
Withheld | 286,956,830.65 | 5.750 |
TOTAL | 4,990,345,703.93 | 100.000 |
Marie L. Knowles |
Affirmative | 4,693,994,899.89 | 94.062 |
Withheld | 296,350,804.04 | 5.938 |
TOTAL | 4,990,345,703.93 | 100.000 |
Kenneth L. Wolfe |
Affirmative | 4,685,695,252.60 | 93.895 |
Withheld | 304,650,451.33 | 6.105 |
TOTAL | 4,990,345,703.93 | 100.000 |
PROPOSAL 3 |
For Fidelity Asset Manager 50%, a shareholder proposal concerning "procedures to prevent holding investments in companies that, in the judgement of the Board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights." |
| # of
Votes | % of
Votes |
Affirmative | 539,153,192.91 | 20.836 |
Against | 1,835,063,285.57 | 70.918 |
Abstain | 99,089,558.45 | 3.830 |
Broker Non-Votes | 114,273,518.88 | 4.416 |
TOTAL | 2,587,579,555.81 | 100.000 |
PROPOSAL 3 |
For Fidelity Asset Manager 70%, a shareholder proposal concerning "procedures to prevent holding investments in companies that, in the judgement of the Board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights." |
| # of
Votes | % of
Votes |
Affirmative | 194,624,056.06 | 22.806 |
Against | 548,661,062.57 | 64.291 |
Abstain | 49,188,619.67 | 5.764 |
Broker Non-Votes | 60,927,022.52 | 7.139 |
TOTAL | 853,400,760.82 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Asset Manager 20%
Fidelity Asset Manager 30%
Fidelity Asset Manager 40%
Fidelity Asset Manager 50%
Fidelity Asset Manager 60%
Fidelity Asset Manager 70%
Fidelity Asset Manager 85%
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.
On May 21, 2009, the Board voted to continue each fund's Advisory Contracts for four months, through September 30, 2009, in connection with the reorganization of the Board's new meeting schedule. The Board considered that the contractual terms of and fees payable under each fund's Advisory Contracts involve no changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the nature or level of services provided under the fund's Advisory Contracts; or (iii) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that each fund's Advisory Contracts are fair and reasonable, and that each fund's Advisory Contracts should be renewed, without modification, through September 30, 2009, with the understanding that the Board would consider their renewal in September 2009.
At its September 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to the recent financial crisis, Fidelity took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board specifically noted Fidelity's response to the 2008 credit market crisis. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance for each class (for the retail class in the case of Asset Manager 70%), as well as each fund's relative investment performance for each class (for the retail class in the case of Asset Manager 70%) measured against (i) a proprietary custom index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods, as available.
For each of Asset Manager 20% and Asset Manager 50%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, as available, the cumulative total returns of the retail class and Class B of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class B show the performance of the highest performing class (based on five-year performance) and the lowest performing class (based on one-year performance), respectively. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
For each of Asset Manager 30%, Asset Manager 40%, and Asset Manager 60%, because the fund had been in existence less than three calendar years, the following chart considered by the Board shows, for the one-year period ended December 31, 2008, the total returns of the retail class and Class C of the fund, the cumulative total return of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively. The box within the chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below the chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
For Asset Manager 70%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Fidelity Asset Manager 70% (retail class) of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. (The Advisor classes of the fund had less than one year of performance as of December 31, 2008.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of Fidelity Asset Manager 70% (retail class).
For Asset Manager 85%, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, as available, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of the retail class and Class C show the performance of the highest performing class (based on five-year performance) and the lowest performing class (based on one-year performance), respectively. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Annual Report
Each fund's proprietary custom index is an index developed by FMR that represents the performance of the fund's three asset classes according to their respective weightings in the fund's neutral mix.
