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 811-3583
Fidelity Mt. Vernon Street Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | November 30 |
|
|
Date of reporting period: | November 30, 2017 |
Item 1.
Reports to Stockholders
Fidelity Flex℠ Funds Fidelity Flex℠ Mid Cap Growth Fund Annual Report November 30, 2017 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from 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 hypothetical investment and the average annual total 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 for Fidelity Flex℠ Mid Cap Growth Fund will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Flex℠ Mid Cap Growth Fund on March 8, 2017, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
Period Ending Values | ||
$11,250 | Fidelity Flex℠ Mid Cap Growth Fund | |
$11,781 | Russell Midcap® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 22.87% for the year ending November 30, 2017, rising steadily and closing the period at an all-time high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump’s pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, info tech (+41%) led by a wide margin, surging amid strong earnings growth from several major index constituents. Utilities and financials each gained about 25%, the latter group riding an uptick in bond yields. Conversely, consumer discretionary (+20%) also rose solidly but lagged the broader market, as many brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+16%), while consumer staples (+15%) and telecom (+1%) struggled due to investors’ general preference for risk assets. Lastly, sluggish oil prices pushed energy to a -4% return.Comments from Portfolio Manager Jean Park: From its inception on March 8, 2017, through November 30, 2017, the fund gained 12.50%, lagging the 17.81% return of the Russell Midcap® Growth Index. Versus the benchmark, stock selection was the primary drag on performance, especially in information technology, consumer discretionary and industrials. The fund’s biggest individual relative detractor stemmed from avoiding graphics-card designer and benchmark component Nvidia. Although I believed the company had a solid free-cash-flow (FCF) yield – meeting one of my primary investment criteria – it was very expensive, in my view, so I found other semiconductor companies that were more attractive to me. Nvidia shares posted a strong return for the year, mainly due to the company's favorable earnings. Other notable detractors included untimely ownership of car-parts retailers O’Reilly Automotive and AutoZone. Both stocks disappointed as sales dipped, and I sold both positions by period end. On the positive side, stock picking in consumer staples helped performance versus the benchmark. The fund's biggest individual relative contribution stemmed from avoiding poor-performing drug company and index constituent Incyte. Overweighting electronic payment processing provider Total System Services also delivered a solid boost.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.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Total System Services, Inc. | 2.8 | 2.1 |
VeriSign, Inc. | 2.4 | 2.1 |
Huntington Ingalls Industries, Inc. | 2.4 | 1.6 |
Delphi Automotive PLC | 2.4 | 0.0 |
ON Semiconductor Corp. | 2.2 | 0.0 |
Progressive Corp. | 2.1 | 0.5 |
Analog Devices, Inc. | 2.1 | 0.0 |
Citrix Systems, Inc. | 2.1 | 1.2 |
Citizens Financial Group, Inc. | 2.0 | 1.9 |
Wyndham Worldwide Corp. | 2.0 | 1.2 |
22.5 |
Top Five Market Sectors as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 33.5 | 23.7 |
Health Care | 16.4 | 16.2 |
Consumer Discretionary | 14.3 | 21.1 |
Industrials | 14.3 | 16.0 |
Financials | 10.5 | 6.6 |
Asset Allocation (% of fund's net assets)
As of November 30, 2017 * | ||
Stocks | 98.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.1% |
* Foreign investments - 8.6%
As of May 31, 2017 * | ||
Stocks | 98.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.0% |
* Foreign investments - 5.7%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2017
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 14.3% | |||
Auto Components - 3.1% | |||
Delphi Automotive PLC | 163 | $17,061 | |
Visteon Corp. (a) | 37 | 4,873 | |
21,934 | |||
Distributors - 0.8% | |||
Pool Corp. | 47 | 5,905 | |
Diversified Consumer Services - 1.2% | |||
Service Corp. International | 225 | 8,314 | |
Hotels, Restaurants & Leisure - 2.9% | |||
Domino's Pizza, Inc. | 24 | 4,468 | |
Jack in the Box, Inc. | 24 | 2,484 | |
Wyndham Worldwide Corp. | 124 | 13,936 | |
20,888 | |||
Media - 1.7% | |||
Lions Gate Entertainment Corp. Class B | 89 | 2,763 | |
Live Nation Entertainment, Inc. (a) | 164 | 7,442 | |
Scripps Networks Interactive, Inc. Class A | 20 | 1,637 | |
11,842 | |||
Multiline Retail - 1.8% | |||
Dollar General Corp. | 56 | 4,932 | |
Dollar Tree, Inc. (a) | 78 | 8,015 | |
12,947 | |||
Specialty Retail - 1.3% | |||
Ross Stores, Inc. | 124 | 9,428 | |
Textiles, Apparel & Luxury Goods - 1.5% | |||
Carter's, Inc. | 46 | 4,983 | |
Hanesbrands, Inc. | 143 | 2,987 | |
VF Corp. | 38 | 2,772 | |
10,742 | |||
TOTAL CONSUMER DISCRETIONARY | 102,000 | ||
CONSUMER STAPLES - 4.5% | |||
Beverages - 2.0% | |||
Brown-Forman Corp. Class B (non-vtg.) | 69 | 4,126 | |
Dr. Pepper Snapple Group, Inc. | 59 | 5,322 | |
Monster Beverage Corp. (a) | 74 | 4,638 | |
14,086 | |||
Food Products - 1.1% | |||
The Hershey Co. | 69 | 7,654 | |
Personal Products - 1.3% | |||
Estee Lauder Companies, Inc. Class A | 47 | 5,867 | |
Herbalife Ltd. (a) | 50 | 3,507 | |
9,374 | |||
Tobacco - 0.1% | |||
British American Tobacco PLC sponsored ADR | 19 | 1,209 | |
TOTAL CONSUMER STAPLES | 32,323 | ||
ENERGY - 0.7% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, a GE Co. Class A | 45 | 1,338 | |
Oil, Gas & Consumable Fuels - 0.5% | |||
Andeavor | 33 | 3,481 | |
TOTAL ENERGY | 4,819 | ||
FINANCIALS - 10.5% | |||
Banks - 2.8% | |||
Citizens Financial Group, Inc. | 352 | 14,326 | |
Huntington Bancshares, Inc. | 330 | 4,752 | |
Investors Bancorp, Inc. | 80 | 1,142 | |
20,220 | |||
Capital Markets - 4.5% | |||
Ameriprise Financial, Inc. | 68 | 11,100 | |
MarketAxess Holdings, Inc. | 13 | 2,539 | |
Moody's Corp. | 75 | 11,387 | |
S&P Global, Inc. | 40 | 6,619 | |
31,645 | |||
Insurance - 3.2% | |||
Aon PLC | 30 | 4,207 | |
Arch Capital Group Ltd.(a) | 37 | 3,504 | |
Progressive Corp. | 283 | 15,050 | |
22,761 | |||
TOTAL FINANCIALS | 74,626 | ||
HEALTH CARE - 16.4% | |||
Health Care Equipment & Supplies - 2.9% | |||
Edwards Lifesciences Corp. (a) | 67 | 7,852 | |
Intuitive Surgical, Inc. (a) | 11 | 4,398 | |
ResMed, Inc. | 101 | 8,625 | |
20,875 | |||
Health Care Providers & Services - 4.2% | |||
AmerisourceBergen Corp. | 59 | 5,004 | |
HCA Holdings, Inc. (a) | 50 | 4,250 | |
Laboratory Corp. of America Holdings (a) | 25 | 3,957 | |
MEDNAX, Inc. (a) | 50 | 2,490 | |
Universal Health Services, Inc. Class B | 22 | 2,384 | |
Wellcare Health Plans, Inc. (a) | 54 | 11,501 | |
29,586 | |||
Health Care Technology - 1.9% | |||
Cerner Corp. (a) | 194 | 13,714 | |
Life Sciences Tools & Services - 6.2% | |||
Charles River Laboratories International, Inc. (a) | 108 | 11,254 | |
Illumina, Inc. (a) | 40 | 9,201 | |
Mettler-Toledo International, Inc. (a) | 18 | 11,326 | |
Waters Corp. (a) | 61 | 12,027 | |
43,808 | |||
Pharmaceuticals - 1.2% | |||
Jazz Pharmaceuticals PLC (a) | 24 | 3,354 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 360 | 5,335 | |
8,689 | |||
TOTAL HEALTH CARE | 116,672 | ||
INDUSTRIALS - 14.3% | |||
Aerospace & Defense - 3.4% | |||
Huntington Ingalls Industries, Inc. | 72 | 17,400 | |
TransDigm Group, Inc. | 25 | 7,095 | |
24,495 | |||
Airlines - 0.7% | |||
Alaska Air Group, Inc. | 72 | 4,980 | |
Commercial Services & Supplies - 0.5% | |||
KAR Auction Services, Inc. | 73 | 3,677 | |
Electrical Equipment - 1.8% | |||
AMETEK, Inc. | 54 | 3,925 | |
Fortive Corp. | 114 | 8,510 | |
12,435 | |||
Industrial Conglomerates - 1.8% | |||
Roper Technologies, Inc. | 48 | 12,826 | |
Machinery - 3.4% | |||
Cummins, Inc. | 52 | 8,705 | |
IDEX Corp. | 52 | 7,050 | |
Toro Co. | 91 | 5,938 | |
Wabtec Corp. | 29 | 2,230 | |
23,923 | |||
Professional Services - 1.7% | |||
Dun & Bradstreet Corp. | 20 | 2,462 | |
Equifax, Inc. | 86 | 9,814 | |
12,276 | |||
Trading Companies & Distributors - 1.0% | |||
United Rentals, Inc. (a) | 43 | 6,858 | |
TOTAL INDUSTRIALS | 101,470 | ||
INFORMATION TECHNOLOGY - 33.5% | |||
Communications Equipment - 1.4% | |||
F5 Networks, Inc. (a) | 74 | 9,931 | |
Electronic Equipment & Components - 1.4% | |||
Amphenol Corp. Class A | 113 | 10,237 | |
Internet Software & Services - 3.8% | |||
Akamai Technologies, Inc. (a) | 100 | 5,578 | |
LogMeIn, Inc. | 34 | 4,046 | |
VeriSign, Inc. (a) | 152 | 17,495 | |
27,119 | |||
IT Services - 8.0% | |||
Amdocs Ltd. | 94 | 6,137 | |
Fiserv, Inc. (a) | 94 | 12,356 | |
FleetCor Technologies, Inc. (a) | 23 | 4,183 | |
Genpact Ltd. | 57 | 1,838 | |
Global Payments, Inc. | 60 | 6,034 | |
Paychex, Inc. | 91 | 6,125 | |
Total System Services, Inc. | 270 | 20,073 | |
56,746 | |||
Semiconductors & Semiconductor Equipment - 11.8% | |||
Analog Devices, Inc. | 172 | 14,811 | |
Applied Materials, Inc. | 169 | 8,918 | |
Broadcom Ltd. | 14 | 3,891 | |
KLA-Tencor Corp. | 91 | 9,304 | |
Lam Research Corp. | 45 | 8,655 | |
Microchip Technology, Inc. | 134 | 11,657 | |
ON Semiconductor Corp. (a) | 762 | 15,301 | |
Skyworks Solutions, Inc. | 107 | 11,207 | |
83,744 | |||
Software - 7.1% | |||
Adobe Systems, Inc. (a) | 28 | 5,081 | |
Check Point Software Technologies Ltd. (a) | 91 | 9,490 | |
Citrix Systems, Inc. (a) | 166 | 14,547 | |
Electronic Arts, Inc. (a) | 55 | 5,849 | |
Intuit, Inc. | 16 | 2,516 | |
Take-Two Interactive Software, Inc. (a) | 114 | 12,717 | |
50,200 | |||
TOTAL INFORMATION TECHNOLOGY | 237,977 | ||
MATERIALS - 2.1% | |||
Chemicals - 2.1% | |||
CF Industries Holdings, Inc. | 64 | 2,398 | |
Eastman Chemical Co. | 18 | 1,663 | |
Sherwin-Williams Co. | 11 | 4,394 | |
The Scotts Miracle-Gro Co. Class A | 34 | 3,363 | |
Valvoline, Inc. | 118 | 2,910 | |
14,728 | |||
REAL ESTATE - 2.6% | |||
Equity Real Estate Investment Trusts (REITs) - 2.6% | |||
CoreSite Realty Corp. | 68 | 7,717 | |
Equity Lifestyle Properties, Inc. | 63 | 5,690 | |
Extra Space Storage, Inc. | 63 | 5,378 | |
18,785 | |||
TOTAL COMMON STOCKS | |||
(Cost $631,301) | 703,400 | ||
Money Market Funds - 1.3% | |||
Fidelity Cash Central Fund, 1.13% (b) | |||
(Cost $8,966) | 8,965 | 8,966 | |
TOTAL INVESTMENT IN SECURITIES - 100.2% | |||
(Cost $640,267) | 712,366 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (1,444) | ||
NET ASSETS - 100% | $710,922 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $111 |
Total | $111 |
Investment Valuation
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 Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2017 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $631,301) | $703,400 | |
Fidelity Central Funds (cost $8,966) | 8,966 | |
Total Investment in Securities (cost $640,267) | $712,366 | |
Cash | 1,028 | |
Receivable for investments sold | 223 | |
Dividends receivable | 764 | |
Distributions receivable from Fidelity Central Funds | 15 | |
Total assets | 714,396 | |
Liabilities | ||
Payable for investments purchased | $3,474 | |
Total liabilities | 3,474 | |
Net Assets | $710,922 | |
Net Assets consist of: | ||
Paid in capital | $643,160 | |
Undistributed net investment income | 5,271 | |
Accumulated undistributed net realized gain (loss) on investments | (9,608) | |
Net unrealized appreciation (depreciation) on investments | 72,099 | |
Net Assets, for 63,168 shares outstanding | $710,922 | |
Net Asset Value, offering price and redemption price per share ($710,922 ÷ 63,168 shares) | $11.25 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
For the period March 8, 2017 (commencement of operations) to November 30, 2017 | ||
Investment Income | ||
Dividends | $4,374 | |
Special dividends | 788 | |
Income from Fidelity Central Funds | 111 | |
Total income | 5,273 | |
Expenses | ||
Independent trustees' fees and expenses | $1 | |
Miscellaneous | 1 | |
Total expenses | 2 | |
Net investment income (loss) | 5,271 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (9,608) | |
Total net realized gain (loss) | (9,608) | |
Change in net unrealized appreciation (depreciation) on investment securities | 72,099 | |
Net gain (loss) | 62,491 | |
Net increase (decrease) in net assets resulting from operations | $67,762 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
For the period March 8, 2017 (commencement of operations) to November 30, 2017 | |
Increase (Decrease) in Net Assets | |
Operations | |
Net investment income (loss) | $5,271 |
Net realized gain (loss) | (9,608) |
Change in net unrealized appreciation (depreciation) | 72,099 |
Net increase (decrease) in net assets resulting from operations | 67,762 |
Share transactions | |
Proceeds from sales of shares | 652,377 |
Cost of shares redeemed | (9,217) |
Net increase (decrease) in net assets resulting from share transactions | 643,160 |
Total increase (decrease) in net assets | 710,922 |
Net Assets | |
Beginning of period | – |
End of period | $710,922 |
Other Information | |
Undistributed net investment income end of period | $5,271 |
Shares | |
Sold | 64,021 |
Redeemed | (853) |
Net increase (decrease) | 63,168 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Mid Cap Growth Fund
Years ended November 30, | 2017 A |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .10C |
Net realized and unrealized gain (loss) | 1.15 |
Total from investment operations | 1.25 |
Net asset value, end of period | $11.25 |
Total ReturnD | 12.50% |
Ratios to Average Net AssetsE,F | |
Expenses before reductions | - %G,H |
Expenses net of fee waivers, if any | - %G,H |
Expenses net of all reductions | - %G,H |
Net investment income (loss) | 1.29%C,G |
Supplemental Data | |
Net assets, end of period (000 omitted) | $711 |
Portfolio turnover rateI | 38%G |
A For the period March 8, 2017 (commencement of operations) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this dividend the ratio would have been 1.14%.
D Total returns for periods of less than one year are not annualized.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Annualized
H Amount represents less than .005%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2017
1. Organization.
Fidelity Flex Mid Cap Growth Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund is available only to certain fee-based accounts offered by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $81,404 |
Gross unrealized depreciation | (9,431) |
Net unrealized appreciation (depreciation) | $71,973 |
Tax Cost | $640,393 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $5,271 |
Capital loss carryforward | $(9,482) |
Net unrealized appreciation (depreciation) on securities and other investments | $71,973 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(9,482) |
Total capital loss carryforward | $(9,482) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $799,408 and $150,677, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services and the Fund does not pay any fees for these services. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $37 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. 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, the investment adviser or its affiliates were the owners of record of 79% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Flex Mid Cap Growth 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 Flex Mid Cap Growth Fund (a fund of Fidelity Mt. Vernon Street Trust) as of November 30, 2017, and the results of its operations, the changes in its net assets, and the financial highlights for the period March 8, 2017 (commencement of operations) through November 30, 2017, 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 Flex Mid Cap Growth Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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. Our procedures included confirmation of securities owned as of November 30, 2017 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 17, 2018
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
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) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. Ms. Dorsey serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2008-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including 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 (June 1, 2017 to November 30, 2017).
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2017 | Ending Account Value November 30, 2017 | Expenses Paid During Period-B June 1, 2017 to November 30, 2017 | |
Actual | - %-C | $1,000.00 | $1,092.20 | $- |
Hypothetical-D | $1,000.00 | $1,025.07 | $- |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C Amount represents less than .005%
D 5% return per year before expenses
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
ZDG-ANN-0118
1.9881579.100
Fidelity® Growth Company Fund Annual Report November 30, 2017 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from 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 hypothetical investment and the average annual total 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
For the periods ended November 30, 2017 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Growth Company Fund | 37.34% | 19.53% | 11.32% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Company Fund, a class of the fund, on November 30, 2007.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
See above for additional information regarding the performance of Fidelity® Growth Company Fund.
Period Ending Values | ||
$29,213 | Fidelity® Growth Company Fund | |
$25,523 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 22.87% for the year ending November 30, 2017, rising steadily and closing the period at an all-time high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump’s pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, info tech (+41%) led by a wide margin, surging amid strong earnings growth from several major index constituents. Utilities and financials each gained about 25%, the latter group riding an uptick in bond yields. Conversely, consumer discretionary (+20%) also rose solidly but lagged the broader market, as many brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+16%), while consumer staples (+15%) and telecom (+1%) struggled due to investors’ general preference for risk assets. Lastly, sluggish oil prices pushed energy to a -4% return.Comments from Portfolio Manager Steven Wymer: For the year, the fund’s share classes advanced about 37%, handily outpacing the 30.25% return of the benchmark Russell 3000® Growth Index. Outperformance of the benchmark was driven largely by favorable stock selection in two sectors: information technology and consumer discretionary, which led the market the past 12 months amid investors’ increasing appetite for higher-growth investments. A sizable overweighting in chipmaker Nvidia was by far the fund’s largest individual relative contributor this period. Among other positives, the firm continued to bring on new processors with improved performance and expanded capabilities in applications related to artificial intelligence and machine learning. While positioning in health care proved a drag on our relative result, two names from the pharmaceuticals, biotechnology & life sciences industry ranked among the fund's top contributors: Alnylam Pharmaceuticals and Bluebird Bio. Aside from health care, an overweighting in energy proved the only other notable relative detractor. Among individual stocks, pharma firm Alkermes was the fund's largest relative detractor. Shares declined as the company awaited feedback from the U.S. Food and Drug Administration.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.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
NVIDIA Corp. | 7.1 | 7.8 |
Apple, Inc. | 5.1 | 5.6 |
Amazon.com, Inc. | 4.8 | 4.9 |
Alphabet, Inc. Class A | 3.6 | 3.9 |
Facebook, Inc. Class A | 3.3 | 3.2 |
Salesforce.com, Inc. | 2.9 | 3.0 |
adidas AG | 2.5 | 2.7 |
Microsoft Corp. | 2.3 | 2.1 |
Alphabet, Inc. Class C | 1.9 | 2.1 |
Alnylam Pharmaceuticals, Inc. | 1.6 | 0.8 |
35.1 |
Top Five Market Sectors as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 42.8 | 43.1 |
Consumer Discretionary | 20.6 | 21.6 |
Health Care | 18.7 | 16.8 |
Industrials | 6.2 | 6.5 |
Consumer Staples | 5.1 | 5.8 |
Asset Allocation (% of fund's net assets)
As of November 30, 2017* | ||
Stocks | 97.8% | |
Convertible Securities | 1.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 11.4%
As of May 31, 2017* | ||
Stocks | 97.6% | |
Convertible Securities | 2.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments - 11.4%
Investments November 30, 2017
Showing Percentage of Net Assets
Common Stocks - 97.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 20.4% | |||
Auto Components - 0.0% | |||
Delphi Automotive PLC | 45,200 | $4,731 | |
Automobiles - 1.3% | |||
Tesla, Inc. (a)(b) | 1,749,000 | 540,179 | |
Hotels, Restaurants & Leisure - 2.2% | |||
China Lodging Group Ltd. ADR | 380,000 | 40,550 | |
Chipotle Mexican Grill, Inc. (a) | 109,200 | 33,239 | |
Del Taco Restaurants, Inc. (a) | 747,400 | 9,178 | |
Domino's Pizza, Inc. | 145,586 | 27,102 | |
Dunkin' Brands Group, Inc. | 236,540 | 14,121 | |
Hyatt Hotels Corp. Class A (a) | 156,040 | 11,291 | |
Las Vegas Sands Corp. | 901,900 | 62,493 | |
Marriott International, Inc. Class A | 148,800 | 18,898 | |
McDonald's Corp. | 1,370,700 | 235,719 | |
Papa John's International, Inc. | 586,900 | 34,310 | |
Royal Caribbean Cruises Ltd. | 24,000 | 2,973 | |
Sea Ltd. ADR (b) | 684,600 | 7,941 | |
Shake Shack, Inc. Class A (a)(b) | 647,900 | 26,629 | |
Starbucks Corp. | 3,869,700 | 223,746 | |
U.S. Foods Holding Corp. (a) | 508,200 | 14,799 | |
Wingstop, Inc. (b) | 43,900 | 1,720 | |
Yum China Holdings, Inc. | 1,918,200 | 78,320 | |
Yum! Brands, Inc. | 1,078,000 | 89,981 | |
933,010 | |||
Household Durables - 0.4% | |||
Roku, Inc.: | |||
Class A (b) | 689,200 | 30,256 | |
Class B | 3,579,213 | 141,415 | |
Sony Corp. sponsored ADR | 128,700 | 6,023 | |
177,694 | |||
Internet & Direct Marketing Retail - 7.7% | |||
Amazon.com, Inc. (a) | 1,694,701 | 1,994,239 | |
Blue Apron Holdings, Inc.: | |||
Class A (b) | 1,018,500 | 3,045 | |
Class B | 1,769,256 | 5,026 | |
Class B | 442,313 | 1,323 | |
Boohoo.Com PLC (a) | 797,300 | 1,968 | |
Ctrip.com International Ltd. ADR (a) | 1,239,200 | 57,102 | |
Expedia, Inc. | 688,700 | 84,366 | |
Groupon, Inc. (a) | 8,398,600 | 47,368 | |
JD.com, Inc. sponsored ADR (a) | 5,360,500 | 200,751 | |
Netflix, Inc. (a) | 2,050,700 | 384,670 | |
Priceline Group, Inc. (a) | 110,868 | 192,878 | |
The Honest Co., Inc. (a)(c)(d) | 39,835 | 736 | |
TripAdvisor, Inc. (a) | 109,300 | 3,784 | |
Vipshop Holdings Ltd. ADR (a) | 1,492,100 | 12,280 | |
Wayfair LLC Class A (a)(b) | 3,286,067 | 229,992 | |
3,219,528 | |||
Leisure Products - 0.1% | |||
Callaway Golf Co. | 1,972,200 | 28,617 | |
Media - 1.3% | |||
Comcast Corp. Class A | 9,045,300 | 339,561 | |
Liberty Media Corp. Liberty Formula One Group Series C (a) | 526,400 | 19,161 | |
Lions Gate Entertainment Corp.: | |||
Class A (a)(b) | 99,846 | 3,266 | |
Class B | 99,846 | 3,099 | |
The Walt Disney Co. | 1,550,800 | 162,555 | |
Turn, Inc. (Escrow) (d) | 984,774 | 657 | |
528,299 | |||
Multiline Retail - 0.3% | |||
Dollar General Corp. | 177,100 | 15,599 | |
Dollar Tree, Inc. (a) | 862,900 | 88,672 | |
Target Corp. | 98,189 | 5,882 | |
110,153 | |||
Specialty Retail - 1.3% | |||
CarMax, Inc. (a) | 145,121 | 10,000 | |
DavidsTea, Inc. (a)(b) | 140,100 | 571 | |
Home Depot, Inc. | 2,027,400 | 364,567 | |
L Brands, Inc. | 138,800 | 7,783 | |
Lowe's Companies, Inc. | 487,900 | 40,676 | |
RH (a)(b) | 991,603 | 100,539 | |
TJX Companies, Inc. | 335,500 | 25,347 | |
549,483 | |||
Textiles, Apparel & Luxury Goods - 5.8% | |||
adidas AG | 4,982,387 | 1,038,986 | |
Kering SA | 539,800 | 239,491 | |
lululemon athletica, Inc. (a)(e) | 7,794,478 | 521,918 | |
LVMH Moet Hennessy - Louis Vuitton SA (b) | 173,243 | 50,468 | |
NIKE, Inc. Class B | 2,699,400 | 163,098 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 8,886,510 | 311,917 | |
Tory Burch LLC: | |||
Class A (c)(d)(f) | 950,844 | 45,736 | |
Class B (c)(d)(f) | 324,840 | 16,582 | |
Under Armour, Inc. Class C (non-vtg.) (a)(b) | 176,204 | 2,102 | |
VF Corp. | 415,700 | 30,329 | |
2,420,627 | |||
TOTAL CONSUMER DISCRETIONARY | 8,512,321 | ||
CONSUMER STAPLES - 5.1% | |||
Beverages - 2.2% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 309,800 | 67,409 | |
Dr. Pepper Snapple Group, Inc. | 170,500 | 15,377 | |
Fever-Tree Drinks PLC | 1,199,173 | 31,624 | |
Monster Beverage Corp. (a) | 7,006,618 | 439,105 | |
PepsiCo, Inc. | 977,640 | 113,915 | |
The Coca-Cola Co. | 5,557,800 | 254,381 | |
921,811 | |||
Food & Staples Retailing - 0.6% | |||
Costco Wholesale Corp. | 932,600 | 171,999 | |
Drogasil SA | 2,655,873 | 71,398 | |
Kroger Co. | 210,550 | 5,445 | |
Walgreens Boots Alliance, Inc. | 279,600 | 20,344 | |
269,186 | |||
Food Products - 0.4% | |||
Campbell Soup Co. | 121,400 | 5,985 | |
General Mills, Inc. | 143,100 | 8,094 | |
Kellogg Co. | 103,300 | 6,834 | |
Lamb Weston Holdings, Inc. | 779,800 | 42,398 | |
Mondelez International, Inc. | 592,500 | 25,442 | |
The Hain Celestial Group, Inc. (a) | 333,500 | 13,707 | |
The Hershey Co. | 258,200 | 28,642 | |
The Kraft Heinz Co. | 446,800 | 36,356 | |
167,458 | |||
Household Products - 0.3% | |||
Church & Dwight Co., Inc. | 803,000 | 37,813 | |
Colgate-Palmolive Co. | 419,000 | 30,357 | |
Kimberly-Clark Corp. | 239,400 | 28,671 | |
Procter & Gamble Co. | 200,300 | 18,025 | |
114,866 | |||
Personal Products - 0.7% | |||
Coty, Inc. Class A (b) | 7,741,800 | 133,391 | |
Herbalife Ltd. (a)(b) | 1,514,710 | 106,242 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 1,060,200 | 61,141 | |
300,774 | |||
Tobacco - 0.9% | |||
Altria Group, Inc. | 2,763,280 | 187,433 | |
British American Tobacco PLC sponsored ADR | 821,800 | 52,291 | |
Philip Morris International, Inc. | 1,185,980 | 121,859 | |
361,583 | |||
TOTAL CONSUMER STAPLES | 2,135,678 | ||
ENERGY - 1.4% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, a GE Co. Class A | 1,693,600 | 50,351 | |
Halliburton Co. | 521,300 | 21,780 | |
U.S. Silica Holdings, Inc. (b) | 592,000 | 19,637 | |
91,768 | |||
Oil, Gas & Consumable Fuels - 1.2% | |||
Anadarko Petroleum Corp. | 256,200 | 12,321 | |
Cabot Oil & Gas Corp. | 1,370,300 | 39,670 | |
Concho Resources, Inc. (a) | 420,100 | 58,755 | |
Continental Resources, Inc. (a) | 464,800 | 21,999 | |
Diamondback Energy, Inc. (a) | 409,233 | 44,733 | |
EOG Resources, Inc. | 1,303,200 | 133,343 | |
Hess Corp. | 91,100 | 4,180 | |
Noble Energy, Inc. | 1,007,611 | 26,500 | |
PDC Energy, Inc. (a) | 461,900 | 21,224 | |
Pioneer Natural Resources Co. | 353,607 | 55,177 | |
Reliance Industries Ltd. | 2,867,093 | 40,970 | |
Valero Energy Corp. | 211,900 | 18,143 | |
477,015 | |||
TOTAL ENERGY | 568,783 | ||
FINANCIALS - 2.7% | |||
Banks - 1.1% | |||
Bank of America Corp. | 1,747,800 | 49,236 | |
Citigroup, Inc. | 529,180 | 39,953 | |
HDFC Bank Ltd. sponsored ADR | 1,336,674 | 129,791 | |
JPMorgan Chase & Co. | 1,661,500 | 173,660 | |
Signature Bank (a) | 55,585 | 7,631 | |
Wells Fargo & Co. | 771,200 | 43,550 | |
443,821 | |||
Capital Markets - 1.5% | |||
BlackRock, Inc. Class A | 438,300 | 219,672 | |
BM&F BOVESPA SA | 5,367,297 | 38,105 | |
Charles Schwab Corp. | 6,646,875 | 324,301 | |
E*TRADE Financial Corp. (a) | 307,200 | 14,789 | |
T. Rowe Price Group, Inc. | 58,600 | 6,031 | |
602,898 | |||
Consumer Finance - 0.1% | |||
American Express Co. | 222,248 | 21,716 | |
Discover Financial Services | 122,844 | 8,673 | |
30,389 | |||
Diversified Financial Services - 0.0% | |||
RPI International Holdings LP (a)(c)(d) | 130,847 | 17,864 | |
Insurance - 0.0% | |||
Hiscox Ltd. | 385,700 | 7,224 | |
TOTAL FINANCIALS | 1,102,196 | ||
HEALTH CARE - 17.9% | |||
Biotechnology - 13.5% | |||
AbbVie, Inc. | 1,455,991 | 141,115 | |
ACADIA Pharmaceuticals, Inc. (a)(b)(e) | 7,643,408 | 231,213 | |
Adverum Biotechnologies, Inc. (a) | 203,700 | 621 | |
Agios Pharmaceuticals, Inc. (a)(b) | 1,995,889 | 122,847 | |
Alexion Pharmaceuticals, Inc. (a) | 1,443,260 | 158,484 | |
Alkermes PLC (a)(e) | 9,292,639 | 485,912 | |
Alnylam Pharmaceuticals, Inc. (a)(e) | 4,967,526 | 668,331 | |
Amgen, Inc. | 1,414,600 | 248,489 | |
Array BioPharma, Inc. (a) | 5,648,570 | 63,546 | |
Arsanis, Inc. (a) | 356,200 | 6,013 | |
aTyr Pharma, Inc. (a)(g) | 1,469,144 | 5,730 | |
aTyr Pharma, Inc. (a)(b) | 777,074 | 3,031 | |
BeiGene Ltd. ADR (a)(b) | 1,942,623 | 155,410 | |
Biogen, Inc. (a) | 363,700 | 117,173 | |
Bioverativ, Inc. | 133,850 | 6,695 | |
bluebird bio, Inc. (a)(e) | 2,542,488 | 439,342 | |
Calyxt, Inc. (e) | 1,495,200 | 28,618 | |
Celgene Corp. (a) | 1,123,488 | 113,281 | |
Celldex Therapeutics, Inc. (a)(b) | 1,954,093 | 5,862 | |
Cellectis SA sponsored ADR (a)(b) | 686,011 | 17,102 | |
Chimerix, Inc. (a) | 2,330,057 | 10,415 | |
Coherus BioSciences, Inc. (a) | 2,308,462 | 20,661 | |
CytomX Therapeutics, Inc. (a) | 703,761 | 14,568 | |
CytomX Therapeutics, Inc. (a)(g) | 794,033 | 16,436 | |
Dicerna Pharmaceuticals, Inc. (a) | 56,499 | 479 | |
Editas Medicine, Inc. (a) | 802,082 | 23,156 | |
Exelixis, Inc. (a)(e) | 15,140,367 | 410,001 | |
Fate Therapeutics, Inc. (a)(b) | 1,445,106 | 6,358 | |
Five Prime Therapeutics, Inc. (a) | 1,279,873 | 33,725 | |
Galapagos Genomics NV sponsored ADR (a) | 859,514 | 75,792 | |
Gilead Sciences, Inc. | 1,818,195 | 135,965 | |
Global Blood Therapeutics, Inc. (a) | 1,005,275 | 39,658 | |
Heron Therapeutics, Inc. (a)(b) | 1,677,963 | 29,532 | |
Intellia Therapeutics, Inc. (a)(b) | 877,700 | 19,766 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 181,854 | 11,168 | |
Intrexon Corp. (a)(b) | 479,375 | 6,539 | |
Ionis Pharmaceuticals, Inc. (a)(e) | 7,527,586 | 417,706 | |
Ironwood Pharmaceuticals, Inc. Class A (a)(b) | 5,241,993 | 90,529 | |
Jounce Therapeutics, Inc. (b) | 470,900 | 7,421 | |
Lexicon Pharmaceuticals, Inc. (a)(b)(e) | 6,949,791 | 71,027 | |
Macrogenics, Inc. (a) | 251,500 | 4,859 | |
Merrimack Pharmaceuticals, Inc. (b) | 511,162 | 5,909 | |
Momenta Pharmaceuticals, Inc. (a)(e) | 5,130,358 | 70,799 | |
Protagonist Therapeutics, Inc. (a) | 633,174 | 12,347 | |
Prothena Corp. PLC (a)(b)(e) | 2,153,268 | 100,105 | |
Regeneron Pharmaceuticals, Inc. (a) | 980,618 | 354,846 | |
Regulus Therapeutics, Inc. (a)(b)(e) | 5,354,012 | 4,872 | |
Rigel Pharmaceuticals, Inc. (a)(e) | 10,719,851 | 44,595 | |
Sage Therapeutics, Inc. (a) | 2,065,373 | 190,861 | |
Seattle Genetics, Inc. (a) | 2,055,836 | 125,262 | |
Seres Therapeutics, Inc. (a)(g) | 572,827 | 6,015 | |
Seres Therapeutics, Inc. (a) | 1,154,734 | 12,125 | |
Sienna Biopharmaceuticals, Inc. (b) | 827,877 | 16,690 | |
Sienna Biopharmaceuticals, Inc. | 564,045 | 10,803 | |
Spark Therapeutics, Inc. (a) | 401,700 | 29,416 | |
Syros Pharmaceuticals, Inc. (a) | 730,882 | 10,854 | |
Syros Pharmaceuticals, Inc. (g) | 938,007 | 13,929 | |
TESARO, Inc. (a)(b) | 417,665 | 35,334 | |
Ultragenyx Pharmaceutical, Inc. (a) | 728,700 | 36,792 | |
uniQure B.V. (a) | 302,400 | 4,578 | |
Vertex Pharmaceuticals, Inc. (a) | 313,567 | 45,245 | |
Xencor, Inc. (a) | 943,717 | 20,488 | |
Zai Lab Ltd. ADR (b) | 890,372 | 23,248 | |
5,639,689 | |||
Health Care Equipment & Supplies - 1.7% | |||
Abbott Laboratories | 616,229 | 34,737 | |
Align Technology, Inc. (a) | 131,356 | 34,268 | |
Danaher Corp. | 1,291,600 | 121,875 | |
DexCom, Inc. (a) | 457,700 | 26,743 | |
Genmark Diagnostics, Inc. (a) | 1,493,900 | 6,648 | |
