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 811-3737
Fidelity Advisor Series IV
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 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: | May 31, 2017 |
Item 1.
Reports to Stockholders
Fidelity® Limited Term Government Fund Semi-Annual Report May 31, 2017 |
 |
Contents
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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. © 2017 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.
Investment Summary (Unaudited)
Coupon Distribution as of May 31, 2017
| % of fund's investments | % of fund's investments 6 months ago | |
| 0.01 - 0.99% | 15.6 | 27.3 |
| 1 - 1.99% | 55.0 | 50.8 |
| 2 - 2.99% | 14.5 | 11.6 |
| 3 - 3.99% | 3.1 | 3.1 |
| 4 - 4.99% | 2.2 | 2.9 |
| 5 - 5.99% | 6.4 | 3.0 |
| 6 - 6.99% | 0.5 | 0.4 |
| 7 - 7.99% | 0.5 | 0.2 |
| 8% and above | 0.0 | 0.3 |
Coupon distribution shows the range of stated interest rates on the fund's investments, excluding short-term investments.
Asset Allocation (% of fund's net assets)
| As of May 31, 2017*,** | ||
| Mortgage Securities | 3.1% | |
| CMOs and Other Mortgage Related Securities | 22.6% | |
| U.S. Treasury Obligations | 67.3% | |
| U.S. Government Agency Obligations*** | 1.3% | |
| Foreign Government & Government Agency Obligations | 5.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.2% | |
* Foreign investments - 5.5%
** Futures and Swaps - 3.9%
*** Includes NCUA Guaranteed Notes
| As of November 30, 2016*,** | ||
| Mortgage Securities | 4.0% | |
| CMOs and Other Mortgage Related Securities | 19.6% | |
| U.S. Treasury Obligations | 73.0% | |
| U.S. Government Agency Obligations*** | 1.4% | |
| Foreign Government & Government Agency Obligations | 1.7% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.3% | |
* Foreign investments - 1.7%
** Futures and Swaps - 2.7%
*** Includes NCUA Guaranteed Notes
Percentages in the above tables are adjusted for the effect of TBA Sale Commitments.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments May 31, 2017 (Unaudited)
Showing Percentage of Net Assets
| U.S. Government and Government Agency Obligations - 68.6% | |||
| Principal Amount | Value | ||
| U.S. Government Agency Obligations - 0.6% | |||
| Tennessee Valley Authority 1.75% 10/15/18 | 2,144,000 | 2,157,863 | |
| U.S. Treasury Obligations - 67.3% | |||
| U.S. Treasury Bonds 3% 2/15/47 | 40,000 | 41,020 | |
| U.S. Treasury Notes: | |||
| 0.75% 7/15/19 | $5,783,000 | $5,716,362 | |
| 0.875% 6/15/19 | 44,983,000 | 44,605,230 | |
| 0.875% 9/15/19 | 6,534,000 | 6,468,915 | |
| 1.125% 1/15/19 | 23,561,000 | 23,512,229 | |
| 1.125% 7/31/21 | 3,594,000 | 3,515,101 | |
| 1.125% 9/30/21 | 3,335,000 | 3,255,534 | |
| 1.375% 2/29/20 | 16,607,000 | 16,590,775 | |
| 1.375% 4/30/20 | 784,000 | 782,561 | |
| 1.375% 1/31/21 | 7,500,000 | 7,442,580 | |
| 1.375% 4/30/21 | 1,000,000 | 990,430 | |
| 1.375% 5/31/21 | 6,000,000 | 5,937,654 | |
| 1.5% 4/15/20 | 7,000,000 | 7,013,671 | |