Fidelity Asset Manager 20%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 20% (retail class) of the fund was in the first quartile for the one- and five-year periods and the second quartile for the three-year period. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
Fidelity Asset Manager 30%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 30% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 40%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 40% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Fidelity Asset Manager 50%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 50% (retail class) of the fund was in the second quartile for the one-year period and the third quartile for the three- and five-year periods. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
Annual Report
Fidelity Asset Manager 60%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 60% (retail class) of the fund was in the third quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Fidelity Asset Manager 70%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 70% (retail class) of the fund was in the fourth quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions that have been taken by FMR to improve the fund's disappointing performance relative to its peer group and benchmark. The Board also reviewed the fund's performance during 2009. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 85%
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Asset Manager 85% (retail class) of the fund was in the second quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance during 2009.
For each fund, the Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented recent market events, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG%" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG% of 26% would mean that 74% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Annual Report
Fidelity Asset Manager 20%
Fidelity Asset Manager 30%
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 40%
Fidelity Asset Manager 50%
Annual Report
Fidelity Asset Manager 60%
Fidelity Asset Manager 70%
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Asset Manager 85%
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008.
Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of the total expenses of each class of each fund, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of each fund compared to competitive fund median expenses. Each class of each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes of each fund vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
The Board noted that the total expenses of each class of Asset Manager 20% ranked below its competitive median for 2008.
The Board noted that the total expenses of each class of Asset Manager 30% ranked below its competitive median for 2008.
The Board noted that the total expenses of each class of Asset Manager 40% ranked below its competitive median for 2008.
The Board noted that the total expenses of each of Class A, Class B, Class C, Institutional Class, and Fidelity Asset Manager 50% (retail class) of Fidelity Asset Manager 50% ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class B, Class C, Institutional Class, and Fidelity Asset Manager 60% (retail class) of Fidelity Asset Manager 60% ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class C, Institutional Class, and Fidelity Asset Manager 70% (retail class) of Fidelity Asset Manager 70% ranked below its competitive median for the period and the total expenses of each of Class T and Class B ranked above its competitive median for the period. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
The Board noted that the total expenses of each of Class A, Class C, Institutional Class, and Fidelity Asset Manager 85% (retail class) of Fidelity Asset Manager 85% ranked below its competitive median for 2008 and the total expenses of each of Class T and Class B ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class.
Annual Report
In its review, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of each fund were reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.
In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability, and the extent to which current market conditions have affected retention and recruitment; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Investments Money Management, Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
AARI-UANNPRO-1109
1.878282.101
Fidelity®
Series Broad Market Opportunities
Fund
(Formerly Fidelity Broad Market Opportunities Fund)
Annual Report
September 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
Proxy Voting Results | <Click Here> | |
Board Approval of Investment Advisory Contracts and Management Fees | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/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.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
We've seen a welcome uptick in the global equity markets this spring and summer, as signs of stabilization in some economic indicators have brought many investors back into the marketplace. But there remain other key measures - notably high unemployment and slack consumer spending - that suggest the road back to economic health could still be a bumpy ride. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Abigail P. Johnson
Abigail P. Johnson
Annual Report
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended September 30, 2009 | Past 1
year | Life of
fund A |
Fidelity ® Series Broad Market Opportunities | 2.78% | -9.43% |
A From August 21, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity ® Series Broad Market Opportunities on August 21, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Dow Jones U.S. Total Stock Market IndexSM performed over the same period.
Annual Report
Market Recap: Global equity markets came almost full circle during the 12 months ending September 30, 2009, recouping large portions of the deep losses suffered in last fall's big sell-off. The failure or near-collapse of several large players in the global financials sector set off a panicky period for investors, ultimately leading to a drying up of credit, scant confidence in the equity markets and a massive flight to quality. Sensing a potential meltdown of the worldwide financial system, governments responded with intervention programs to restore liquidity to the credit markets and stimulate economic growth. In early March, as signs of improvement were emerging, equity markets began to rally sharply. The Standard & Poor's 500SM Index returned -6.91% for the year, the blue-chip Dow Jones Industrial AverageSM returned -7.38% and the technology-laden Nasdaq Composite® Index gained 2.53%. International equities, which had fared worse than their domestic counterparts during the sell-off, outperformed for the year as a whole, with the MSCI® EAFE® Index (Europe, Australasia, Far East) - a measure of developed markets outside the U.S. and Canada - advancing 3.37%, bolstered in large part by a weaker dollar.