Insulet Corp. (a) | 1,949,100 | 139,809 | |
Intuitive Surgical, Inc. (a) | 380,179 | 151,988 | |
Novocure Ltd. (a)(b) | 1,757,600 | 33,834 | |
Novocure Ltd. (a)(g) | 571,461 | 11,001 | |
Penumbra, Inc. (a) | 1,318,287 | 138,816 | |
Presbia PLC (a)(e) | 1,309,593 | 3,510 | |
703,229 | |||
Health Care Providers & Services - 0.7% | |||
Apollo Hospitals Enterprise Ltd. | 720,000 | 12,351 | |
Humana, Inc. | 61,700 | 16,095 | |
McKesson Corp. | 96,900 | 14,316 | |
National Vision Holdings, Inc. | 173,500 | 5,654 | |
OptiNose, Inc. | 780,212 | 14,894 | |
OptiNose, Inc. | 992,571 | 17,053 | |
UnitedHealth Group, Inc. | 849,200 | 193,762 | |
274,125 | |||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (a) | 674,100 | 89,581 | |
Castlight Health, Inc. Class B (a)(b) | 2,196,794 | 8,567 | |
Cerner Corp. (a) | 226,400 | 16,004 | |
114,152 | |||
Life Sciences Tools & Services - 0.0% | |||
Illumina, Inc. (a) | 52,938 | 12,177 | |
Pharmaceuticals - 1.7% | |||
Adimab LLC (c)(d)(f) | 3,162,765 | 108,356 | |
Akcea Therapeutics, Inc. (b)(e) | 3,713,396 | 70,889 | |
Avexis, Inc. (a)(e) | 1,716,900 | 162,779 | |
Bristol-Myers Squibb Co. | 1,699,600 | 107,398 | |
Castle Creek Pharmaceuticals, LLC Class A-2 unit (a)(c)(d)(f)(h) | 46,864 | 19,375 | |
Endocyte, Inc. (a) | 1,103,415 | 5,528 | |
Intra-Cellular Therapies, Inc. (a)(e) | 3,851,931 | 59,705 | |
Jazz Pharmaceuticals PLC (a) | 392,800 | 54,890 | |
Kolltan Pharmaceuticals, Inc. rights (d) | 7,940,644 | 1,191 | |
Nektar Therapeutics (a) | 226,800 | 12,245 | |
Rhythm Pharmaceuticals, Inc. | 507,600 | 14,507 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 2,065,715 | 6,073 | |
The Medicines Company (a)(b) | 2,355,800 | 68,318 | |
Theravance Biopharma, Inc. (a)(b) | 894,910 | 25,460 | |
716,714 | |||
TOTAL HEALTH CARE | 7,460,086 | ||
INDUSTRIALS - 6.0% | |||
Aerospace & Defense - 1.0% | |||
Lockheed Martin Corp. | 472,800 | 150,880 | |
Northrop Grumman Corp. | 64,621 | 19,864 | |
Space Exploration Technologies Corp. Class A (a)(c)(d) | 418,210 | 56,458 | |
The Boeing Co. | 544,300 | 150,662 | |
United Technologies Corp. | 443,100 | 53,814 | |
431,678 | |||
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 90,500 | 20,947 | |
United Parcel Service, Inc. Class B | 973,200 | 118,195 | |
139,142 | |||
Airlines - 1.7% | |||
Allegiant Travel Co. | 129,300 | 19,654 | |
Azul SA sponsored ADR | 546,800 | 13,757 | |
Delta Air Lines, Inc. | 803,400 | 42,516 | |
InterGlobe Aviation Ltd. (g) | 637,747 | 11,091 | |
JetBlue Airways Corp. (a) | 7,329,523 | 157,365 | |
Ryanair Holdings PLC sponsored ADR (a) | 479,252 | 58,440 | |
Southwest Airlines Co. | 2,488,415 | 150,972 | |
United Continental Holdings, Inc. (a) | 1,083,500 | 68,607 | |
Wheels Up Partners Holdings LLC: | |||
Series B (a)(c)(d)(f) | 6,703,518 | 20,915 | |
Series C (a)(c)(d)(f) | 3,466,281 | 10,815 | |
Wizz Air Holdings PLC (a)(g) | 2,992,973 | 135,355 | |
689,487 | |||
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 65,800 | 4,783 | |
Eaton Corp. PLC | 440,600 | 34,270 | |
Emerson Electric Co. | 396,300 | 25,688 | |
Fortive Corp. | 660,500 | 49,306 | |
114,047 | |||
Industrial Conglomerates - 0.9% | |||
3M Co. | 894,500 | 217,489 | |
Honeywell International, Inc. | 1,085,100 | 169,232 | |
386,721 | |||
Machinery - 1.4% | |||
Aumann AG (g) | 207,300 | 17,042 | |
Caterpillar, Inc. | 2,026,200 | 285,998 | |
Cummins, Inc. | 259,000 | 43,357 | |
Deere & Co. | 521,100 | 78,092 | |
Illinois Tool Works, Inc. | 308,100 | 52,146 | |
Rational AG | 4,075 | 2,666 | |
Wabtec Corp. (b) | 206,500 | 15,880 | |
Xylem, Inc. | 1,033,800 | 71,684 | |
566,865 | |||
Road & Rail - 0.3% | |||
Union Pacific Corp. | 1,147,200 | 145,121 | |
Trading Companies & Distributors - 0.1% | |||
Univar, Inc. (a) | 967,000 | 28,488 | |
TOTAL INDUSTRIALS | 2,501,549 | ||
INFORMATION TECHNOLOGY - 42.2% | |||
Communications Equipment - 0.3% | |||
Arista Networks, Inc. (a) | 102,300 | 23,848 | |
Infinera Corp. (a)(e) | 11,233,428 | 81,330 | |
Palo Alto Networks, Inc. (a) | 72,300 | 10,538 | |
115,716 | |||
Electronic Equipment & Components - 0.2% | |||
Cognex Corp. | 26,455 | 3,666 | |
Dell Technologies, Inc. (a) | 180,900 | 14,154 | |
IPG Photonics Corp. (a) | 21,364 | 4,892 | |
TE Connectivity Ltd. | 108,400 | 10,237 | |
Trimble, Inc. (a) | 1,453,800 | 61,045 | |
93,994 | |||
Internet Software & Services - 12.1% | |||
2U, Inc. (a) | 813,969 | 52,175 | |
Actua Corp. (a)(e) | 2,336,045 | 36,209 | |
Alarm.com Holdings, Inc. (a) | 26,600 | 1,090 | |
Alibaba Group Holding Ltd. sponsored ADR (a) | 1,306,300 | 231,320 | |
Alphabet, Inc.: | |||
Class A (a) | 1,455,578 | 1,508,226 | |
Class C (a) | 791,483 | 808,429 | |
Apptio, Inc. Class A (a) | 1,353,166 | 30,189 | |
Baidu.com, Inc. sponsored ADR (a) | 6,871 | 1,639 | |
CarGurus, Inc. Class A (b) | 67,900 | 2,002 | |
Cloudera, Inc. (g) | 529,285 | 8,379 | |
Criteo SA sponsored ADR (a)(b) | 177,500 | 5,920 | |
Dropbox, Inc. Class B (a)(c)(d) | 1,105,082 | 15,703 | |
eBay, Inc. (a) | 545,200 | 18,902 | |
Etsy, Inc. (a) | 191,500 | 3,152 | |
Facebook, Inc. Class A (a) | 7,864,391 | 1,393,413 | |
GoDaddy, Inc. (a) | 389,200 | 18,935 | |
Match Group, Inc. (a)(b) | 216,200 | 6,356 | |
MongoDB, Inc. Class B | 956,702 | 24,565 | |
NAVER Corp. | 8,760 | 6,442 | |
NetEase, Inc. ADR | 612,500 | 201,335 | |
New Relic, Inc. (a) | 451,379 | 25,404 | |
Nutanix, Inc.: | |||
Class A (a) | 4,196,600 | 137,648 | |
Class B (g) | 1,151,309 | 37,763 | |
Okta, Inc. | 88,700 | 2,591 | |
Shopify, Inc. Class A (a) | 3,489,296 | 365,549 | |
Tencent Holdings Ltd. | 1,144,100 | 58,579 | |
Twitter, Inc. (a) | 410,390 | 8,446 | |
Wix.com Ltd. (a) | 651,000 | 35,740 | |
5,046,101 | |||
IT Services - 3.6% | |||
Cognizant Technology Solutions Corp. Class A | 994,132 | 71,856 | |
IBM Corp. | 241,400 | 37,168 | |
MasterCard, Inc. Class A | 2,399,400 | 361,038 | |
PayPal Holdings, Inc. (a) | 5,265,400 | 398,749 | |
Square, Inc. (a) | 2,971,300 | 116,534 | |
Visa, Inc. Class A | 4,341,705 | 488,833 | |
1,474,178 | |||
Semiconductors & Semiconductor Equipment - 10.2% | |||
Advanced Micro Devices, Inc. (a)(b) | 7,058,300 | 76,865 | |
Applied Materials, Inc. | 406,100 | 21,430 | |
ASML Holding NV | 408,293 | 71,664 | |
Broadcom Ltd. | 595,302 | 165,458 | |
Cavium, Inc. (a) | 2,095,260 | 179,103 | |
Cirrus Logic, Inc. (a) | 1,547,867 | 85,504 | |
Cree, Inc. (a) | 1,078,371 | 38,325 | |
Cypress Semiconductor Corp. | 613,100 | 9,816 | |
Inphi Corp. (a)(b) | 343,000 | 14,087 | |
Intel Corp. | 78,200 | 3,506 | |
KLA-Tencor Corp. | 250,800 | 25,642 | |
Marvell Technology Group Ltd. | 719,800 | 16,080 | |
Micron Technology, Inc. (a) | 1,032,000 | 43,746 | |
NVIDIA Corp. | 14,701,251 | 2,950,687 | |
Qorvo, Inc. (a) | 234,100 | 17,927 | |
Silicon Laboratories, Inc. (a)(e) | 3,281,489 | 298,944 | |
Skyworks Solutions, Inc. | 123,331 | 12,918 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,262,400 | 49,991 | |
Texas Instruments, Inc. | 1,780,700 | 173,244 | |
4,254,937 | |||
Software - 10.3% | |||
Activision Blizzard, Inc. | 8,456,108 | 527,661 | |
Adobe Systems, Inc. (a) | 1,802,336 | 327,070 | |
Appirio, Inc. (Escrow) (d) | 389,363 | 96 | |
Atlassian Corp. PLC (a) | 459,200 | 21,440 | |
Autodesk, Inc. (a) | 873,300 | 95,801 | |
Black Knight, Inc. (a) | 465,700 | 20,910 | |
Electronic Arts, Inc. (a) | 1,859,952 | 197,806 | |
HubSpot, Inc. (a) | 1,793,000 | 145,143 | |
Intuit, Inc. | 497,800 | 78,264 | |
Microsoft Corp. | 11,287,217 | 950,045 | |
Oracle Corp. | 1,031,800 | 50,620 | |
Paylocity Holding Corp. (a) | 175,500 | 8,098 | |
Proofpoint, Inc. (a) | 369,200 | 33,246 | |
Red Hat, Inc. (a) | 3,829,186 | 485,388 | |
SailPoint Technologies Holding, Inc. (a) | 244,600 | 3,596 | |
Salesforce.com, Inc. (a) | 11,721,112 | 1,222,746 | |
Snap, Inc. Class A (a)(b) | 4,003,454 | 55,168 | |
Zendesk, Inc. (a) | 1,843,992 | 61,977 | |
4,285,075 | |||
Technology Hardware, Storage & Peripherals - 5.5% | |||
Apple, Inc. | 12,411,348 | 2,132,890 | |
BlackBerry Ltd. (a) | 2,262,100 | 24,363 | |
NetApp, Inc. | 411,600 | 23,260 | |
Pure Storage, Inc. Class A (a) | 3,431,819 | 63,420 | |
Samsung Electronics Co. Ltd. | 21,904 | 51,146 | |
Western Digital Corp. | 94,113 | 7,422 | |
2,302,501 | |||
TOTAL INFORMATION TECHNOLOGY | 17,572,502 | ||
MATERIALS - 1.4% | |||
Chemicals - 1.4% | |||
CF Industries Holdings, Inc. | 1,386,825 | 51,964 | |
DowDuPont, Inc. | 3,584,579 | 257,946 | |
LG Chemical Ltd. | 24,000 | 9,211 | |
LyondellBasell Industries NV Class A | 130,300 | 13,642 | |
Monsanto Co. | 627,371 | 74,243 | |
Praxair, Inc. | 185,400 | 28,537 | |
The Mosaic Co. | 248,800 | 6,043 | |
The Scotts Miracle-Gro Co. Class A | 1,301,261 | 128,695 | |
570,281 | |||
Containers & Packaging - 0.0% | |||
Aptargroup, Inc. | 53,300 | 4,712 | |
TOTAL MATERIALS | 574,993 | ||
REAL ESTATE - 0.2% | |||
Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
American Tower Corp. | 657,700 | 94,663 | |
Real Estate Management & Development - 0.0% | |||
Redfin Corp. (b) | 69,600 | 1,585 | |
TOTAL REAL ESTATE | 96,248 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.1% | |||
Verizon Communications, Inc. | 990,700 | 50,417 | |
Wireless Telecommunication Services - 0.4% | |||
T-Mobile U.S., Inc. (a) | 2,820,800 | 172,266 | |
TOTAL TELECOMMUNICATION SERVICES | 222,683 | ||
TOTAL COMMON STOCKS | |||
(Cost $18,551,035) | 40,747,039 | ||
Preferred Stocks - 1.9% | |||
Convertible Preferred Stocks - 1.9% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC Series 3 Preferred (a)(c)(d)(f) | 56,343 | 7,862 | |
Topgolf International, Inc. Series F (c)(d) | 819,532 | 11,337 | |
19,199 | |||
Internet & Direct Marketing Retail - 0.0% | |||
The Honest Co., Inc.: | |||
Series C (a)(c)(d) | 92,950 | 2,904 | |
Series D (a)(c)(d) | 69,363 | 2,340 | |
5,244 | |||
Leisure Products - 0.0% | |||
Peloton Interactive, Inc. Series E (c)(d) | 637,482 | 14,745 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Harmony Biosciences II, Inc. Series A (c)(d) | 10,934,380 | 10,934 | |
Homology Medicines, Inc. Series B (c)(d) | 3,750,001 | 5,400 | |
Rubius Therapeutics, Inc. Series B (c)(d) | 1,287,247 | 13,284 | |
29,618 | |||
TOTAL CONSUMER DISCRETIONARY | 68,806 | ||
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Neon Therapeutics, Inc. Series B (c)(d) | 3,188,856 | 8,961 | |
UNITY Biotechnology, Inc. Series B (a)(c)(d) | 2,214,616 | 10,032 | |
18,993 | |||
Insurance - 0.0% | |||
Clover Health Series D (c)(d) | 863,631 | 7,859 | |
TOTAL FINANCIALS | 26,852 | ||
HEALTH CARE - 0.8% | |||
Biotechnology - 0.7% | |||
10X Genomics, Inc. Series C (a)(c)(d) | 2,505,940 | 13,783 | |
23andMe, Inc. Series F (c)(d) | 590,383 | 8,197 | |
Axcella Health, Inc. Series C (a)(c)(d) | 536,592 | 5,409 | |
Immunocore Ltd. Series A (a)(c)(d) | 67,323 | 23,875 | |
Intarcia Therapeutics, Inc.: | |||
Series CC (a)(c)(d) | 1,051,411 | 63,085 | |
Series DD (a)(c)(d) | 1,543,687 | 92,621 | |
Moderna Therapeutics, Inc.: | |||
Series B (c)(d) | 242,837 | 1,751 | |
Series C (c)(d) | 554,903 | 4,001 | |
Series D (a)(c)(d) | 4,688,230 | 33,802 | |
Series E (a)(c)(d) | 5,651,170 | 40,745 | |
Series F (a)(c)(d) | 140,212 | 1,011 | |
Translate Bio: | |||
Series B (a)(c)(d) | 4,408,601 | 12,653 | |
Series C (c)(d) | 1,959,621 | 5,624 | |
306,557 | |||
Health Care Equipment & Supplies - 0.0% | |||
Shockwave Medical, Inc. Series C (c)(d) | 5,413,080 | 5,467 | |
Health Care Providers & Services - 0.0% | |||
Mulberry Health, Inc. Series A8 (a)(c)(d) | 2,790,742 | 17,721 | |
Health Care Technology - 0.1% | |||
Codiak Biosciences, Inc.: | |||
Series A (a)(c)(d) | 589,863 | 2,234 | |
Series B (a)(c)(d) | 1,917,058 | 7,261 | |
Series C 8.00% (c)(d) | 2,688,186 | 10,182 | |
19,677 | |||
TOTAL HEALTH CARE | 349,422 | ||
INDUSTRIALS - 0.2% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series G (a)(c)(d) | 216,276 | 29,197 | |
Commercial Services & Supplies - 0.0% | |||
Domo, Inc. Series D (a)(c)(d) | 2,990,903 | 11,545 | |
Professional Services - 0.1% | |||
YourPeople, Inc. Series C (a)(c)(d) | 5,833,137 | 29,982 | |
TOTAL INDUSTRIALS | 70,724 | ||
INFORMATION TECHNOLOGY - 0.6% | |||
Internet Software & Services - 0.5% | |||
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 7,578,338 | 2,489 | |
Reddit, Inc. Series B (c)(d) | 384,303 | 6,062 | |
Starry, Inc. Series B (c)(d) | 9,869,159 | 9,099 | |
Uber Technologies, Inc.: | |||
Series D, 8.00% (a)(c)(d) | 4,770,180 | 166,575 | |
Series E, 8.00% (a)(c)(d) | 209,216 | 7,306 | |
191,531 | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (a)(c)(d) | 923,523 | 21,380 | |
Software - 0.1% | |||
Appirio, Inc. Series E (Escrow) (d) | 2,725,544 | 693 | |
Cloudflare, Inc. Series D 8.00% (a)(c)(d) | 1,429,726 | 9,079 | |
Dataminr, Inc. Series D (a)(c)(d) | 1,773,901 | 18,466 | |
Outset Medical, Inc. Series C (c)(d) | 1,244,716 | 2,850 | |
Taboola.Com Ltd. Series E (a)(c)(d) | 1,337,420 | 19,767 | |
50,855 | |||
TOTAL INFORMATION TECHNOLOGY | 263,766 | ||
TELECOMMUNICATION SERVICES - 0.0% | |||
Wireless Telecommunication Services - 0.0% | |||
Altiostar Networks, Inc. Series A1 (c)(d) | 699,106 | 3,216 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 782,786 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
FINANCIALS - 0.0% | |||
Banks - 0.0% | |||
Itau Unibanco Holding SA | 1,874,400 | 23,631 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Yumanity Holdings LLC Class A (a)(c)(d) | 464,607 | 5,194 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 28,825 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $601,032) | 811,611 | ||
Money Market Funds - 1.5% | |||
Fidelity Cash Central Fund, 1.13% (i) | 73,959,085 | 73,974 | |
Fidelity Securities Lending Cash Central Fund 1.13% (i)(j) | 555,698,066 | 555,754 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $629,703) | 629,728 | ||
TOTAL INVESTMENT IN SECURITIES - 101.2% | |||
(Cost $19,781,770) | 42,188,378 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (515,763) | ||
NET ASSETS - 100% | $41,672,615 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,099,826,000 or 2.6% of net assets.
(d) Level 3 security
(e) Affiliated company
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $262,741,000 or 0.6% of net assets.
(h) Investment represents common shares and preferred shares.
(i) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(j) Includes investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
10X Genomics, Inc. Series C | 2/23/16 - 4/3/17 | $11,222 |
23andMe, Inc. Series F | 8/31/17 | $8,197 |
Adimab LLC | 9/17/14 - 6/5/15 | $47,869 |
Altiostar Networks, Inc. Series A1 | 1/10/17 | $3,216 |
AppNexus, Inc. Series E | 8/1/14 | $18,500 |
Axcella Health, Inc. Series C | 8/11/17 | $5,409 |
Castle Creek Pharmaceuticals, LLC Class A-2 unit | 9/29/16 | $15,465 |
Cloudflare, Inc. Series D 8.00% | 11/5/14 | $8,758 |
Clover Health Series D | 6/7/17 | $8,099 |
Codiak Biosciences, Inc. Series A | 11/12/15 | $590 |
Codiak Biosciences, Inc. Series B | 11/12/15 | $5,751 |
Codiak Biosciences, Inc. Series C 8.00% | 11/17/17 | $10,182 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $22,617 |
Domo, Inc. Series D | 1/24/14 | $12,362 |
Dropbox, Inc. Class B | 5/2/12 | $10,000 |
Harmony Biosciences II, Inc. Series A | 9/22/17 | $10,934 |
Homology Medicines, Inc. Series B | 7/28/17 | $5,400 |
Immunocore Ltd. Series A | 7/27/15 | $12,669 |
Intarcia Therapeutics, Inc. Series CC | 11/14/12 | $14,331 |
Intarcia Therapeutics, Inc. Series DD | 3/17/14 | $50,000 |
Jet.Com, Inc. Series B1 (Escrow) | 9/19/16 | $2,489 |
MOD Super Fast Pizza Holdings LLC Series 3 Preferred | 11/3/16 | $7,719 |
Moderna Therapeutics, Inc. Series B | 4/13/17 | $1,408 |
Moderna Therapeutics, Inc. Series C | 4/13/17 | $3,224 |
Moderna Therapeutics, Inc. Series D | 11/6/13 | $20,615 |
Moderna Therapeutics, Inc. Series E | 12/18/14 | $24,850 |
Moderna Therapeutics, Inc. Series F | 8/10/16 | $617 |
Mulberry Health, Inc. Series A8 | 1/20/16 | $18,851 |
Neon Therapeutics, Inc. Series B | 12/28/16 | $8,961 |
Outset Medical, Inc. Series C | 4/19/17 | $3,226 |
Peloton Interactive, Inc. Series E | 3/31/17 | $13,809 |
Reddit, Inc. Series B | 7/26/17 | $5,456 |
RPI International Holdings LP | 5/21/15 - 3/23/16 | $16,269 |
Rubius Therapeutics, Inc. Series B | 6/7/17 | $10,800 |
Shockwave Medical, Inc. Series C | 9/27/17 | $5,467 |
Space Exploration Technologies Corp. Class A | 10/16/15 - 4/6/17 | $38,201 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $16,753 |
Starry, Inc. Series B | 12/1/16 | $5,339 |
Taboola.Com Ltd. Series E | 12/22/14 | $13,943 |
The Honest Co., Inc. | 8/21/14 | $1,078 |
The Honest Co., Inc. Series C | 8/21/14 | $2,515 |
The Honest Co., Inc. Series D | 8/3/15 | $3,174 |
Topgolf International, Inc. Series F | 11/10/17 | $11,337 |
Tory Burch LLC Class A | 5/14/15 | $67,653 |
Tory Burch LLC Class B | 12/31/12 | $17,505 |
Translate Bio Series B | 7/17/15 | $4,761 |
Translate Bio Series C | 12/22/16 | $3,880 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $74,000 |
Uber Technologies, Inc. Series E, 8.00% | 12/5/14 | $6,971 |
UNITY Biotechnology, Inc. Series B | 10/14/16 | $9,102 |
Wheels Up Partners Holdings LLC Series B | 9/18/15 | $19,040 |
Wheels Up Partners Holdings LLC Series C | 6/22/17 | $10,815 |
YourPeople, Inc. Series C | 5/1/15 | $86,920 |
Yumanity Holdings LLC Class A | 2/8/16 | $3,140 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $641 |
Fidelity Securities Lending Cash Central Fund | 8,882 |
Total | $9,523 |
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds* | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
ACADIA Pharmaceuticals, Inc. | $79,057 | $-- | $-- | $-- | $-- | $(66,081) | $-- |
ACADIA Pharmaceuticals, Inc. | 108,950 | 42,986 | 20,070 | -- | 11,831 | 74,540 | 231,213 |
Actua Corp. | 43,200 | 744 | 12,828 | -- | (1,934) | 7,027 | 36,209 |
Akcea Therapeutics, Inc. | -- | 59,454 | 2,971 | -- | 2,116 | 12,290 | 70,889 |
Alkermes PLC | 564,496 | 44,452 | 80,618 | -- | 56,241 | (98,659) | 485,912 |
Alnylam Pharmaceuticals, Inc. | 211,633 | 70,869 | 41,776 | -- | 20,460 | 407,145 | 668,331 |
Applied Micro Circuits Corp. | 53,082 | -- | 51,459 | -- | (489) | (1,134) | -- |
Apptio, Inc. | 15,712 | -- | -- | -- | -- | 4,288 | -- |
Apptio, Inc. Class A | 8,213 | 3,730 | 2,318 | -- | (207) | 771 | -- |
aTyr Pharma, Inc. | 1,743 | 2,238 | 752 | -- | (3,606) | 3,408 | -- |
aTyr Pharma, Inc. | 4,554 | -- | -- | -- | -- | 1,176 | -- |
Avexis, Inc. | 55,238 | 75,697 | 12,151 | -- | 4,244 | 39,751 | 162,779 |
bluebird bio, Inc. | 146,921 | 45,530 | 31,431 | -- | 23,351 | 254,971 | 439,342 |
Calyxt, Inc. | -- | 12,774 | 1,199 | -- | 835 | 16,208 | 28,618 |
Chimerix, Inc. | 14,256 | 95 | 3,241 | -- | (9,329) | 8,634 | -- |
Exelixis, Inc. | 308,449 | 3,202 | 67,022 | -- | 41,684 | 123,688 | 410,001 |
HubSpot, Inc. | 100,001 | 19,450 | 15,431 | -- | 4,845 | 36,278 | -- |
Infinera Corp. | 106,776 | 2,985 | 16,363 | -- | (5,711) | (6,357) | 81,330 |
Intra-Cellular Therapies, Inc. | 47,622 | 14,588 | 7,611 | -- | 3,878 | 1,228 | 59,705 |
Ionis Pharmaceuticals, Inc. | 354,387 | 30,180 | 55,159 | -- | 35,989 | 52,309 | 417,706 |
Lexicon Pharmaceuticals, Inc. | 103,734 | 16,578 | 13,727 | -- | 5,811 | (41,369) | 71,027 |
lululemon athletica, Inc. | 512,051 | 9,581 | 83,187 | -- | 56,902 | 26,571 | 521,918 |
Merrimack Pharmaceuticals, Inc. | 41,377 | -- | 5,347 | 6,931 | (14,890) | (15,231) | -- |
Momenta Pharmaceuticals, Inc. | 76,442 | 7,642 | 11,483 | -- | 738 | (2,540) | 70,799 |
Nutanix, Inc. Class A | 30,867 | 77,082 | 9,608 | -- | (1,016) | 40,323 | -- |
Nutanix, Inc. Class B | 33,158 | -- | -- | -- | -- | (17,734) | -- |
NVIDIA Corp. | 2,768,858 | 25,835 | 2,076,932 | 2,233 | 1,820,730 | 431,607 | -- |
Presbia PLC | 5,184 | 938 | 670 | -- | (90) | (1,852) | 3,510 |
Prothena Corp. PLC | 126,623 | 18,551 | 17,049 | -- | 13,413 | (41,433) | 100,105 |
Regulus Therapeutics, Inc. | 7,632 | 2,588 | 876 | -- | (2,181) | (2,291) | 4,872 |
RH | 77,545 | 1,186 | 58,577 | -- | (36,201) | 116,586 | -- |
Rigel Pharmaceuticals, Inc. | 21,349 | 10,553 | 3,946 | -- | 1,098 | 15,541 | 44,595 |
Sage Therapeutics, Inc. | 100,093 | 30,100 | 16,691 | -- | 12,950 | 64,409 | -- |
Silicon Laboratories, Inc. | 215,457 | 37,332 | 33,580 | -- | 11,821 | 67,914 | 298,944 |
Syros Pharmaceuticals, Inc. | -- | -- | -- | -- | -- | 2,863 | -- |
Syros Pharmaceuticals, Inc. | 11,084 | 419 | 1,548 | -- | 142 | 757 | -- |
Syros Pharmaceuticals, Inc. | 12,101 | -- | -- | -- | -- | (1,035) | -- |
Wizz Air Holdings PLC | 64,452 | 11,973 | 11,208 | -- | 2,698 | 67,440 | -- |
Total | $6,432,297 | $679,332 | $2,766,829 | $9,164 | $2,056,123 | $1,582,007 | $4,207,805 |
* Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $8,581,127 | $8,251,701 | $196,909 | $132,517 |
Consumer Staples | 2,135,678 | 2,074,537 | 61,141 | -- |
Energy | 568,783 | 568,783 | -- | -- |
Financials | 1,152,679 | 1,107,963 | -- | 44,716 |
Health Care | 7,814,702 | 7,297,235 | 27,856 | 489,611 |
Industrials | 2,572,273 | 2,413,361 | -- | 158,912 |
Information Technology | 17,836,268 | 17,473,559 | 83,144 | 279,565 |
Materials | 574,993 | 574,993 | -- | -- |
Real Estate | 96,248 | 96,248 | -- | -- |
Telecommunication Services | 225,899 | 222,683 | -- | 3,216 |
Money Market Funds | 629,728 | 629,728 | -- | -- |
Total Investments in Securities: | $42,188,378 | $40,710,791 | $369,050 | $1,108,537 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended November 30, 2017. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total (000s) |
Level 1 to Level 2 | $0 |
Level 2 to Level 1 | $797,730 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Health Care | |
Beginning Balance | $402,671 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | 47,141 |
Cost of Purchases | 39,799 |
Proceeds of Sales | - |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $489,611 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2017 | $47,141 |
Other Investments in Securities | |
Beginning Balance | $736,924 |
Net Realized Gain (Loss) on Investment Securities | (43,260) |
Net Unrealized Gain (Loss) on Investment Securities | (38,329) |
Cost of Purchases | 104,525 |
Proceeds of Sales | (140,934) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $618,926 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2017 | $(72,605) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.6% |
Cayman Islands | 2.8% |
Germany | 2.6% |
Ireland | 1.7% |
Others (Individually Less Than 1%) | 4.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2017 | |
Assets | ||
Investment in securities, at value (including securities loaned of $548,763) — See accompanying schedule: Unaffiliated issuers (cost $16,623,846) | $37,350,845 | |
Fidelity Central Funds (cost $629,703) | 629,728 | |
Other affiliated issuers (cost $2,528,221) | 4,207,805 | |
Total Investment in Securities (cost $19,781,770) | $42,188,378 | |
Cash | 244 | |
Restricted cash | 310 | |
Receivable for investments sold | 55,151 | |
Receivable for fund shares sold | 23,605 | |
Dividends receivable | 33,297 | |
Interest receivable | 2 | |
Distributions receivable from Fidelity Central Funds | 737 | |
Prepaid expenses | 78 | |
Other receivables | 2,210 | |
Total assets | 42,304,012 | |
Liabilities | ||
Payable for investments purchased | $9,845 | |
Payable for fund shares redeemed | 32,562 | |
Accrued management fee | 25,269 | |
Other affiliated payables | 3,734 | |
Other payables and accrued expenses | 4,258 | |
Collateral on securities loaned | 555,729 | |
Total liabilities | 631,397 | |
Net Assets | $41,672,615 | |
Net Assets consist of: | ||
Paid in capital | $17,503,542 | |
Distributions in excess of net investment income | (931) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,765,159 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 22,404,845 | |
Net Assets | $41,672,615 | |
Growth Company: | ||
Net Asset Value, offering price and redemption price per share ($25,256,431 ÷ 136,321 shares) | $185.27 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($16,416,184 ÷ 88,621 shares) | $185.24 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2017 | |
Investment Income | ||
Dividends (including $9,164 earned from other affiliated issuers) | $298,693 | |
Interest | 9 | |
Income from Fidelity Central Funds | 9,523 | |
Total income | 308,225 | |
Expenses | ||
Management fee | ||
Basic fee | $206,855 | |
Performance adjustment | 57,184 | |
Transfer agent fees | 39,877 | |
Accounting and security lending fees | 2,250 | |
Custodian fees and expenses | 723 | |
Independent trustees' fees and expenses | 145 | |
Appreciation in deferred trustee compensation account | 3 | |
Registration fees | 288 | |
Audit | 210 | |
Legal | 97 | |
Interest | 6 | |
Miscellaneous | 315 | |
Total expenses before reductions | 307,953 | |
Expense reductions | (632) | 307,321 |
Net investment income (loss) | 904 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 3,244,302 | |
Fidelity Central Funds | (6) | |
Other affiliated issuers | 2,056,123 | |
Foreign currency transactions | (60) | |
Total net realized gain (loss) | 5,300,359 | |
Change in net unrealized appreciation (depreciation) on: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $1,906) | 5,091,206 | |
Fidelity Central Funds | (49) | |
Other affiliated issuers | 1,582,007 | |
Assets and liabilities in foreign currencies | 184 | |
Total change in net unrealized appreciation (depreciation) | 6,673,348 | |
Net gain (loss) | 11,973,707 | |
Net increase (decrease) in net assets resulting from operations | $11,974,611 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2017 | Year ended November 30, 2016 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $904 | $41,597 |
Net realized gain (loss) | 5,300,359 | 4,411,523 |
Change in net unrealized appreciation (depreciation) | 6,673,348 | (3,344,102) |
Net increase (decrease) in net assets resulting from operations | 11,974,611 | 1,109,018 |
Distributions to shareholders from net investment income | (37,300) | (13,792) |
Distributions to shareholders from net realized gain | (2,014,292) | (1,582,394) |
Total distributions | (2,051,592) | (1,596,186) |
Share transactions - net increase (decrease) | (4,103,390) | (4,759,956) |
Total increase (decrease) in net assets | 5,819,629 | (5,247,124) |
Net Assets | ||
Beginning of period | 35,852,986 | 41,100,110 |
End of period | $41,672,615 | $35,852,986 |
Other Information | ||
Undistributed net investment income end of period | $– | $35,263 |
Distributions in excess of net investment income end of period | $(931) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Company Fund
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $142.76 | $143.47 | $136.46 | $124.69 | $95.80 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.06) | .09 | (.01) | .15 | .29 |
Net realized and unrealized gain (loss) | 50.73 | 4.71 | 11.72 | 20.49 | 31.23 |
Total from investment operations | 50.67 | 4.80 | 11.71 | 20.64 | 31.52 |
Distributions from net investment income | (.09) | – | (.13) | (.21) | (.19) |
Distributions from net realized gain | (8.07) | (5.51) | (4.57) | (8.67) | (2.44) |
Total distributions | (8.16) | (5.51) | (4.70) | (8.87)B | (2.63) |
Net asset value, end of period | $185.27 | $142.76 | $143.47 | $136.46 | $124.69 |
Total ReturnC | 37.34% | 3.48% | 8.90% | 17.80% | 33.85% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .85% | .77% | .88% | .82% | .83% |
Expenses net of fee waivers, if any | .85% | .77% | .87% | .82% | .83% |
Expenses net of all reductions | .85% | .77% | .87% | .82% | .83% |
Net investment income (loss) | (.04)% | .07% | (.01)% | .12% | .27% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $25,256 | $21,114 | $23,513 | $24,165 | $22,936 |
Portfolio turnover rateF | 15%G | 19%G | 18%G | 12%G | 26% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $8.87 per share is comprised of distributions from net investment income of $.207 and distributions from net realized gain of $8.666 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Company Fund Class K
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $142.74 | $143.42 | $136.41 | $124.68 | $95.82 |
Income from Investment Operations | |||||
Net investment income (loss)A | .10 | .23 | .12 | .29 | .42 |
Net realized and unrealized gain (loss) | 50.70 | 4.71 | 11.72 | 20.48 | 31.21 |
Total from investment operations | 50.80 | 4.94 | 11.84 | 20.77 | 31.63 |
Distributions from net investment income | (.23) | (.11) | (.26) | (.37) | (.34) |
Distributions from net realized gain | (8.07) | (5.51) | (4.57) | (8.67) | (2.44) |
Total distributions | (8.30) | (5.62) | (4.83) | (9.04) | (2.77)B |
Net asset value, end of period | $185.24 | $142.74 | $143.42 | $136.41 | $124.68 |
Total ReturnC | 37.47% | 3.59% | 9.01% | 17.93% | 34.02% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .75% | .66% | .77% | .71% | .71% |
Expenses net of fee waivers, if any | .75% | .66% | .77% | .71% | .71% |
Expenses net of all reductions | .75% | .66% | .77% | .71% | .71% |
Net investment income (loss) | .06% | .17% | .09% | .24% | .39% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $16,416 | $14,739 | $17,587 | $18,242 | $21,951 |
Portfolio turnover rateF | 15%G | 19%G | 18%G | 12%G | 26% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $2.77 per share is comprised of distributions from net investment income of $.336 and distributions from net realized gain of $2.438 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2017
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Company Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth Company and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $1,108,537 | Recovery value | Recovery value | 0.2% - 0.7% / 0.4% | Increase |
Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA) | 8.3 | Increase | ||
Enterprise value/Sales multiple (EV/S) | 0.7 – 9.2 / 4.5 | Increase | |||
Transaction price | $1.00 - $330.00 / $56.81 | Increase | |||
Enterprise value/Gross profit (EV/GP) | 5.0 | Increase | |||
Discount rate | 8.0% - 69.1% / 27.2% | Decrease | |||
Enterprise value/Revenue multiple (EV/R) | 3.8 | Increase | |||
Discount for lack of marketability | 15.0% - 20.0% / 15.7% | Decrease | |||
Liquidity preference | $4.13 - $73.71 / $43.58 | Increase | |||
Premium rate | 15.0% - 40.0% / 28.7% | Increase | |||
Proxy premium | 22.5% - 76.0% / 31.3% | Increase | |||
Market approach | Transaction price | $0.92 - $139.53 / $52.62 | Increase | ||
Liquidity preference | $16.35 - $45.76 / $36.41 | Increase | |||
Discount cash flow | Discount rate | 8.0% - 12.2% / 10.8% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Probability rate | 6.3% - 68.9% / 7.0% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2017, including information on transfers between Levels 1 and 2, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and includes proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), redemptions in kind, partnerships, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $23,376,943 |
Gross unrealized depreciation | (1,103,262) |
Net unrealized appreciation (depreciation) | $22,273,681 |
Tax Cost | $19,914,697 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $1,243 |
Undistributed long-term capital gain | $1,898,086 |
Net unrealized appreciation (depreciation) on securities and other investments | $22,273,823 |
The tax character of distributions paid was as follows:
November 30, 2017 | November 30, 2016 | |
Ordinary Income | $37,300 | $ 13,792 |
Long-term Capital Gains | 2,014,292 | 1,582,394 |
Total | $2,051,592 | $ 1,596,186 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $229,951 in these Subsidiaries, representing .55% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $5,803,569 and $6,734,628, respectively.