| 1.5% 5/15/20 | 24,490,000 | 24,534,964 | |
| 1.625% 4/30/19 | 5,983,000 | 6,022,260 | |
| 1.625% 6/30/19 | 2,433,000 | 2,449,158 | |
| 1.625% 6/30/20 | 7,334,000 | 7,366,372 | |
| 1.625% 7/31/20 | 2,000,000 | 2,008,282 | |
| 1.75% 12/31/20 (a) | 30,074,000 | 30,256,098 | |
| 1.75% 5/31/22 | 8,000,000 | 7,998,128 | |
| 1.875% 3/31/22 | 11,375,000 | 11,437,654 | |
| 1.875% 4/30/22 | 5,600,000 | 5,629,310 | |
| 2% 9/30/20 | 17,665,000 | 17,936,882 | |
| 2% 12/31/21 | 7,990,000 | 8,084,881 | |
| 249,596,051 | |||
| Other Government Related - 0.7% | |||
| National Credit Union Administration Guaranteed Notes: | |||
| Series 2010-A1 Class A, 1.3441% 12/7/20 (NCUA Guaranteed) (b) | 246,945 | 246,909 | |
| Series 2010-R2 Class 1A, 1.3561% 11/6/17 (NCUA Guaranteed) (b) | 1,657,217 | 1,657,314 | |
| Series 2011-C1 Class 1A, 1.3222% 2/28/20 (NCUA Guaranteed) (b) | 178,325 | 178,234 | |
| Series 2011-R1 Class 1A, 1.4361% 1/8/20 (NCUA Guaranteed) (b) | 604,588 | 605,084 | |
| Series 2011-R4 Class 1A, 1.3661% 3/6/20 (NCUA Guaranteed) (b) | 52,421 | 52,421 | |
| 2,739,962 | |||
| TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS | |||
| (Cost $255,180,936) | 254,493,876 | ||
| U.S. Government Agency - Mortgage Securities - 3.1% | |||
| Fannie Mae - 1.8% | |||
| 2.451% 4/1/44 (b) | 58,345 | 60,017 | |
| 2.46% 2/1/44 (b) | 41,283 | 42,939 | |
| 2.502% 2/1/44 (b) | 33,593 | 34,516 | |
| 2.567% 5/1/44 (b) | 67,966 | 70,105 | |
| 2.575% 1/1/44 (b) | 63,711 | 66,350 | |
| 2.615% 10/1/35 (b) | 3,864 | 4,008 | |
| 2.629% 5/1/44 (b) | 108,770 | 112,149 | |
| 2.647% 4/1/44 (b) | 151,471 | 156,223 | |
| 2.695% 2/1/42 (b) | 180,082 | 186,387 | |
| 2.73% 7/1/34 (b) | 5,497 | 5,723 | |
| 2.735% 7/1/36 (b) | 26,440 | 27,642 | |
| 2.773% 1/1/42 (b) | 134,343 | 140,945 | |
| 2.79% 2/1/33 (b) | 2,859 | 2,950 | |
| 2.798% 10/1/33 (b) | 7,040 | 7,426 | |
| 2.803% 6/1/36 (b) | 5,663 | 5,926 | |
| 2.815% 7/1/35 (b) | 3,433 | 3,555 | |
| 2.815% 9/1/36 (b) | 6,770 | 7,078 | |
| 2.833% 3/1/35 (b) | 3,457 | 3,576 | |
| 2.84% 2/1/36 (b) | 2,172 | 2,269 | |
| 2.882% 12/1/34 (b) | 7,965 | 8,235 | |
| 2.898% 4/1/33 (b) | 69,507 | 71,811 | |
| 2.915% 11/1/33 (b) | 3,955 | 4,104 | |
| 2.922% 10/1/33 (b) | 5,466 | 5,652 | |
| 2.928% 12/1/32 (b) | 52,192 | 55,029 | |
| 2.932% 1/1/35 (b) | 25,152 | 26,130 | |
| 3.077% 12/1/32 (b) | 347,052 | 367,705 | |
| 3.083% 3/1/35 (b) | 3,046 | 3,163 | |
| 3.135% 3/1/33 (b) | 12,870 | 13,486 | |
| 3.17% 11/1/36 (b) | 31,143 | 32,295 | |
| 3.309% 6/1/47 (b) | 13,195 | 13,696 | |
| 3.315% 3/1/37 (b) | 5,340 | 5,614 | |
| 3.33% 7/1/35 (b) | 6,430 | 6,785 | |
| 3.336% 2/1/37 (b) | 68,502 | 71,925 | |
| 3.435% 8/1/35 (b) | 55,964 | 59,502 | |
| 3.463% 5/1/36 (b) | 4,565 | 4,845 | |
| 3.633% 4/1/36 (b) | 38,339 | 40,429 | |
| 4% 5/1/29 | 2,298,630 | 2,429,365 | |
| 4% 6/1/47 (c) | 100,000 | 105,586 | |
| 4.5% 11/1/25 | 364,334 | 386,003 | |
| 5% 7/1/35 to 6/1/39 | 779,980 | 859,465 | |