Comments from Geoff Stein and Christopher Sharpe, who became Co-Lead Managers of Fidelity® Series Broad Market Opportunities Fund on June 1, 2009: The fund returned 2.78% for the year, beating the -6.25% result of the Dow Jones U.S. Total Stock Market IndexSM. Strong stock selection drove the fund's outperformance. Shifting into higher-beta - meaning more-volatile - stocks during the first quarter of 2009 proved to be the right strategy at the right time to capitalize on the ensuing market rally. In total, nine of the 10 underlying equity sector central funds beat their respective components of the benchmark, with consumer discretionary performing in line with its benchmark component. Favorable security selection in technology contributed the most, followed by picks in financials, health care, industrials and energy. From a market-capitalization perspective, overweighting mid- and small-cap stocks was the correct positioning, as stocks in these tiers outperformed their large-cap counterparts amid a sustained market recovery during the period's second half. Among the biggest individual contributors were an underweighting in weak-performing industrial conglomerate General Electric and overweightings in telecommunications equipment provider Starent Networks and insurer Fidelity National Financial. A small average cash position of roughly 2% also helped. Key detractors were overweightings in finance company CIT Group and regional bank holding company KeyCorp. CIT Group was sold during the period.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2009 to September 30, 2009).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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 | Beginning
Account Value
April 1, 2009 | Ending
Account Value
September 30, 2009 | Expenses Paid
During Period*
April 1, 2009
to September 30, 2009 |
Actual | 1.00% | $ 1,000.00 | $ 1,453.90 | $ 6.15 |
Hypothetical
(5% return per year before expenses) | | $ 1,000.00 | $ 1,020.05 | $ 5.06 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.
Annual Report
Investment Changes (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Equity Sector Central Funds. |
Top Ten Stocks as of September 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 1.5 | 0.9 |
Procter & Gamble Co. | 1.3 | 1.6 |
Google, Inc. Class A | 1.1 | 0.9 |
Pfizer, Inc. | 1.1 | 0.5 |
CVS Caremark Corp. | 0.9 | 0.9 |
Microsoft Corp. | 0.9 | 0.9 |
PepsiCo, Inc. | 0.9 | 1.0 |
Charles Schwab Corp. | 0.8 | 0.0 |
Covidien PLC | 0.8 | 0.0 |
Medco Health Solutions, Inc. | 0.8 | 0.9 |
| 10.1 | |
Asset Allocation (% of fund's net assets) |
As of September 30, 2009 | As of March 31, 2009 |
 | Stocks 98.2% | | | Stocks 98.1% | |
 | Bonds 0.0% | | | Bonds 0.1% | |
 | Convertible
Securities 0.2% | | | Convertible
Securities 0.1% | |
 | Short-Term
Investments and
Net Other Assets 1.6% | | | Short-Term
Investments and
Net Other Assets 1.7% | |
Annual Report
Investment Changes (Unaudited) - continued
The information in the following table is based on the direct investments of the Fund. |
Fund Holdings as of September 30, 2009 |
| % of fund's
net assets |
Equity Holdings | |
Equity Sector Central Funds | |
Fidelity Information Technology Central Fund | 18.6 |
Fidelity Financials Central Fund | 14.2 |
Fidelity Health Care Central Fund | 14.1 |
Fidelity Energy Central Fund | 11.3 |
Fidelity Consumer Staples Central Fund | 11.1 |
Fidelity Industrials Central Fund | 10.2 |
Fidelity Consumer Discretionary Central Fund | 9.7 |
Fidelity Utilities Central Fund | 4.2 |
Fidelity Materials Central Fund | 3.5 |
Fidelity Telecom Services Central Fund | 3.1 |
Total Equity Sector Central Funds | 100.0 |
Net Other Assets | 0.0 |
Total | 100.0 |
At period end, investments in foreign securities, including the Fund's pro-rata share of the underlying Central Funds, was 15.7% of net assets. |
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. |
Annual Report
Investments September 30, 2009
Showing Percentage of Net Assets
Equity Sector Central Funds - 100.0% |
| Shares | | Value |