Redemptions In-Kind. During the period, 34,649 shares of the Fund held by unaffiliated entities were redeemed in-kind for investments and cash with a value of $5,209,289. The net realized gain of $3,322,910 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 26,809 shares of the Fund held by unaffiliated entities were redeemed in-kind for investments and cash with a value of $3,667,395. The Fund had a net realized gain of $2,216,038 on investments delivered through the in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Company as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .69% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth Company. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Growth Company | $32,632 | .14 |
Class K | 7,245 | .05 |
$39,877 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $203 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $21,355 | .90% | $6 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $118 and is reflected in Miscellaneous expenses on the Statement of Operations.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $56,269. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $8,882, including $949 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $294 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $11.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $327.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2017 | Year ended November 30, 2016 | |
From net investment income | ||
Growth Company | $13,724 | $– |
Class K | 23,576 | 13,792 |
Total | $37,300 | $13,792 |
From net realized gain | ||
Growth Company | $1,190,770 | $904,788 |
Class K | 823,522 | 677,606 |
Total | $2,014,292 | $1,582,394 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2017 | Year ended November 30, 2016 | Year ended November 30, 2017 | Year ended November 30, 2016 | |
Growth Company | ||||
Shares sold | 17,127 | 17,124 | $2,740,883 | $2,254,562 |
Reinvestment of distributions | 8,092 | 6,196 | 1,134,062 | 857,904 |
Shares redeemed | (36,791)(a) | (39,316)(b) | (5,635,831)(a) | (5,283,210)(b) |
Net increase (decrease) | (11,572) | (15,996) | $(1,760,886) | $(2,170,744) |
Class K | ||||
Shares sold | 19,521 | 18,989 | $3,093,032 | $2,493,477 |
Reinvestment of distributions | 6,051 | 5,003 | 847,098 | 691,398 |
Shares redeemed | (40,209)(a) | (43,361)(b) | (6,282,634)(a) | (5,774,087)(b) |
Net increase (decrease) | (14,637) | (19,369) | $(2,342,504) | $(2,589,212) |
(a) Amount includes in-kind redemptions (see the Redemptions In-Kind note for additional details).
(b) Amount includes in-kind redemptions (see the prior Redemptions In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Company Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Growth Company Fund (the Fund), a fund of Fidelity Mt. Vernon Street Trust, including the schedule of investments, as of November 30, 2017, and the related statement of operations for the year then ended, the statement 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 Fund's 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 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 and financial highlights are free of material misstatement. The Fund is 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 November 30, 2017, by correspondence with the custodians and brokers; when 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, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Growth Company Fund as of November 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 22, 2018
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
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) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. Ms. Dorsey serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2008-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of a 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 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 (June 1, 2017 to November 30, 2017).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2017 | Ending Account Value November 30, 2017 | Expenses Paid During Period-B June 1, 2017 to November 30, 2017 | |
Growth Company | .89% | |||
Actual | $1,000.00 | $1,147.40 | $4.79 | |
Hypothetical-C | $1,000.00 | $1,020.61 | $4.51 | |
Class K | .80% | |||
Actual | $1,000.00 | $1,148.00 | $4.31 | |
Hypothetical-C | $1,000.00 | $1,021.06 | $4.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Growth Company Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Growth Company Fund | ||||
Growth Company | 12/27/17 | 12/26/17 | $0.000 | $8.455 |
Class K | 12/27/17 | 12/26/17 | $0.016 | $8.455 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2017, $1,972,502,271, or, if subsequently determined to be different, the net capital gain of such year.
Growth Company and Class K designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Growth Company and Class K designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Growth Company Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers 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 various standing committees (Committees), each composed of and chaired by 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 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board 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 expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board 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 was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, 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, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, 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 supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; 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.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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.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, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.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 and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Growth Company Fund
Fidelity Growth Company Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
GCF-ANN-0118
1.539089.120
Fidelity® Growth Company Fund Class K Annual Report November 30, 2017 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from 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 hypothetical investment and the average annual total 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
For the periods ended November 30, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class K | 37.47% | 19.66% | 11.46% |
The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are those of Fidelity® Growth Company Fund, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Company Fund - Class K on November 30, 2007.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
See above for additional information regarding the performance of Class K.
Period Ending Values | ||
$29,596 | Fidelity® Growth Company Fund - Class K | |
$25,523 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 22.87% for the year ending November 30, 2017, rising steadily and closing the period at an all-time high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump’s pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, info tech (+41%) led by a wide margin, surging amid strong earnings growth from several major index constituents. Utilities and financials each gained about 25%, the latter group riding an uptick in bond yields. Conversely, consumer discretionary (+20%) also rose solidly but lagged the broader market, as many brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+16%), while consumer staples (+15%) and telecom (+1%) struggled due to investors’ general preference for risk assets. Lastly, sluggish oil prices pushed energy to a -4% return.Comments from Portfolio Manager Steven Wymer: For the year, the fund’s share classes advanced about 37%, handily outpacing the 30.25% return of the benchmark Russell 3000® Growth Index. Outperformance of the benchmark was driven largely by favorable stock selection in two sectors: information technology and consumer discretionary, which led the market the past 12 months amid investors’ increasing appetite for higher-growth investments. A sizable overweighting in chipmaker Nvidia was by far the fund’s largest individual relative contributor this period. Among other positives, the firm continued to bring on new processors with improved performance and expanded capabilities in applications related to artificial intelligence and machine learning. While positioning in health care proved a drag on our relative result, two names from the pharmaceuticals, biotechnology & life sciences industry ranked among the fund's top contributors: Alnylam Pharmaceuticals and Bluebird Bio. Aside from health care, an overweighting in energy proved the only other notable relative detractor. Among individual stocks, pharma firm Alkermes was the fund's largest relative detractor. Shares declined as the company awaited feedback from the U.S. Food and Drug Administration.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.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
NVIDIA Corp. | 7.1 | 7.8 |
Apple, Inc. | 5.1 | 5.6 |
Amazon.com, Inc. | 4.8 | 4.9 |
Alphabet, Inc. Class A | 3.6 | 3.9 |
Facebook, Inc. Class A | 3.3 | 3.2 |
Salesforce.com, Inc. | 2.9 | 3.0 |
adidas AG | 2.5 | 2.7 |
Microsoft Corp. | 2.3 | 2.1 |
Alphabet, Inc. Class C | 1.9 | 2.1 |
Alnylam Pharmaceuticals, Inc. | 1.6 | 0.8 |
35.1 |
Top Five Market Sectors as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 42.8 | 43.1 |
Consumer Discretionary | 20.6 | 21.6 |
Health Care | 18.7 | 16.8 |
Industrials | 6.2 | 6.5 |
Consumer Staples | 5.1 | 5.8 |
Asset Allocation (% of fund's net assets)
As of November 30, 2017* | ||
Stocks | 97.8% | |
Convertible Securities | 1.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 11.4%
As of May 31, 2017* | ||
Stocks | 97.6% | |
Convertible Securities | 2.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments - 11.4%
Investments November 30, 2017
Showing Percentage of Net Assets
Common Stocks - 97.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 20.4% | |||
Auto Components - 0.0% | |||
Delphi Automotive PLC | 45,200 | $4,731 | |
Automobiles - 1.3% | |||
Tesla, Inc. (a)(b) | 1,749,000 | 540,179 | |
Hotels, Restaurants & Leisure - 2.2% | |||
China Lodging Group Ltd. ADR | 380,000 | 40,550 | |
Chipotle Mexican Grill, Inc. (a) | 109,200 | 33,239 | |
Del Taco Restaurants, Inc. (a) | 747,400 | 9,178 | |
Domino's Pizza, Inc. | 145,586 | 27,102 | |
Dunkin' Brands Group, Inc. | 236,540 | 14,121 | |
Hyatt Hotels Corp. Class A (a) | 156,040 | 11,291 | |
Las Vegas Sands Corp. | 901,900 | 62,493 | |
Marriott International, Inc. Class A | 148,800 | 18,898 | |
McDonald's Corp. | 1,370,700 | 235,719 | |
Papa John's International, Inc. | 586,900 | 34,310 | |
Royal Caribbean Cruises Ltd. | 24,000 | 2,973 | |
Sea Ltd. ADR (b) | 684,600 | 7,941 | |
Shake Shack, Inc. Class A (a)(b) | 647,900 | 26,629 | |
Starbucks Corp. | 3,869,700 | 223,746 | |
U.S. Foods Holding Corp. (a) | 508,200 | 14,799 | |
Wingstop, Inc. (b) | 43,900 | 1,720 | |
Yum China Holdings, Inc. | 1,918,200 | 78,320 | |
Yum! Brands, Inc. | 1,078,000 | 89,981 | |
933,010 | |||
Household Durables - 0.4% | |||
Roku, Inc.: | |||
Class A (b) | 689,200 | 30,256 | |
Class B | 3,579,213 | 141,415 | |
Sony Corp. sponsored ADR | 128,700 | 6,023 | |
177,694 | |||
Internet & Direct Marketing Retail - 7.7% | |||
Amazon.com, Inc. (a) | 1,694,701 | 1,994,239 | |
Blue Apron Holdings, Inc.: | |||
Class A (b) | 1,018,500 | 3,045 | |
Class B | 1,769,256 | 5,026 | |
Class B | 442,313 | 1,323 | |
Boohoo.Com PLC (a) | 797,300 | 1,968 | |
Ctrip.com International Ltd. ADR (a) | 1,239,200 | 57,102 | |
Expedia, Inc. | 688,700 | 84,366 | |
Groupon, Inc. (a) | 8,398,600 | 47,368 | |
JD.com, Inc. sponsored ADR (a) | 5,360,500 | 200,751 | |
Netflix, Inc. (a) | 2,050,700 | 384,670 | |
Priceline Group, Inc. (a) | 110,868 | 192,878 | |
The Honest Co., Inc. (a)(c)(d) | 39,835 | 736 | |
TripAdvisor, Inc. (a) | 109,300 | 3,784 | |
Vipshop Holdings Ltd. ADR (a) | 1,492,100 | 12,280 | |
Wayfair LLC Class A (a)(b) | 3,286,067 | 229,992 | |
3,219,528 | |||
Leisure Products - 0.1% | |||
Callaway Golf Co. | 1,972,200 | 28,617 | |
Media - 1.3% | |||
Comcast Corp. Class A | 9,045,300 | 339,561 | |
Liberty Media Corp. Liberty Formula One Group Series C (a) | 526,400 | 19,161 | |
Lions Gate Entertainment Corp.: | |||
Class A (a)(b) | 99,846 | 3,266 | |
Class B | 99,846 | 3,099 | |
The Walt Disney Co. | 1,550,800 | 162,555 | |
Turn, Inc. (Escrow) (d) | 984,774 | 657 | |
528,299 | |||
Multiline Retail - 0.3% | |||
Dollar General Corp. | 177,100 | 15,599 | |
Dollar Tree, Inc. (a) | 862,900 | 88,672 | |
Target Corp. | 98,189 | 5,882 | |
110,153 | |||
Specialty Retail - 1.3% | |||
CarMax, Inc. (a) | 145,121 | 10,000 | |
DavidsTea, Inc. (a)(b) | 140,100 | 571 | |
Home Depot, Inc. | 2,027,400 | 364,567 | |
L Brands, Inc. | 138,800 | 7,783 | |
Lowe's Companies, Inc. | 487,900 | 40,676 | |
RH (a)(b) | 991,603 | 100,539 | |
TJX Companies, Inc. | 335,500 | 25,347 | |
549,483 | |||
Textiles, Apparel & Luxury Goods - 5.8% | |||
adidas AG | 4,982,387 | 1,038,986 | |
Kering SA | 539,800 | 239,491 | |
lululemon athletica, Inc. (a)(e) | 7,794,478 | 521,918 | |
LVMH Moet Hennessy - Louis Vuitton SA (b) | 173,243 | 50,468 | |
NIKE, Inc. Class B | 2,699,400 | 163,098 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 8,886,510 | 311,917 | |
Tory Burch LLC: | |||
Class A (c)(d)(f) | 950,844 | 45,736 | |
Class B (c)(d)(f) | 324,840 | 16,582 | |
Under Armour, Inc. Class C (non-vtg.) (a)(b) | 176,204 | 2,102 | |
VF Corp. | 415,700 | 30,329 | |
2,420,627 | |||
TOTAL CONSUMER DISCRETIONARY | 8,512,321 | ||
CONSUMER STAPLES - 5.1% | |||
Beverages - 2.2% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 309,800 | 67,409 | |
Dr. Pepper Snapple Group, Inc. | 170,500 | 15,377 | |
Fever-Tree Drinks PLC | 1,199,173 | 31,624 | |
Monster Beverage Corp. (a) | 7,006,618 | 439,105 | |
PepsiCo, Inc. | 977,640 | 113,915 | |
The Coca-Cola Co. | 5,557,800 | 254,381 | |
921,811 | |||
Food & Staples Retailing - 0.6% | |||
Costco Wholesale Corp. | 932,600 | 171,999 | |
Drogasil SA | 2,655,873 | 71,398 | |
Kroger Co. | 210,550 | 5,445 | |
Walgreens Boots Alliance, Inc. | 279,600 | 20,344 | |
269,186 | |||
Food Products - 0.4% | |||
Campbell Soup Co. | 121,400 | 5,985 | |
General Mills, Inc. | 143,100 | 8,094 | |
Kellogg Co. | 103,300 | 6,834 | |
Lamb Weston Holdings, Inc. | 779,800 | 42,398 | |
Mondelez International, Inc. | 592,500 | 25,442 | |
The Hain Celestial Group, Inc. (a) | 333,500 | 13,707 | |
The Hershey Co. | 258,200 | 28,642 | |
The Kraft Heinz Co. | 446,800 | 36,356 | |
167,458 | |||
Household Products - 0.3% | |||
Church & Dwight Co., Inc. | 803,000 | 37,813 | |
Colgate-Palmolive Co. | 419,000 | 30,357 | |
Kimberly-Clark Corp. | 239,400 | 28,671 | |
Procter & Gamble Co. | 200,300 | 18,025 | |
114,866 | |||
Personal Products - 0.7% | |||
Coty, Inc. Class A (b) | 7,741,800 | 133,391 | |
Herbalife Ltd. (a)(b) | 1,514,710 | 106,242 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 1,060,200 | 61,141 | |
300,774 | |||
Tobacco - 0.9% | |||
Altria Group, Inc. | 2,763,280 | 187,433 | |
British American Tobacco PLC sponsored ADR | 821,800 | 52,291 | |
Philip Morris International, Inc. | 1,185,980 | 121,859 | |
361,583 | |||
TOTAL CONSUMER STAPLES | 2,135,678 | ||
ENERGY - 1.4% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, a GE Co. Class A | 1,693,600 | 50,351 | |
Halliburton Co. | 521,300 | 21,780 | |
U.S. Silica Holdings, Inc. (b) | 592,000 | 19,637 | |
91,768 | |||
Oil, Gas & Consumable Fuels - 1.2% | |||
Anadarko Petroleum Corp. | 256,200 | 12,321 | |
Cabot Oil & Gas Corp. | 1,370,300 | 39,670 | |
Concho Resources, Inc. (a) | 420,100 | 58,755 | |
Continental Resources, Inc. (a) | 464,800 | 21,999 | |
Diamondback Energy, Inc. (a) | 409,233 | 44,733 | |
EOG Resources, Inc. | 1,303,200 | 133,343 | |
Hess Corp. | 91,100 | 4,180 | |
Noble Energy, Inc. | 1,007,611 | 26,500 | |
PDC Energy, Inc. (a) | 461,900 | 21,224 | |
Pioneer Natural Resources Co. | 353,607 | 55,177 | |
Reliance Industries Ltd. | 2,867,093 | 40,970 | |
Valero Energy Corp. | 211,900 | 18,143 | |
477,015 | |||
TOTAL ENERGY | 568,783 | ||
FINANCIALS - 2.7% | |||
Banks - 1.1% | |||
Bank of America Corp. | 1,747,800 | 49,236 | |
Citigroup, Inc. | 529,180 | 39,953 | |
HDFC Bank Ltd. sponsored ADR | 1,336,674 | 129,791 | |
JPMorgan Chase & Co. | 1,661,500 | 173,660 | |
Signature Bank (a) | 55,585 | 7,631 | |
Wells Fargo & Co. | 771,200 | 43,550 | |
443,821 | |||
Capital Markets - 1.5% | |||
BlackRock, Inc. Class A | 438,300 | 219,672 | |
BM&F BOVESPA SA | 5,367,297 | 38,105 | |
Charles Schwab Corp. | 6,646,875 | 324,301 | |
E*TRADE Financial Corp. (a) | 307,200 | 14,789 | |
T. Rowe Price Group, Inc. | 58,600 | 6,031 | |
602,898 | |||
Consumer Finance - 0.1% | |||
American Express Co. | 222,248 | 21,716 | |
Discover Financial Services | 122,844 | 8,673 | |
30,389 | |||
Diversified Financial Services - 0.0% | |||
RPI International Holdings LP (a)(c)(d) | 130,847 | 17,864 | |
Insurance - 0.0% | |||
Hiscox Ltd. | 385,700 | 7,224 | |
TOTAL FINANCIALS | 1,102,196 | ||
HEALTH CARE - 17.9% | |||
Biotechnology - 13.5% | |||
AbbVie, Inc. | 1,455,991 | 141,115 | |
ACADIA Pharmaceuticals, Inc. (a)(b)(e) | 7,643,408 | 231,213 | |
Adverum Biotechnologies, Inc. (a) | 203,700 | 621 | |
Agios Pharmaceuticals, Inc. (a)(b) | 1,995,889 | 122,847 | |
Alexion Pharmaceuticals, Inc. (a) | 1,443,260 | 158,484 | |
Alkermes PLC (a)(e) | 9,292,639 | 485,912 | |
Alnylam Pharmaceuticals, Inc. (a)(e) | 4,967,526 | 668,331 | |
Amgen, Inc. | 1,414,600 | 248,489 | |
Array BioPharma, Inc. (a) | 5,648,570 | 63,546 | |
Arsanis, Inc. (a) | 356,200 | 6,013 | |
aTyr Pharma, Inc. (a)(g) | 1,469,144 | 5,730 | |
aTyr Pharma, Inc. (a)(b) | 777,074 | 3,031 | |
BeiGene Ltd. ADR (a)(b) | 1,942,623 | 155,410 | |
Biogen, Inc. (a) | 363,700 | 117,173 | |
Bioverativ, Inc. | 133,850 | 6,695 | |
bluebird bio, Inc. (a)(e) | 2,542,488 | 439,342 | |
Calyxt, Inc. (e) | 1,495,200 | 28,618 | |
Celgene Corp. (a) | 1,123,488 | 113,281 | |
Celldex Therapeutics, Inc. (a)(b) | 1,954,093 | 5,862 | |
Cellectis SA sponsored ADR (a)(b) | 686,011 | 17,102 | |
Chimerix, Inc. (a) | 2,330,057 | 10,415 | |
Coherus BioSciences, Inc. (a) | 2,308,462 | 20,661 | |
CytomX Therapeutics, Inc. (a) | 703,761 | 14,568 | |
CytomX Therapeutics, Inc. (a)(g) | 794,033 | 16,436 | |
Dicerna Pharmaceuticals, Inc. (a) | 56,499 | 479 | |
Editas Medicine, Inc. (a) | 802,082 | 23,156 | |
Exelixis, Inc. (a)(e) | 15,140,367 | 410,001 | |
Fate Therapeutics, Inc. (a)(b) | 1,445,106 | 6,358 | |
Five Prime Therapeutics, Inc. (a) | 1,279,873 | 33,725 | |
Galapagos Genomics NV sponsored ADR (a) | 859,514 | 75,792 | |
Gilead Sciences, Inc. | 1,818,195 | 135,965 | |
Global Blood Therapeutics, Inc. (a) | 1,005,275 | 39,658 | |
Heron Therapeutics, Inc. (a)(b) | 1,677,963 | 29,532 | |
Intellia Therapeutics, Inc. (a)(b) | 877,700 | 19,766 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 181,854 | 11,168 | |
Intrexon Corp. (a)(b) | 479,375 | 6,539 | |
Ionis Pharmaceuticals, Inc. (a)(e) | 7,527,586 | 417,706 | |
Ironwood Pharmaceuticals, Inc. Class A (a)(b) | 5,241,993 | 90,529 | |
Jounce Therapeutics, Inc. (b) | 470,900 | 7,421 | |
Lexicon Pharmaceuticals, Inc. (a)(b)(e) | 6,949,791 | 71,027 | |
Macrogenics, Inc. (a) | 251,500 | 4,859 | |
Merrimack Pharmaceuticals, Inc. (b) | 511,162 | 5,909 | |
Momenta Pharmaceuticals, Inc. (a)(e) | 5,130,358 | 70,799 | |
Protagonist Therapeutics, Inc. (a) | 633,174 | 12,347 | |
Prothena Corp. PLC (a)(b)(e) | 2,153,268 | 100,105 | |
Regeneron Pharmaceuticals, Inc. (a) | 980,618 | 354,846 | |
Regulus Therapeutics, Inc. (a)(b)(e) | 5,354,012 | 4,872 | |
Rigel Pharmaceuticals, Inc. (a)(e) | 10,719,851 | 44,595 | |
Sage Therapeutics, Inc. (a) | 2,065,373 | 190,861 | |
Seattle Genetics, Inc. (a) | 2,055,836 | 125,262 | |
Seres Therapeutics, Inc. (a)(g) | 572,827 | 6,015 | |
Seres Therapeutics, Inc. (a) | 1,154,734 | 12,125 | |
Sienna Biopharmaceuticals, Inc. (b) | 827,877 | 16,690 | |
Sienna Biopharmaceuticals, Inc. | 564,045 | 10,803 | |
Spark Therapeutics, Inc. (a) | 401,700 | 29,416 | |
Syros Pharmaceuticals, Inc. (a) | 730,882 | 10,854 | |
Syros Pharmaceuticals, Inc. (g) | 938,007 | 13,929 | |
TESARO, Inc. (a)(b) | 417,665 | 35,334 | |
Ultragenyx Pharmaceutical, Inc. (a) | 728,700 | 36,792 | |
uniQure B.V. (a) | 302,400 | 4,578 | |
Vertex Pharmaceuticals, Inc. (a) | 313,567 | 45,245 | |
Xencor, Inc. (a) | 943,717 | 20,488 | |
Zai Lab Ltd. ADR (b) | 890,372 | 23,248 | |
5,639,689 | |||
Health Care Equipment & Supplies - 1.7% | |||
Abbott Laboratories | 616,229 | 34,737 | |
Align Technology, Inc. (a) | 131,356 | 34,268 | |
Danaher Corp. | 1,291,600 | 121,875 | |
DexCom, Inc. (a) | 457,700 | 26,743 | |
Genmark Diagnostics, Inc. (a) | 1,493,900 | 6,648 | |
Insulet Corp. (a) | 1,949,100 | 139,809 | |
Intuitive Surgical, Inc. (a) | 380,179 | 151,988 | |
Novocure Ltd. (a)(b) | 1,757,600 | 33,834 | |
Novocure Ltd. (a)(g) | 571,461 | 11,001 | |
Penumbra, Inc. (a) | 1,318,287 | 138,816 | |
Presbia PLC (a)(e) | 1,309,593 | 3,510 | |
703,229 | |||
Health Care Providers & Services - 0.7% | |||
Apollo Hospitals Enterprise Ltd. | 720,000 | 12,351 | |
Humana, Inc. | 61,700 | 16,095 | |
McKesson Corp. | 96,900 | 14,316 | |
National Vision Holdings, Inc. | 173,500 | 5,654 | |
OptiNose, Inc. | 780,212 | 14,894 | |
OptiNose, Inc. | 992,571 | 17,053 | |
UnitedHealth Group, Inc. | 849,200 | 193,762 | |
274,125 | |||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (a) | 674,100 | 89,581 | |
Castlight Health, Inc. Class B (a)(b) | 2,196,794 | 8,567 | |
Cerner Corp. (a) | 226,400 | 16,004 | |
114,152 | |||
Life Sciences Tools & Services - 0.0% | |||
Illumina, Inc. (a) | 52,938 | 12,177 | |
Pharmaceuticals - 1.7% | |||
Adimab LLC (c)(d)(f) | 3,162,765 | 108,356 | |
Akcea Therapeutics, Inc. (b)(e) | 3,713,396 | 70,889 | |
Avexis, Inc. (a)(e) | 1,716,900 | 162,779 | |
Bristol-Myers Squibb Co. | 1,699,600 | 107,398 | |
Castle Creek Pharmaceuticals, LLC Class A-2 unit (a)(c)(d)(f)(h) | 46,864 | 19,375 | |
Endocyte, Inc. (a) | 1,103,415 | 5,528 | |
Intra-Cellular Therapies, Inc. (a)(e) | 3,851,931 | 59,705 | |
Jazz Pharmaceuticals PLC (a) | 392,800 | 54,890 | |
Kolltan Pharmaceuticals, Inc. rights (d) | 7,940,644 | 1,191 | |
Nektar Therapeutics (a) | 226,800 | 12,245 | |
Rhythm Pharmaceuticals, Inc. | 507,600 | 14,507 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 2,065,715 | 6,073 | |
The Medicines Company (a)(b) | 2,355,800 | 68,318 | |
Theravance Biopharma, Inc. (a)(b) | 894,910 | 25,460 | |
716,714 | |||
TOTAL HEALTH CARE | 7,460,086 | ||
INDUSTRIALS - 6.0% | |||
Aerospace & Defense - 1.0% | |||
Lockheed Martin Corp. | 472,800 | 150,880 | |
Northrop Grumman Corp. | 64,621 | 19,864 | |
Space Exploration Technologies Corp. Class A (a)(c)(d) | 418,210 | 56,458 | |
The Boeing Co. | 544,300 | 150,662 | |
United Technologies Corp. | 443,100 | 53,814 | |
431,678 | |||
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 90,500 | 20,947 | |
United Parcel Service, Inc. Class B | 973,200 | 118,195 | |
139,142 | |||
Airlines - 1.7% | |||
Allegiant Travel Co. | 129,300 | 19,654 | |
Azul SA sponsored ADR | 546,800 | 13,757 | |
Delta Air Lines, Inc. | 803,400 | 42,516 | |
InterGlobe Aviation Ltd. (g) | 637,747 | 11,091 | |
JetBlue Airways Corp. (a) | 7,329,523 | 157,365 | |
Ryanair Holdings PLC sponsored ADR (a) | 479,252 | 58,440 | |
Southwest Airlines Co. | 2,488,415 | 150,972 | |
United Continental Holdings, Inc. (a) | 1,083,500 | 68,607 | |
Wheels Up Partners Holdings LLC: | |||
Series B (a)(c)(d)(f) | 6,703,518 | 20,915 | |
Series C (a)(c)(d)(f) | 3,466,281 | 10,815 | |
Wizz Air Holdings PLC (a)(g) | 2,992,973 | 135,355 | |
689,487 | |||
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 65,800 | 4,783 | |
Eaton Corp. PLC | 440,600 | 34,270 | |
Emerson Electric Co. | 396,300 | 25,688 | |
Fortive Corp. | 660,500 | 49,306 | |
114,047 | |||
Industrial Conglomerates - 0.9% | |||
3M Co. | 894,500 | 217,489 | |
Honeywell International, Inc. | 1,085,100 | 169,232 | |
386,721 | |||
Machinery - 1.4% | |||
Aumann AG (g) | 207,300 | 17,042 | |
Caterpillar, Inc. | 2,026,200 | 285,998 | |
Cummins, Inc. | 259,000 | 43,357 | |
Deere & Co. | 521,100 | 78,092 | |
Illinois Tool Works, Inc. | 308,100 | 52,146 | |
Rational AG | 4,075 | 2,666 | |
Wabtec Corp. (b) | 206,500 | 15,880 | |
Xylem, Inc. | 1,033,800 | 71,684 | |
566,865 | |||
Road & Rail - 0.3% | |||
Union Pacific Corp. | 1,147,200 | 145,121 | |
Trading Companies & Distributors - 0.1% | |||
Univar, Inc. (a) | 967,000 | 28,488 | |
TOTAL INDUSTRIALS | 2,501,549 | ||
INFORMATION TECHNOLOGY - 42.2% | |||
Communications Equipment - 0.3% | |||
Arista Networks, Inc. (a) | 102,300 | 23,848 | |
Infinera Corp. (a)(e) | 11,233,428 | 81,330 | |
Palo Alto Networks, Inc. (a) | 72,300 | 10,538 | |
115,716 | |||
Electronic Equipment & Components - 0.2% | |||
Cognex Corp. | 26,455 | 3,666 | |
Dell Technologies, Inc. (a) | 180,900 | 14,154 | |
IPG Photonics Corp. (a) | 21,364 | 4,892 | |
TE Connectivity Ltd. | 108,400 | 10,237 | |
Trimble, Inc. (a) | 1,453,800 | 61,045 | |
93,994 | |||
Internet Software & Services - 12.1% | |||
2U, Inc. (a) | 813,969 | 52,175 | |
Actua Corp. (a)(e) | 2,336,045 | 36,209 | |
Alarm.com Holdings, Inc. (a) | 26,600 | 1,090 | |
Alibaba Group Holding Ltd. sponsored ADR (a) | 1,306,300 | 231,320 | |
Alphabet, Inc.: | |||
Class A (a) | 1,455,578 | 1,508,226 | |
Class C (a) | 791,483 | 808,429 | |
Apptio, Inc. Class A (a) | 1,353,166 | 30,189 | |
Baidu.com, Inc. sponsored ADR (a) | 6,871 | 1,639 | |
CarGurus, Inc. Class A (b) | 67,900 | 2,002 | |
Cloudera, Inc. (g) | 529,285 | 8,379 | |
Criteo SA sponsored ADR (a)(b) | 177,500 | 5,920 | |
Dropbox, Inc. Class B (a)(c)(d) | 1,105,082 | 15,703 | |
eBay, Inc. (a) | 545,200 | 18,902 | |
Etsy, Inc. (a) | 191,500 | 3,152 | |
Facebook, Inc. Class A (a) | 7,864,391 | 1,393,413 | |
GoDaddy, Inc. (a) | 389,200 | 18,935 | |
Match Group, Inc. (a)(b) | 216,200 | 6,356 | |
MongoDB, Inc. Class B | 956,702 | 24,565 | |
NAVER Corp. | 8,760 | 6,442 | |
NetEase, Inc. ADR | 612,500 | 201,335 | |
New Relic, Inc. (a) | 451,379 | 25,404 | |
Nutanix, Inc.: | |||
Class A (a) | 4,196,600 | 137,648 | |
Class B (g) | 1,151,309 | 37,763 | |
Okta, Inc. | 88,700 | 2,591 | |
Shopify, Inc. Class A (a) | 3,489,296 | 365,549 | |
Tencent Holdings Ltd. | 1,144,100 | 58,579 | |
Twitter, Inc. (a) | 410,390 | 8,446 | |
Wix.com Ltd. (a) | 651,000 | 35,740 | |
5,046,101 | |||
IT Services - 3.6% | |||
Cognizant Technology Solutions Corp. Class A | 994,132 | 71,856 | |
IBM Corp. | 241,400 | 37,168 | |
MasterCard, Inc. Class A | 2,399,400 | 361,038 | |
PayPal Holdings, Inc. (a) | 5,265,400 | 398,749 | |
Square, Inc. (a) | 2,971,300 | 116,534 | |
Visa, Inc. Class A | 4,341,705 | 488,833 | |
1,474,178 | |||
Semiconductors & Semiconductor Equipment - 10.2% | |||
Advanced Micro Devices, Inc. (a)(b) | 7,058,300 | 76,865 | |
Applied Materials, Inc. | 406,100 | 21,430 | |
ASML Holding NV | 408,293 | 71,664 | |
Broadcom Ltd. | 595,302 | 165,458 | |
Cavium, Inc. (a) | 2,095,260 | 179,103 | |
Cirrus Logic, Inc. (a) | 1,547,867 | 85,504 | |
Cree, Inc. (a) | 1,078,371 | 38,325 | |
Cypress Semiconductor Corp. | 613,100 | 9,816 | |
Inphi Corp. (a)(b) | 343,000 | 14,087 | |
Intel Corp. | 78,200 | 3,506 | |
KLA-Tencor Corp. | 250,800 | 25,642 | |
Marvell Technology Group Ltd. | 719,800 | 16,080 | |
Micron Technology, Inc. (a) | 1,032,000 | 43,746 | |
NVIDIA Corp. | 14,701,251 | 2,950,687 | |
Qorvo, Inc. (a) | 234,100 | 17,927 | |
Silicon Laboratories, Inc. (a)(e) | 3,281,489 | 298,944 | |
Skyworks Solutions, Inc. | 123,331 | 12,918 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,262,400 | 49,991 | |
Texas Instruments, Inc. | 1,780,700 | 173,244 | |
4,254,937 | |||
Software - 10.3% | |||
Activision Blizzard, Inc. | 8,456,108 | 527,661 | |
Adobe Systems, Inc. (a) | 1,802,336 | 327,070 | |
Appirio, Inc. (Escrow) (d) | 389,363 | 96 | |
Atlassian Corp. PLC (a) | 459,200 | 21,440 | |
Autodesk, Inc. (a) | 873,300 | 95,801 | |
Black Knight, Inc. (a) | 465,700 | 20,910 | |
Electronic Arts, Inc. (a) | 1,859,952 | 197,806 | |
HubSpot, Inc. (a) | 1,793,000 | 145,143 | |
Intuit, Inc. | 497,800 | 78,264 | |
Microsoft Corp. | 11,287,217 | 950,045 | |
Oracle Corp. | 1,031,800 | 50,620 | |
Paylocity Holding Corp. (a) | 175,500 | 8,098 | |
Proofpoint, Inc. (a) | 369,200 | 33,246 | |
Red Hat, Inc. (a) | 3,829,186 | 485,388 | |
SailPoint Technologies Holding, Inc. (a) | 244,600 | 3,596 | |
Salesforce.com, Inc. (a) | 11,721,112 | 1,222,746 | |
Snap, Inc. Class A (a)(b) | 4,003,454 | 55,168 | |
Zendesk, Inc. (a) | 1,843,992 | 61,977 | |
4,285,075 | |||
Technology Hardware, Storage & Peripherals - 5.5% | |||
Apple, Inc. | 12,411,348 | 2,132,890 | |
BlackBerry Ltd. (a) | 2,262,100 | 24,363 | |
NetApp, Inc. | 411,600 | 23,260 | |
Pure Storage, Inc. Class A (a) | 3,431,819 | 63,420 | |
Samsung Electronics Co. Ltd. | 21,904 | 51,146 | |
Western Digital Corp. | 94,113 | 7,422 | |
2,302,501 | |||
TOTAL INFORMATION TECHNOLOGY | 17,572,502 | ||
MATERIALS - 1.4% | |||
Chemicals - 1.4% | |||
CF Industries Holdings, Inc. | 1,386,825 | 51,964 | |
DowDuPont, Inc. | 3,584,579 | 257,946 | |
LG Chemical Ltd. | 24,000 | 9,211 | |
LyondellBasell Industries NV Class A | 130,300 | 13,642 | |
Monsanto Co. | 627,371 | 74,243 | |
Praxair, Inc. | 185,400 | 28,537 | |
The Mosaic Co. | 248,800 | 6,043 | |
The Scotts Miracle-Gro Co. Class A | 1,301,261 | 128,695 | |
570,281 | |||
Containers & Packaging - 0.0% | |||
Aptargroup, Inc. | 53,300 | 4,712 | |
TOTAL MATERIALS | 574,993 | ||
REAL ESTATE - 0.2% | |||
Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
American Tower Corp. | 657,700 | 94,663 | |
Real Estate Management & Development - 0.0% | |||
Redfin Corp. (b) | 69,600 | 1,585 | |
TOTAL REAL ESTATE | 96,248 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.1% | |||
Verizon Communications, Inc. | 990,700 | 50,417 | |
Wireless Telecommunication Services - 0.4% | |||
T-Mobile U.S., Inc. (a) | 2,820,800 | 172,266 | |
TOTAL TELECOMMUNICATION SERVICES | 222,683 | ||
TOTAL COMMON STOCKS | |||
(Cost $18,551,035) | 40,747,039 | ||
Preferred Stocks - 1.9% | |||
Convertible Preferred Stocks - 1.9% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC Series 3 Preferred (a)(c)(d)(f) | 56,343 | 7,862 | |
Topgolf International, Inc. Series F (c)(d) | 819,532 | 11,337 | |
19,199 | |||
Internet & Direct Marketing Retail - 0.0% | |||
The Honest Co., Inc.: | |||
Series C (a)(c)(d) | 92,950 | 2,904 | |
Series D (a)(c)(d) | 69,363 | 2,340 | |
5,244 | |||
Leisure Products - 0.0% | |||
Peloton Interactive, Inc. Series E (c)(d) | 637,482 | 14,745 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Harmony Biosciences II, Inc. Series A (c)(d) | 10,934,380 | 10,934 | |
Homology Medicines, Inc. Series B (c)(d) | 3,750,001 | 5,400 | |
Rubius Therapeutics, Inc. Series B (c)(d) | 1,287,247 | 13,284 | |
29,618 | |||
TOTAL CONSUMER DISCRETIONARY | 68,806 | ||
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Neon Therapeutics, Inc. Series B (c)(d) | 3,188,856 | 8,961 | |
UNITY Biotechnology, Inc. Series B (a)(c)(d) | 2,214,616 | 10,032 | |
18,993 | |||
Insurance - 0.0% | |||
Clover Health Series D (c)(d) | 863,631 | 7,859 | |
TOTAL FINANCIALS | 26,852 | ||
HEALTH CARE - 0.8% | |||
Biotechnology - 0.7% | |||
10X Genomics, Inc. Series C (a)(c)(d) | 2,505,940 | 13,783 | |
23andMe, Inc. Series F (c)(d) | 590,383 | 8,197 | |
Axcella Health, Inc. Series C (a)(c)(d) | 536,592 | 5,409 | |
Immunocore Ltd. Series A (a)(c)(d) | 67,323 | 23,875 | |
Intarcia Therapeutics, Inc.: | |||
Series CC (a)(c)(d) | 1,051,411 | 63,085 | |
Series DD (a)(c)(d) | 1,543,687 | 92,621 | |
Moderna Therapeutics, Inc.: | |||
Series B (c)(d) | 242,837 | 1,751 | |
Series C (c)(d) | 554,903 | 4,001 | |
Series D (a)(c)(d) | 4,688,230 | 33,802 | |
Series E (a)(c)(d) | 5,651,170 | 40,745 | |
Series F (a)(c)(d) | 140,212 | 1,011 | |
Translate Bio: | |||
Series B (a)(c)(d) | 4,408,601 | 12,653 | |
Series C (c)(d) | 1,959,621 | 5,624 | |
306,557 | |||
Health Care Equipment & Supplies - 0.0% | |||
Shockwave Medical, Inc. Series C (c)(d) | 5,413,080 | 5,467 | |
Health Care Providers & Services - 0.0% | |||
Mulberry Health, Inc. Series A8 (a)(c)(d) | 2,790,742 | 17,721 | |
Health Care Technology - 0.1% | |||
Codiak Biosciences, Inc.: | |||
Series A (a)(c)(d) | 589,863 | 2,234 | |
Series B (a)(c)(d) | 1,917,058 | 7,261 | |
Series C 8.00% (c)(d) | 2,688,186 | 10,182 | |
19,677 | |||
TOTAL HEALTH CARE | 349,422 | ||
INDUSTRIALS - 0.2% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series G (a)(c)(d) | 216,276 | 29,197 | |
Commercial Services & Supplies - 0.0% | |||
Domo, Inc. Series D (a)(c)(d) | 2,990,903 | 11,545 | |
Professional Services - 0.1% | |||
YourPeople, Inc. Series C (a)(c)(d) | 5,833,137 | 29,982 | |
TOTAL INDUSTRIALS | 70,724 | ||
INFORMATION TECHNOLOGY - 0.6% | |||
Internet Software & Services - 0.5% | |||
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 7,578,338 | 2,489 | |
Reddit, Inc. Series B (c)(d) | 384,303 | 6,062 | |
Starry, Inc. Series B (c)(d) | 9,869,159 | 9,099 | |
Uber Technologies, Inc.: | |||
Series D, 8.00% (a)(c)(d) | 4,770,180 | 166,575 | |
Series E, 8.00% (a)(c)(d) | 209,216 | 7,306 | |
191,531 | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (a)(c)(d) | 923,523 | 21,380 | |
Software - 0.1% | |||
Appirio, Inc. Series E (Escrow) (d) | 2,725,544 | 693 | |
Cloudflare, Inc. Series D 8.00% (a)(c)(d) | 1,429,726 | 9,079 | |
Dataminr, Inc. Series D (a)(c)(d) | 1,773,901 | 18,466 | |
Outset Medical, Inc. Series C (c)(d) | 1,244,716 | 2,850 | |
Taboola.Com Ltd. Series E (a)(c)(d) | 1,337,420 | 19,767 | |
50,855 | |||
TOTAL INFORMATION TECHNOLOGY | 263,766 | ||
TELECOMMUNICATION SERVICES - 0.0% | |||
Wireless Telecommunication Services - 0.0% | |||
Altiostar Networks, Inc. Series A1 (c)(d) | 699,106 | 3,216 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 782,786 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
FINANCIALS - 0.0% | |||
Banks - 0.0% | |||
Itau Unibanco Holding SA | 1,874,400 | 23,631 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Yumanity Holdings LLC Class A (a)(c)(d) | 464,607 | 5,194 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 28,825 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $601,032) | 811,611 | ||
Money Market Funds - 1.5% | |||
Fidelity Cash Central Fund, 1.13% (i) | 73,959,085 | 73,974 | |
Fidelity Securities Lending Cash Central Fund 1.13% (i)(j) | 555,698,066 | 555,754 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $629,703) | 629,728 | ||
TOTAL INVESTMENT IN SECURITIES - 101.2% | |||
(Cost $19,781,770) | 42,188,378 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (515,763) | ||
NET ASSETS - 100% | $41,672,615 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,099,826,000 or 2.6% of net assets.