| 5.5% 10/1/20 to 8/1/25 | 340,911 | 359,461 | |
| 6% 1/1/34 to 6/1/36 | 442,894 | 503,594 | |
| 6.5% 8/1/17 to 8/1/36 | 466,410 | 537,896 | |
| 10.5% 8/1/20 | 2,229 | 2,312 | |
| 6,913,872 | |||
| Freddie Mac - 0.4% | |||
| 2.748% 6/1/33 (b) | 38,011 | 39,660 | |
| 2.82% 3/1/35 (b) | 9,187 | 9,457 | |
| 2.85% 7/1/35 (b) | 28,944 | 30,249 | |
| 2.915% 2/1/37 (b) | 8,861 | 9,203 | |
| 2.95% 3/1/37 (b) | 3,463 | 3,586 | |
| 2.962% 11/1/35 (b) | 30,760 | 32,036 | |
| 2.967% 5/1/37 (b) | 5,429 | 5,629 | |
| 2.97% 8/1/37 (b) | 15,704 | 16,365 | |
| 2.986% 7/1/35 (b) | 179,044 | 185,833 | |
| 2.995% 4/1/34 (b) | 121,249 | 127,366 | |
| 3.036% 10/1/41 (b) | 204,790 | 212,999 | |
| 3.04% 2/1/36 (b) | 1,246 | 1,325 | |
| 3.05% 6/1/37 (b) | 5,803 | 6,058 | |
| 3.07% 7/1/35 (b) | 35,110 | 37,330 | |
| 3.091% 9/1/41 (b) | 190,225 | 201,133 | |
| 3.158% 10/1/42 (b) | 108,839 | 114,918 | |
| 3.248% 10/1/36 (b) | 51,505 | 54,034 | |
| 3.287% 10/1/35 (b) | 24,924 | 26,191 | |
| 3.29% 6/1/37 (b) | 31,188 | 33,003 | |
| 3.295% 7/1/36 (b) | 13,064 | 13,890 | |
| 3.32% 4/1/37 (b) | 7,286 | 7,713 | |
| 3.368% 5/1/37 (b) | 123,557 | 129,635 | |
| 3.385% 5/1/37 (b) | 36,908 | 38,990 | |
| 3.541% 3/1/33 (b) | 369 | 391 | |
| 4.079% 10/1/35 (b) | 6,052 | 6,434 | |
| 5% 9/1/35 | 1,113 | 1,230 | |
| 6% 1/1/24 | 95,643 | 103,359 | |
| 6.5% 12/1/21 | 27,633 | 29,580 | |
| 9.5% 3/1/21 to 12/1/22 | 1,906 | 2,077 | |
| 10% 6/1/18 to 6/1/20 | 1,554 | 1,696 | |
| 10.5% 9/1/20 | 7 | 8 | |
| 1,481,378 | |||
| Ginnie Mae - 0.9% | |||
| 4.3% 8/20/61 (d) | 267,609 | 273,260 | |
| 4.649% 2/20/62 (d) | 227,376 | 235,230 | |
| 4.682% 2/20/62 (d) | 299,305 | 308,968 | |
| 4.684% 1/20/62 (d) | 1,916,055 | 1,975,998 | |
| 5.47% 8/20/59 (d) | 8,180 | 8,294 | |
| 6% 6/15/36 | 366,634 | 428,399 | |
| 8% 12/15/23 | 31,237 | 34,995 | |
| 10.5% 1/15/18 | 126 | 127 | |
| 3,265,271 | |||
| TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES | |||
| (Cost $11,496,564) | 11,660,521 | ||
| Collateralized Mortgage Obligations - 14.9% | |||
| U.S. Government Agency - 14.9% | |||
| Fannie Mae: | |||
| floater: | |||
| Series 1994-42 Class FK, 1.92% 4/25/24 (b) | 176,243 | 176,983 | |
| Series 2001-38 Class QF, 2.0036% 8/25/31 (b) | 43,515 | 44,345 | |
| Series 2002-49 Class FB, 1.5991% 11/18/31 (b) | 43,083 | 43,518 | |
| Series 2002-60 Class FV, 2.0236% 4/25/32 (b) | 9,448 | 9,637 | |
| Series 2002-74 Class FV, 1.4736% 11/25/32 (b) | 360,806 | 362,482 | |
| Series 2002-75 Class FA, 2.0236% 11/25/32 (b) | 19,354 | 19,742 | |
| Series 2010-15 Class FJ, 1.9536% 6/25/36 (b) | 543,748 | 552,483 | |
| planned amortization class: | |||
| Series 2005-19 Class PA, 5.5% 7/25/34 | 141,660 | 148,255 | |
| Series 2005-27 Class NE, 5.5% 5/25/34 | 45,153 | 45,548 | |
| Series 2005-64 Class PX, 5.5% 6/25/35 | 158,838 | 172,038 | |
| sequential payer: | |||
| Series 2002-57 Class BD, 5.5% 9/25/17 | 298 | 299 | |
| Series 2003-117 Class MD, 5% 12/25/23 | 80,167 | 85,294 | |