Fidelity Consumer Discretionary Central Fund (a) | 3,285 | | $ 302,539 |
Fidelity Consumer Staples Central Fund (a) | 3,051 | | 348,319 |
Fidelity Energy Central Fund (a) | 3,566 | | 353,430 |
Fidelity Financials Central Fund (a) | 7,607 | | 442,631 |
Fidelity Health Care Central Fund (a) | 4,374 | | 441,806 |
Fidelity Industrials Central Fund (a) | 3,154 | | 320,505 |
Fidelity Information Technology Central Fund (a) | 4,725 | | 580,895 |
Fidelity Materials Central Fund (a) | 877 | | 110,386 |
Fidelity Telecom Services Central Fund (a) | 985 | | 98,099 |
Fidelity Utilities Central Fund (a) | 1,478 | | 130,473 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,716,378) | | 3,129,083 |
NET OTHER ASSETS - 0.0% | | 704 |
NET ASSETS - 100% | $ 3,129,787 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request. |
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 Consumer Discretionary Central Fund | $ 4,662 |
Fidelity Consumer Staples Central Fund | 8,714 |
Fidelity Energy Central Fund | 4,050 |
Fidelity Financials Central Fund | 11,040 |
Fidelity Health Care Central Fund | 5,675 |
Fidelity Industrials Central Fund | 6,651 |
Fidelity Information Technology Central Fund | 4,431 |
Fidelity Materials Central Fund | 2,050 |
Fidelity Telecom Services Central Fund | 2,049 |
Fidelity Utilities Central Fund | 4,698 |
Total | $ 54,020 |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund | Value, beginning of period | Purchases | Sales Proceeds | Value, end of period | % ownership, end of period |
Fidelity Consumer Discretionary Central Fund | $ 397,265 | $ 145,856 | $ 215,926 | $ 302,539 | 0.1% |
Fidelity Consumer Staples Central Fund | 440,860 | 205,428 | 273,110 | 348,319 | 0.1% |
Fidelity Energy Central Fund | 496,317 | 242,510 | 322,433 | 353,430 | 0.1% |
Fidelity Financials Central Fund | 711,636 | 252,270 | 405,062 | 442,631 | 0.1% |
Fidelity Health Care Central Fund | 550,440 | 224,934 | 314,520 | 441,806 | 0.1% |
Fidelity Industrials Central Fund | 487,278 | 145,706 | 253,637 | 320,505 | 0.1% |
Fidelity Information Technology Central Fund | 636,167 | 226,694 | 381,065 | 580,895 | 0.1% |
Fidelity Materials Central Fund | 153,938 | 45,451 | 92,099 | 110,386 | 0.1% |
Fidelity Telecom Services Central Fund | 114,302 | 57,092 | 82,453 | 98,099 | 0.1% |
Fidelity Utilities Central Fund | 157,597 | 72,657 | 87,530 | 130,473 | 0.1% |
Total | $ 4,145,800 | $ 1,618,598 | $ 2,427,835 | $ 3,129,083 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the combined investment of the Fund and its pro-rata share of the investments of Fidelity's Equity Sector Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.3% |
Switzerland | 2.6% |
Ireland | 1.5% |
China | 1.4% |
United Kingdom | 1.4% |
Bermuda | 1.1% |
Cayman Islands | 1.0% |
Netherlands | 1.0% |
Others (individually less than 1%) | 5.7% |
| 100.0% |
Income Tax Information |
At September 30, 2009, the fund had a capital loss carryforward of approximately $860,845 all of which will expire on September 30, 2017. |
The fund intends to elect to defer to its fiscal year ending September 30, 2010 approximately $713,407 of losses recognized during the period November 1, 2008 to September 30, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities
| September 30, 2009 |
| | |
Assets | | |
Investment in securities, at value (cost $3,716,378) - See accompanying schedule | | $ 3,129,083 |
Cash | | 23,319 |
Receivable for investments sold | | 4,192 |
Receivable for fund shares sold | | 6,233 |
Prepaid expenses | | 16 |
Receivable from investment adviser for expense reductions | | 7,126 |
Total assets | | 3,169,969 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,355 | |
Payable for fund shares redeemed | 4,129 | |
Accrued management fee | 1,453 | |
Other affiliated payables | 496 | |
Other payables and accrued expenses | 30,749 | |
Total liabilities | | 40,182 |
| | |
Net Assets | | $ 3,129,787 |
Net Assets consist of: | | |
Paid in capital | | $ 4,392,324 |
Undistributed net investment income | | 11,857 |