(d) Level 3 security
(e) Affiliated company
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $262,741,000 or 0.6% of net assets.
(h) Investment represents common shares and preferred shares.
(i) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(j) Includes investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
10X Genomics, Inc. Series C | 2/23/16 - 4/3/17 | $11,222 |
23andMe, Inc. Series F | 8/31/17 | $8,197 |
Adimab LLC | 9/17/14 - 6/5/15 | $47,869 |
Altiostar Networks, Inc. Series A1 | 1/10/17 | $3,216 |
AppNexus, Inc. Series E | 8/1/14 | $18,500 |
Axcella Health, Inc. Series C | 8/11/17 | $5,409 |
Castle Creek Pharmaceuticals, LLC Class A-2 unit | 9/29/16 | $15,465 |
Cloudflare, Inc. Series D 8.00% | 11/5/14 | $8,758 |
Clover Health Series D | 6/7/17 | $8,099 |
Codiak Biosciences, Inc. Series A | 11/12/15 | $590 |
Codiak Biosciences, Inc. Series B | 11/12/15 | $5,751 |
Codiak Biosciences, Inc. Series C 8.00% | 11/17/17 | $10,182 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $22,617 |
Domo, Inc. Series D | 1/24/14 | $12,362 |
Dropbox, Inc. Class B | 5/2/12 | $10,000 |
Harmony Biosciences II, Inc. Series A | 9/22/17 | $10,934 |
Homology Medicines, Inc. Series B | 7/28/17 | $5,400 |
Immunocore Ltd. Series A | 7/27/15 | $12,669 |
Intarcia Therapeutics, Inc. Series CC | 11/14/12 | $14,331 |
Intarcia Therapeutics, Inc. Series DD | 3/17/14 | $50,000 |
Jet.Com, Inc. Series B1 (Escrow) | 9/19/16 | $2,489 |
MOD Super Fast Pizza Holdings LLC Series 3 Preferred | 11/3/16 | $7,719 |
Moderna Therapeutics, Inc. Series B | 4/13/17 | $1,408 |
Moderna Therapeutics, Inc. Series C | 4/13/17 | $3,224 |
Moderna Therapeutics, Inc. Series D | 11/6/13 | $20,615 |
Moderna Therapeutics, Inc. Series E | 12/18/14 | $24,850 |
Moderna Therapeutics, Inc. Series F | 8/10/16 | $617 |
Mulberry Health, Inc. Series A8 | 1/20/16 | $18,851 |
Neon Therapeutics, Inc. Series B | 12/28/16 | $8,961 |
Outset Medical, Inc. Series C | 4/19/17 | $3,226 |
Peloton Interactive, Inc. Series E | 3/31/17 | $13,809 |
Reddit, Inc. Series B | 7/26/17 | $5,456 |
RPI International Holdings LP | 5/21/15 - 3/23/16 | $16,269 |
Rubius Therapeutics, Inc. Series B | 6/7/17 | $10,800 |
Shockwave Medical, Inc. Series C | 9/27/17 | $5,467 |
Space Exploration Technologies Corp. Class A | 10/16/15 - 4/6/17 | $38,201 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $16,753 |
Starry, Inc. Series B | 12/1/16 | $5,339 |
Taboola.Com Ltd. Series E | 12/22/14 | $13,943 |
The Honest Co., Inc. | 8/21/14 | $1,078 |
The Honest Co., Inc. Series C | 8/21/14 | $2,515 |
The Honest Co., Inc. Series D | 8/3/15 | $3,174 |
Topgolf International, Inc. Series F | 11/10/17 | $11,337 |
Tory Burch LLC Class A | 5/14/15 | $67,653 |
Tory Burch LLC Class B | 12/31/12 | $17,505 |
Translate Bio Series B | 7/17/15 | $4,761 |
Translate Bio Series C | 12/22/16 | $3,880 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $74,000 |
Uber Technologies, Inc. Series E, 8.00% | 12/5/14 | $6,971 |
UNITY Biotechnology, Inc. Series B | 10/14/16 | $9,102 |
Wheels Up Partners Holdings LLC Series B | 9/18/15 | $19,040 |
Wheels Up Partners Holdings LLC Series C | 6/22/17 | $10,815 |
YourPeople, Inc. Series C | 5/1/15 | $86,920 |
Yumanity Holdings LLC Class A | 2/8/16 | $3,140 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $641 |
Fidelity Securities Lending Cash Central Fund | 8,882 |
Total | $9,523 |
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds* | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
ACADIA Pharmaceuticals, Inc. | $79,057 | $-- | $-- | $-- | $-- | $(66,081) | $-- |
ACADIA Pharmaceuticals, Inc. | 108,950 | 42,986 | 20,070 | -- | 11,831 | 74,540 | 231,213 |
Actua Corp. | 43,200 | 744 | 12,828 | -- | (1,934) | 7,027 | 36,209 |
Akcea Therapeutics, Inc. | -- | 59,454 | 2,971 | -- | 2,116 | 12,290 | 70,889 |
Alkermes PLC | 564,496 | 44,452 | 80,618 | -- | 56,241 | (98,659) | 485,912 |
Alnylam Pharmaceuticals, Inc. | 211,633 | 70,869 | 41,776 | -- | 20,460 | 407,145 | 668,331 |
Applied Micro Circuits Corp. | 53,082 | -- | 51,459 | -- | (489) | (1,134) | -- |
Apptio, Inc. | 15,712 | -- | -- | -- | -- | 4,288 | -- |
Apptio, Inc. Class A | 8,213 | 3,730 | 2,318 | -- | (207) | 771 | -- |
aTyr Pharma, Inc. | 1,743 | 2,238 | 752 | -- | (3,606) | 3,408 | -- |
aTyr Pharma, Inc. | 4,554 | -- | -- | -- | -- | 1,176 | -- |
Avexis, Inc. | 55,238 | 75,697 | 12,151 | -- | 4,244 | 39,751 | 162,779 |
bluebird bio, Inc. | 146,921 | 45,530 | 31,431 | -- | 23,351 | 254,971 | 439,342 |
Calyxt, Inc. | -- | 12,774 | 1,199 | -- | 835 | 16,208 | 28,618 |
Chimerix, Inc. | 14,256 | 95 | 3,241 | -- | (9,329) | 8,634 | -- |
Exelixis, Inc. | 308,449 | 3,202 | 67,022 | -- | 41,684 | 123,688 | 410,001 |
HubSpot, Inc. | 100,001 | 19,450 | 15,431 | -- | 4,845 | 36,278 | -- |
Infinera Corp. | 106,776 | 2,985 | 16,363 | -- | (5,711) | (6,357) | 81,330 |
Intra-Cellular Therapies, Inc. | 47,622 | 14,588 | 7,611 | -- | 3,878 | 1,228 | 59,705 |
Ionis Pharmaceuticals, Inc. | 354,387 | 30,180 | 55,159 | -- | 35,989 | 52,309 | 417,706 |
Lexicon Pharmaceuticals, Inc. | 103,734 | 16,578 | 13,727 | -- | 5,811 | (41,369) | 71,027 |
lululemon athletica, Inc. | 512,051 | 9,581 | 83,187 | -- | 56,902 | 26,571 | 521,918 |
Merrimack Pharmaceuticals, Inc. | 41,377 | -- | 5,347 | 6,931 | (14,890) | (15,231) | -- |
Momenta Pharmaceuticals, Inc. | 76,442 | 7,642 | 11,483 | -- | 738 | (2,540) | 70,799 |
Nutanix, Inc. Class A | 30,867 | 77,082 | 9,608 | -- | (1,016) | 40,323 | -- |
Nutanix, Inc. Class B | 33,158 | -- | -- | -- | -- | (17,734) | -- |
NVIDIA Corp. | 2,768,858 | 25,835 | 2,076,932 | 2,233 | 1,820,730 | 431,607 | -- |
Presbia PLC | 5,184 | 938 | 670 | -- | (90) | (1,852) | 3,510 |
Prothena Corp. PLC | 126,623 | 18,551 | 17,049 | -- | 13,413 | (41,433) | 100,105 |
Regulus Therapeutics, Inc. | 7,632 | 2,588 | 876 | -- | (2,181) | (2,291) | 4,872 |
RH | 77,545 | 1,186 | 58,577 | -- | (36,201) | 116,586 | -- |
Rigel Pharmaceuticals, Inc. | 21,349 | 10,553 | 3,946 | -- | 1,098 | 15,541 | 44,595 |
Sage Therapeutics, Inc. | 100,093 | 30,100 | 16,691 | -- | 12,950 | 64,409 | -- |
Silicon Laboratories, Inc. | 215,457 | 37,332 | 33,580 | -- | 11,821 | 67,914 | 298,944 |
Syros Pharmaceuticals, Inc. | -- | -- | -- | -- | -- | 2,863 | -- |
Syros Pharmaceuticals, Inc. | 11,084 | 419 | 1,548 | -- | 142 | 757 | -- |
Syros Pharmaceuticals, Inc. | 12,101 | -- | -- | -- | -- | (1,035) | -- |
Wizz Air Holdings PLC | 64,452 | 11,973 | 11,208 | -- | 2,698 | 67,440 | -- |
Total | $6,432,297 | $679,332 | $2,766,829 | $9,164 | $2,056,123 | $1,582,007 | $4,207,805 |
* Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $8,581,127 | $8,251,701 | $196,909 | $132,517 |
Consumer Staples | 2,135,678 | 2,074,537 | 61,141 | -- |
Energy | 568,783 | 568,783 | -- | -- |
Financials | 1,152,679 | 1,107,963 | -- | 44,716 |
Health Care | 7,814,702 | 7,297,235 | 27,856 | 489,611 |
Industrials | 2,572,273 | 2,413,361 | -- | 158,912 |
Information Technology | 17,836,268 | 17,473,559 | 83,144 | 279,565 |
Materials | 574,993 | 574,993 | -- | -- |
Real Estate | 96,248 | 96,248 | -- | -- |
Telecommunication Services | 225,899 | 222,683 | -- | 3,216 |
Money Market Funds | 629,728 | 629,728 | -- | -- |
Total Investments in Securities: | $42,188,378 | $40,710,791 | $369,050 | $1,108,537 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended November 30, 2017. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total (000s) |
Level 1 to Level 2 | $0 |
Level 2 to Level 1 | $797,730 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Health Care | |
Beginning Balance | $402,671 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | 47,141 |
Cost of Purchases | 39,799 |
Proceeds of Sales | - |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $489,611 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2017 | $47,141 |
Other Investments in Securities | |
Beginning Balance | $736,924 |
Net Realized Gain (Loss) on Investment Securities | (43,260) |
Net Unrealized Gain (Loss) on Investment Securities | (38,329) |
Cost of Purchases | 104,525 |
Proceeds of Sales | (140,934) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $618,926 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2017 | $(72,605) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.6% |
Cayman Islands | 2.8% |
Germany | 2.6% |
Ireland | 1.7% |
Others (Individually Less Than 1%) | 4.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2017 | |
Assets | ||
Investment in securities, at value (including securities loaned of $548,763) — See accompanying schedule: Unaffiliated issuers (cost $16,623,846) | $37,350,845 | |
Fidelity Central Funds (cost $629,703) | 629,728 | |
Other affiliated issuers (cost $2,528,221) | 4,207,805 | |
Total Investment in Securities (cost $19,781,770) | $42,188,378 | |
Cash | 244 | |
Restricted cash | 310 | |
Receivable for investments sold | 55,151 | |
Receivable for fund shares sold | 23,605 | |
Dividends receivable | 33,297 | |
Interest receivable | 2 | |
Distributions receivable from Fidelity Central Funds | 737 | |
Prepaid expenses | 78 | |
Other receivables | 2,210 | |
Total assets | 42,304,012 | |
Liabilities | ||
Payable for investments purchased | $9,845 | |
Payable for fund shares redeemed | 32,562 | |
Accrued management fee | 25,269 | |
Other affiliated payables | 3,734 | |
Other payables and accrued expenses | 4,258 | |
Collateral on securities loaned | 555,729 | |
Total liabilities | 631,397 | |
Net Assets | $41,672,615 | |
Net Assets consist of: | ||
Paid in capital | $17,503,542 | |
Distributions in excess of net investment income | (931) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,765,159 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 22,404,845 | |
Net Assets | $41,672,615 | |
Growth Company: | ||
Net Asset Value, offering price and redemption price per share ($25,256,431 ÷ 136,321 shares) | $185.27 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($16,416,184 ÷ 88,621 shares) | $185.24 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2017 | |
Investment Income | ||
Dividends (including $9,164 earned from other affiliated issuers) | $298,693 | |
Interest | 9 | |
Income from Fidelity Central Funds | 9,523 | |
Total income | 308,225 | |
Expenses | ||
Management fee | ||
Basic fee | $206,855 | |
Performance adjustment | 57,184 | |
Transfer agent fees | 39,877 | |
Accounting and security lending fees | 2,250 | |
Custodian fees and expenses | 723 | |
Independent trustees' fees and expenses | 145 | |
Appreciation in deferred trustee compensation account | 3 | |
Registration fees | 288 | |
Audit | 210 | |
Legal | 97 | |
Interest | 6 | |
Miscellaneous | 315 | |
Total expenses before reductions | 307,953 | |
Expense reductions | (632) | 307,321 |
Net investment income (loss) | 904 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 3,244,302 | |
Fidelity Central Funds | (6) | |
Other affiliated issuers | 2,056,123 | |
Foreign currency transactions | (60) | |
Total net realized gain (loss) | 5,300,359 | |
Change in net unrealized appreciation (depreciation) on: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $1,906) | 5,091,206 | |
Fidelity Central Funds | (49) | |
Other affiliated issuers | 1,582,007 | |
Assets and liabilities in foreign currencies | 184 | |
Total change in net unrealized appreciation (depreciation) | 6,673,348 | |
Net gain (loss) | 11,973,707 | |
Net increase (decrease) in net assets resulting from operations | $11,974,611 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2017 | Year ended November 30, 2016 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $904 | $41,597 |
Net realized gain (loss) | 5,300,359 | 4,411,523 |
Change in net unrealized appreciation (depreciation) | 6,673,348 | (3,344,102) |
Net increase (decrease) in net assets resulting from operations | 11,974,611 | 1,109,018 |
Distributions to shareholders from net investment income | (37,300) | (13,792) |
Distributions to shareholders from net realized gain | (2,014,292) | (1,582,394) |
Total distributions | (2,051,592) | (1,596,186) |
Share transactions - net increase (decrease) | (4,103,390) | (4,759,956) |
Total increase (decrease) in net assets | 5,819,629 | (5,247,124) |
Net Assets | ||
Beginning of period | 35,852,986 | 41,100,110 |
End of period | $41,672,615 | $35,852,986 |
Other Information | ||
Undistributed net investment income end of period | $– | $35,263 |
Distributions in excess of net investment income end of period | $(931) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Company Fund
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $142.76 | $143.47 | $136.46 | $124.69 | $95.80 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.06) | .09 | (.01) | .15 | .29 |
Net realized and unrealized gain (loss) | 50.73 | 4.71 | 11.72 | 20.49 | 31.23 |
Total from investment operations | 50.67 | 4.80 | 11.71 | 20.64 | 31.52 |
Distributions from net investment income | (.09) | – | (.13) | (.21) | (.19) |
Distributions from net realized gain | (8.07) | (5.51) | (4.57) | (8.67) | (2.44) |
Total distributions | (8.16) | (5.51) | (4.70) | (8.87)B | (2.63) |
Net asset value, end of period | $185.27 | $142.76 | $143.47 | $136.46 | $124.69 |
Total ReturnC | 37.34% | 3.48% | 8.90% | 17.80% | 33.85% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .85% | .77% | .88% | .82% | .83% |
Expenses net of fee waivers, if any | .85% | .77% | .87% | .82% | .83% |
Expenses net of all reductions | .85% | .77% | .87% | .82% | .83% |
Net investment income (loss) | (.04)% | .07% | (.01)% | .12% | .27% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $25,256 | $21,114 | $23,513 | $24,165 | $22,936 |
Portfolio turnover rateF | 15%G | 19%G | 18%G | 12%G | 26% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $8.87 per share is comprised of distributions from net investment income of $.207 and distributions from net realized gain of $8.666 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Company Fund Class K
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $142.74 | $143.42 | $136.41 | $124.68 | $95.82 |
Income from Investment Operations | |||||
Net investment income (loss)A | .10 | .23 | .12 | .29 | .42 |
Net realized and unrealized gain (loss) | 50.70 | 4.71 | 11.72 | 20.48 | 31.21 |
Total from investment operations | 50.80 | 4.94 | 11.84 | 20.77 | 31.63 |
Distributions from net investment income | (.23) | (.11) | (.26) | (.37) | (.34) |
Distributions from net realized gain | (8.07) | (5.51) | (4.57) | (8.67) | (2.44) |
Total distributions | (8.30) | (5.62) | (4.83) | (9.04) | (2.77)B |
Net asset value, end of period | $185.24 | $142.74 | $143.42 | $136.41 | $124.68 |
Total ReturnC | 37.47% | 3.59% | 9.01% | 17.93% | 34.02% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .75% | .66% | .77% | .71% | .71% |
Expenses net of fee waivers, if any | .75% | .66% | .77% | .71% | .71% |
Expenses net of all reductions | .75% | .66% | .77% | .71% | .71% |
Net investment income (loss) | .06% | .17% | .09% | .24% | .39% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $16,416 | $14,739 | $17,587 | $18,242 | $21,951 |
Portfolio turnover rateF | 15%G | 19%G | 18%G | 12%G | 26% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $2.77 per share is comprised of distributions from net investment income of $.336 and distributions from net realized gain of $2.438 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2017
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Company Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth Company and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $1,108,537 | Recovery value | Recovery value | 0.2% - 0.7% / 0.4% | Increase |
Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA) | 8.3 | Increase | ||
Enterprise value/Sales multiple (EV/S) | 0.7 – 9.2 / 4.5 | Increase | |||
Transaction price | $1.00 - $330.00 / $56.81 | Increase | |||
Enterprise value/Gross profit (EV/GP) | 5.0 | Increase | |||
Discount rate | 8.0% - 69.1% / 27.2% | Decrease | |||
Enterprise value/Revenue multiple (EV/R) | 3.8 | Increase | |||
Discount for lack of marketability | 15.0% - 20.0% / 15.7% | Decrease | |||
Liquidity preference | $4.13 - $73.71 / $43.58 | Increase | |||
Premium rate | 15.0% - 40.0% / 28.7% | Increase | |||
Proxy premium | 22.5% - 76.0% / 31.3% | Increase | |||
Market approach | Transaction price | $0.92 - $139.53 / $52.62 | Increase | ||
Liquidity preference | $16.35 - $45.76 / $36.41 | Increase | |||
Discount cash flow | Discount rate | 8.0% - 12.2% / 10.8% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Probability rate | 6.3% - 68.9% / 7.0% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2017, including information on transfers between Levels 1 and 2, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and includes proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), redemptions in kind, partnerships, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $23,376,943 |
Gross unrealized depreciation | (1,103,262) |
Net unrealized appreciation (depreciation) | $22,273,681 |
Tax Cost | $19,914,697 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $1,243 |
Undistributed long-term capital gain | $1,898,086 |
Net unrealized appreciation (depreciation) on securities and other investments | $22,273,823 |
The tax character of distributions paid was as follows:
November 30, 2017 | November 30, 2016 | |
Ordinary Income | $37,300 | $ 13,792 |
Long-term Capital Gains | 2,014,292 | 1,582,394 |
Total | $2,051,592 | $ 1,596,186 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $229,951 in these Subsidiaries, representing .55% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $5,803,569 and $6,734,628, respectively.
Redemptions In-Kind. During the period, 34,649 shares of the Fund held by unaffiliated entities were redeemed in-kind for investments and cash with a value of $5,209,289. The net realized gain of $3,322,910 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 26,809 shares of the Fund held by unaffiliated entities were redeemed in-kind for investments and cash with a value of $3,667,395. The Fund had a net realized gain of $2,216,038 on investments delivered through the in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Company as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .69% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth Company. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Growth Company | $32,632 | .14 |
Class K | 7,245 | .05 |
$39,877 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $203 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $21,355 | .90% | $6 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $118 and is reflected in Miscellaneous expenses on the Statement of Operations.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $56,269. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $8,882, including $949 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $294 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $11.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $327.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2017 | Year ended November 30, 2016 | |
From net investment income | ||
Growth Company | $13,724 | $– |
Class K | 23,576 | 13,792 |
Total | $37,300 | $13,792 |
From net realized gain | ||
Growth Company | $1,190,770 | $904,788 |
Class K | 823,522 | 677,606 |
Total | $2,014,292 | $1,582,394 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2017 | Year ended November 30, 2016 | Year ended November 30, 2017 | Year ended November 30, 2016 | |
Growth Company | ||||
Shares sold | 17,127 | 17,124 | $2,740,883 | $2,254,562 |
Reinvestment of distributions | 8,092 | 6,196 | 1,134,062 | 857,904 |
Shares redeemed | (36,791)(a) | (39,316)(b) | (5,635,831)(a) | (5,283,210)(b) |
Net increase (decrease) | (11,572) | (15,996) | $(1,760,886) | $(2,170,744) |
Class K | ||||
Shares sold | 19,521 | 18,989 | $3,093,032 | $2,493,477 |
Reinvestment of distributions | 6,051 | 5,003 | 847,098 | 691,398 |
Shares redeemed | (40,209)(a) | (43,361)(b) | (6,282,634)(a) | (5,774,087)(b) |
Net increase (decrease) | (14,637) | (19,369) | $(2,342,504) | $(2,589,212) |
(a) Amount includes in-kind redemptions (see the Redemptions In-Kind note for additional details).
(b) Amount includes in-kind redemptions (see the prior Redemptions In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Company Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Growth Company Fund (the Fund), a fund of Fidelity Mt. Vernon Street Trust, including the schedule of investments, as of November 30, 2017, and the related statement of operations for the year then ended, the statement 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 Fund's 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 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 and financial highlights are free of material misstatement. The Fund is 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 November 30, 2017, by correspondence with the custodians and brokers; when 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, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Growth Company Fund as of November 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 22, 2018
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
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) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. Ms. Dorsey serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2008-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of a 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 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 (June 1, 2017 to November 30, 2017).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2017 | Ending Account Value November 30, 2017 | Expenses Paid During Period-B June 1, 2017 to November 30, 2017 | |
Growth Company | .89% | |||
Actual | $1,000.00 | $1,147.40 | $4.79 | |
Hypothetical-C | $1,000.00 | $1,020.61 | $4.51 | |
Class K | .80% | |||
Actual | $1,000.00 | $1,148.00 | $4.31 | |
Hypothetical-C | $1,000.00 | $1,021.06 | $4.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Growth Company Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Growth Company Fund | ||||
Growth Company | 12/27/17 | 12/26/17 | $0.000 | $8.455 |
Class K | 12/27/17 | 12/26/17 | $0.016 | $8.455 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2017, $1,972,502,271, or, if subsequently determined to be different, the net capital gain of such year.