Accumulated undistributed net realized gain (loss) on investments | | (687,099) |
Net unrealized appreciation (depreciation) on investments | | (587,295) |
Net Assets, for 389,469 shares outstanding | | $ 3,129,787 |
Net Asset Value, offering price and redemption price per share ($3,129,787 ÷ 389,469 shares) | | $ 8.04 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended September 30, 2009 |
| | |
Investment Income | | |
Income from Fidelity Central Funds | | $ 54,020 |
Interest | | 15 |
Total income | | 54,035 |
| | |
Expenses | | |
Management fee | $ 16,548 | |
Transfer agent fees | 5,748 | |
Accounting fees and expenses | 1,140 | |
Custodian fees and expenses | 19,469 | |
Independent trustees' compensation | 11 | |
Audit | 34,606 | |
Legal | 14 | |
Miscellaneous | 75 | |
Total expenses before reductions | 77,611 | |
Expense reductions | (48,680) | 28,931 |
Net investment income (loss) | | 25,104 |
Realized and Unrealized Gain (Loss) Fidelity Central Funds | | (640,016) |
Change in net unrealized appreciation (depreciation) on: Investment securities | | 432,536 |
Net gain (loss) | | (207,480) |
Net increase (decrease) in net assets resulting from operations | | $ (182,376) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
September 30, 2009 | Year ended
September 30, 2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 25,104 | $ 27,154 |
Net realized gain (loss) | (640,016) | (65,513) |
Change in net unrealized appreciation (depreciation) | 432,536 | (1,122,803) |
Net increase (decrease) in net assets resulting
from operations | (182,376) | (1,161,162) |
Distributions to shareholders from net investment income | (17,086) | (7,629) |
Share transactions
Proceeds from sales of shares | 1,515,127 | 4,532,585 |
Reinvestment of distributions | 17,086 | 7,629 |
Cost of shares redeemed | (2,336,625) | (855,540) |
Net increase (decrease) in net assets resulting from share transactions | (804,412) | 3,684,674 |
Total increase (decrease) in net assets | (1,003,874) | 2,515,883 |
| | |
Net Assets | | |
Beginning of period | 4,133,661 | 1,617,778 |
End of period (including undistributed net investment income of $11,857 and undistributed net investment income of $3,620, respectively) | $ 3,129,787 | $ 4,133,661 |
Other Information Shares | | |
Sold | 243,207 | 468,605 |
Issued in reinvestment of distributions | 2,941 | 728 |
Redeemed | (382,139) | (94,549) |
Net increase (decrease) | (135,991) | 374,784 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended September 30, | 2009 | 2008 | 2007 H |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 7.87 | $ 10.74 | $ 10.00 |
Income from Investment Operations | | | |
Net investment income (loss) D | .05 | .07 | .01 |
Net realized and unrealized gain (loss) | .16 G | (2.91) | .73 |
Total from investment operations | .21 | (2.84) | .74 |
Distributions from net investment income | (.04) | (.03) | - |
Net asset value, end of period | $ 8.04 | $ 7.87 | $ 10.74 |
Total Return B, C | 2.78% | (26.51)% | 7.40% |
Ratios to Average Net Assets E, I | | | |
Expenses before reductions | 2.64% | 2.35% | 11.66% A |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | .99% | .99% | 1.00% A |
Net investment income (loss) | .86% | .76% | 1.10% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 3,130 | $ 4,134 | $ 1,618 |
Portfolio turnover rate F | 54% | 21% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 21, 2007 (commencement of operations) to September 30, 2007.
I Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. 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.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended September 30, 2009
1. Organization.
Fidelity Series Broad Market Opportunities Fund (the Fund) (formerly Fidelity Broad Market Opportunities Fund) is a fund of Fidelity Charles 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by 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.
Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. The following summarizes the Fund's investment in each Fidelity Central Fund.
Fidelity Central Fund | Investment
Manager | Investment
Objective | Investment
Practices |
Fidelity Equity Sector Central Funds | FMR Co., Inc. (FMRC) | Each fund seeks capital appreciation by investing primarily in common stocks, with a concentration in a particular industry. | Foreign Securities Loans & Direct Debt Instruments Repurchase Agreements |
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which contain the significant accounting policies (including security valuation policies) of those funds, which are not covered by the Funds Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
Annual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, November 19, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. All inputs to value investments as of September 30, 2009, for the Fund are categorized as Level 1 in the disclosure hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the Fidelity Central Funds. Although not included in the Fund's expenses, the Fund indirectly bears its proportionate share of the Fidelity Central Funds' expenses through the impact of these expenses on each Fidelity Central Fund's net asset value.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. There are no unrecognized tax benefits in the accompanying financial statements in connection with the tax provisions taken by the Fund. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
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 partnerships (including allocations from Fidelity Central Funds), capital loss carryforwards and losses deferred due to excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 296,424 | |
Unrealized depreciation | - | |
Net unrealized appreciation (depreciation) | $ 296,424 | |
Undistributed ordinary income | $ 15,282 | |
Capital loss carryforward | $ (860,845) | |
Cost for federal income tax purposes | $ 2,832,659 | |
The tax character of distributions paid was as follows:
| September 30, 2009 | September 30, 2008 |
Ordinary Income | $ 17,086 | $ 7,629 |
4. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares aggregated $1,618,600 and $2,427,834, respectively.
Annual Report
5. 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 .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .56% of the Fund's average net assets. FMR pays a portion of the management fees received from the Fund to the Fidelity Central Funds' investment advisers, who are also affiliates, for managing the assets of the Fidelity Central Funds.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .20% of average net assets.
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 the month.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $15 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
FMR voluntarily agreed to reimburse the Fund to the extent annual operating expenses exceeded 1.00% of average net assets. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement. During the period this reimbursement reduced the Fund's expenses by $48,249.
Annual Report
Notes to Financial Statements - continued
7. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund and the Equity Sector Central Funds provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $363 for the period. In addition, 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 $68.
8. 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 the outstanding shares of the Fund.
Annual Report
To the Trustees of Fidelity Charles Street Trust and the Shareholders of Fidelity Series Broad Market Opportunities Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Series Broad Market Opportunities Fund (formerly Fidelity Broad Market Opportunities Fund) (a fund of Fidelity Charles Street Trust) at September 30, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Series Broad Market Opportunities Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2009 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 19, 2009
Annual Report
The Trustees and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 188 funds advised by FMR or an affiliate. Mr. Curvey oversees 408 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Abigail P. Johnson (47) |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal and Workplace Investing (2005-present). Ms. Johnson is a Director of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (74) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Albert R. Gamper, Jr. (67) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President. Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Arthur E. Johnson (62) |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present) and AGL Resources, Inc. (holding company). Previously, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009), and on the Board of Directors of IKON Office Solutions, Inc. (1999-2008). Mr. Arthur E. Johnson and Ms. Abigail P. Johnson are not related. |
Michael E. Kenneally (55) |
| Year of Election or Appointment: 2009 Mr. Kenneally also serves as Trustee (2009-present) or Member of the Advisory Board (2008-present) of other Fidelity Fixed Income and Asset Allocation Funds. Previously, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of The Credit Suisse Funds (U.S. Mutual Fund, 2004-2008) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (69) |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). Previously, Mr. Keyes served as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (62) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director of McKesson Corporation (healthcare service). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (70) |
| Year of Election or Appointment: 2005 Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer of Hershey Foods Corporation, and as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (2004-2009). |
Annual Report
Trustees and Officers - continued
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
John R. Hebble (51) |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Boyce I. Greer (53) |
| Year of Election or Appointment: 2005 or 2006 Vice President of Fidelity's Fixed Income Funds (2006) and Asset Allocation Funds (2005). Mr. Greer is also a Trustee of other investment companies advised by FMR. Mr. Greer is President of the Asset Allocation Division (2008-present), President and a Director of Strategic Advisers, Inc. (2008-present), President and a Director of Fidelity Investments Money Management, Inc. (2007-present), and an Executive Vice President of FMR and FMR Co., Inc. (2005-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005). |
Derek L. Young (45) |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Asset Allocation Funds. Mr. Young also serves as Chief Investment Officers of the Global Asset Allocation Group (2009-present). Previously, Mr. Young served as a portfolio manager. |
Scott C. Goebel (41) |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
Holly C. Laurent (55) |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (51) |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (42) |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (47) |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009) and as Vice President of Business Analysis (2003-2004). |
Bryan A. Mehrmann (48) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Stephanie J. Dorsey (40) |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Paul M. Murphy (62) |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Kenneth B. Robins (40) |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds and is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004). |
Gary W. Ryan (51) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
A total of .46% of the dividends distributed during the fiscal year was derived from interest on U.S. Government Securities which is generally exempt from the state income tax.