Growth Company and Class K designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Growth Company and Class K designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Growth Company Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers 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 various standing committees (Committees), each composed of and chaired by 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 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board 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 expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board 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 was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, 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, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, 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 supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; 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.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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.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, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.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 and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Growth Company Fund
Fidelity Growth Company Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
GCF-K-ANN-0118
1.863213.109
Fidelity® Growth Strategies Fund Annual Report November 30, 2017 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from 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 hypothetical investment and the average annual total 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
For the periods ended November 30, 2017 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Growth Strategies Fund | 21.63% | 15.16% | 6.26% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Strategies Fund, a class of the fund, on November 30, 2007.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
Period Ending Values | ||
$18,350 | Fidelity® Growth Strategies Fund | |
$23,833 | Russell Midcap® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 22.87% for the year ending November 30, 2017, rising steadily and closing the period at an all-time high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump’s pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, info tech (+41%) led by a wide margin, surging amid strong earnings growth from several major index constituents. Utilities and financials each gained about 25%, the latter group riding an uptick in bond yields. Conversely, consumer discretionary (+20%) also rose solidly but lagged the broader market, as many brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+16%), while consumer staples (+15%) and telecom (+1%) struggled due to investors’ general preference for risk assets. Lastly, sluggish oil prices pushed energy to a -4% return.Comments from Portfolio Manager Jean Park: For the fiscal year, the fund's share classes gained roughly 22%, lagging the 25.03% return of the benchmark Russell Midcap® Growth Index. I avoided many of what I saw as the market's riskiest assets, which generally don’t fit my criteria, and thus the fund did not keep pace with its benchmark. Stock selection detracted from performance versus the benchmark, particularly choices in consumer discretionary, industrials and information technology. The fund’s biggest relative detractor was avoiding index component Nvidia, a computer graphics-card designer in tech's semiconductors & semiconductor equipment group. Though the company had solid free-cash-flow (FCF) yield, its stock seemed expensive to me and I found other semiconductor makers that screened more attractively. Nvidia posted a strong return this period, mainly due to continued favorable earnings reports. Also detracting were the fund’s stakes in auto-parts retailers O’Reilly Automotive and AutoZone. Both companies continued to disappoint in growth as sales dipped. Ultimately, I sold both positions by period end. On the upside, choices in consumer staples helped. The fund’s top individual relative contributor, though, was credit-card processor Total Systems Services, which benefited from solid execution as more consumers relied on credit cards versus carrying cash.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.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Total System Services, Inc. | 2.7 | 2.1 |
VeriSign, Inc. | 2.5 | 2.0 |
Huntington Ingalls Industries, Inc. | 2.4 | 1.9 |
Delphi Automotive PLC | 2.4 | 0.0 |
Wyndham Worldwide Corp. | 2.1 | 1.2 |
Progressive Corp. | 2.1 | 0.6 |
Citizens Financial Group, Inc. | 2.1 | 2.1 |
Citrix Systems, Inc. | 2.1 | 1.3 |
Fiserv, Inc. | 2.0 | 1.7 |
ON Semiconductor Corp. | 1.9 | 0.0 |
22.3 |
Top Five Market Sectors as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 32.3 | 24.8 |
Health Care | 16.1 | 16.3 |
Consumer Discretionary | 15.1 | 20.8 |
Industrials | 14.8 | 16.3 |
Financials | 10.6 | 7.2 |
Asset Allocation (% of fund's net assets)
As of November 30, 2017* | ||
Stocks | 99.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments - 9.2%
As of May 31, 2017* | ||
Stocks | 99.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.0% |
* Foreign investments - 6.9%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2017
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.1% | |||
Auto Components - 3.3% | |||
Delphi Automotive PLC | 614,000 | $64,267 | |
Visteon Corp. (a) | 182,300 | 24,007 | |
88,274 | |||
Distributors - 1.0% | |||
Pool Corp. | 224,200 | 28,168 | |
Diversified Consumer Services - 1.2% | |||
Service Corp. International | 859,800 | 31,770 | |
Hotels, Restaurants & Leisure - 3.2% | |||
Domino's Pizza, Inc. | 103,600 | 19,286 | |
Jack in the Box, Inc. | 97,322 | 10,074 | |
Wyndham Worldwide Corp. | 513,500 | 57,712 | |
87,072 | |||
Media - 1.7% | |||
Lions Gate Entertainment Corp. Class B | 454,296 | 14,101 | |
Live Nation Entertainment, Inc. (a) | 557,000 | 25,277 | |
Scripps Networks Interactive, Inc. Class A | 75,953 | 6,216 | |
45,594 | |||
Multiline Retail - 1.7% | |||
Dollar General Corp. | 209,200 | 18,426 | |
Dollar Tree, Inc. (a) | 275,000 | 28,259 | |
46,685 | |||
Specialty Retail - 1.3% | |||
Ross Stores, Inc. | 478,541 | 36,383 | |
Textiles, Apparel & Luxury Goods - 1.7% | |||
Carter's, Inc. | 173,900 | 18,837 | |
Hanesbrands, Inc. (b) | 713,400 | 14,903 | |
VF Corp. | 174,850 | 12,757 | |
46,497 | |||
TOTAL CONSUMER DISCRETIONARY | 410,443 | ||
CONSUMER STAPLES - 4.5% | |||
Beverages - 1.7% | |||
Brown-Forman Corp. Class B (non-vtg.) | 149,322 | 8,929 | |
Dr. Pepper Snapple Group, Inc. | 206,000 | 18,579 | |
Monster Beverage Corp. (a) | 281,000 | 17,610 | |
45,118 | |||
Food Products - 1.1% | |||
The Hershey Co. | 277,600 | 30,794 | |
Personal Products - 1.5% | |||
Estee Lauder Companies, Inc. Class A | 187,000 | 23,343 | |
Herbalife Ltd. (a) | 259,100 | 18,173 | |
41,516 | |||
Tobacco - 0.2% | |||
British American Tobacco PLC sponsored ADR | 99,252 | 6,315 | |
TOTAL CONSUMER STAPLES | 123,743 | ||
ENERGY - 0.6% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, a GE Co. Class A | 138,734 | 4,125 | |
Oil, Gas & Consumable Fuels - 0.4% | |||
Andeavor | 110,710 | 11,677 | |
TOTAL ENERGY | 15,802 | ||
FINANCIALS - 10.6% | |||
Banks - 2.9% | |||
Citizens Financial Group, Inc. | 1,384,917 | 56,366 | |
Huntington Bancshares, Inc. | 1,500,000 | 21,600 | |
Investors Bancorp, Inc. | 102,013 | 1,456 | |
79,422 | |||
Capital Markets - 4.3% | |||
Ameriprise Financial, Inc. | 236,000 | 38,522 | |
MarketAxess Holdings, Inc. | 64,395 | 12,574 | |
Moody's Corp. | 286,400 | 43,481 | |
S&P Global, Inc. | 140,200 | 23,200 | |
117,777 | |||
Insurance - 3.4% | |||
Aon PLC | 114,600 | 16,069 | |
Arch Capital Group Ltd. (a) | 181,000 | 17,139 | |
Progressive Corp. | 1,079,100 | 57,387 | |
90,595 | |||
TOTAL FINANCIALS | 287,794 | ||
HEALTH CARE - 16.1% | |||
Health Care Equipment & Supplies - 3.2% | |||
Edwards Lifesciences Corp. (a) | 257,300 | 30,156 | |
Intuitive Surgical, Inc. (a) | 41,800 | 16,711 | |
ResMed, Inc. | 471,800 | 40,292 | |
87,159 | |||
Health Care Providers & Services - 4.5% | |||
AmerisourceBergen Corp. | 160,000 | 13,571 | |
HCA Holdings, Inc. (a) | 188,800 | 16,048 | |
Laboratory Corp. of America Holdings (a) | 125,600 | 19,879 | |
MEDNAX, Inc. (a) | 224,500 | 11,178 | |
Universal Health Services, Inc. Class B | 101,600 | 11,008 | |
Wellcare Health Plans, Inc. (a) | 236,000 | 50,266 | |
121,950 | |||
Health Care Technology - 1.9% | |||
Cerner Corp. (a) | 728,300 | 51,484 | |
Life Sciences Tools & Services - 5.4% | |||
Charles River Laboratories International, Inc. (a) | 307,600 | 32,052 | |
Illumina, Inc. (a) | 158,400 | 36,437 | |
Mettler-Toledo International, Inc. (a) | 64,200 | 40,395 | |
Waters Corp. (a) | 199,600 | 39,355 | |
148,239 | |||
Pharmaceuticals - 1.1% | |||
Jazz Pharmaceuticals PLC (a) | 120,083 | 16,780 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR (b) | 827,000 | 12,256 | |
29,036 | |||
TOTAL HEALTH CARE | 437,868 | ||
INDUSTRIALS - 14.8% | |||
Aerospace & Defense - 3.4% | |||
Huntington Ingalls Industries, Inc. | 273,000 | 65,976 | |
TransDigm Group, Inc. | 95,000 | 26,960 | |
92,936 | |||
Airlines - 0.8% | |||
Alaska Air Group, Inc. | 294,829 | 20,393 | |
Commercial Services & Supplies - 0.7% | |||
KAR Auction Services, Inc. | 363,700 | 18,320 | |
Electrical Equipment - 1.7% | |||
AMETEK, Inc. | 273,172 | 19,857 | |
Fortive Corp. | 356,736 | 26,630 | |
46,487 | |||
Industrial Conglomerates - 1.8% | |||
Roper Technologies, Inc. | 187,277 | 50,042 | |
Machinery - 3.4% | |||
Cummins, Inc. | 195,500 | 32,727 | |
IDEX Corp. | 214,900 | 29,134 | |
Toro Co. | 344,617 | 22,486 | |
Wabtec Corp. (b) | 123,600 | 9,505 | |
93,852 | |||
Professional Services - 1.8% | |||
Dun & Bradstreet Corp. | 89,724 | 11,046 | |
Equifax, Inc. | 331,000 | 37,774 | |
48,820 | |||
Trading Companies & Distributors - 1.2% | |||
United Rentals, Inc. (a) | 209,200 | 33,363 | |
TOTAL INDUSTRIALS | 404,213 | ||
INFORMATION TECHNOLOGY - 32.3% | |||
Communications Equipment - 1.4% | |||
F5 Networks, Inc. (a) | 286,500 | 38,448 | |
Electronic Equipment & Components - 1.4% | |||
Amphenol Corp. Class A | 432,800 | 39,207 | |
Internet Software & Services - 4.0% | |||
Akamai Technologies, Inc. (a) | 390,000 | 21,754 | |
LogMeIn, Inc. | 172,707 | 20,552 | |
VeriSign, Inc. (a)(b) | 588,200 | 67,702 | |
110,008 | |||
IT Services - 8.5% | |||
Amdocs Ltd. | 398,500 | 26,018 | |
Fiserv, Inc. (a) | 407,789 | 53,604 | |
FleetCor Technologies, Inc. (a) | 94,600 | 17,205 | |
Genpact Ltd. | 291,328 | 9,392 | |
Global Payments, Inc. | 275,300 | 27,684 | |
Paychex, Inc. | 341,089 | 22,959 | |
Total System Services, Inc. | 1,006,300 | 74,830 | |
231,692 | |||
Semiconductors & Semiconductor Equipment - 10.5% | |||
Analog Devices, Inc. | 534,950 | 46,065 | |
Applied Materials, Inc. | 259,300 | 13,683 | |
Broadcom Ltd. | 58,700 | 16,315 | |
KLA-Tencor Corp. | 436,400 | 44,618 | |
Lam Research Corp. | 172,000 | 33,081 | |
Microchip Technology, Inc. (b) | 487,700 | 42,425 | |
ON Semiconductor Corp. (a) | 2,635,000 | 52,911 | |
Skyworks Solutions, Inc. | 355,200 | 37,204 | |
286,302 | |||
Software - 6.5% | |||
Adobe Systems, Inc. (a) | 95,400 | 17,312 | |
Check Point Software Technologies Ltd. (a) | 312,023 | 32,541 | |
Citrix Systems, Inc. (a) | 640,300 | 56,109 | |
Electronic Arts, Inc. (a) | 206,707 | 21,983 | |
Intuit, Inc. | 67,300 | 10,581 | |
Take-Two Interactive Software, Inc. (a) | 339,500 | 37,871 | |
176,397 | |||
TOTAL INFORMATION TECHNOLOGY | 882,054 | ||
MATERIALS - 2.2% | |||
Chemicals - 2.2% | |||
CF Industries Holdings, Inc. | 282,000 | 10,567 | |
Eastman Chemical Co. | 91,055 | 8,411 | |
Sherwin-Williams Co. | 35,000 | 13,980 | |
The Scotts Miracle-Gro Co. Class A | 165,341 | 16,352 | |
Valvoline, Inc. | 460,340 | 11,352 | |
60,662 | |||
REAL ESTATE - 2.9% | |||
Equity Real Estate Investment Trusts (REITs) - 2.9% | |||
CoreSite Realty Corp. | 256,500 | 29,108 | |
Equity Lifestyle Properties, Inc. | 267,300 | 24,140 | |
Extra Space Storage, Inc. | 301,400 | 25,728 | |
78,976 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,290,288) | 2,701,555 | ||
Money Market Funds - 4.7% | |||
Fidelity Cash Central Fund, 1.13% (c) | 30,112,984 | 30,119 | |
Fidelity Securities Lending Cash Central Fund 1.13% (c)(d) | 97,693,508 | 97,703 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $127,830) | 127,822 | ||
TOTAL INVESTMENT IN SECURITIES - 103.8% | |||
(Cost $2,418,118) | 2,829,377 | ||
NET OTHER ASSETS (LIABILITIES) - (3.8)% | (102,297) | ||
NET ASSETS - 100% | $2,727,080 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $336 |
Fidelity Securities Lending Cash Central Fund | 713 |
Total | $1,049 |
Investment Valuation
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 Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2017 | |
Assets | ||
Investment in securities, at value (including securities loaned of $95,819) — See accompanying schedule: Unaffiliated issuers (cost $2,290,288) | $2,701,555 | |
Fidelity Central Funds (cost $127,830) | 127,822 | |
Total Investment in Securities (cost $2,418,118) | $2,829,377 | |
Receivable for investments sold | 6,723 | |
Receivable for fund shares sold | 757 | |
Dividends receivable | 3,042 | |
Distributions receivable from Fidelity Central Funds | 49 | |
Prepaid expenses | 5 | |
Other receivables | 90 | |
Total assets | 2,840,043 | |
Liabilities | ||
Payable for investments purchased | $12,302 | |
Payable for fund shares redeemed | 1,437 | |
Accrued management fee | 947 | |
Other affiliated payables | 447 | |
Other payables and accrued expenses | 141 | |
Collateral on securities loaned | 97,689 | |
Total liabilities | 112,963 | |
Net Assets | $2,727,080 | |
Net Assets consist of: | ||
Paid in capital | $2,304,557 | |
Undistributed net investment income | 9,985 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,279 | |
Net unrealized appreciation (depreciation) on investments | 411,259 | |
Net Assets | $2,727,080 | |
Growth Strategies: | ||
Net Asset Value, offering price and redemption price per share ($2,454,632 ÷ 59,926 shares) | $40.96 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($272,448 ÷ 6,598 shares) | $41.29 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2017 | |
Investment Income | ||
Dividends | $26,388 | |
Special dividends | 4,162 | |
Income from Fidelity Central Funds | 1,049 | |
Total income | 31,599 | |
Expenses | ||
Management fee | ||
Basic fee | $14,497 | |
Performance adjustment | (172) | |
Transfer agent fees | 4,588 | |
Accounting and security lending fees | 799 | |
Custodian fees and expenses | 88 | |
Independent trustees' fees and expenses | 10 | |
Registration fees | 52 | |
Audit | 60 | |
Legal | 11 | |
Miscellaneous | 24 | |
Total expenses before reductions | 19,957 | |
Expense reductions | (61) | 19,896 |
Net investment income (loss) | 11,703 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 116,812 | |
Redemptions in-kind with affiliated entities | 13,916 | |
Fidelity Central Funds | 3 | |
Total net realized gain (loss) | 130,731 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 367,539 | |
Fidelity Central Funds | (7) | |
Total change in net unrealized appreciation (depreciation) | 367,532 | |
Net gain (loss) | 498,263 | |
Net increase (decrease) in net assets resulting from operations | $509,966 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2017 | Year ended November 30, 2016 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $11,703 | $14,749 |
Net realized gain (loss) | 130,731 | 446,654 |
Change in net unrealized appreciation (depreciation) | 367,532 | (468,799) |
Net increase (decrease) in net assets resulting from operations | 509,966 | (7,396) |
Distributions to shareholders from net investment income | (13,542) | (5,195) |
Distributions to shareholders from net realized gain | (1,063) | – |
Total distributions | (14,605) | (5,195) |
Share transactions - net increase (decrease) | (323,399) | (665,611) |
Redemption fees | 42 | 199 |
Total increase (decrease) in net assets | 172,004 | (678,003) |
Net Assets | ||
Beginning of period | 2,555,076 | 3,233,079 |
End of period | $2,727,080 | $2,555,076 |
Other Information | ||
Undistributed net investment income end of period | $9,985 | $11,987 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Strategies Fund
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.87 | $33.91 | $32.44 | $27.66 | $20.56 |
Income from Investment Operations | |||||
Net investment income (loss)A | .16B | .16C | .04 | .11 | .09 |
Net realized and unrealized gain (loss) | 7.13 | (.16) | 1.53 | 4.72 | 7.10 |
Total from investment operations | 7.29 | – | 1.57 | 4.83 | 7.19 |
Distributions from net investment income | (.18) | (.04) | (.09) | (.05) | (.07)D |
Distributions from net realized gain | (.02) | – | (.01) | – | (.02)D |
Total distributions | (.20) | (.04) | (.10) | (.05) | (.09) |
Redemption fees added to paid in capitalA,E | – | – | – | – | – |
Net asset value, end of period | $40.96 | $33.87 | $33.91 | $32.44 | $27.66 |
Total ReturnF | 21.63% | .02% | 4.86% | 17.50% | 35.13% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .78% | .94% | .91% | .72% | .71% |
Expenses net of fee waivers, if any | .78% | .94% | .91% | .72% | .71% |
Expenses net of all reductions | .78% | .94% | .91% | .72% | .69% |
Net investment income (loss) | .43%B | .49%C | .13% | .37% | .39% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $2,455 | $2,080 | $2,535 | $1,835 | $1,640 |
Portfolio turnover rateI | 73%J | 63% | 40% | 58% | 87% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .27%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .34%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Strategies Fund Class K
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.14 | $34.17 | $32.70 | $27.88 | $20.74 |
Income from Investment Operations | |||||
Net investment income (loss)A | .21B | .21C | .10 | .17 | .15 |
Net realized and unrealized gain (loss) | 7.19 | (.14) | 1.52 | 4.76 | 7.14 |
Total from investment operations | 7.40 | .07 | 1.62 | 4.93 | 7.29 |
Distributions from net investment income | (.23) | (.10) | (.15) | (.11) | (.13)D |
Distributions from net realized gain | (.02) | – | (.01) | – | (.02)D |
Total distributions | (.25) | (.10) | (.15)E | (.11) | (.15) |
Redemption fees added to paid in capitalA,F | – | – | – | – | – |
Net asset value, end of period | $41.29 | $34.14 | $34.17 | $32.70 | $27.88 |
Total ReturnG | 21.81% | .20% | 5.00% | 17.75% | 35.42% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .63% | .78% | .76% | .53% | .48% |
Expenses net of fee waivers, if any | .63% | .78% | .76% | .53% | .48% |
Expenses net of all reductions | .63% | .78% | .76% | .53% | .46% |
Net investment income (loss) | .57%B | .64%C | .28% | .56% | .62% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $272 | $475 | $699 | $385 | $342 |
Portfolio turnover rateJ | 73%K | 63% | 40% | 58% | 87% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $.15 per share is comprised of distributions from net investment income of $.145 and distributions from net realized gain of $.008 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2017
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Strategies Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth Strategies and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and includes proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $452,337 |
Gross unrealized depreciation | (41,087) |
Net unrealized appreciation (depreciation) | $411,250 |
Tax Cost | $2,418,127 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $10,072 |
Undistributed long-term capital gain | $1,288 |
Net unrealized appreciation (depreciation) on securities and other investments | $411,250 |
The tax character of distributions paid was as follows:
November 30, 2017 | November 30, 2016 | |
Ordinary Income | $14,605 | $ 5,195 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $1,888,924 and $2,092,281, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. Prior to February 1, 2017, the individual fund fee rate was .35%. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Strategies as compared to its benchmark index, the Russell Midcap Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .55% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth Strategies. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Growth Strategies | $4,430 | .19 |
Class K | 158 | .05 |
$4,588 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $45 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Redemptions In-Kind. During the period, 2,028 shares of the Fund held by an affiliated entity were redeemed in-kind for investments and cash with a value of $77,806. The net realized gain of $13,916 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $8 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $713, including an amount less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $37 for the period.
In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $2.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $22.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2017 | Year ended November 30, 2016 | |
From net investment income | ||
Growth Strategies | $11,145 | $3,237 |
Class K | 2,397 | 1,958 |
Total | $13,542 | $5,195 |
From net realized gain | ||
Growth Strategies | $909 | $– |
Class K | 154 | – |
Total | $1,063 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2017 | Year ended November 30, 2016 | Year ended November 30, 2017 | Year ended November 30, 2016 | |
Growth Strategies | ||||
Shares sold | 8,324 | 6,979 | $303,468 | $228,892 |
Reinvestment of distributions | 338 | 94 | 11,624 | 3,102 |
Shares redeemed | (10,158) | (20,401) | (373,570) | (674,632) |
Net increase (decrease) | (1,496) | (13,328) | $(58,478) | $(442,638) |
Class K | ||||
Shares sold | 1,619 | 3,172 | $59,764 | $103,937 |
Reinvestment of distributions | 74 | 59 | 2,551 | 1,958 |
Shares redeemed | (9,002)(a) | (9,765) | (327,236)(a) | (328,868) |
Net increase (decrease) | (7,309) | (6,534) | $(264,921) | $(222,973) |
(a) Amount includes in-kind redemptions (see the Redemptions In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Strategies 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 Growth Strategies Fund (a fund of Fidelity Mt. Vernon Street Trust) as of November 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Growth Strategies 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. Our procedures included confirmation of securities owned as of November 30, 2017 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 16, 2018
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
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) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. Ms. Dorsey serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2008-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees 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 (June 1, 2017 to November 30, 2017).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2017 | Ending Account Value November 30, 2017 | Expenses Paid During Period-B June 1, 2017 to November 30, 2017 | |
Growth Strategies | .72% | |||
Actual | $1,000.00 | $1,091.70 | $3.78 | |
Hypothetical-C | $1,000.00 | $1,021.46 | $3.65 | |
Class K | .56% | |||
Actual | $1,000.00 | $1,092.30 | $2.94 | |
Hypothetical-C | $1,000.00 | $1,022.26 | $2.84 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Growth Strategies Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Growth Strategies Fund | ||||
Growth Strategies | 12/27/17 | 12/26/17 | $0.158 | $0.019 |
Class K | 12/27/17 | 12/26/17 | $0.209 | $0.019 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2017, $1,288,206, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Growth Strategies and Class K designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Fidelity Growth Strategies and Class K designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Growth Strategies Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers 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 various standing committees (Committees), each composed of and chaired by 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 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board 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 expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board 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 was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, 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, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, 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 supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; 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.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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.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, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.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 and its performance history. The Board noted that there was a portfolio management change for the fund in August 2013.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Growth Strategies Fund
Fidelity Growth Strategies Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FEG-ANN-0118
1.539208.120
Fidelity® Growth Strategies Fund Class K Annual Report November 30, 2017 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from 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 hypothetical investment and the average annual total 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
For the periods ended November 30, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class K | 21.81% | 15.37% | 6.48% |
The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are those of Fidelity® Growth Strategies Fund, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Strategies Fund - Class K on November 30, 2007.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
See above for additional information regarding the performance of Class K.
Period Ending Values | ||
$18,729 | Fidelity® Growth Strategies Fund - Class K | |
$23,833 | Russell Midcap® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 22.87% for the year ending November 30, 2017, rising steadily and closing the period at an all-time high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump’s pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, info tech (+41%) led by a wide margin, surging amid strong earnings growth from several major index constituents. Utilities and financials each gained about 25%, the latter group riding an uptick in bond yields. Conversely, consumer discretionary (+20%) also rose solidly but lagged the broader market, as many brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+16%), while consumer staples (+15%) and telecom (+1%) struggled due to investors’ general preference for risk assets. Lastly, sluggish oil prices pushed energy to a -4% return.Comments from Portfolio Manager Jean Park: For the fiscal year, the fund's share classes gained roughly 22%, lagging the 25.03% return of the benchmark Russell Midcap® Growth Index. I avoided many of what I saw as the market's riskiest assets, which generally don’t fit my criteria, and thus the fund did not keep pace with its benchmark. Stock selection detracted from performance versus the benchmark, particularly choices in consumer discretionary, industrials and information technology. The fund’s biggest relative detractor was avoiding index component Nvidia, a computer graphics-card designer in tech's semiconductors & semiconductor equipment group. Though the company had solid free-cash-flow (FCF) yield, its stock seemed expensive to me and I found other semiconductor makers that screened more attractively. Nvidia posted a strong return this period, mainly due to continued favorable earnings reports. Also detracting were the fund’s stakes in auto-parts retailers O’Reilly Automotive and AutoZone. Both companies continued to disappoint in growth as sales dipped. Ultimately, I sold both positions by period end. On the upside, choices in consumer staples helped. The fund’s top individual relative contributor, though, was credit-card processor Total Systems Services, which benefited from solid execution as more consumers relied on credit cards versus carrying cash.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.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Total System Services, Inc. | 2.7 | 2.1 |
VeriSign, Inc. | 2.5 | 2.0 |
Huntington Ingalls Industries, Inc. | 2.4 | 1.9 |
Delphi Automotive PLC | 2.4 | 0.0 |
Wyndham Worldwide Corp. | 2.1 | 1.2 |
Progressive Corp. | 2.1 | 0.6 |
Citizens Financial Group, Inc. | 2.1 | 2.1 |
Citrix Systems, Inc. | 2.1 | 1.3 |
Fiserv, Inc. | 2.0 | 1.7 |
ON Semiconductor Corp. | 1.9 | 0.0 |
22.3 |
Top Five Market Sectors as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 32.3 | 24.8 |
Health Care | 16.1 | 16.3 |
Consumer Discretionary | 15.1 | 20.8 |
Industrials | 14.8 | 16.3 |
Financials | 10.6 | 7.2 |
Asset Allocation (% of fund's net assets)
As of November 30, 2017* | ||
Stocks | 99.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments - 9.2%
As of May 31, 2017* | ||
Stocks | 99.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.0% |
* Foreign investments - 6.9%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2017
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.1% | |||
Auto Components - 3.3% | |||
Delphi Automotive PLC | 614,000 | $64,267 | |
Visteon Corp. (a) | 182,300 | 24,007 | |
88,274 | |||
Distributors - 1.0% | |||
Pool Corp. | 224,200 | 28,168 | |
Diversified Consumer Services - 1.2% | |||
Service Corp. International | 859,800 | 31,770 | |
Hotels, Restaurants & Leisure - 3.2% | |||
Domino's Pizza, Inc. | 103,600 | 19,286 | |
Jack in the Box, Inc. | 97,322 | 10,074 | |
Wyndham Worldwide Corp. | 513,500 | 57,712 | |
87,072 | |||
Media - 1.7% | |||
Lions Gate Entertainment Corp. Class B | 454,296 | 14,101 | |
Live Nation Entertainment, Inc. (a) | 557,000 | 25,277 | |
Scripps Networks Interactive, Inc. Class A | 75,953 | 6,216 | |
45,594 | |||
Multiline Retail - 1.7% | |||
Dollar General Corp. | 209,200 | 18,426 | |
Dollar Tree, Inc. (a) | 275,000 | 28,259 | |
46,685 | |||
Specialty Retail - 1.3% | |||
Ross Stores, Inc. | 478,541 | 36,383 | |
Textiles, Apparel & Luxury Goods - 1.7% | |||
Carter's, Inc. | 173,900 | 18,837 | |
Hanesbrands, Inc. (b) | 713,400 | 14,903 | |
VF Corp. | 174,850 | 12,757 | |
46,497 | |||
TOTAL CONSUMER DISCRETIONARY | 410,443 | ||
CONSUMER STAPLES - 4.5% | |||
Beverages - 1.7% | |||
Brown-Forman Corp. Class B (non-vtg.) | 149,322 | 8,929 | |
Dr. Pepper Snapple Group, Inc. | 206,000 | 18,579 | |
Monster Beverage Corp. (a) | 281,000 | 17,610 | |
45,118 | |||
Food Products - 1.1% | |||
The Hershey Co. | 277,600 | 30,794 | |
Personal Products - 1.5% | |||
Estee Lauder Companies, Inc. Class A | 187,000 | 23,343 | |
Herbalife Ltd. (a) | 259,100 | 18,173 | |
41,516 | |||
Tobacco - 0.2% | |||
British American Tobacco PLC sponsored ADR | 99,252 | 6,315 | |
TOTAL CONSUMER STAPLES | 123,743 | ||
ENERGY - 0.6% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, a GE Co. Class A | 138,734 | 4,125 | |
Oil, Gas & Consumable Fuels - 0.4% | |||
Andeavor | 110,710 | 11,677 | |
TOTAL ENERGY | 15,802 | ||
FINANCIALS - 10.6% | |||
Banks - 2.9% | |||
Citizens Financial Group, Inc. | 1,384,917 | 56,366 | |
Huntington Bancshares, Inc. | 1,500,000 | 21,600 | |
Investors Bancorp, Inc. | 102,013 | 1,456 | |
79,422 | |||
Capital Markets - 4.3% | |||
Ameriprise Financial, Inc. | 236,000 | 38,522 | |
MarketAxess Holdings, Inc. | 64,395 | 12,574 | |
Moody's Corp. | 286,400 | 43,481 | |
S&P Global, Inc. | 140,200 | 23,200 | |
117,777 | |||
Insurance - 3.4% | |||
Aon PLC | 114,600 | 16,069 | |
Arch Capital Group Ltd. (a) | 181,000 | 17,139 | |
Progressive Corp. | 1,079,100 | 57,387 | |
90,595 | |||
TOTAL FINANCIALS | 287,794 | ||
HEALTH CARE - 16.1% | |||
Health Care Equipment & Supplies - 3.2% | |||
Edwards Lifesciences Corp. (a) | 257,300 | 30,156 | |
Intuitive Surgical, Inc. (a) | 41,800 | 16,711 | |
ResMed, Inc. | 471,800 | 40,292 | |
87,159 | |||
Health Care Providers & Services - 4.5% | |||
AmerisourceBergen Corp. | 160,000 | 13,571 | |
HCA Holdings, Inc. (a) | 188,800 | 16,048 | |
Laboratory Corp. of America Holdings (a) | 125,600 | 19,879 | |
MEDNAX, Inc. (a) | 224,500 | 11,178 | |
Universal Health Services, Inc. Class B | 101,600 | 11,008 | |
Wellcare Health Plans, Inc. (a) | 236,000 | 50,266 | |
121,950 | |||
Health Care Technology - 1.9% | |||
Cerner Corp. (a) | 728,300 | 51,484 | |
Life Sciences Tools & Services - 5.4% | |||
Charles River Laboratories International, Inc. (a) | 307,600 | 32,052 | |
Illumina, Inc. (a) | 158,400 | 36,437 | |
Mettler-Toledo International, Inc. (a) | 64,200 | 40,395 | |
Waters Corp. (a) | 199,600 | 39,355 | |
148,239 | |||
Pharmaceuticals - 1.1% | |||
Jazz Pharmaceuticals PLC (a) | 120,083 | 16,780 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR (b) | 827,000 | 12,256 | |
29,036 | |||
TOTAL HEALTH CARE | 437,868 | ||
INDUSTRIALS - 14.8% | |||
Aerospace & Defense - 3.4% | |||
Huntington Ingalls Industries, Inc. | 273,000 | 65,976 | |
TransDigm Group, Inc. | 95,000 | 26,960 | |
92,936 | |||
Airlines - 0.8% | |||
Alaska Air Group, Inc. | 294,829 | 20,393 | |
Commercial Services & Supplies - 0.7% | |||
KAR Auction Services, Inc. | 363,700 | 18,320 | |
Electrical Equipment - 1.7% | |||
AMETEK, Inc. | 273,172 | 19,857 | |
Fortive Corp. | 356,736 | 26,630 | |
46,487 | |||
Industrial Conglomerates - 1.8% | |||
Roper Technologies, Inc. | 187,277 | 50,042 | |
Machinery - 3.4% | |||
Cummins, Inc. | 195,500 | 32,727 | |
IDEX Corp. | 214,900 | 29,134 | |
Toro Co. | 344,617 | 22,486 | |
Wabtec Corp. (b) | 123,600 | 9,505 | |
93,852 | |||
Professional Services - 1.8% | |||
Dun & Bradstreet Corp. | 89,724 | 11,046 | |
Equifax, Inc. | 331,000 | 37,774 | |
48,820 | |||
Trading Companies & Distributors - 1.2% | |||
United Rentals, Inc. (a) | 209,200 | 33,363 | |
TOTAL INDUSTRIALS | 404,213 | ||
INFORMATION TECHNOLOGY - 32.3% | |||
Communications Equipment - 1.4% | |||
F5 Networks, Inc. (a) | 286,500 | 38,448 | |
Electronic Equipment & Components - 1.4% | |||
Amphenol Corp. Class A | 432,800 | 39,207 | |
Internet Software & Services - 4.0% | |||
Akamai Technologies, Inc. (a) | 390,000 | 21,754 | |
LogMeIn, Inc. | 172,707 | 20,552 | |
VeriSign, Inc. (a)(b) | 588,200 | 67,702 | |
110,008 | |||
IT Services - 8.5% | |||
Amdocs Ltd. | 398,500 | 26,018 | |
Fiserv, Inc. (a) | 407,789 | 53,604 | |
FleetCor Technologies, Inc. (a) | 94,600 | 17,205 | |
Genpact Ltd. | 291,328 | 9,392 | |
Global Payments, Inc. | 275,300 | 27,684 | |
Paychex, Inc. | 341,089 | 22,959 | |
Total System Services, Inc. | 1,006,300 | 74,830 | |
231,692 | |||
Semiconductors & Semiconductor Equipment - 10.5% | |||
Analog Devices, Inc. | 534,950 | 46,065 | |
Applied Materials, Inc. | 259,300 | 13,683 | |
Broadcom Ltd. | 58,700 | 16,315 | |
KLA-Tencor Corp. | 436,400 | 44,618 | |
Lam Research Corp. | 172,000 | 33,081 | |
Microchip Technology, Inc. (b) | 487,700 | 42,425 | |
ON Semiconductor Corp. (a) | 2,635,000 | 52,911 | |
Skyworks Solutions, Inc. | 355,200 | 37,204 | |
286,302 | |||
Software - 6.5% | |||
Adobe Systems, Inc. (a) | 95,400 | 17,312 | |
Check Point Software Technologies Ltd. (a) | 312,023 | 32,541 | |
Citrix Systems, Inc. (a) | 640,300 | 56,109 | |
Electronic Arts, Inc. (a) | 206,707 | 21,983 | |
Intuit, Inc. | 67,300 | 10,581 | |
Take-Two Interactive Software, Inc. (a) | 339,500 | 37,871 | |
176,397 | |||
TOTAL INFORMATION TECHNOLOGY | 882,054 | ||
MATERIALS - 2.2% | |||
Chemicals - 2.2% | |||
CF Industries Holdings, Inc. | 282,000 | 10,567 | |
Eastman Chemical Co. | 91,055 | 8,411 | |
Sherwin-Williams Co. | 35,000 | 13,980 | |
The Scotts Miracle-Gro Co. Class A | 165,341 | 16,352 | |
Valvoline, Inc. | 460,340 | 11,352 | |
60,662 | |||
REAL ESTATE - 2.9% | |||
Equity Real Estate Investment Trusts (REITs) - 2.9% | |||
CoreSite Realty Corp. | 256,500 | 29,108 | |
Equity Lifestyle Properties, Inc. | 267,300 | 24,140 | |
Extra Space Storage, Inc. | 301,400 | 25,728 | |
78,976 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,290,288) | 2,701,555 | ||
Money Market Funds - 4.7% | |||
Fidelity Cash Central Fund, 1.13% (c) | 30,112,984 | 30,119 | |
Fidelity Securities Lending Cash Central Fund 1.13% (c)(d) | 97,693,508 | 97,703 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $127,830) | 127,822 | ||
TOTAL INVESTMENT IN SECURITIES - 103.8% | |||
(Cost $2,418,118) | 2,829,377 | ||
NET OTHER ASSETS (LIABILITIES) - (3.8)% | (102,297) | ||
NET ASSETS - 100% | $2,727,080 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $336 |
Fidelity Securities Lending Cash Central Fund | 713 |
Total | $1,049 |
Investment Valuation
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 Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2017 | |
Assets | ||
Investment in securities, at value (including securities loaned of $95,819) — See accompanying schedule: Unaffiliated issuers (cost $2,290,288) | $2,701,555 | |
Fidelity Central Funds (cost $127,830) | 127,822 | |
Total Investment in Securities (cost $2,418,118) | $2,829,377 | |
Receivable for investments sold | 6,723 | |
Receivable for fund shares sold | 757 | |
Dividends receivable | 3,042 | |
Distributions receivable from Fidelity Central Funds | 49 | |
Prepaid expenses | 5 | |
Other receivables | 90 | |
Total assets | 2,840,043 | |
Liabilities | ||
Payable for investments purchased | $12,302 | |
Payable for fund shares redeemed | 1,437 | |
Accrued management fee | 947 | |
Other affiliated payables | 447 | |
Other payables and accrued expenses | 141 | |
Collateral on securities loaned | 97,689 | |
Total liabilities | 112,963 | |
Net Assets | $2,727,080 | |
Net Assets consist of: | ||
Paid in capital | $2,304,557 | |
Undistributed net investment income | 9,985 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,279 | |
Net unrealized appreciation (depreciation) on investments | 411,259 | |
Net Assets | $2,727,080 | |
Growth Strategies: | ||
Net Asset Value, offering price and redemption price per share ($2,454,632 ÷ 59,926 shares) | $40.96 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($272,448 ÷ 6,598 shares) | $41.29 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2017 | |
Investment Income | ||
Dividends | $26,388 | |
Special dividends | 4,162 | |
Income from Fidelity Central Funds | 1,049 | |
Total income | 31,599 | |
Expenses | ||
Management fee | ||
Basic fee | $14,497 | |
Performance adjustment | (172) | |
Transfer agent fees | 4,588 | |
Accounting and security lending fees | 799 | |
Custodian fees and expenses | 88 | |
Independent trustees' fees and expenses | 10 | |
Registration fees | 52 | |
Audit | 60 | |
Legal | 11 | |
Miscellaneous | 24 | |
Total expenses before reductions | 19,957 | |
Expense reductions | (61) | 19,896 |
Net investment income (loss) | 11,703 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 116,812 | |
Redemptions in-kind with affiliated entities | 13,916 | |
Fidelity Central Funds | 3 | |
Total net realized gain (loss) | 130,731 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 367,539 | |
Fidelity Central Funds | (7) | |
Total change in net unrealized appreciation (depreciation) | 367,532 | |
Net gain (loss) | 498,263 | |
Net increase (decrease) in net assets resulting from operations | $509,966 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2017 | Year ended November 30, 2016 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $11,703 | $14,749 |
Net realized gain (loss) | 130,731 | 446,654 |
Change in net unrealized appreciation (depreciation) | 367,532 | (468,799) |
Net increase (decrease) in net assets resulting from operations | 509,966 | (7,396) |
Distributions to shareholders from net investment income | (13,542) | (5,195) |
Distributions to shareholders from net realized gain | (1,063) | – |
Total distributions | (14,605) | (5,195) |
Share transactions - net increase (decrease) | (323,399) | (665,611) |
Redemption fees | 42 | 199 |
Total increase (decrease) in net assets | 172,004 | (678,003) |
Net Assets | ||
Beginning of period | 2,555,076 | 3,233,079 |
End of period | $2,727,080 | $2,555,076 |
Other Information | ||
Undistributed net investment income end of period | $9,985 | $11,987 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Strategies Fund
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.87 | $33.91 | $32.44 | $27.66 | $20.56 |
Income from Investment Operations | |||||
Net investment income (loss)A | .16B | .16C | .04 | .11 | .09 |
Net realized and unrealized gain (loss) | 7.13 | (.16) | 1.53 | 4.72 | 7.10 |
Total from investment operations | 7.29 | – | 1.57 | 4.83 | 7.19 |
Distributions from net investment income | (.18) | (.04) | (.09) | (.05) | (.07)D |
Distributions from net realized gain | (.02) | – | (.01) | – | (.02)D |
Total distributions | (.20) | (.04) | (.10) | (.05) | (.09) |
Redemption fees added to paid in capitalA,E | – | – | – | – | – |
Net asset value, end of period | $40.96 | $33.87 | $33.91 | $32.44 | $27.66 |
Total ReturnF | 21.63% | .02% | 4.86% | 17.50% | 35.13% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .78% | .94% | .91% | .72% | .71% |
Expenses net of fee waivers, if any | .78% | .94% | .91% | .72% | .71% |
Expenses net of all reductions | .78% | .94% | .91% | .72% | .69% |
Net investment income (loss) | .43%B | .49%C | .13% | .37% | .39% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $2,455 | $2,080 | $2,535 | $1,835 | $1,640 |
Portfolio turnover rateI | 73%J | 63% | 40% | 58% | 87% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .27%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .34%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Strategies Fund Class K
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.14 | $34.17 | $32.70 | $27.88 | $20.74 |
Income from Investment Operations | |||||
Net investment income (loss)A | .21B | .21C | .10 | .17 | .15 |
Net realized and unrealized gain (loss) | 7.19 | (.14) | 1.52 | 4.76 | 7.14 |
Total from investment operations | 7.40 | .07 | 1.62 | 4.93 | 7.29 |
Distributions from net investment income | (.23) | (.10) | (.15) | (.11) | (.13)D |
Distributions from net realized gain | (.02) | – | (.01) | – | (.02)D |
Total distributions | (.25) | (.10) | (.15)E | (.11) | (.15) |
Redemption fees added to paid in capitalA,F | – | – | – | – | – |
Net asset value, end of period | $41.29 | $34.14 | $34.17 | $32.70 | $27.88 |
Total ReturnG | 21.81% | .20% | 5.00% | 17.75% | 35.42% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .63% | .78% | .76% | .53% | .48% |
Expenses net of fee waivers, if any | .63% | .78% | .76% | .53% | .48% |
Expenses net of all reductions | .63% | .78% | .76% | .53% | .46% |
Net investment income (loss) | .57%B | .64%C | .28% | .56% | .62% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $272 | $475 | $699 | $385 | $342 |
Portfolio turnover rateJ | 73%K | 63% | 40% | 58% | 87% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions of $.15 per share is comprised of distributions from net investment income of $.145 and distributions from net realized gain of $.008 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2017
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Strategies Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth Strategies and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and includes proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $452,337 |
Gross unrealized depreciation | (41,087) |
Net unrealized appreciation (depreciation) | $411,250 |
Tax Cost | $2,418,127 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $10,072 |
Undistributed long-term capital gain | $1,288 |
Net unrealized appreciation (depreciation) on securities and other investments | $411,250 |
The tax character of distributions paid was as follows:
November 30, 2017 | November 30, 2016 | |
Ordinary Income | $14,605 | $ 5,195 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $1,888,924 and $2,092,281, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. Prior to February 1, 2017, the individual fund fee rate was .35%. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Strategies as compared to its benchmark index, the Russell Midcap Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .55% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth Strategies. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Growth Strategies | $4,430 | .19 |
Class K | 158 | .05 |
$4,588 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $45 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Redemptions In-Kind. During the period, 2,028 shares of the Fund held by an affiliated entity were redeemed in-kind for investments and cash with a value of $77,806. The net realized gain of $13,916 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $8 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $713, including an amount less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $37 for the period.