The fund designates 99% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund designates 93% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
A special meeting of the fund's shareholders was held on July 15, 2009. 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.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 4,660,446,788.00 | 93.389 |
Withheld | 329,898,915.93 | 6.611 |
TOTAL | 4,990,345,703.93 | 100.000 |
Albert R. Gamper, Jr. |
Affirmative | 4,697,750,297.49 | 94.137 |
Withheld | 292,595,406.44 | 5.863 |
TOTAL | 4,990,345,703.93 | 100.000 |
Abigail P. Johnson |
Affirmative | 4,656,658,858.01 | 93.313 |
Withheld | 333,686,845.92 | 6.687 |
TOTAL | 4,990,345,703.93 | 100.000 |
Arthur E. Johnson |
Affirmative | 4,686,159,283.49 | 93.905 |
Withheld | 304,186,420.44 | 6.095 |
TOTAL | 4,990,345,703.93 | 100.000 |
Michael E. Kenneally |
Affirmative | 4,709,830,377.70 | 94.379 |
Withheld | 280,515,326.23 | 5.621 |
TOTAL | 4,990,345,703.93 | 100.000 |
James H. Keyes |
Affirmative | 4,703,388,873.28 | 94.250 |
Withheld | 286,956,830.65 | 5.750 |
TOTAL | 4,990,345,703.93 | 100.000 |
Marie L. Knowles |
Affirmative | 4,693,994,899.89 | 94.062 |
Withheld | 296,350,804.04 | 5.938 |
TOTAL | 4,990,345,703.93 | 100.000 |
Kenneth L. Wolfe |
Affirmative | 4,685,695,252.60 | 93.895 |
Withheld | 304,650,451.33 | 6.105 |
TOTAL | 4,990,345,703.93 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Series Broad Market Opportunities Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.
On May 21, 2009, the Board voted to continue the fund's Advisory Contracts for four months, through September 30, 2009, in connection with the reorganization of the Board's new meeting schedule. The Board considered that the contractual terms of and fees payable under the fund's Advisory Contracts involve no changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the nature or level of services provided under the fund's Advisory Contracts; or (iii) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through September 30, 2009, with the understanding that the Board would consider their renewal in September 2009.
At its September 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
Annual Report
In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to the recent financial crisis, Fidelity took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board specifically noted Fidelity's response to the 2008 credit market crisis. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board. Because the fund had been in existence less than three calendar years, the following chart considered by the Board shows, for the one-year period ended December 31, 2008, the fund's total return, the total return of a broad-based securities market index ("benchmark"), and a range of total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The box within the chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below the chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Annual Report
Fidelity Series Broad Market Opportunities Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the fourth quartile for the period shown. The Board also stated that the investment performance of the fund was below its benchmark for the period shown. The Board also reviewed the fund's performance during 2009. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented recent market events, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG%" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG% of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity Series Broad Market Opportunities Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008.
Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
Annual Report
In its review of the fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the fund's total expenses ranked above its competitive median for 2008. The Board also noted that the fund's relatively small asset size results in relatively high other expenses (such as custody, audit, and legal) in basis points.
In its review, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the fund's total expenses were reasonable, although above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.
In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board also considered that although the fund is offered only to other funds advised by FMR or an affiliate, it continues to incur management expenses. The Board further noted that the fund may continue to realize benefits from the group fee structure, even though assets may not be expected to grow significantly at the fund level. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability, and the extent to which current market conditions have affected retention and recruitment; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
BMO-ANN-1109
1.848237.102
Item 2. Code of Ethics
As of the end of the period, September 30, 2009, Fidelity Charles Street Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Marie L. Knowles is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Knowles is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, "Deloitte Entities") in each of the last two fiscal years for services rendered to Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, and Fidelity Asset Manager 85% (the "Funds"):
Services Billed by Deloitte Entities
September 30, 2009 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Asset Manager 20% | $32,000 | $- | $6,000 | $- |
Fidelity Asset Manager 50% | $33,000 | $- | $7,900 | $- |
Fidelity Asset Manager 70% | $36,000 | $- | $6,500 | $- |
Fidelity Asset Manager 85% | $32,000 | $- | $6,000 | $- |
September 30, 2008 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Asset Manager 20% | $50,000 | $- | $6,000 | $- |
Fidelity Asset Manager 50% | $56,000 | $- | $6,600 | $- |
Fidelity Asset Manager 70% | $53,000 | $- | $6,000 | $- |
Fidelity Asset Manager 85% | $53,000 | $- | $6,000 | $- |
A Amounts may reflect rounding.
The following table presents fees billed by PricewaterhouseCoopers LLP ("PwC") in each of the last two fiscal years for services rendered to Fidelity Asset Manager 30%, Fidelity Asset Manager 40%, Fidelity Asset Manager 60%, and Fidelity Broad Market Opportunities Fund (the "Funds"):
Services Billed by PwC
September 30, 2009 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Asset Manager 30% | $42,000 | $- | $5,400 | $400 |
Fidelity Asset Manager 40% | $42,000 | $- | $5,400 | $400 |
Fidelity Asset Manager 60% | $42,000 | $- | $5,400 | $400 |
Fidelity Broad Market Opportunities Fund | $27,000 | $- | $6,400 | $1,600 |
September 30, 2008 FeesA, B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Asset Manager 30% | $29,000 | $- | $2,700 | $1,100 |
Fidelity Asset Manager 40% | $29,000 | $- | $2,700 | $1,100 |
Fidelity Asset Manager 60% | $29,000 | $- | $2,700 | $1,100 |
Fidelity Broad Market Opportunities Fund | $20,000 | $- | $1,700 | $900 |
A Amounts may reflect rounding.
B Fidelity Asset Manager 30%, Fidelity Asset Manager 40% and Fidelity Asset Manager 60% commenced operations on October 9, 2007.
The following table presents fees billed by PwC and Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds ("Fund Service Providers"):
Services Billed by Deloitte Entities
| September 30, 2009A | September 30, 2008A |
Audit-Related Fees | $1,020,000 | $410,000 |
Tax Fees | $2,000 | $- |
All Other Fees | $405,000 | $280,000B |
A Amounts may reflect rounding.
B Reflects current period presentation.
Services Billed by PwC
| September 30, 2009A | September 30, 2008A |
Audit-Related Fees | $2,930,000 | $2,000,000B |
Tax Fees | $2,000 | $- |
All Other Fees | $- | $-B |
A Amounts may reflect rounding.
B Reflects current period presentation.
"Audit-Related Fees" represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
"Tax Fees" represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
"All Other Fees" represent fees billed for assurance services provided to the fund or Fund Service Provider that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC and Deloitte Entities for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | September 30, 2009 A | September 30, 2008 A |
PwC | $3,560,000 | $2,715,000 |
Deloitte Entities | $1,565,000 | $905,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC and Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of PwC and Deloitte Entities in their audits of the Funds, taking into account representations from PwC and Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding their independence from the Funds and their related entities and FMR's review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust's Audit Committee must pre-approve all audit and non-audit services provided by a fund's independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund ("Covered Service") are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X ("De Minimis Exception")
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds' last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
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 trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Charles Street Trust
By: | /s/John R. Hebble |
| John R. Hebble |
| President and Treasurer |
| |
Date: | November 25, 2009 |
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/John R. Hebble |
| John R. Hebble |
| President and Treasurer |
| |
Date: | November 25, 2009 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | November 25, 2009 |