In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $2.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $22.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2017 | Year ended November 30, 2016 | |
From net investment income | ||
Growth Strategies | $11,145 | $3,237 |
Class K | 2,397 | 1,958 |
Total | $13,542 | $5,195 |
From net realized gain | ||
Growth Strategies | $909 | $– |
Class K | 154 | – |
Total | $1,063 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2017 | Year ended November 30, 2016 | Year ended November 30, 2017 | Year ended November 30, 2016 | |
Growth Strategies | ||||
Shares sold | 8,324 | 6,979 | $303,468 | $228,892 |
Reinvestment of distributions | 338 | 94 | 11,624 | 3,102 |
Shares redeemed | (10,158) | (20,401) | (373,570) | (674,632) |
Net increase (decrease) | (1,496) | (13,328) | $(58,478) | $(442,638) |
Class K | ||||
Shares sold | 1,619 | 3,172 | $59,764 | $103,937 |
Reinvestment of distributions | 74 | 59 | 2,551 | 1,958 |
Shares redeemed | (9,002)(a) | (9,765) | (327,236)(a) | (328,868) |
Net increase (decrease) | (7,309) | (6,534) | $(264,921) | $(222,973) |
(a) Amount includes in-kind redemptions (see the Redemptions In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Strategies 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 Growth Strategies Fund (a fund of Fidelity Mt. Vernon Street Trust) as of November 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Growth Strategies 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. Our procedures included confirmation of securities owned as of November 30, 2017 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 16, 2018
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
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) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. Ms. Dorsey serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2008-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees 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 (June 1, 2017 to November 30, 2017).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2017 | Ending Account Value November 30, 2017 | Expenses Paid During Period-B June 1, 2017 to November 30, 2017 | |
Growth Strategies | .72% | |||
Actual | $1,000.00 | $1,091.70 | $3.78 | |
Hypothetical-C | $1,000.00 | $1,021.46 | $3.65 | |
Class K | .56% | |||
Actual | $1,000.00 | $1,092.30 | $2.94 | |
Hypothetical-C | $1,000.00 | $1,022.26 | $2.84 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Growth Strategies Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Growth Strategies Fund | ||||
Growth Strategies | 12/27/17 | 12/26/17 | $0.158 | $0.019 |
Class K | 12/27/17 | 12/26/17 | $0.209 | $0.019 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2017, $1,288,206, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Growth Strategies and Class K designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Fidelity Growth Strategies and Class K designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Growth Strategies Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers 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 various standing committees (Committees), each composed of and chaired by 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 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board 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 expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board 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 was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, 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, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, 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 supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; 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.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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.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, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.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 and its performance history. The Board noted that there was a portfolio management change for the fund in August 2013.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Growth Strategies Fund
Fidelity Growth Strategies Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FEG-K-ANN-0118
1.863026.109
Fidelity® Growth Strategies K6 Fund Annual Report November 30, 2017 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from 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 hypothetical investment and the average annual total 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 for Fidelity® Growth Strategies K6 Fund will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Strategies K6 Fund on May 25, 2017, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
Period Ending Values | ||
$10,950 | Fidelity® Growth Strategies K6 Fund | |
$11,218 | Russell Midcap® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 22.87% for the year ending November 30, 2017, rising steadily and closing the period at an all-time high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump’s pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, info tech (+41%) led by a wide margin, surging amid strong earnings growth from several major index constituents. Utilities and financials each gained about 25%, the latter group riding an uptick in bond yields. Conversely, consumer discretionary (+20%) also rose solidly but lagged the broader market, as many brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+16%), while consumer staples (+15%) and telecom (+1%) struggled due to investors’ general preference for risk assets. Lastly, sluggish oil prices pushed energy to a -4% return.Comments from Portfolio Manager Jean Park: From its inception on May 25, 2017, through November 30, 2017, the fund gained 9.50%, lagging the 12.18% return of the benchmark Russell Midcap® Growth Index. Versus the benchmark, stock selection was the main drag on performance, especially in industrials, information technology and consumer discretionary. In the latter, untimely ownership of car-parts retailers O’Reilly Automotive and AutoZone were notable relative detractors. Both stocks disappointed as sales dipped, and I sold both positions by period end. Another laggard was consumer credit-reporting agency Equifax. Data breaches announced in July and September sent shares of Equifax lower. However, the subsequent retirement of the company’s chief information officer and chief security officer, as well as the departure of the CEO, helped the stock recover somewhat in September, and I remained confident in Equifax’s longer-term prospects. On the positive side, a combination of stock picking and an underweighting in the materials sector aided performance versus the benchmark. My picks in consumer staples also helped. The fund’s biggest individual relative contribution stemmed from avoiding poor-performing drug company and index constituent Incyte. Overweighting media giant Scripps Networks Interactive also provided a solid boost.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.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Total System Services, Inc. | 2.7 | 2.2 |
VeriSign, Inc. | 2.5 | 2.1 |
Huntington Ingalls Industries, Inc. | 2.4 | 2.1 |
Delphi Automotive PLC | 2.3 | 0.0 |
Progressive Corp. | 2.1 | 0.8 |
Wyndham Worldwide Corp. | 2.1 | 2.1 |
Citizens Financial Group, Inc. | 2.1 | 2.1 |
Citrix Systems, Inc. | 2.0 | 2.0 |
Fiserv, Inc. | 2.0 | 1.7 |
ON Semiconductor Corp. | 1.9 | 0.0 |
22.1 |
Top Five Market Sectors as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 32.3 | 23.8 |
Health Care | 16.0 | 16.6 |
Consumer Discretionary | 14.8 | 22.4 |
Industrials | 14.8 | 17.0 |
Financials | 10.7 | 6.6 |
Asset Allocation (% of fund's net assets)
As of November 30, 2017* | ||
Stocks | 99.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.0% |
* Foreign investments - 8.9%
As of May 31, 2017* | ||
Stocks | 98.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.4% |
* Foreign investments - 5.7%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2017
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 14.8% | |||
Auto Components - 3.2% | |||
Delphi Automotive PLC | 18,000 | $1,884,060 | |
Visteon Corp.(a) | 5,300 | 697,957 | |
2,582,017 | |||
Distributors - 0.9% | |||
Pool Corp. | 6,100 | 766,404 | |
Diversified Consumer Services - 1.2% | |||
Service Corp. International | 25,400 | 938,530 | |
Hotels, Restaurants & Leisure - 3.2% | |||
Domino's Pizza, Inc. | 3,000 | 558,480 | |
Jack in the Box, Inc. | 3,100 | 320,881 | |
Wyndham Worldwide Corp. | 15,000 | 1,685,850 | |
2,565,211 | |||
Media - 1.6% | |||
Lions Gate Entertainment Corp. Class B | 13,200 | 409,728 | |
Live Nation Entertainment, Inc. (a) | 16,500 | 748,770 | |
Scripps Networks Interactive, Inc. Class A | 2,200 | 180,048 | |
1,338,546 | |||
Multiline Retail - 1.7% | |||
Dollar General Corp. | 6,300 | 554,904 | |
Dollar Tree, Inc. (a) | 8,000 | 822,080 | |
1,376,984 | |||
Specialty Retail - 1.3% | |||
Ross Stores, Inc. | 13,600 | 1,034,008 | |
Textiles, Apparel & Luxury Goods - 1.7% | |||
Carter's, Inc. | 5,100 | 552,432 | |
Hanesbrands, Inc. (b) | 20,600 | 430,334 | |
VF Corp. | 5,237 | 382,092 | |
1,364,858 | |||
TOTAL CONSUMER DISCRETIONARY | 11,966,558 | ||
CONSUMER STAPLES - 4.6% | |||
Beverages - 1.7% | |||
Brown-Forman Corp. Class B (non-vtg.) | 4,700 | 281,060 | |
Dr. Pepper Snapple Group, Inc. | 6,200 | 559,178 | |
Monster Beverage Corp. (a) | 8,300 | 520,161 | |
1,360,399 | |||
Food Products - 1.1% | |||
The Hershey Co. | 8,200 | 909,626 | |
Personal Products - 1.5% | |||
Estee Lauder Companies, Inc. Class A | 5,600 | 699,048 | |
Herbalife Ltd. (a) | 7,400 | 519,036 | |
1,218,084 | |||
Tobacco - 0.3% | |||
British American Tobacco PLC sponsored ADR | 3,022 | 192,290 | |
TOTAL CONSUMER STAPLES | 3,680,399 | ||
ENERGY - 0.7% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, a GE Co. Class A | 6,300 | 187,299 | |
Oil, Gas & Consumable Fuels - 0.5% | |||
Andeavor | 3,600 | 379,692 | |
TOTAL ENERGY | 566,991 | ||
FINANCIALS - 10.7% | |||
Banks - 3.0% | |||
Citizens Financial Group, Inc. | 40,600 | 1,652,420 | |
Huntington Bancshares, Inc. | 45,700 | 658,080 | |
Investors Bancorp, Inc. | 6,200 | 88,474 | |
2,398,974 | |||
Capital Markets - 4.4% | |||
Ameriprise Financial, Inc. | 7,000 | 1,142,610 | |
MarketAxess Holdings, Inc. | 1,900 | 371,013 | |
Moody's Corp. | 8,500 | 1,290,470 | |
S&P Global, Inc. | 4,500 | 744,660 | |
3,548,753 | |||
Insurance - 3.3% | |||
Aon PLC | 3,400 | 476,748 | |
Arch Capital Group Ltd. (a) | 5,085 | 481,499 | |
Progressive Corp. | 31,900 | 1,696,442 | |
2,654,689 | |||
TOTAL FINANCIALS | 8,602,416 | ||
HEALTH CARE - 16.0% | |||
Health Care Equipment & Supplies - 3.1% | |||
Edwards Lifesciences Corp. (a) | 7,400 | 867,280 | |
Intuitive Surgical, Inc. (a) | 1,200 | 479,736 | |
ResMed, Inc. | 13,700 | 1,169,980 | |
2,516,996 | |||
Health Care Providers & Services - 4.5% | |||
AmerisourceBergen Corp. | 4,800 | 407,136 | |
HCA Holdings, Inc. (a) | 5,900 | 501,500 | |
Laboratory Corp. of America Holdings (a) | 3,700 | 585,599 | |
MEDNAX, Inc. (a) | 6,800 | 338,572 | |
Universal Health Services, Inc. Class B | 3,100 | 335,885 | |
Wellcare Health Plans, Inc. (a) | 6,900 | 1,469,631 | |
3,638,323 | |||
Health Care Technology - 1.9% | |||
Cerner Corp. (a) | 21,600 | 1,526,904 | |
Life Sciences Tools & Services - 5.4% | |||
Charles River Laboratories International, Inc. (a) | 9,100 | 948,220 | |
Illumina, Inc. (a) | 4,600 | 1,058,138 | |
Mettler-Toledo International, Inc. (a) | 1,900 | 1,195,499 | |
Waters Corp. (a) | 5,900 | 1,163,303 | |
4,365,160 | |||
Pharmaceuticals - 1.1% | |||
Jazz Pharmaceuticals PLC (a) | 3,400 | 475,116 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR (b) | 24,200 | 358,644 | |
833,760 | |||
TOTAL HEALTH CARE | 12,881,143 | ||
INDUSTRIALS - 14.8% | |||
Aerospace & Defense - 3.4% | |||
Huntington Ingalls Industries, Inc. | 8,100 | 1,957,527 | |
TransDigm Group, Inc. | 2,800 | 794,612 | |
2,752,139 | |||
Airlines - 0.8% | |||
Alaska Air Group, Inc. | 9,100 | 629,447 | |
Commercial Services & Supplies - 0.7% | |||
KAR Auction Services, Inc. | 10,600 | 533,922 | |
Electrical Equipment - 1.6% | |||
AMETEK, Inc. | 7,800 | 566,982 | |
Fortive Corp. | 9,900 | 739,035 | |
1,306,017 | |||
Industrial Conglomerates - 1.8% | |||
Roper Technologies, Inc. | 5,500 | 1,469,655 | |
Machinery - 3.5% | |||
Cummins, Inc. | 5,800 | 970,920 | |
IDEX Corp. | 6,700 | 908,319 | |
Toro Co. | 10,300 | 672,075 | |
Wabtec Corp. | 3,800 | 292,220 | |
2,843,534 | |||
Professional Services - 1.8% | |||
Dun & Bradstreet Corp. | 2,500 | 307,775 | |
Equifax, Inc. | 9,800 | 1,118,376 | |
1,426,151 | |||
Trading Companies & Distributors - 1.2% | |||
United Rentals, Inc. (a) | 5,900 | 940,932 | |
TOTAL INDUSTRIALS | 11,901,797 | ||
INFORMATION TECHNOLOGY - 32.3% | |||
Communications Equipment - 1.4% | |||
F5 Networks, Inc. (a) | 8,300 | 1,113,860 | |
Electronic Equipment & Components - 1.4% | |||
Amphenol Corp. Class A | 12,775 | 1,157,287 | |
Internet Software & Services - 4.0% | |||
Akamai Technologies, Inc. (a) | 11,400 | 635,892 | |
LogMeIn, Inc. | 4,800 | 571,200 | |
VeriSign, Inc. (a)(b) | 17,500 | 2,014,250 | |
3,221,342 | |||
IT Services - 8.6% | |||
Amdocs Ltd. | 11,800 | 770,422 | |
Fiserv, Inc. (a) | 12,100 | 1,590,545 | |
FleetCor Technologies, Inc. (a) | 2,700 | 491,049 | |
Genpact Ltd. | 8,856 | 285,517 | |
Global Payments, Inc. | 8,100 | 814,536 | |
Paychex, Inc. | 11,100 | 747,141 | |
Total System Services, Inc. | 29,800 | 2,215,928 | |
6,915,138 | |||
Semiconductors & Semiconductor Equipment - 10.5% | |||
Analog Devices, Inc. | 15,800 | 1,360,538 | |
Applied Materials, Inc. | 7,500 | 395,775 | |
Broadcom Ltd. | 1,700 | 472,498 | |
KLA-Tencor Corp. | 12,700 | 1,298,448 | |
Lam Research Corp. | 5,100 | 980,883 | |
Microchip Technology, Inc. | 14,400 | 1,252,656 | |
ON Semiconductor Corp. (a) | 77,600 | 1,558,208 | |
Skyworks Solutions, Inc. | 10,600 | 1,110,244 | |
8,429,250 | |||
Software - 6.4% | |||
Adobe Systems, Inc. (a) | 2,800 | 508,116 | |
Check Point Software Technologies Ltd. (a) | 9,100 | 949,039 | |
Citrix Systems, Inc. (a) | 18,700 | 1,638,681 | |
Electronic Arts, Inc. (a) | 6,100 | 648,735 | |
Intuit, Inc. | 2,000 | 314,440 | |
Take-Two Interactive Software, Inc. (a) | 9,900 | 1,104,345 | |
5,163,356 | |||
TOTAL INFORMATION TECHNOLOGY | 26,000,233 | ||
MATERIALS - 2.2% | |||
Chemicals - 2.2% | |||
CF Industries Holdings, Inc. | 8,316 | 311,601 | |
Eastman Chemical Co. | 2,500 | 230,925 | |
Sherwin-Williams Co. | 1,000 | 399,420 | |
The Scotts Miracle-Gro Co. Class A | 4,800 | 474,720 | |
Valvoline, Inc. | 13,500 | 332,910 | |
1,749,576 | |||
REAL ESTATE - 2.9% | |||
Equity Real Estate Investment Trusts (REITs) - 2.9% | |||
CoreSite Realty Corp. | 7,510 | 852,235 | |
Equity Lifestyle Properties, Inc. | 7,900 | 713,449 | |
Extra Space Storage, Inc. | 9,100 | 776,776 | |
2,342,460 | |||
TOTAL COMMON STOCKS | |||
(Cost $73,705,014) | 79,691,573 | ||
Money Market Funds - 3.8% | |||
Fidelity Cash Central Fund, 1.13% (c) | 669,866 | 670,000 | |
Fidelity Securities Lending Cash Central Fund 1.13% (c)(d) | 2,365,074 | 2,365,310 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $3,035,310) | 3,035,310 | ||
TOTAL INVESTMENT IN SECURITIES - 102.8% | |||
(Cost $76,740,324) | 82,726,883 | ||
NET OTHER ASSETS (LIABILITIES) - (2.8)% | (2,215,293) | ||
NET ASSETS - 100% | $80,511,590 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $3,388 |
Fidelity Securities Lending Cash Central Fund | 476 |
Total | $3,864 |
Investment Valuation
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 Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $2,317,671) — See accompanying schedule: Unaffiliated issuers (cost $73,705,014) | $79,691,573 | |
Fidelity Central Funds (cost $3,035,310) | 3,035,310 | |
Total Investment in Securities (cost $76,740,324) | $82,726,883 | |
Receivable for investments sold | 449,310 | |
Receivable for fund shares sold | 4,915 | |
Dividends receivable | 89,016 | |
Distributions receivable from Fidelity Central Funds | 1,156 | |
Total assets | 83,271,280 | |
Liabilities | ||
Payable for investments purchased | $359,530 | |
Payable for fund shares redeemed | 5,841 | |
Accrued management fee | 28,994 | |
Collateral on securities loaned | 2,365,325 | |
Total liabilities | 2,759,690 | |
Net Assets | $80,511,590 | |
Net Assets consist of: | ||
Paid in capital | $74,856,415 | |
Undistributed net investment income | 197,572 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (528,956) | |
Net unrealized appreciation (depreciation) on investments | 5,986,559 | |
Net Assets, for 7,353,227 shares outstanding | $80,511,590 | |
Net Asset Value, offering price and redemption price per share ($80,511,590 ÷ 7,353,227 shares) | $10.95 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
For the period May 25, 2017 (commencement of operations) to November 30, 2017 | ||
Investment Income | ||
Dividends | $294,619 | |
Income from Fidelity Central Funds | 3,864 | |
Total income | 298,483 | |
Expenses | ||
Management fee | $106,091 | |
Independent trustees' fees and expenses | 58 | |
Total expenses before reductions | 106,149 | |
Expense reductions | (111) | 106,038 |
Net investment income (loss) | 192,445 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (523,810) | |
Fidelity Central Funds | (15) | |
Foreign currency transactions | (4) | |
Total net realized gain (loss) | (523,829) | |
Change in net unrealized appreciation (depreciation) on investment securities | 5,986,559 | |
Net gain (loss) | 5,462,730 | |
Net increase (decrease) in net assets resulting from operations | $5,655,175 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
For the period May 25, 2017 (commencement of operations) to November 30, 2017 | |
Increase (Decrease) in Net Assets | |
Operations | |
Net investment income (loss) | $192,445 |
Net realized gain (loss) | (523,829) |
Change in net unrealized appreciation (depreciation) | 5,986,559 |
Net increase (decrease) in net assets resulting from operations | 5,655,175 |
Share transactions | |
Proceeds from sales of shares | 81,896,163 |
Cost of shares redeemed | (7,039,748) |
Net increase (decrease) in net assets resulting from share transactions | 74,856,415 |
Total increase (decrease) in net assets | 80,511,590 |
Net Assets | |
Beginning of period | – |
End of period | $80,511,590 |
Other Information | |
Undistributed net investment income end of period | $197,572 |
Shares | |
Sold | 8,041,900 |
Redeemed | (688,673) |
Net increase (decrease) | 7,353,227 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Strategies K6 Fund
Years ended November 30, | 2017 A |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .04 |
Net realized and unrealized gain (loss) | .91 |
Total from investment operations | .95 |
Net asset value, end of period | $10.95 |
Total ReturnC,D | 9.50% |
Ratios to Average Net AssetsE,F | |
Expenses before reductions | .45%G |
Expenses net of fee waivers, if any | .45%G |
Expenses net of all reductions | .45%G |
Net investment income (loss) | .81%G |
Supplemental Data | |
Net assets, end of period (000 omitted) | $80,512 |
Portfolio turnover rateH | 56%G,I |
A For the period May 25, 2017 (commencement of operations) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying 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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2017
1. Organization.
Fidelity Growth Strategies K6 Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
The book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $6,979,258 |
Gross unrealized depreciation | (997,198) |
Net unrealized appreciation (depreciation) | $5,982,060 |
Tax Cost | $76,744,823 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $197,572 |
Capital loss carryforward | $(524,457) |
Net unrealized appreciation (depreciation) on securities and other investments | $5,982,060 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(524,457) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $14,415,060 and $17,241,521, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .45% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $350 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Exchanges In-Kind. During the period, an affiliated entity completed an exchange in-kind with the Fund. The affiliated entity delivered investments and cash valued at $77,806,295 in exchange for 7,648,188 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
6. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $476. During the period, there were no securities loaned to FCM.
7. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $104 for the period. In addition, through arrangements with the Fund's custodian credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $7.
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Strategies K6 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 Growth Strategies K6 Fund (a fund of Fidelity Mt. Vernon Street Trust) as of November 30, 2017, and the results of its operations, the changes in its net assets, and the financial highlights for the period May 25, 2017 (commencement of operations) through November 30, 2017, 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 Growth Strategies K6 Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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. Our procedures included confirmation of securities owned as of November 30, 2017 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 18, 2018
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
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) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust[s] or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. Ms. Dorsey serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2008-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (June 1, 2017 to November 30, 2017).
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2017 | Ending Account Value November 30, 2017 | Expenses Paid During Period-B June 1, 2017 to November 30, 2017 | |
Actual | .45% | $1,000.00 | $1,090.60 | $2.36 |
Hypothetical-C | $1,000.00 | $1,022.81 | $2.28 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FEGK6-ANN-0118
1.9883995.100
Fidelity® New Millennium Fund® Annual Report November 30, 2017 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from 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 hypothetical investment and the average annual total 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
For the periods ended November 30, 2017 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® New Millennium Fund® | 20.69% | 14.49% | 8.67% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® New Millennium Fund® on November 30, 2007.
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.
Period Ending Values | ||
$22,961 | Fidelity® New Millennium Fund® | |
$22,199 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 22.87% for the year ending November 30, 2017, rising steadily and closing the period at an all-time high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump’s pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, info tech (+41%) led by a wide margin, surging amid strong earnings growth from several major index constituents. Utilities and financials each gained about 25%, the latter group riding an uptick in bond yields. Conversely, consumer discretionary (+20%) also rose solidly but lagged the broader market, as many brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+16%), while consumer staples (+15%) and telecom (+1%) struggled due to investors’ general preference for risk assets. Lastly, sluggish oil prices pushed energy to a -4% return.Comments from Portfolio Manager John Roth: For the fiscal year, the fund gained 20.69%, underperforming the benchmark S&P 500® index. Versus the benchmark, underexposure to Apple detracted more than any other individual position the past year. We sold the fund's stake in Apple during the period; however, Apple shares rallied, driven by better-than-expected sales for iPhone® devices. In late October, the stock gained on speculation of booming demand for Apple’s new luxury smartphone, the iPhone X, which was released in early November. KeyW Holding, a supplier of engineering and tech solutions to national security and intelligence organizations, also detracted. Our out-of-benchmark stake in KeyW returned about -56%, hurt by disappointing quarterly financial results as some of its contracts were delayed. A cash position of about 4%, on average, also dented relative performance in a strong market. Conversely, picks in consumer discretionary and health care helped the most from a sector perspective. Among individual contributors, not owning multinational industrial conglomerate General Electric (GE) and energy stalwart Exxon Mobil, two large index components that underperformed, added the most value. Lastly, our foreign investments contributed overall, aided in part by a weaker U.S. dollar.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.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Bank of America Corp. | 3.2 | 2.9 |
Qualcomm, Inc. | 2.4 | 0.0 |
UnitedHealth Group, Inc. | 2.1 | 1.7 |
Eurofins Scientific SA | 2.1 | 2.2 |
ARAMARK Holdings Corp. | 2.0 | 1.3 |
Cisco Systems, Inc. | 2.0 | 1.8 |
The Williams Companies, Inc. | 2.0 | 2.0 |
Wal-Mart Stores, Inc. | 1.9 | 0.0 |
Chevron Corp. | 1.9 | 1.7 |
ConocoPhillips Co. | 1.5 | 1.4 |
21.1 |
Top Five Market Sectors as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 18.0 | 18.2 |
Information Technology | 14.9 | 17.9 |
Consumer Discretionary | 13.5 | 10.8 |
Health Care | 13.4 | 12.9 |
Energy | 12.9 | 11.8 |
Asset Allocation (% of fund's net assets)
As of November 30, 2017* | ||
Stocks | 96.5% | |
Bonds | 0.1% | |
Convertible Securities | 0.4% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.8% |
* Foreign investments - 17.6%
As of May 31, 2017* | ||
Stocks | 93.4% | |
Bonds | 0.2% | |
Convertible Securities | 0.2% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.0% |
* Foreign investments - 16.0%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments November 30, 2017
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.5% | |||
Auto Components - 0.5% | |||
Magna International, Inc. Class A (sub. vtg.) | 280,900 | $15,757 | |
Automobiles - 1.3% | |||
Fiat Chrysler Automobiles NV | 1,933,300 | 33,059 | |
Tesla, Inc. (a) | 29,900 | 9,235 | |
42,294 | |||
Distributors - 0.4% | |||
Pool Corp. | 119,500 | 15,014 | |
Hotels, Restaurants & Leisure - 3.2% | |||
ARAMARK Holdings Corp. | 1,571,300 | 66,937 | |
Drive Shack, Inc. | 923,300 | 5,706 | |
Noodles & Co. (a)(b) | 143,438 | 724 | |
U.S. Foods Holding Corp. (a) | 732,600 | 21,333 | |
Whitbread PLC | 227,498 | 10,978 | |
105,678 | |||
Household Durables - 2.1% | |||
D.R. Horton, Inc. | 550,700 | 28,086 | |
NVR, Inc. (a) | 5,100 | 17,723 | |
Toll Brothers, Inc. | 474,813 | 23,897 | |
69,706 | |||
Internet & Direct Marketing Retail - 0.6% | |||
Priceline Group, Inc. (a) | 11,700 | 20,355 | |
Media - 0.3% | |||
WME Entertainment Parent, LLC Class A (a)(c)(d)(e) | 3,633,768 | 9,084 | |
Multiline Retail - 0.5% | |||
Dollar General Corp. | 207,500 | 18,277 | |
Specialty Retail - 2.3% | |||
AutoZone, Inc. (a) | 31,700 | 21,770 | |
Citi Trends, Inc. | 74,890 | 1,931 | |
Tiffany & Co., Inc. | 330,000 | 31,185 | |
TJX Companies, Inc. | 265,000 | 20,021 | |
74,907 | |||
Textiles, Apparel & Luxury Goods - 1.3% | |||
Brunello Cucinelli SpA | 822,600 | 26,044 | |
Hermes International SCA | 22,100 | 11,649 | |
Under Armour, Inc. Class A (sub. vtg.) (a)(b) | 274,100 | 3,643 | |
41,336 | |||
TOTAL CONSUMER DISCRETIONARY | 412,408 | ||
CONSUMER STAPLES - 6.0% | |||
Beverages - 0.9% | |||
Fever-Tree Drinks PLC | 321,258 | 8,472 | |
Molson Coors Brewing Co. Class B | 278,000 | 21,712 | |
30,184 | |||
Food & Staples Retailing - 3.9% | |||
Costco Wholesale Corp. | 155,900 | 28,753 | |
CVS Health Corp. | 260,000 | 19,916 | |
Kroger Co. | 628,400 | 16,250 | |
Wal-Mart Stores, Inc. | 646,600 | 62,869 | |
127,788 | |||
Food Products - 0.9% | |||
Amira Nature Foods Ltd. (a)(b) | 1,082,352 | 4,708 | |
Amplify Snack Brands, Inc. (a)(b) | 826,476 | 4,794 | |
Associated British Foods PLC | 311,700 | 12,427 | |
Greencore Group PLC | 2,384,461 | 6,775 | |
28,704 | |||
Personal Products - 0.3% | |||
Coty, Inc. Class A | 669,500 | 11,535 | |
TOTAL CONSUMER STAPLES | 198,211 | ||
ENERGY - 12.6% | |||
Energy Equipment & Services - 1.9% | |||
Borr Drilling Ltd. | 4,401,703 | 19,576 | |
Oceaneering International, Inc. | 588,652 | 11,502 | |
Odfjell Drilling A/S (a) | 5,127,100 | 22,124 | |
TechnipFMC PLC | 325,600 | 9,325 | |
62,527 | |||
Oil, Gas & Consumable Fuels - 10.7% | |||
Anadarko Petroleum Corp. | 540,400 | 25,988 | |
Cabot Oil & Gas Corp. | 711,100 | 20,586 | |
Cheniere Energy, Inc. (a) | 160,300 | 7,746 | |
Chevron Corp. | 517,000 | 61,518 | |
Cimarex Energy Co. | 126,300 | 14,665 | |
ConocoPhillips Co. | 990,400 | 50,392 | |
Denbury Resources, Inc. (a)(b) | 2,486,300 | 4,351 | |
Diamondback Energy, Inc. (a) | 215,500 | 23,556 | |
Energy Transfer Equity LP | 416,500 | 6,747 | |
GasLog Ltd. (b) | 377,541 | 6,796 | |
Golar LNG Ltd. (b) | 717,100 | 17,720 | |
Legacy Reserves LP (a)(f) | 5,606,520 | 8,690 | |
Southwestern Energy Co. (a) | 510,600 | 3,247 | |
The Williams Companies, Inc. | 2,251,900 | 65,418 | |
Whiting Petroleum Corp. (a) | 119,925 | 2,992 | |
Williams Partners LP | 843,900 | 30,971 | |
351,383 | |||
TOTAL ENERGY | 413,910 | ||
FINANCIALS - 18.0% | |||
Banks - 7.5% | |||
Bank of America Corp. | 3,737,200 | 105,275 | |
First Republic Bank | 206,200 | 19,700 | |
Metro Bank PLC (a)(b) | 243,010 | 11,351 | |
PNC Financial Services Group, Inc. | 288,600 | 40,566 | |
Republic First Bancorp, Inc. (a)(b) | 933,900 | 8,825 | |
SunTrust Banks, Inc. | 424,112 | 26,138 | |
U.S. Bancorp | 621,000 | 34,248 | |
246,103 | |||
Capital Markets - 1.0% | |||
KKR & Co. LP | 1,235,604 | 24,613 | |
The NASDAQ OMX Group, Inc. | 123,500 | 9,776 | |
34,389 | |||
Diversified Financial Services - 0.1% | |||
New Academy Holding Co. LLC unit (a)(d)(e)(g) | 66,000 | 2,059 | |
Insurance - 7.0% | |||
AIA Group Ltd. | 2,385,200 | 19,332 | |
American International Group, Inc. | 705,000 | 42,272 | |
Arch Capital Group Ltd. (a) | 308,200 | 29,183 | |
Chubb Ltd. | 309,709 | 47,110 | |
First American Financial Corp. | 298,000 | 16,566 | |
FNF Group | 657,300 | 26,594 | |
MetLife, Inc. | 617,000 | 33,121 | |
The Travelers Companies, Inc. | 105,400 | 14,289 | |
228,467 | |||
Mortgage Real Estate Investment Trusts - 0.1% | |||
KKR Real Estate Finance Trust, Inc. | 172,700 | 3,540 | |
Thrifts & Mortgage Finance - 2.3% | |||
Housing Development Finance Corp. Ltd. | 425,968 | 11,068 | |
MGIC Investment Corp. (a) | 1,967,300 | 28,762 | |
Radian Group, Inc. | 1,774,923 | 36,368 | |
76,198 | |||
TOTAL FINANCIALS | 590,756 | ||
HEALTH CARE - 13.3% | |||
Health Care Equipment & Supplies - 4.1% | |||
Becton, Dickinson & Co. | 117,000 | 26,701 | |
Boston Scientific Corp. (a) | 1,857,500 | 48,815 | |
Danaher Corp. | 182,200 | 17,192 | |
DexCom, Inc. (a) | 217,400 | 12,703 | |
Integra LifeSciences Holdings Corp. (a) | 197,000 | 9,578 | |
Intuitive Surgical, Inc. (a) | 28,800 | 11,514 | |
Sartorius Stedim Biotech | 102,900 | 7,361 | |
133,864 | |||
Health Care Providers & Services - 3.9% | |||
Amplifon SpA | 1,041,550 | 16,277 | |
National Vision Holdings, Inc. | 334,800 | 10,911 | |
Premier, Inc. (a) | 239,400 | 6,947 | |
Teladoc, Inc. (a)(b) | 191,300 | 7,097 | |
UnitedHealth Group, Inc. | 301,900 | 68,885 | |
Universal Health Services, Inc. Class B | 154,000 | 16,686 | |
126,803 | |||
Health Care Technology - 1.0% | |||
Cerner Corp. (a) | 231,200 | 16,344 | |
HealthStream, Inc. (a) | 212,710 | 5,058 | |
Medidata Solutions, Inc. (a) | 165,500 | 11,029 | |
32,431 | |||
Life Sciences Tools & Services - 3.0% | |||
Agilent Technologies, Inc. | 377,200 | 26,117 | |
Bruker Corp. | 126,653 | 4,456 | |
Eurofins Scientific SA | 113,696 | 68,841 | |
99,414 | |||
Pharmaceuticals - 1.3% | |||
Catalent, Inc. (a) | 248,493 | 9,888 | |
GlaxoSmithKline PLC | 1,184,600 | 20,496 | |
Prestige Brands Holdings, Inc. (a) | 300,000 | 13,560 | |
43,944 | |||
TOTAL HEALTH CARE | 436,456 | ||
INDUSTRIALS - 10.0% | |||
Aerospace & Defense - 3.9% | |||
General Dynamics Corp. | 239,300 | 49,573 | |
KEYW Holding Corp. (a)(b) | 1,870,437 | 10,269 | |
Kratos Defense & Security Solutions, Inc. (a) | 259,700 | 2,709 | |
Northrop Grumman Corp. | 142,700 | 43,866 | |
Space Exploration Technologies Corp.: | |||
Class A (a)(d)(e) | 58,589 | 7,910 | |
Class C (d)(e) | 818 | 110 | |
Teledyne Technologies, Inc. (a) | 75,700 | 14,098 | |
128,535 | |||
Air Freight & Logistics - 1.0% | |||
C.H. Robinson Worldwide, Inc. (b) | 244,600 | 21,195 | |
Hub Group, Inc. Class A (a) | 207,916 | 9,938 | |
31,133 | |||
Commercial Services & Supplies - 1.0% | |||
KAR Auction Services, Inc. | 283,900 | 14,300 | |
Stericycle, Inc. (a) | 125,800 | 8,342 | |
U.S. Ecology, Inc. | 193,056 | 9,933 | |
32,575 | |||
Electrical Equipment - 0.4% | |||
Melrose Industries PLC | 4,653,496 | 12,580 | |
Machinery - 1.5% | |||
Aumann AG (h) | 223,600 | 18,382 | |
Flowserve Corp. | 158,200 | 6,736 | |
Pentair PLC | 160,200 | 11,400 | |
Rational AG | 21,300 | 13,934 | |
50,452 | |||
Marine - 0.2% | |||
Goodbulk Ltd. | 447,903 | 5,115 | |
Hapag-Lloyd AG (a)(b)(h) | 50,993 | 1,910 | |
7,025 | |||
Road & Rail - 0.4% | |||
Genesee & Wyoming, Inc. Class A (a) | 164,900 | 12,997 | |
Trading Companies & Distributors - 1.6% | |||
Bunzl PLC | 455,200 | 13,020 | |
Rush Enterprises, Inc. Class A (a) | 241,500 | 11,763 | |
United Rentals, Inc. (a) | 178,400 | 28,451 | |
53,234 | |||
TOTAL INDUSTRIALS | 328,531 | ||
INFORMATION TECHNOLOGY - 14.9% | |||
Communications Equipment - 2.0% | |||
Cisco Systems, Inc. | 1,773,300 | 66,144 | |
Electronic Equipment & Components - 1.6% | |||
Amphenol Corp. Class A | 280,182 | 25,382 | |
CDW Corp. | 182,000 | 12,742 | |
Keysight Technologies, Inc. (a) | 290,000 | 12,615 | |
50,739 | |||
Internet Software & Services - 1.4% | |||
Akamai Technologies, Inc. (a) | 357,400 | 19,936 | |
GoDaddy, Inc. (a) | 380,400 | 18,506 | |
LogMeIn, Inc. | 72,423 | 8,618 | |
47,060 | |||
IT Services - 4.8% | |||
First Data Corp. Class A (a) | 2,439,762 | 40,134 | |
FleetCor Technologies, Inc. (a) | 53,900 | 9,803 | |
Leidos Holdings, Inc. | 340,800 | 21,665 | |
PayPal Holdings, Inc. (a) | 499,500 | 37,827 | |
Science Applications International Corp. | 123,900 | 9,193 | |
Visa, Inc. Class A | 356,100 | 40,093 | |
158,715 | |||
Semiconductors & Semiconductor Equipment - 2.9% | |||
KLA-Tencor Corp. | 86,700 | 8,864 | |
Maxim Integrated Products, Inc. | 140,200 | 7,337 | |
Qualcomm, Inc. | 1,201,600 | 79,714 | |
95,915 | |||
Software - 2.2% | |||
ANSYS, Inc. (a) | 118,500 | 17,561 | |
Aspen Technology, Inc. (a) | 379,600 | 25,403 | |
Black Knight, Inc. (a) | 201,549 | 9,050 | |
Citrix Systems, Inc. (a) | 207,300 | 18,166 | |
Trion World, Inc. (a)(d)(e) | 1,062,359 | 0 | |
Trion World, Inc. warrants 10/3/18 (a)(d)(e) | 42,310 | 0 | |
70,180 | |||
TOTAL INFORMATION TECHNOLOGY | 488,753 | ||
MATERIALS - 1.7% | |||
Chemicals - 0.3% | |||
Potash Corp. of Saskatchewan, Inc. | 514,800 | 10,103 | |
Construction Materials - 0.1% | |||
Forterra, Inc. (a)(b) | 407,800 | 4,013 | |
Metals & Mining - 1.3% | |||
Franco-Nevada Corp. | 143,800 | 11,716 | |
Freeport-McMoRan, Inc. (a) | 838,200 | 11,668 | |
Newcrest Mining Ltd. | 541,982 | 9,556 | |
Novagold Resources, Inc. (a) | 2,591,580 | 10,044 | |
42,984 | |||
TOTAL MATERIALS | 57,100 | ||
REAL ESTATE - 1.2% | |||
Equity Real Estate Investment Trusts (REITs) - 0.9% | |||
Cousins Properties, Inc. | 901,553 | 8,087 | |
Healthcare Trust of America, Inc. | 274,800 | 8,406 | |
Spirit Realty Capital, Inc. | 985,100 | 8,413 | |
VEREIT, Inc. | 471,400 | 3,677 | |
28,583 | |||
Real Estate Management & Development - 0.3% | |||
Realogy Holdings Corp. | 414,300 | 11,563 | |
TOTAL REAL ESTATE | 40,146 | ||
TELECOMMUNICATION SERVICES - 1.2% | |||
Diversified Telecommunication Services - 1.2% | |||
Verizon Communications, Inc. | 794,000 | 40,407 | |
UTILITIES - 4.4% | |||
Electric Utilities - 4.4% | |||
Alliant Energy Corp. | 409,800 | 18,486 | |
Duke Energy Corp. | 295,300 | 26,335 | |
Exelon Corp. | 454,100 | 18,941 | |
IDACORP, Inc. | 260,800 | 25,770 | |
OGE Energy Corp. | 265,200 | 9,484 | |
Southern Co. | 320,100 | 16,389 | |
Xcel Energy, Inc. | 557,200 | 28,757 | |
144,162 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,407,977) | 3,150,840 | ||
Preferred Stocks - 1.1% | |||
Convertible Preferred Stocks - 0.4% | |||
CONSUMER DISCRETIONARY - 0.4% | |||
Diversified Consumer Services - 0.2% | |||
Lyft, Inc. Series H (d)(e) | 143,083 | 5,687 | |
Leisure Products - 0.2% | |||
Peloton Interactive, Inc. Series E (d)(e) | 230,821 | 5,339 | |
TOTAL CONSUMER DISCRETIONARY | 11,026 | ||
INDUSTRIALS - 0.0% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Series H (d)(e) | 7,570 | 1,022 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 12,048 | ||
Nonconvertible Preferred Stocks - 0.7% | |||
CONSUMER DISCRETIONARY - 0.6% | |||
Automobiles - 0.6% | |||
Porsche Automobil Holding SE (Germany) | 222,673 | 18,632 | |
HEALTH CARE - 0.1% | |||
Health Care Equipment & Supplies - 0.1% | |||
Sartorius AG (non-vtg.) | 39,029 | 3,740 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 22,372 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $27,465) | 34,420 | ||
Principal Amount (000s) | Value (000s) | ||
Corporate Bonds - 0.1% | |||
Convertible Bonds - 0.0% | |||
INFORMATION TECHNOLOGY - 0.0% | |||
Software - 0.0% | |||
Trion World, Inc. 10% 10/10/19 pay-in-kind (d)(e)(i) | 451 | 178 | |
Nonconvertible Bonds - 0.1% | |||
ENERGY - 0.1% | |||
Energy Equipment & Services - 0.1% | |||
Pacific Drilling V Ltd. 7.25% 12/1/17 (h) | 9,250 | 4,255 | |
TOTAL CORPORATE BONDS | |||
(Cost $9,610) | 4,433 | ||
Shares | Value (000s) | ||
Other - 0.2% | |||
Energy - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(e) | |||
(Cost $8,368) | 8,367,654 | 6,443 | |
Money Market Funds - 4.0% | |||
Fidelity Cash Central Fund, 1.13% (j) | 78,437,008 | 78,453 | |
Fidelity Securities Lending Cash Central Fund 1.13% (j)(k) | 51,574,754 | 51,580 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $130,030) | 130,033 | ||
TOTAL INVESTMENT IN SECURITIES - 101.2% | |||
(Cost $2,583,450) | 3,326,169 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (38,196) | ||
NET ASSETS - 100% | $3,287,973 |
Values shown as $0 may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $37,832,000 or 1.2% of net assets.
(e) Level 3 security
(f) Affiliated company
(g) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership.
(h) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $24,547,000 or 0.7% of net assets.
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(j) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(k) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Lyft, Inc. Series H | 11/22/17 | $5,687 |
New Academy Holding Co. LLC unit | 8/1/11 | $6,956 |
Peloton Interactive, Inc. Series E | 3/31/17 | $5,000 |
Space Exploration Technologies Corp. Class A | 4/8/16 - 9/11/17 | $5,981 |
Space Exploration Technologies Corp. Class C | 9/11/17 | $110 |
Space Exploration Technologies Corp. Series H | 8/4/17 | $1,022 |
Trion World, Inc. | 8/22/08 - 3/20/13 | $5,798 |
Trion World, Inc. warrants 10/3/18 | 10/10/13 | $0 |
Trion World, Inc. 10% 10/10/19 pay-in-kind | 10/10/13 - 10/10/17 | $450 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $8,368 |
WME Entertainment Parent, LLC Class A | 8/16/16 | $7,349 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $998 |
Fidelity Securities Lending Cash Central Fund | 1,064 |
Total | $2,062 |
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Legacy Reserves LP | $1,485 | $6,749 | $-- | $-- | $-- | $456 | $8,690 |
Total | $1,485 | $6,749 | $-- | $-- | $-- | $456 | $8,690 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $442,066 | $421,956 | $-- | $20,110 |
Consumer Staples | 198,211 | 198,211 | -- | -- |
Energy | 413,910 | 413,910 | -- | -- |
Financials | 590,756 | 588,697 | -- | 2,059 |
Health Care | 440,196 | 419,700 | 20,496 | -- |
Industrials | 329,553 | 320,511 | -- | 9,042 |
Information Technology | 488,753 | 488,753 | -- | -- |
Materials | 57,100 | 57,100 | -- | -- |
Real Estate | 40,146 | 40,146 | -- | -- |
Telecommunication Services | 40,407 | 40,407 | -- | -- |
Utilities | 144,162 | 144,162 | -- | -- |
Corporate Bonds | 4,433 | -- | 4,255 | 178 |
Other | 6,443 | -- | -- | 6,443 |
Money Market Funds | 130,033 | 130,033 | -- | -- |
Total Investments in Securities: | $3,326,169 | $3,263,586 | $24,751 | $37,832 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $25,444 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (4,280) |
Cost of Purchases | 16,695 |
Proceeds of Sales | (27) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $37,832 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2017 | $(4,280) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.4% |
United Kingdom | 3.0% |
Bermuda | 2.3% |
Luxembourg | 2.1% |
Germany | 1.8% |
Canada | 1.5% |
Switzerland | 1.4% |
Italy | 1.3% |
Netherlands | 1.0% |
Others (Individually Less Than 1%) | 3.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | November 30, 2017 | |
Assets | ||
Investment in securities, at value (including securities loaned of $48,942) — See accompanying schedule: Unaffiliated issuers (cost $2,437,836) | $3,187,446 | |
Fidelity Central Funds (cost $130,030) | 130,033 | |
Other affiliated issuers (cost $15,584) | 8,690 | |
Total Investment in Securities (cost $2,583,450) | $3,326,169 | |
Restricted cash | 86 | |
Receivable for investments sold | 12,826 | |
Receivable for fund shares sold | 549 | |
Dividends receivable | 4,773 | |
Interest receivable | 306 | |
Distributions receivable from Fidelity Central Funds | 160 | |
Prepaid expenses | 6 | |
Other receivables | 29 | |
Total assets | 3,344,904 | |
Liabilities | ||
Payable for investments purchased | $1,698 | |
Payable for fund shares redeemed | 1,930 | |
Accrued management fee | 1,183 | |
Other affiliated payables | 472 | |
Other payables and accrued expenses | 78 | |
Collateral on securities loaned | 51,570 | |
Total liabilities | 56,931 | |
Net Assets | $3,287,973 | |
Net Assets consist of: | ||
Paid in capital | $2,288,755 | |
Undistributed net investment income | 15,017 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 241,464 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 742,737 | |
Net Assets, for 76,997 shares outstanding | $3,287,973 | |
Net Asset Value, offering price and redemption price per share ($3,287,973 ÷ 76,997 shares) | $42.70 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2017 | |
Investment Income | ||
Dividends | $43,963 | |
Interest | 2,129 | |
Income from Fidelity Central Funds | 2,062 | |
Total income | 48,154 | |
Expenses | ||
Management fee | ||
Basic fee | $17,561 | |
Performance adjustment | (6,220) | |
Transfer agent fees | 4,723 | |
Accounting and security lending fees | 943 | |
Custodian fees and expenses | 69 | |
Independent trustees' fees and expenses | 12 | |
Registration fees | 54 | |
Audit | 97 | |
Legal | 11 | |
Miscellaneous | 26 | |
Total expenses before reductions | 17,276 | |
Expense reductions | (155) | 17,121 |
Net investment income (loss) | 31,033 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 246,806 | |
Fidelity Central Funds | (3) | |
Foreign currency transactions | (24) | |
Total net realized gain (loss) | 246,779 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 319,508 | |
Fidelity Central Funds | (12) | |
Other affiliated issuers | 456 | |
Assets and liabilities in foreign currencies | 21 | |
Total change in net unrealized appreciation (depreciation) | 319,973 | |
Net gain (loss) | 566,752 | |
Net increase (decrease) in net assets resulting from operations | $597,785 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2017 | Year ended November 30, 2016 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $31,033 | $37,107 |
Net realized gain (loss) | 246,779 | 153,907 |
Change in net unrealized appreciation (depreciation) | 319,973 | 36,889 |
Net increase (decrease) in net assets resulting from operations | 597,785 | 227,903 |
Distributions to shareholders from net investment income | (34,461) | (29,142) |
Distributions to shareholders from net realized gain | (147,147) | (323,806) |
Total distributions | (181,608) | (352,948) |
Share transactions | ||
Proceeds from sales of shares | 217,367 | 164,269 |
Reinvestment of distributions | 173,679 | 337,203 |
Cost of shares redeemed | (563,945) | (644,660) |
Net increase (decrease) in net assets resulting from share transactions | (172,899) | (143,188) |
Total increase (decrease) in net assets | 243,278 | (268,233) |
Net Assets | ||
Beginning of period | 3,044,695 | 3,312,928 |
End of period | $3,287,973 | $3,044,695 |
Other Information | ||
Undistributed net investment income end of period | $15,017 | $30,997 |
Shares | ||
Sold | 5,693 | 4,743 |
Issued in reinvestment of distributions | 4,765 | 10,236 |
Redeemed | (14,529) | (18,882) |
Net increase (decrease) | (4,071) | (3,903) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity New Millennium Fund
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $37.56 | $38.99 | $42.10 | $40.16 | $32.83 |
Income from Investment Operations | |||||
Net investment income (loss)A | .38 | .43 | .39 | .38B | .23 |
Net realized and unrealized gain (loss) | 7.01 | 2.31 | (.46) | 3.89 | 10.14 |
Total from investment operations | 7.39 | 2.74 | (.07) | 4.27 | 10.37 |
Distributions from net investment income | (.43) | (.35) | (.28) | (.19) | (.37) |
Distributions from net realized gain | (1.82) | (3.82) | (2.76) | (2.13) | (2.67) |
Total distributions | (2.25) | (4.17) | (3.04) | (2.33)C | (3.04) |
Net asset value, end of period | $42.70 | $37.56 | $38.99 | $42.10 | $40.16 |
Total ReturnD | 20.69% | 8.57% | .08% | 11.31% | 34.78% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .54% | .57% | .72% | .82% | .88% |
Expenses net of fee waivers, if any | .54% | .57% | .72% | .82% | .88% |
Expenses net of all reductions | .54% | .57% | .71% | .81% | .87% |
Net investment income (loss) | .98% | 1.25% | 1.00% | .92%B | .65% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $3,288 | $3,045 | $3,313 | $4,282 | $2,826 |
Portfolio turnover rateG | 31% | 44% | 57% | 44% | 49% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .59%.
C Total distributions of $2.33 per share is comprised of distributions from net investment income of $.192 and distributions from net realized gain of $2.133 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying 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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2017
(Amounts in thousands except percentages)
1. Organization.
Fidelity New Millennium Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Corporate Bonds | $ 178 | Recovery value | Recovery value | 39.5% | Increase |
Equities | $31,211 | Recovery value | Recovery value | 0.0% | Increase |
Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA | 5.9 | Increase | ||
Enterprise value/Gross profit (EV/GP) | 5.0 | Increase | |||
Discount rate | 14.1% | Decrease | |||
Discount for lack of marketability | 10.0% - 15.0% / 13.6% | Decrease | |||
Premium rate | 10.0% | Increase | |||
Market approach | Transaction price | $2.50 - $135.00 / $61.71 | Increase | ||
Other | $ 6,443 | Market approach | Transaction price | $100.00 | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2017, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and includes proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $926,571 |
Gross unrealized depreciation | (173,205) |
Net unrealized appreciation (depreciation) | $753,366 |
Tax Cost | $2,572,803 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $57,701 |
Undistributed long-term capital gain | $200,227 |
Net unrealized appreciation (depreciation) on securities and other investments | $741,292 |
The tax character of distributions paid was as follows:
November 30, 2017 | November 30, 2016 | |
Ordinary Income | $35,432 | $ 29,142 |
Long-term Capital Gains | 146,176 | 323,806 |
Total | $181,608 | $ 352,948 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $15,613 in these Subsidiaries, representing .47% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $952,878 and $1,264,464, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. Prior to February 1, 2017, the individual fund fee rate was .35%. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .36% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, 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 .15% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $26 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $10 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $6,406. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,064, including $54 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $127 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $28.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity New Millennium 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 New Millennium Fund (a fund of Fidelity Mt. Vernon Street Trust) as of November 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity New Millennium 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. Our procedures included confirmation of securities owned as of November 30, 2017 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 18, 2018
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
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) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. Ms. Dorsey serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2008-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (June 1, 2017 to November 30, 2017).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2017 | Ending Account Value November 30, 2017 | Expenses Paid During Period-B June 1, 2017 to November 30, 2017 | |
Actual | .55% | $1,000.00 | $1,114.90 | $2.92 |
Hypothetical-C | $1,000.00 | $1,022.31 | $2.79 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity New Millennium Fund voted to pay on December 27, 2017, to shareholders of record at the opening of business on December 26, 2017, a distribution of $3.118 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.357 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2017, $200,227,326, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 97% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividend distributed in during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity New Millennium Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers 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 various standing committees (Committees), each composed of and chaired by 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 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board 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 expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board 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 was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, 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, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, 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 supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; 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.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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.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, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.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 and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity New Millennium Fund
Fidelity New Millennium Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
NMF-ANN-0118
1.539033.120
Fidelity® Series Growth Company Fund Annual Report November 30, 2017 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from 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 hypothetical investment and the average annual total 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
For the periods ended November 30, 2017 | Past 1 year | Life of fundA |
Fidelity® Series Growth Company Fund | 38.10% | 16.85% |
A From November 7, 2013
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Series Growth Company Fund on November 7, 2013, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
Period Ending Values | ||
$18,833 | Fidelity® Series Growth Company Fund | |
$17,448 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 22.87% for the year ending November 30, 2017, rising steadily and closing the period at an all-time high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump’s pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, info tech (+41%) led by a wide margin, surging amid strong earnings growth from several major index constituents. Utilities and financials each gained about 25%, the latter group riding an uptick in bond yields. Conversely, consumer discretionary (+20%) also rose solidly but lagged the broader market, as many brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+16%), while consumer staples (+15%) and telecom (+1%) struggled due to investors’ general preference for risk assets. Lastly, sluggish oil prices pushed energy to a -4% return.Comments from Portfolio Manager Steven Wymer: For the fiscal year, the fund gained 38.10%, handily outpacing the 30.25% return of the benchmark Russell 3000® Growth Index. Outperformance of the benchmark was driven largely by favorable stock selection in information technology – which led the market the past 12 months amid investors’ increasing appetite for higher-growth investments – and consumer discretionary. A sizable overweighting in chipmaker Nvidia was by far the fund’s largest individual relative contributor this period. Among other positives, the firm continued to bring on new processors with improved performance and expanded capabilities in applications related to artificial intelligence and machine learning. While industry positioning within health care dampened our relative result, good stock picks more than compensated, including two names from the pharmaceuticals, biotechnology & life sciences industry: Alnylam Pharmaceuticals and Bluebird Bio. Aside from market selection in health care, an overweighting in energy proved the only other notable drag on a sector basis. Among individual stocks, pharma firm Alkermes was the fund's largest relative detractor. Shares declined as the company awaited feedback on a key drug candidate from the U.S. Food and Drug Administration.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.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
NVIDIA Corp. | 7.1 | 7.8 |
Apple, Inc. | 5.1 | 5.7 |
Amazon.com, Inc. | 4.8 | 4.8 |
Alphabet, Inc. Class A | 3.6 | 3.9 |
Facebook, Inc. Class A | 3.3 | 3.2 |
Salesforce.com, Inc. | 2.9 | 3.0 |
adidas AG | 2.4 | 2.7 |
Microsoft Corp. | 2.3 | 2.1 |
Alphabet, Inc. Class C | 1.9 | 2.1 |
Alnylam Pharmaceuticals, Inc. | 1.6 | 0.8 |
35.0 |
Top Five Market Sectors as of November 30, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 42.6 | 43.0 |
Consumer Discretionary | 20.5 | 21.6 |
Health Care | 18.5 | 16.6 |
Industrials | 6.2 | 6.5 |
Consumer Staples | 5.1 | 5.9 |
Asset Allocation (% of fund's net assets)
As of November 30, 2017* | ||
Stocks | 97.8% | |
Convertible Securities | 1.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.8% |
* Foreign investments - 11.5%
As of May 31, 2017* | ||
Stocks | 98.3% | |
Convertible Securities | 1.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 11.7%
Investments November 30, 2017
Showing Percentage of Net Assets
Common Stocks - 97.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 20.3% | |||
Auto Components - 0.0% | |||
Delphi Automotive PLC | 12,400 | $1,297,908 | |
Automobiles - 1.3% | |||
Tesla, Inc. (a)(b) | 480,100 | 148,278,885 | |
Hotels, Restaurants & Leisure - 2.2% | |||
China Lodging Group Ltd. ADR | 103,800 | 11,076,498 | |
Chipotle Mexican Grill, Inc. (a) | 29,800 | 9,070,822 | |
Del Taco Restaurants, Inc. (a) | 207,800 | 2,551,784 | |
Domino's Pizza, Inc. | 40,198 | 7,483,260 | |
Dunkin' Brands Group, Inc. | 64,200 | 3,832,740 | |
Hyatt Hotels Corp. Class A (a) | 43,500 | 3,147,660 | |
Las Vegas Sands Corp. | 246,200 | 17,059,198 | |
Marriott International, Inc. Class A | 41,000 | 5,207,000 | |
McDonald's Corp. | 384,500 | 66,122,465 | |
Papa John's International, Inc. | 160,300 | 9,371,138 | |
Royal Caribbean Cruises Ltd. | 6,500 | 805,220 | |
Sea Ltd. ADR (b) | 189,200 | 2,194,720 | |
Shake Shack, Inc. Class A (a)(b) | 175,600 | 7,217,160 | |
Starbucks Corp. | 1,082,500 | 62,590,150 | |
U.S. Foods Holding Corp. (a) | 138,600 | 4,036,032 | |
Wingstop, Inc. | 13,600 | 532,984 | |
Yum China Holdings, Inc. | 526,100 | 21,480,663 | |
Yum! Brands, Inc. | 298,900 | 24,949,183 | |
258,728,677 | |||
Household Durables - 0.1% | |||
Roku, Inc.: | |||
Class A (b) | 189,899 | 8,336,566 | |
Class B | 148,375 | 5,862,296 | |
Sony Corp. sponsored ADR | 35,000 | 1,638,000 | |
15,836,862 | |||
Internet & Direct Marketing Retail - 7.7% | |||
Amazon.com, Inc. (a) | 473,399 | 557,072,273 | |
Blue Apron Holdings, Inc.: | |||
Class A (b) | 302,600 | 904,774 | |
Class B | 515,684 | 1,464,800 | |
Class B | 128,920 | 385,471 | |
Boohoo.Com PLC (a) | 223,100 | 550,640 | |
Ctrip.com International Ltd. ADR (a) | 351,000 | 16,174,080 | |
Expedia, Inc. | 190,100 | 23,287,250 | |
Groupon, Inc. (a) | 2,475,200 | 13,960,128 | |
JD.com, Inc. sponsored ADR (a) | 1,497,800 | 56,092,610 | |
Netflix, Inc. (a) | 573,900 | 107,652,162 | |
Priceline Group, Inc. (a) | 30,900 | 53,757,039 | |
The Honest Co., Inc. (a)(c)(d) | 9,496 | 175,338 | |
TripAdvisor, Inc. (a) | 27,200 | 941,664 | |
Vipshop Holdings Ltd. ADR (a) | 411,400 | 3,385,822 | |
Wayfair LLC Class A (a)(b) | 943,801 | 66,056,632 | |
901,860,683 | |||
Leisure Products - 0.1% | |||
Callaway Golf Co. | 538,000 | 7,806,380 | |
Media - 1.3% | |||
Comcast Corp. Class A | 2,540,000 | 95,351,600 | |
Liberty Media Corp. Liberty Formula One Group Series C (a) | 141,300 | 5,143,320 | |
Lions Gate Entertainment Corp.: | |||
Class A (a) | 31,800 | 1,040,178 | |
Class B | 24,300 | 754,272 | |
The Walt Disney Co. | 434,700 | 45,565,254 | |
Turn, Inc. (Escrow) (d) | 205,882 | 137,406 | |
147,992,030 | |||
Multiline Retail - 0.3% | |||
Dollar General Corp. | 48,900 | 4,307,112 | |
Dollar Tree, Inc. (a) | 239,900 | 24,652,124 | |
Target Corp. | 28,000 | 1,677,200 | |
30,636,436 | |||
Specialty Retail - 1.4% | |||
CarMax, Inc. (a) | 39,648 | 2,732,144 | |
DavidsTea, Inc. (a) | 42,500 | 173,188 | |
Home Depot, Inc. | 569,000 | 102,317,580 | |
L Brands, Inc. | 37,900 | 2,125,053 | |
Lowe's Companies, Inc. | 134,900 | 11,246,613 | |
RH (a) | 344,144 | 34,892,760 | |
TJX Companies, Inc. | 91,600 | 6,920,380 | |
160,407,718 | |||
Textiles, Apparel & Luxury Goods - 5.9% | |||
adidas AG | 1,371,436 | 285,988,018 | |
Kering SA | 150,700 | 66,860,419 | |
lululemon athletica, Inc. (a) | 2,371,083 | 158,767,718 | |
LVMH Moet Hennessy - Louis Vuitton SA (b) | 49,897 | 14,535,570 | |
NIKE, Inc. Class B | 752,900 | 45,490,218 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 2,524,300 | 88,602,930 | |
Tory Burch LLC (c)(d)(e) | 248,840 | 11,969,204 | |
Under Armour, Inc. Class C (non-vtg.) (a)(b) | 47,659 | 568,572 | |
VF Corp. | 118,900 | 8,674,944 | |
681,457,593 | |||
TOTAL CONSUMER DISCRETIONARY | 2,354,303,172 | ||
CONSUMER STAPLES - 5.1% | |||
Beverages - 2.2% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 85,000 | 18,495,150 | |
Dr. Pepper Snapple Group, Inc. | 46,600 | 4,202,854 | |
Fever-Tree Drinks PLC | 337,902 | 8,911,084 | |
Monster Beverage Corp. (a) | 1,954,500 | 122,488,515 | |
PepsiCo, Inc. | 271,400 | 31,623,528 | |
The Coca-Cola Co. | 1,560,500 | 71,424,085 | |
257,145,216 | |||
Food & Staples Retailing - 0.6% | |||
Costco Wholesale Corp. | 266,500 | 49,150,595 | |
Drogasil SA | 728,300 | 19,578,854 | |
Kroger Co. | 55,700 | 1,440,402 | |
Walgreens Boots Alliance, Inc. | 81,000 | 5,893,560 | |
76,063,411 | |||
Food Products - 0.4% | |||
Campbell Soup Co. | 33,500 | 1,651,550 | |
General Mills, Inc. | 39,000 | 2,205,840 | |
Kellogg Co. | 28,900 | 1,912,024 | |
Lamb Weston Holdings, Inc. | 217,700 | 11,836,349 | |
Mondelez International, Inc. | 160,100 | 6,874,694 | |
The Hain Celestial Group, Inc. (a) | 92,600 | 3,805,860 | |
The Hershey Co. | 69,900 | 7,754,007 | |
The Kraft Heinz Co. | 122,400 | 9,959,688 | |
46,000,012 | |||
Household Products - 0.3% | |||
Church & Dwight Co., Inc. | 220,000 | 10,359,800 | |
Colgate-Palmolive Co. | 115,100 | 8,338,995 | |
Kimberly-Clark Corp. | 65,100 | 7,796,376 | |
Procter & Gamble Co. | 56,700 | 5,102,433 | |
31,597,604 | |||
Personal Products - 0.7% | |||
Coty, Inc. Class A | 2,160,500 | 37,225,415 | |
Herbalife Ltd. (a) | 422,300 | 29,620,122 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 298,100 | 17,191,107 | |
84,036,644 | |||
Tobacco - 0.9% | |||
Altria Group, Inc. | 795,900 | 53,985,897 | |
British American Tobacco PLC sponsored ADR | 228,900 | 14,564,907 | |
Philip Morris International, Inc. | 336,500 | 34,575,375 | |
103,126,179 | |||
TOTAL CONSUMER STAPLES | 597,969,066 | ||
ENERGY - 1.4% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, a GE Co. Class A | 463,300 | 13,773,909 | |
Halliburton Co. | 143,900 | 6,012,142 | |
U.S. Silica Holdings, Inc. (b) | 161,400 | 5,353,638 | |
25,139,689 | |||
Oil, Gas & Consumable Fuels - 1.2% | |||
Anadarko Petroleum Corp. | 69,800 | 3,356,682 | |
Cabot Oil & Gas Corp. | 374,900 | 10,853,355 | |
Concho Resources, Inc. (a) | 114,800 | 16,055,928 | |
Continental Resources, Inc. (a) | 128,300 | 6,072,439 | |
Diamondback Energy, Inc. (a) | 119,600 | 13,073,476 | |
EOG Resources, Inc. | 362,400 | 37,080,768 | |
Hess Corp. | 25,200 | 1,156,176 | |
Noble Energy, Inc. | 274,200 | 7,211,460 | |
PDC Energy, Inc. (a) | 127,438 | 5,855,776 | |
Pioneer Natural Resources Co. | 96,693 | 15,087,976 | |
Reliance Industries Ltd. | 841,535 | 12,025,377 | |
Valero Energy Corp. | 56,600 | 4,846,092 | |
132,675,505 | |||
TOTAL ENERGY | 157,815,194 | ||
FINANCIALS - 2.6% | |||
Banks - 1.1% | |||
Bank of America Corp. | 485,700 | 13,682,169 | |
Citigroup, Inc. | 146,200 | 11,038,100 | |
HDFC Bank Ltd. sponsored ADR | 369,311 | 35,860,098 | |
JPMorgan Chase & Co. | 467,300 | 48,842,196 | |
Signature Bank (a) | 15,400 | 2,114,112 | |
Wells Fargo & Co. | 209,800 | 11,847,406 | |
123,384,081 | |||
Capital Markets - 1.4% | |||
BlackRock, Inc. Class A | 122,900 | 61,596,251 | |
BM&F BOVESPA SA | 1,503,800 | 10,676,293 | |
Charles Schwab Corp. | 1,857,600 | 90,632,304 | |
E*TRADE Financial Corp. (a) | 84,900 | 4,087,086 | |
T. Rowe Price Group, Inc. | 16,000 | 1,646,720 | |
168,638,654 | |||
Consumer Finance - 0.1% | |||
American Express Co. | 60,500 | 5,911,455 | |
Discover Financial Services | 37,458 | 2,644,535 | |
8,555,990 | |||
Diversified Financial Services - 0.0% | |||
RPI International Holdings LP (a)(c)(d) | 35,220 | 4,808,411 | |
Insurance - 0.0% | |||
Hiscox Ltd. | 108,800 | 2,037,905 | |
TOTAL FINANCIALS | 307,425,041 | ||
HEALTH CARE - 18.0% | |||
Biotechnology - 13.6% | |||
AbbVie, Inc. | 407,084 | 39,454,581 | |
ACADIA Pharmaceuticals, Inc. (a) | 1,787,174 | 54,062,014 | |
Adverum Biotechnologies, Inc. (a) | 61,000 | 186,050 | |
Agios Pharmaceuticals, Inc. (a)(b) | 583,228 | 35,897,683 | |
Alexion Pharmaceuticals, Inc. (a) | 404,900 | 44,462,069 | |
Alkermes PLC (a) | 2,636,659 | 137,870,899 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,387,223 | 186,636,982 | |
Amgen, Inc. | 404,400 | 71,036,904 | |
Array BioPharma, Inc. (a) | 1,573,800 | 17,705,250 | |
Arsanis, Inc. (a) | 98,500 | 1,662,680 | |
aTyr Pharma, Inc. (a) | 397,874 | 1,551,709 | |
BeiGene Ltd. ADR (a)(b) | 561,636 | 44,930,880 | |
Biogen, Inc. (a) | 103,300 | 33,280,161 | |
Bioverativ, Inc. | 38,450 | 1,923,269 | |
bluebird bio, Inc. (a) | 735,931 | 127,168,877 | |
Calyxt, Inc. (b) | 414,500 | 7,933,530 | |
Celgene Corp. (a) | 315,500 | 31,811,865 | |
Celldex Therapeutics, Inc. (a)(b) | 552,143 | 1,656,429 | |
Cellectis SA sponsored ADR (a)(b) | 241,100 | 6,010,623 | |
Chimerix, Inc. (a) | 638,631 | 2,854,681 | |
Coherus BioSciences, Inc. (a)(b) | 646,392 | 5,785,208 | |
CytomX Therapeutics, Inc. (a) | 236,549 | 4,896,564 | |
CytomX Therapeutics, Inc. (a)(f) | 207,739 | 4,300,197 | |
Dicerna Pharmaceuticals, Inc. (a) | 17,770 | 150,690 | |
Editas Medicine, Inc. (a)(b) | 223,362 | 6,448,461 | |
Exelixis, Inc. (a) | 4,184,484 | 113,315,827 | |
Fate Therapeutics, Inc. (a) | 110,073 | 484,321 | |
Five Prime Therapeutics, Inc. (a) | 386,600 | 10,186,910 | |
Galapagos Genomics NV sponsored ADR (a) | 244,300 | 21,542,374 | |
Gilead Sciences, Inc. | 513,000 | 38,362,140 | |
Global Blood Therapeutics, Inc. (a) | 284,700 | 11,231,415 | |
Heron Therapeutics, Inc. (a) | 464,051 | 8,167,298 | |
Intellia Therapeutics, Inc. (a) | 237,838 | 5,356,112 | |
Intercept Pharmaceuticals, Inc. (a) | 58,400 | 3,586,344 | |
Intrexon Corp. (a)(b) | 128,900 | 1,758,196 | |
Ionis Pharmaceuticals, Inc. (a) | 2,104,782 | 116,794,353 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 1,454,056 | 25,111,547 | |
Jounce Therapeutics, Inc. (b) | 132,800 | 2,092,928 | |
Lexicon Pharmaceuticals, Inc. (a) | 1,971,877 | 20,152,583 | |
Macrogenics, Inc. (a) | 79,600 | 1,537,872 | |
Merrimack Pharmaceuticals, Inc. | 138,860 | 1,605,222 | |
Momenta Pharmaceuticals, Inc. (a) | 1,454,095 | 20,066,511 | |
Protagonist Therapeutics, Inc. (a) | 202,800 | 3,954,600 | |
Prothena Corp. PLC (a)(b) | 620,477 | 28,845,976 | |
Regeneron Pharmaceuticals, Inc. (a) | 271,300 | 98,172,618 | |
Regulus Therapeutics, Inc. (a) | 1,508,832 | 1,372,886 | |
Rigel Pharmaceuticals, Inc. (a) | 3,059,712 | 12,728,402 | |
Sage Therapeutics, Inc. (a) | 595,734 | 55,051,779 | |
Seattle Genetics, Inc. (a) | 568,817 | 34,658,020 | |
Seres Therapeutics, Inc. (a) | 398,892 | 4,188,366 | |
Seres Therapeutics, Inc. (a)(f) | 142,139 | 1,492,460 | |
Sienna Biopharmaceuticals, Inc. | 241,945 | 4,877,611 | |
Sienna Biopharmaceuticals, Inc. | 155,108 | 2,970,628 | |
Spark Therapeutics, Inc. (a) | 134,400 | 9,842,112 | |
Syros Pharmaceuticals, Inc. (a) | 201,160 | 2,987,226 | |
Syros Pharmaceuticals, Inc. (f) | 301,001 | 4,469,865 | |
TESARO, Inc. (a) | 117,700 | 9,957,420 | |
Ultragenyx Pharmaceutical, Inc. (a) | 206,600 | 10,431,234 | |
uniQure B.V. (a) | 84,908 | 1,285,507 | |
Vertex Pharmaceuticals, Inc. (a) | 85,300 | 12,307,937 | |
Xencor, Inc. (a) | 289,200 | 6,278,532 | |
Zai Lab Ltd. ADR (b) | 251,800 | 6,574,498 | |
1,583,477,886 | |||
Health Care Equipment & Supplies - 1.7% | |||
Abbott Laboratories | 169,021 | 9,527,714 | |
Align Technology, Inc. (a) | 35,434 | 9,244,022 | |
Danaher Corp. | 358,000 | 33,780,880 | |
DexCom, Inc. (a)(b) | 127,500 | 7,449,825 | |
Genmark Diagnostics, Inc. (a) | 540,100 | 2,403,445 | |
Insulet Corp. (a) | 542,720 | 38,929,306 | |
Intuitive Surgical, Inc. (a) | 106,921 | 42,744,877 | |
Novocure Ltd. (a)(b) | 606,900 | 11,682,825 | |
Novocure Ltd. (a)(f) | 149,451 | 2,876,932 | |
Penumbra, Inc. (a) | 378,492 | 39,855,208 | |
Presbia PLC (a) | 443,695 | 1,189,103 | |
199,684,137 | |||
Health Care Providers & Services - 0.7% | |||
Humana, Inc. | 17,100 | 4,460,706 | |
McKesson Corp. | 26,800 | 3,959,432 | |
National Vision Holdings, Inc. | 48,100 | 1,567,579 | |
OptiNose, Inc. | 225,000 | 4,295,250 | |
OptiNose, Inc. | 301,785 | 5,184,968 | |
UnitedHealth Group, Inc. | 238,200 | 54,350,094 | |
73,818,029 | |||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (a) | 197,700 | 26,272,353 | |
Castlight Health, Inc. Class B (a) | 777,600 | 3,032,640 | |
Cerner Corp. (a) | 63,100 | 4,460,539 | |
33,765,532 | |||
Life Sciences Tools & Services - 0.0% | |||
Illumina, Inc. (a) | 14,362 | 3,303,691 | |
Pharmaceuticals - 1.7% | |||
Adimab LLC (c)(d)(e) | 762,787 | 26,133,083 | |
Akcea Therapeutics, Inc. (b) | 1,096,839 | 20,938,657 | |
Avexis, Inc. (a) | 489,721 | 46,430,448 | |
Bristol-Myers Squibb Co. | 467,500 | 29,541,325 | |
Castle Creek Pharmaceuticals, LLC Class A-2 unit (a)(c)(d)(e)(g) | 13,511 | 5,585,718 | |
Endocyte, Inc. (a)(b) | 293,700 | 1,471,437 | |
Intra-Cellular Therapies, Inc. (a) | 1,072,498 | 16,623,719 | |
Jazz Pharmaceuticals PLC (a) | 109,400 | 15,287,556 | |
Kolltan Pharmaceuticals, Inc. rights (d) | 1,692,030 | 253,805 | |
Nektar Therapeutics (a) | 62,900 | 3,395,971 | |
Rhythm Pharmaceuticals, Inc. | 139,600 | 3,989,768 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 568,100 | 1,670,214 | |
The Medicines Company (a)(b) | 704,623 | 20,434,067 | |
Theravance Biopharma, Inc. (a) | 283,801 | 8,074,138 | |
199,829,906 | |||
TOTAL HEALTH CARE | 2,093,879,181 | ||
INDUSTRIALS - 6.1% | |||
Aerospace & Defense - 1.1% | |||
Lockheed Martin Corp. | 133,900 | 42,730,168 | |
Northrop Grumman Corp. | 17,700 | 5,440,980 | |
Space Exploration Technologies Corp. Class A (a)(c)(d) | 137,569 | 18,571,815 | |
The Boeing Co. | 151,500 | 41,935,200 | |
United Technologies Corp. | 122,900 | 14,926,205 | |
123,604,368 | |||
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 24,800 | 5,740,208 | |
United Parcel Service, Inc. Class B | 275,300 | 33,435,185 | |
39,175,393 | |||
Airlines - 1.6% | |||
Allegiant Travel Co. | 35,000 | 5,320,000 | |
Azul SA sponsored ADR | 147,700 | 3,716,132 | |
Delta Air Lines, Inc. | 224,100 | 11,859,372 | |
InterGlobe Aviation Ltd. (f) | 164,284 | 2,857,074 | |
JetBlue Airways Corp. (a) | 2,050,800 | 44,030,676 | |
Ryanair Holdings PLC sponsored ADR (a) | 130,910 | 15,963,165 | |
Southwest Airlines Co. | 694,100 | 42,111,047 | |
United Continental Holdings, Inc. (a) | 307,800 | 19,489,896 | |
Wheels Up Partners Holdings LLC: | |||
Series B (a)(c)(d)(e) | 1,843,115 | 5,750,519 | |
Series C (a)(c)(d)(e) | 670,590 | 2,092,241 | |
Wizz Air Holdings PLC (a)(f) | 846,826 | 38,297,076 | |
191,487,198 | |||
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 16,700 | 1,213,923 | |
Eaton Corp. PLC | 120,700 | 9,388,046 | |
Emerson Electric Co. | 107,000 | 6,935,740 | |
Fortive Corp. | 180,900 | 13,504,185 | |
31,041,894 | |||
Industrial Conglomerates - 0.9% | |||
3M Co. | 255,500 | 62,122,270 | |
Honeywell International, Inc. | 307,600 | 47,973,296 | |
110,095,566 | |||
Machinery - 1.4% | |||
Aumann AG (f) | 65,600 | 5,393,013 | |
Caterpillar, Inc. | 567,300 | 80,074,395 | |
Cummins, Inc. | 72,000 | 12,052,800 | |
Deere & Co. | 150,600 | 22,568,916 | |
Illinois Tool Works, Inc. | 84,500 | 14,301,625 | |
Rational AG | 1,300 | 850,410 | |
Wabtec Corp. (b) | 56,400 | 4,337,160 | |
Xylem, Inc. | 287,100 | 19,907,514 | |
159,485,833 | |||
Road & Rail - 0.4% | |||
Union Pacific Corp. | 320,400 | 40,530,600 | |
Trading Companies & Distributors - 0.1% | |||
Univar, Inc. (a) | 263,500 | 7,762,710 | |
TOTAL INDUSTRIALS | 703,183,562 | ||
INFORMATION TECHNOLOGY - 42.1% | |||
Communications Equipment - 0.3% | |||
Arista Networks, Inc. (a) | 28,100 | 6,550,672 | |
Infinera Corp. (a) | 3,207,500 | 23,222,300 | |
Palo Alto Networks, Inc. (a) | 19,900 | 2,900,425 | |
32,673,397 | |||
Electronic Equipment & Components - 0.2% | |||
Cognex Corp. | 7,300 | 1,011,561 | |
Dell Technologies, Inc. (a) | 49,700 | 3,888,528 | |
IPG Photonics Corp. (a) | 5,700 | 1,305,186 | |
TE Connectivity Ltd. | 27,500 | 2,597,100 | |
Trimble, Inc. (a) | 398,300 | 16,724,617 | |
25,526,992 | |||
Internet Software & Services - 12.0% | |||
2U, Inc. (a) | 237,580 | 15,228,878 | |
Actua Corp. (a) | 715,818 | 11,095,179 | |
Alarm.com Holdings, Inc. (a) | 7,600 | 311,524 | |
Alibaba Group Holding Ltd. sponsored ADR (a) | 365,300 | 64,687,324 | |
Alphabet, Inc.: | |||
Class A (a) | 401,770 | 416,302,021 | |
Class C (a) | 219,656 | 224,358,835 | |
Apptio, Inc. Class A (a) | 218,800 | 4,881,428 | |
Baidu.com, Inc. sponsored ADR (a) | 2,000 | 477,160 | |
CarGurus, Inc. Class A | 19,400 | 571,912 | |
Cloudera, Inc. (f) | 113,172 | 1,791,513 | |
Criteo SA sponsored ADR (a)(b) | 51,600 | 1,720,860 | |
eBay, Inc. (a) | 148,800 | 5,158,896 | |
Etsy, Inc. (a) | 50,800 | 836,168 | |
Facebook, Inc. Class A (a) | 2,186,258 | 387,361,192 | |
GoDaddy, Inc. (a) | 105,500 | 5,132,575 | |
Match Group, Inc. (a)(b) | 60,000 | 1,764,000 | |
NAVER Corp. | 2,306 | 1,695,923 | |
NetEase, Inc. ADR | 171,500 | 56,373,765 | |
New Relic, Inc. (a) | 135,246 | 7,611,645 | |
Nutanix, Inc.: | |||
Class A (a) | 1,272,300 | 41,731,440 | |
Class B (f) | 274,751 | 9,011,833 | |
Okta, Inc. | 24,900 | 727,329 | |
Shopify, Inc. Class A (a) | 974,049 | 102,044,307 | |
Tencent Holdings Ltd. | 315,500 | 16,153,962 | |
Twitter, Inc. (a) | 117,190 | 2,411,770 | |
Wix.com Ltd. (a) | 179,207 | 9,838,464 | |
1,389,279,903 | |||
IT Services - 3.6% | |||
Cognizant Technology Solutions Corp. Class A | 279,100 | 20,173,348 | |
IBM Corp. | 68,900 | 10,608,533 | |
MasterCard, Inc. Class A | 670,900 | 100,950,323 | |
PayPal Holdings, Inc. (a) | 1,491,000 | 112,913,430 | |
Square, Inc. (a) | 852,700 | 33,442,894 | |
Visa, Inc. Class A | 1,203,200 | 135,468,288 | |
413,556,816 | |||
Semiconductors & Semiconductor Equipment - 10.2% | |||
Advanced Micro Devices, Inc. (a)(b) | 1,956,500 | 21,306,285 | |
Applied Materials, Inc. | 111,200 | 5,868,024 | |
ASML Holding NV | 112,000 | 19,658,240 | |
Broadcom Ltd. | 166,336 | 46,231,428 | |
Cavium, Inc. (a) | 602,400 | 51,493,152 | |
Cirrus Logic, Inc. (a) | 427,300 | 23,604,052 | |
Cree, Inc. (a) | 295,466 | 10,500,862 | |
Cypress Semiconductor Corp. | 174,500 | 2,793,745 | |
Inphi Corp. (a) | 104,400 | 4,287,708 | |
Intel Corp. | 21,500 | 964,060 | |
KLA-Tencor Corp. | 73,200 | 7,483,968 | |
Marvell Technology Group Ltd. | 200,300 | 4,474,702 | |
Micron Technology, Inc. (a) | 280,000 | 11,869,200 | |
NVIDIA Corp. | 4,103,600 | 823,633,546 | |
Qorvo, Inc. (a) | 63,500 | 4,862,830 | |
Silicon Laboratories, Inc. (a) | 934,381 | 85,122,109 | |
Skyworks Solutions, Inc. | 33,878 | 3,548,382 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 345,300 | 13,673,880 | |
Texas Instruments, Inc. | 498,200 | 48,469,878 | |
1,189,846,051 | |||
Software - 10.3% | |||
Activision Blizzard, Inc. | 2,364,300 | 147,532,320 | |
Adobe Systems, Inc. (a) | 503,500 | 91,370,145 | |
Appirio, Inc. (Escrow) (d) | 100,642 | 24,806 | |
Atlassian Corp. PLC (a) | 121,800 | 5,686,842 | |
Autodesk, Inc. (a) | 241,100 | 26,448,670 | |
Black Knight, Inc. (a) | 130,900 | 5,877,410 | |
Electronic Arts, Inc. (a) | 521,300 | 55,440,255 | |
HubSpot, Inc. (a) | 512,900 | 41,519,255 | |
Intuit, Inc. | 136,400 | 21,444,808 | |
Microsoft Corp. | 3,145,292 | 264,739,228 | |
Oracle Corp. | 281,400 | 13,805,484 | |
Paylocity Holding Corp. (a) | 53,800 | 2,482,332 | |
Proofpoint, Inc. (a) | 101,100 | 9,104,055 | |
Red Hat, Inc. (a) | 1,078,400 | 136,697,984 | |
SailPoint Technologies Holding, Inc. (a) | 67,700 | 995,190 | |
Salesforce.com, Inc. (a) | 3,279,942 | 342,163,549 | |
Snap, Inc. Class A (a)(b) | 1,087,997 | 14,992,599 | |
Zendesk, Inc. (a) | 532,900 | 17,910,769 | |
1,198,235,701 | |||
Technology Hardware, Storage & Peripherals - 5.5% | |||
Apple, Inc. | 3,451,665 | 593,168,630 | |
BlackBerry Ltd. (a) | 636,200 | 6,851,874 | |
NetApp, Inc. | 115,000 | 6,498,650 | |
Pure Storage, Inc. Class A (a) | 927,378 | 17,137,945 | |
Samsung Electronics Co. Ltd. | 6,396 | 14,934,790 | |
Western Digital Corp. | 25,620 | 2,020,393 | |
640,612,282 | |||
TOTAL INFORMATION TECHNOLOGY | 4,889,731,142 | ||
MATERIALS - 1.4% | |||
Chemicals - 1.4% | |||
CF Industries Holdings, Inc. | 380,800 | 14,268,576 | |
DowDuPont, Inc. | 1,018,705 | 73,306,012 | |
LG Chemical Ltd. | 6,673 | 2,561,147 | |
LyondellBasell Industries NV Class A | 36,200 | 3,790,140 | |
Monsanto Co. | 170,991 | 20,235,075 | |
Praxair, Inc. | 50,200 | 7,726,784 | |
The Mosaic Co. | 74,800 | 1,816,892 | |
The Scotts Miracle-Gro Co. Class A | 361,621 | 35,764,317 | |
159,468,943 | |||
Containers & Packaging - 0.0% | |||
Aptargroup, Inc. | 14,500 | 1,281,945 | |
TOTAL MATERIALS | 160,750,888 | ||
REAL ESTATE - 0.2% | |||
Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
American Tower Corp. | 180,300 | 25,950,579 | |
Real Estate Management & Development - 0.0% | |||
Redfin Corp. (b) | 19,700 | 448,766 | |
TOTAL REAL ESTATE | 26,399,345 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.1% | |||
Verizon Communications, Inc. | 282,200 | 14,361,158 | |
Wireless Telecommunication Services - 0.4% | |||
T-Mobile U.S., Inc. (a) | 787,200 | 48,074,304 | |
TOTAL TELECOMMUNICATION SERVICES | 62,435,462 | ||
TOTAL COMMON STOCKS | |||
(Cost $6,099,216,623) | 11,353,892,053 | ||
Preferred Stocks - 1.5% | |||
Convertible Preferred Stocks - 1.4% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC Series 3 Preferred (a)(c)(d)(e) | 16,248 | 2,267,083 | |
Topgolf International, Inc. Series F (c)(d) | 234,069 | 3,237,994 | |
5,505,077 | |||
Internet & Direct Marketing Retail - 0.0% | |||
The Honest Co., Inc.: | |||
Series C (a)(c)(d) | 22,157 | 692,353 | |
Series D (a)(c)(d) | 19,064 | 643,092 | |
1,335,445 | |||
Leisure Products - 0.0% | |||
Peloton Interactive, Inc. Series E (c)(d) | 194,028 | 4,487,868 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Harmony Biosciences II, Inc. Series A (c)(d) | 2,550,636 | 2,550,636 | |
Homology Medicines, Inc. Series B (c)(d) | 958,333 | 1,380,000 | |
Rubius Therapeutics, Inc. Series B (c)(d) | 333,731 | 3,444,104 | |
7,374,740 | |||
TOTAL CONSUMER DISCRETIONARY | 18,703,130 | ||
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Neon Therapeutics, Inc. Series B (c)(d) | 921,285 | 2,588,811 | |
UNITY Biotechnology, Inc. Series B (a)(c)(d) | 645,485 | 2,924,047 | |
5,512,858 | |||
Insurance - 0.0% | |||
Clover Health Series D (c)(d) | 264,037 | 2,402,737 | |
TOTAL FINANCIALS | 7,915,595 | ||
HEALTH CARE - 0.5% | |||
Biotechnology - 0.4% | |||
10X Genomics, Inc. Series C (a)(c)(d) | 715,467 | 3,935,069 | |
23andMe, Inc. Series F (c)(d) | 164,720 | 2,287,005 | |
Axcella Health, Inc. Series C (a)(c)(d) | 111,581 | 1,124,736 | |
Immunocore Ltd. Series A (a)(c)(d) | 18,504 | 6,562,006 | |
Intarcia Therapeutics, Inc. Series EE (a)(c)(d) | 116,544 | 6,992,640 | |
Moderna Therapeutics, Inc.: | |||
Series B (c)(d) | 171,343 | 1,235,383 | |
Series C (c)(d) | 111,846 | 806,410 | |
Series E (a)(c)(d) | 1,403,070 | 10,116,135 | |
Series F (a)(c)(d) | 1,538,270 | 11,090,927 | |
Translate Bio: | |||
Series B (a)(c)(d) | 1,211,240 | 3,476,259 | |
Series C (c)(d) | 566,997 | 1,627,281 | |
49,253,851 | |||
Health Care Equipment & Supplies - 0.0% | |||
Shockwave Medical, Inc. Series C (c)(d) | 1,015,306 | 1,025,439 | |
Health Care Providers & Services - 0.0% | |||
Mulberry Health, Inc. Series A8 (a)(c)(d) | 783,663 | 4,976,260 | |
Health Care Technology - 0.1% | |||
Codiak Biosciences, Inc.: | |||
Series A (a)(c)(d) | 163,914 | 620,841 | |
Series B (a)(c)(d) | 532,720 | 2,017,730 | |
Series C 8.00% (c)(d) | 648,255 | 2,455,331 | |
5,093,902 | |||
TOTAL HEALTH CARE | 60,349,452 | ||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Series G (a)(c)(d) | 53,937 | 7,281,495 | |
Commercial Services & Supplies - 0.0% | |||
Domo, Inc. Series D (a)(c)(d) | 613,084 | 2,366,504 | |
Professional Services - 0.1% | |||
YourPeople, Inc. Series C (a)(c)(d) | 1,527,000 | 7,848,780 | |
TOTAL INDUSTRIALS | 17,496,779 | ||
INFORMATION TECHNOLOGY - 0.5% | |||
Internet Software & Services - 0.4% | |||
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 2,105,094 | 691,418 | |
Reddit, Inc. Series B (c)(d) | 37,935 | 598,383 | |
Starry, Inc. Series B (c)(d) | 2,961,147 | 2,730,178 | |
Uber Technologies, Inc.: | |||
Series D, 8.00% (a)(c)(d) | 1,095,852 | 38,267,152 | |
Series E, 8.00% (a)(c)(d) | 51,852 | 1,810,672 | |
44,097,803 | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (a)(c)(d) | 209,665 | 4,853,745 | |
Software - 0.1% | |||
Appirio, Inc. Series E (Escrow) (d) | 704,496 | 179,055 | |
Cloudflare, Inc. Series D 8.00% (a)(c)(d) | 344,325 | 2,186,464 | |
Dataminr, Inc. Series D (a)(c)(d) | 442,241 | 4,603,729 | |
Outset Medical, Inc. Series C (c)(d) | 382,862 | 876,754 | |
Taboola.Com Ltd. Series E (a)(c)(d) | 331,426 | 4,898,476 | |
12,744,478 | |||
TOTAL INFORMATION TECHNOLOGY | 61,696,026 | ||
TELECOMMUNICATION SERVICES - 0.0% | |||
Wireless Telecommunication Services - 0.0% | |||
Altiostar Networks, Inc. Series A1 (c)(d) | 202,849 | 933,105 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 167,094,087 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
FINANCIALS - 0.1% | |||
Banks - 0.1% | |||
Itau Unibanco Holding SA | 536,100 | 6,758,877 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Yumanity Holdings LLC Class A (a)(c)(d) | 130,754 | 1,461,830 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 8,220,707 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $155,423,349) | 175,314,794 | ||
Money Market Funds - 1.8% | |||
Fidelity Cash Central Fund, 1.13% (h) | 71,523,048 | 71,537,352 | |
Fidelity Securities Lending Cash Central Fund 1.13% (h)(i) | 134,716,701 | 134,730,173 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $206,266,010) | 206,267,525 | ||
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $6,460,905,982) | 11,735,474,372 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (113,312,829) | ||
NET ASSETS - 100% | $11,622,161,543 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $243,463,191 or 2.1% of net assets.
(d) Level 3 security
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $70,489,963 or 0.6% of net assets.
(g) Investment represents common shares and preferred shares.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
10X Genomics, Inc. Series C | 2/23/16 - 4/3/17 | $3,204,004 |
23andMe, Inc. Series F | 8/31/17 | $2,287,005 |
Adimab LLC | 9/17/14 - 6/5/15 | $11,583,995 |
Altiostar Networks, Inc. Series A1 | 1/10/17 | $933,105 |
AppNexus, Inc. Series E | 8/1/14 | $4,200,051 |
Axcella Health, Inc. Series C | 8/11/17 | $1,124,736 |
Castle Creek Pharmaceuticals, LLC Class A-2 unit | 9/29/16 | $4,458,630 |
Cloudflare, Inc. Series D 8.00% | 11/5/14 | $2,109,163 |
Clover Health Series D | 6/7/17 | $2,476,086 |
Codiak Biosciences, Inc. Series A | 11/12/15 | $163,914 |
Codiak Biosciences, Inc. Series B | 11/12/15 | $1,598,160 |
Codiak Biosciences, Inc. Series C 8.00% | 11/17/17 | $2,455,331 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $5,638,573 |
Domo, Inc. Series D | 1/24/14 | $2,533,999 |
Harmony Biosciences II, Inc. Series A | 9/22/17 | $2,550,636 |
Homology Medicines, Inc. Series B | 7/28/17 | $1,380,000 |
Immunocore Ltd. Series A | 7/27/15 | $3,482,067 |
Intarcia Therapeutics, Inc. Series EE | 9/2/16 | $6,992,640 |
Jet.Com, Inc. Series B1 (Escrow) | 9/19/16 | $691,418 |
MOD Super Fast Pizza Holdings LLC Series 3 Preferred | 11/3/16 | $2,225,976 |
Moderna Therapeutics, Inc. Series B | 4/13/17 | $993,789 |
Moderna Therapeutics, Inc. Series C | 4/13/17 | $649,825 |
Moderna Therapeutics, Inc. Series E | 12/18/14 | $10,570,104 |
Moderna Therapeutics, Inc. Series F | 8/10/16 | $11,588,640 |
Mulberry Health, Inc. Series A8 | 1/20/16 | $5,293,448 |
Neon Therapeutics, Inc. Series B | 12/28/16 | $2,588,811 |
Outset Medical, Inc. Series C | 4/19/17 | $992,187 |
Peloton Interactive, Inc. Series E | 3/31/17 | $4,202,996 |
Reddit, Inc. Series B | 7/26/17 | $538,544 |
RPI International Holdings LP | 5/21/15 - 3/23/16 | $4,390,645 |
Rubius Therapeutics, Inc. Series B | 6/7/17 | $2,800,003 |
Shockwave Medical, Inc. Series C | 9/27/17 | $1,025,439 |
Space Exploration Technologies Corp. Class A | 10/16/15 - 4/6/17 | $12,876,729 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $4,177,960 |
Starry, Inc. Series B | 12/1/16 | $1,601,981 |
Taboola.Com Ltd. Series E | 12/22/14 | $3,455,249 |
The Honest Co., Inc. | 8/21/14 | $256,936 |
The Honest Co., Inc. Series C | 8/21/14 | $599,509 |
The Honest Co., Inc. Series D | 8/3/15 | $872,273 |
Topgolf International, Inc. Series F | 11/10/17 | $3,237,994 |
Tory Burch LLC | 5/14/15 | $17,704,966 |
Translate Bio Series B | 7/17/15 | $1,308,139 |
Translate Bio Series C | 12/22/16 | $1,122,654 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $17,000,007 |
Uber Technologies, Inc. Series E, 8.00% | 12/5/14 | $1,727,583 |
UNITY Biotechnology, Inc. Series B | 10/14/16 | $2,652,943 |
Wheels Up Partners Holdings LLC Series B | 9/18/15 | $5,235,000 |
Wheels Up Partners Holdings LLC Series C | 6/22/17 | $2,092,241 |
YourPeople, Inc. Series C | 5/1/15 | $22,753,949 |
Yumanity Holdings LLC Class A | 2/8/16 | $883,727 |
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 | $300,000 |
Fidelity Securities Lending Cash Central Fund | 1,551,084 |
Total | $1,851,084 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $2,373,006,302 | $2,320,158,558 | $21,862,666 | $30,985,078 |
Consumer Staples | 597,969,066 | 580,777,959 | 17,191,107 | -- |
Energy | 157,815,194 | 157,815,194 | -- | -- |
Financials | 322,099,513 | 309,375,507 | -- | 12,724,006 |
Health Care | 2,155,690,463 | 2,052,080,765 | 8,155,596 | 95,454,102 |
Industrials | 720,680,341 | 676,768,987 | -- | 43,911,354 |
Information Technology | 4,951,427,168 | 4,873,552,374 | 16,153,962 | 61,720,832 |
Materials | 160,750,888 | 160,750,888 | -- | -- |
Real Estate | 26,399,345 | 26,399,345 | -- | -- |
Telecommunication Services | 63,368,567 | 62,435,462 | -- | 933,105 |
Money Market Funds | 206,267,525 | 206,267,525 | -- | -- |
Total Investments in Securities: | $11,735,474,372 | $11,426,382,564 | $63,363,331 | $245,728,477 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended November 30, 2017. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $0 |
Level 2 to Level 1 | $234,830,511 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $235,622,156 |
Net Realized Gain (Loss) on Investment Securities | (2,737,329) |
Net Unrealized Gain (Loss) on Investment Securities | (3,007,707) |
Cost of Purchases | 39,941,450 |
Proceeds of Sales | (24,090,093) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $245,728,477 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2017 | $(3,276,821) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.5% |
Cayman Islands | 2.8% |
Germany | 2.5% |
Ireland | 1.8% |
Others (Individually Less Than 1%) | 4.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $132,732,035) — See accompanying schedule: Unaffiliated issuers (cost $6,254,639,972) | $11,529,206,847 | |
Fidelity Central Funds (cost $206,266,010) | 206,267,525 | |
Total Investment in Securities (cost $6,460,905,982) | $11,735,474,372 | |
Restricted cash | 103,981 | |
Receivable for investments sold | 10,693,172 | |
Receivable for fund shares sold | 5,195,811 | |
Dividends receivable | 9,153,689 | |
Distributions receivable from Fidelity Central Funds | 168,904 | |
Other receivables | 17,893 | |
Total assets | 11,760,807,822 | |
Liabilities | ||
Payable for investments purchased | $2,736,568 | |
Payable for fund shares redeemed | 578,050 | |
Other payables and accrued expenses | 612,172 | |
Collateral on securities loaned | 134,719,489 | |
Total liabilities | 138,646,279 | |
Net Assets | $11,622,161,543 | |
Net Assets consist of: | ||
Paid in capital | $5,302,886,052 | |
Undistributed net investment income | 49,100,719 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 996,111,999 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 5,274,062,773 | |
Net Assets | $11,622,161,543 | |
Series Growth Company: | ||
Net Asset Value, offering price and redemption price per share ($11,622,161,543 ÷ 638,814,872 shares) | $18.19 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2017 | ||
Investment Income | ||
Dividends | $87,714,574 | |
Interest | 1,862 | |
Income from Fidelity Central Funds | 1,851,084 | |
Total income | 89,567,520 | |
Expenses | ||
Management fee | ||
Basic fee | $29,685,999 | |
Performance adjustment | 4,795,080 | |
Transfer agent fees | 3,284,943 | |
Accounting and security lending fees | 673,226 | |
Custodian fees and expenses | 407,148 | |
Independent trustees' fees and expenses | 42,681 | |
Audit | 60,936 | |
Legal | 21,073 | |
Interest | 45,544 | |
Miscellaneous | 71,886 | |
Total expenses before reductions | 39,088,516 | |
Expense reductions | (238,894) | 38,849,622 |
Net investment income (loss) | 50,717,898 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,020,978,445 | |
Fidelity Central Funds | 10,232 | |
Foreign currency transactions | 5,355 | |
Total net realized gain (loss) | 1,020,994,032 | |
Change in net unrealized appreciation (depreciation) on: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $539,342) | 2,493,162,095 | |
Fidelity Central Funds | (12,994) | |
Assets and liabilities in foreign currencies | 44,864 | |
Total change in net unrealized appreciation (depreciation) | 2,493,193,965 | |
Net gain (loss) | 3,514,187,997 | |
Net increase (decrease) in net assets resulting from operations | $3,564,905,895 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2017 | Year ended November 30, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $50,717,898 | $22,092,010 |
Net realized gain (loss) | 1,020,994,032 | 232,071,894 |
Change in net unrealized appreciation (depreciation) | 2,493,193,965 | 76,323,730 |
Net increase (decrease) in net assets resulting from operations | 3,564,905,895 | 330,487,634 |
Distributions to shareholders from net investment income | (21,273,177) | (37,257,434) |
Distributions to shareholders from net realized gain | (237,558,300) | – |
Total distributions | (258,831,477) | (37,257,434) |
Share transactions - net increase (decrease) | (2,090,059,508) | (1,345,489,350) |
Total increase (decrease) in net assets | 1,216,014,910 | (1,052,259,150) |
Net Assets | ||
Beginning of period | 10,406,146,633 | 11,458,405,783 |
End of period | $11,622,161,543 | $10,406,146,633 |
Other Information | ||
Undistributed net investment income end of period | $49,100,719 | $19,689,747 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Growth Company Fund
Years ended November 30, | 2017 | 2016 | 2015 | 2014 | 2013 A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $13.49 | $13.08 | $12.10 | $10.29 | $10.00 |
Income from Investment Operations | |||||
Net investment income (loss)B | .07 | .01 | .03 | .02 | .01 |
Net realized and unrealized gain (loss) | 4.96 | .43 | 1.04 | 1.80 | .28 |
Total from investment operations | 5.03 | .44 | 1.07 | 1.82 | .29 |
Distributions from net investment income | (.02) | (.03) | (.02) | (.01) | – |
Distributions from net realized gain | (.31) | – | (.07) | – | – |
Total distributions | (.33) | (.03) | (.09) | (.01) | – |
Net asset value, end of period | $18.19 | $13.49 | $13.08 | $12.10 | $10.29 |
Total ReturnC,D | 38.10% | 3.38% | 8.94% | 17.67% | 2.90% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .38% | .74% | .79% | .74% | .76%G |
Expenses net of fee waivers, if any | .38% | .74% | .79% | .74% | .76%G |
Expenses net of all reductions | .37% | .74% | .79% | .74% | .76%G |
Net investment income (loss) | .43% | .11% | .24% | .22% | .87%G |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $11,622,162 | $4,032,151 | $4,602,479 | $4,353,274 | $4,063,472 |
Portfolio turnover rateH | 15% | 20% | 18% | 14% | 1%I |
A For the period November 7, 2013 (commencement of operations) to November 30, 2013.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2017
1. Organization.
Fidelity Series Growth Company Fund (the Fund) is a fund of Fidelity Mt. Vernon 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 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. Effective August 28, 2017, the Fund no longer offered Class F, and all outstanding shares of Class F were exchanged for shares of Fidelity Series Growth Company.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique (s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $245,728,477 | Recovery value | Recovery value | 0.2% - 0.7% / 0.4% | Increase |
Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA) | 8.3 | Increase | ||
Enterprise value/Sales multiple (EV/S) | 0.7 - 9.2 / 4.1 | Increase | |||
Transaction price | $1.00 - $330.00 / $56.28 | Increase | |||
Enterprise value/Gross profit (EV/GP) | 5.0 | Increase | |||
Discount rate | 8.0% - 69.1% / 29.0% | Decrease | |||
Enterprise value/Revenue multiple (EV/R) | 3.8 | Increase | |||
Discount for lack of marketability | 15.0% - 20.0% / 15.8% | Decrease | |||
Liquidity preference | $4.13 - $68.46 / $31.46 | Increase | |||
Premium rate | 15.0% - 40.0% / 28.5% | Increase | |||
Proxy premium | 22.5% - 76.0% / 31.2% | Increase | |||
Market approach | Transaction price | $0.92 - $139.53 / $56.29 | Increase | ||
Liquidity preference | $16.35 - $45.76 / $36.62 | Increase | |||
Discount cash flow | Discount rate | 8.0% - 12.2% / 10.8% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Probability rate | 6.3% - 68.9% / 6.9% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2017, including information on transfers between Levels 1 and 2, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $5,467,557,951 |
Gross unrealized depreciation | (235,252,803) |
Net unrealized appreciation (depreciation) | $5,232,305,148 |
Tax Cost | $6,503,169,224 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $81,030,850 |
Undistributed long-term capital gain | $1,006,445,111 |
Net unrealized appreciation (depreciation) on securities and other investments | $5,232,338,873 |
The tax character of distributions paid was as follows:
November 30, 2017 | November 30, 2016 | |
Ordinary Income | $21,273,177 | $ 37,257,434 |
Long-term Capital Gains | 237,558,300 | – |
Total | $258,831,477 | $ 37,257,434 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $53,901,829 in these Subsidiaries, representing .46% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,634,942,416 and $3,973,555,608, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Effective June 1, 2017, under the management contract approved by the Board and shareholders, Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund does not pay a management fee. In addition, the investment adviser pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Prior to June 1, 2017, the investment adviser and its affiliates provided the Fund with investment management related services for which the Fund paid a monthly management fee. The management fee was the sum of an individual fund fee rate that was based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate was based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreased as assets under management increased and increased as assets under management decreased. In addition, the management fee was subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee was based on the relative investment performance of Series Growth Company as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. Effective June 1, 2017, fees for these services are no longer charged to the classes. Prior to June 1, 2017, FIIOC received account fees and asset-based fees that varied according to the account size and type of account of the shareholders of Series Growth Company. FIIOC received no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
Amount | % of Class-Level Average Net Assets | |
Series Growth Company | $3,284,943 | .05 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. Effective June 1, 2017, these fees are paid by the investment adviser or an affiliate.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $69,142 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $57,321,269 | 1.10% | $45,544 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $34,749 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,551,084. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $143,209 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1,002.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $94,683.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2017 | Year ended November 30, 2016 | |
From net investment income | ||
Series Growth Company | $4,446,809 | $10,558,686 |
Class F | 16,826,368 | 26,698,748 |
Total | $21,273,177 | $37,257,434 |
From net realized gain | ||
Series Growth Company | $92,197,173 | $– |
Class F | 145,361,127 | – |
Total | $237,558,300 | $– |
10. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2017 | Year ended November 30, 2016 | Year ended November 30, 2017 | Year ended November 30, 2016 | |
Series Growth Company | ||||
Shares sold | 431,705,596 | 2,063,132 | $7,133,495,773 | $25,665,235 |
Reinvestment of distributions | 7,164,120 | 832,704 | 96,643,982 | 10,558,686 |
Shares redeemed | (98,878,934) | (56,027,944) | (1,617,775,564) | (714,389,986) |
Net increase (decrease) | 339,990,782 | (53,132,108) | $5,612,364,191 | $(678,166,065) |
Class F | ||||
Shares sold | 5,710,126 | 13,758,094 | $91,560,409 | $169,447,726 |
Reinvestment of distributions | 12,022,794 | 2,107,241 | 162,187,495 | 26,698,748 |
Shares redeemed | (489,437,017) | (67,666,109) | (7,956,171,603) | (863,469,759) |
Net increase (decrease) | (471,704,097) | (51,800,774) | $(7,702,423,699) | $(667,323,285) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Series Growth Company Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Series Growth Company Fund (the Fund), a fund of Fidelity Mt. Vernon Street Trust, including the schedule of investments, as of November 30, 2017, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from November 7, 2013 (commencement of operations) to November 30, 2013. These financial statements and financial highlights are the responsibility of the Fund's 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 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 and financial highlights are free of material misstatement. The Fund is 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 November 30, 2017, by correspondence with the custodians and brokers; when 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, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Series Growth Company Fund as of November 30, 2017, 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 four years in the period then ended and for the period from November 7, 2013 (commencement of operations) to November 30, 2013, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 18, 2018
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
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) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. Ms. Dorsey serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2008-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Melissa M. Reilly (1971)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including 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 (June 1, 2017 to November 30, 2017).
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2017 | Ending Account Value November 30, 2017 | Expenses Paid During Period-B June 1, 2017 to November 30, 2017 | |
Series Growth Company | .00% | |||
Actual | $1,000.00 | $1,152.00 | $.00 | |
Hypothetical-C | $1,000.00 | $1,025.05 | $.00 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Series Growth Company Fund voted to pay on December 18, 2017, to shareholders of record at the opening of business on December 15, 2017, a distribution of $1.663 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.085 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30 2017, $1,024,223,532, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Series Growth Company Fund and Class F designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Fidelity Series Growth Company Fund and Class F designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Series Growth Company Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers 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 various standing committees (Committees), each composed of and chaired by 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 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered that the Advisory Contracts currently in place had become effective on June 1, 2017 in connection with shareholders of certain other Fidelity funds that invest in the fund (referred to herein as Freedom Funds) voting to approve new management contracts for the Freedom Funds. The Board noted the Advisory Contracts implemented a new fee structure pursuant to which the fund does not pay a management fee to FMR. The Board also approved certain amendments to the sub-advisory agreements for the fund to ensure consistency in the sub-advisory fees paid under the new fee structure compared to the sub-advisory fees paid under the prior fee structure. The Board noted that the amendments will not result in any changes to the nature, extent, and quality of services provided to the fund.
In considering whether to renew the Advisory Contracts for the fund, the Board considered all factors it believed relevant and 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 was in the best interests of the fund and its shareholders and the fact that no fee is payable under the management contract was fair and reasonable.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative 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 supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; 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.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. The Board reviewed the fund's absolute investment performance, as well as the fund's relative investment performance, but did not consider performance to be a material factor in its decision to renew the fund's Advisory Contracts, as the fund is not publicly offered as a stand-alone investment product. In this regard, the Board noted that the fund is designed to offer an investment option for other investment companies managed by Fidelity and ultimately to enhance the performance of those investment companies.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered that the fund does not pay FMR a management fee for investment advisory services. The Board also noted that FMR or an affiliate undertakes to pay all operating expenses of the fund, except transfer agent fees, 12b-1 fees, Independent Trustee fees and expenses, custodian fees and expenses, proxy and shareholder meeting expenses, interest, taxes, brokerage expenses, and extraordinary expenses (such as litigation expenses).The Board further considered that, effective June 1, 2017, FMR has contractually agreed to reimburse the fund to the extent that total operating expenses (excluding interest, certain taxes, certain securities lending costs, brokerage commissions, fees and expenses of the Independent Trustees, proxy and shareholder meeting expenses, extraordinary expenses, and acquired fund fees and expenses, if any), as a percentage of its average net assets, exceed 0.014% through January 31, 2021.Based on its review, the Board considered that the fund does not pay a management fee and concluded that the total expense ratio of each class of the fund was reasonable 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 level of Fidelity's profits in respect of all the Fidelity funds.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 the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of the fund profitability information and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential 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 concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR or an affiliate bears all expenses of the fund, with limited exceptions.Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR or an affiliate bears all expenses of the fund, with limited exceptions, economies of scale cannot be realized by the fund.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, in particular the underperformance of certain funds, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results, including the impact of market trends on actively managed funds; (iii) the use of performance fees and the calculation of performance adjustments, including the impact of underperformance and fund outflows on performance adjustments; (iv) metrics for evaluating index fund performance; (v) Fidelity's group fee structure, including the group fee breakpoint schedules; (vi) the terms of Fidelity's contractual and voluntary expense cap arrangements with the funds; (vii) the methodology with respect to evaluating competitive fund data and peer group classifications and fee comparisons; (viii) the expense structures for different funds and classes; (ix) Fidelity's arrangements with affiliated sub-advisers on behalf of the funds; (x) information regarding other accounts managed by Fidelity, including institutional accounts and collective investment trusts; (xi) recent changes to the fee structure for certain funds of funds; and (xii) the impact of the Department of Labor's new fiduciary rule on the funds' comparative expense information.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
XS7-ANN-0118
1.968007.104
Item 2.
Code of Ethics
As of the end of the period, November 30, 2017, Fidelity Mt. Vernon 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 Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello 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 Growth Company Fund and Fidelity Series Growth Company Fund (the “Funds”):
Services Billed by Deloitte Entities
November 30, 2017 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Growth Company Fund | $145,000 | $200 | $19,100 | $3,400 |
Fidelity Series Growth Company Fund | $62,000 | $100 | $19,400 | $1,700 |
November 30, 2016 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Growth Company Fund | $160,000 | $200 | $6,200 | $3,700 |
Fidelity Series Growth Company Fund | $82,000 | $100 | $6,500 | $1,700 |
A Amounts may reflect rounding.
B Certain amounts have been reclassified to align with current period presentation.
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Flex Mid Cap Growth Fund, Fidelity Growth Strategies Fund, Fidelity Growth Strategies K6 Fund and Fidelity New Millennium Fund (the “Funds”):
Services Billed by PwC
November 30, 2017 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Flex Mid Cap Growth Fund | $38,000 | $2,300 | $2,800 | $1,100 |
Fidelity Growth Strategies Fund | $48,000 | $4,500 | $3,500 | $2,200 |
Fidelity Growth Strategies K6 Fund | $38,000 | $1,700 | $2,800 | $800 |
Fidelity New Millennium Fund | $63,000 | $5,700 | $67,500 | $2,700 |
November 30, 2016 FeesA,B,C
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Flex Mid Cap Growth Fund | $- | $- | $- | $- |
Fidelity Growth Strategies Fund | $49,000 | $5,100 | $4,100 | $2,400 |
Fidelity Growth Strategies K6 Fund | $- | $- | $- | $- |
Fidelity New Millennium Fund | $67,000 | $6,200 | $4,300 | $2,900 |
A Amounts may reflect rounding.
B Fidelity Flex Mid Cap Growth Fund commenced operations on March 8, 2017 and Fidelity Growth Strategies K6 Fund commenced operations on May 25, 2017.
C Certain amounts have been reclassified to align with current period presentation.
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
| November 30, 2017A | November 30, 2016A |
Audit-Related Fees | $- | $35,000 |
Tax Fees | $25,000 | $- |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
Services Billed by PwC
| November 30, 2017A,B | November 30, 2016A,B |
Audit-Related Fees | $9,220,000 | $5,315,000 |
Tax Fees | $150,000 | $10,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Flex Mid Cap Growth Fund and Fidelity Growth Strategies K6 Fund’s commencement of operations.
“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 services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, 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 | November 30, 2017A,B | November 30, 2016A,B,C |
Deloitte Entities | $340,000 | $285,000 |
PwC | $12,730,000 | $6,625,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Flex Mid Cap Growth Fund and Fidelity Growth Strategies K6 Fund’s commencement of operations.
C Certain amounts have been reclassified to align with current period presentation.
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 Mt. Vernon Street Trust
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | January 24, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | January 24, 2018 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
|
|
Date: | January 24, 2018 |