| Series 2004-52 Class KZ, 5.5% 7/25/34 | 894,755 | 1,001,424 | |
| Series 2010-97 Class CX, 4.5% 9/25/25 | 953,000 | 1,026,958 | |
| Series 2010-139 Class NI, 4.5% 2/25/40 (e) | 320,113 | 35,961 | |
| Series 2010-39 Class FG, 1.9436% 3/25/36 (b) | 338,706 | 346,448 | |
| Series 2011-67 Class AI, 4% 7/25/26 (e) | 83,399 | 7,973 | |
| Freddie Mac: | |||
| floater: | |||
| Series 2448 Class FT, 1.9891% 3/15/32 (b) | 47,049 | 47,947 | |
| Series 2526 Class FC, 1.3891% 11/15/32 (b) | 61,367 | 61,637 | |
| Series 2530 Class FE, 1.5891% 2/15/32 (b) | 23,882 | 24,128 | |
| Series 2630 Class FL, 1.4891% 6/15/18 (b) | 586 | 587 | |
| Series 2711 Class FC, 1.8891% 2/15/33 (b) | 159,255 | 162,140 | |
| floater planned amortization class Series 2770 Class FH, 1.3891% 3/15/34 (b) | 164,038 | 164,744 | |
| planned amortization class: | |||
| Series 3415 Class PC, 5% 12/15/37 | 60,298 | 65,794 | |
| Series 3763 Class QA, 4% 4/15/34 | 54,541 | 54,925 | |
| Series 3840 Class VA, 4.5% 9/15/27 | 348,548 | 361,223 | |
| sequential payer: | |||
| Series 1929 Class EZ, 7.5% 2/17/27 | 230,590 | 252,965 | |
| Series 2004-2802 Class ZG, 5.5% 5/15/34 | 703,760 | 789,839 | |
| Series 2004-2862 Class NE, 5% 9/15/24 | 1,371,246 | 1,456,091 | |
| Series 2145 Class MZ, 6.5% 4/15/29 | 227,618 | 260,204 | |
| Series 2357 Class ZB, 6.5% 9/15/31 | 133,349 | 153,976 | |
| Series 3745 Class KV, 4.5% 12/15/26 | 499,872 | 539,802 | |
| Series 3859 Class JZ, 5% 5/15/41 | 1,031,111 | 1,130,877 | |
| Freddie Mac Multi-family Structured pass-thru certificates sequential payer Series 4335 Class AL, 4.25% 3/15/40 | 658,220 | 692,951 | |
| Ginnie Mae guaranteed REMIC pass-thru certificates: | |||
| floater: | |||
| Series 2007-59 Class FC, 1.4928% 7/20/37 (b) | 94,715 | 95,207 | |
| Series 2008-2 Class FD, 1.4728% 1/20/38 (b) | 23,159 | 23,278 | |
| Series 2008-73 Class FA, 1.8528% 8/20/38 (b) | 189,279 | 192,037 | |
| Series 2008-83 Class FB, 1.8928% 9/20/38 (b) | 169,710 | 173,457 | |
| Series 2009-108 Class CF, 1.5924% 11/16/39 (b) | 104,135 | 104,938 | |
| Series 2009-116 Class KF, 1.5224% 12/16/39 (b) | 73,276 | 73,774 | |
| Series 2010-H17 Class FA, 1.3128% 7/20/60 (b)(d) | 867,403 | 861,078 | |
| Series 2010-H18 Class AF, 1.13% 9/20/60 (b)(d) | 1,073,539 | 1,064,890 | |
| Series 2010-H19 Class FG, 1.13% 8/20/60 (b)(d) | 1,172,596 | 1,165,125 | |
| Series 2010-H27 Series FA, 1.21% 12/20/60 (b)(d) | 369,267 | 367,172 | |
| Series 2011-H05 Class FA, 1.33% 12/20/60 (b)(d) | 607,594 | 607,676 | |
| Series 2011-H07 Class FA, 1.4828% 2/20/61 (b)(d) | 1,148,458 | 1,148,540 | |
| Series 2011-H12 Class FA, 1.4728% 2/20/61 (b)(d) | 1,375,683 | 1,375,418 | |
| Series 2011-H13 Class FA, 1.33% 4/20/61 (b)(d) | 496,795 | 496,865 | |
| Series 2011-H14: | |||
| Class FB, 1.33% 5/20/61 (b)(d) | 558,741 | 557,912 | |
| Class FC, 1.33% 5/20/61 (b)(d) | 514,225 | 513,822 | |
| Series 2011-H17 Class FA, 1.36% 6/20/61 (b)(d) | 661,285 | 661,931 | |
| Series 2011-H21 Class FA, 1.43% 10/20/61 (b)(d) | 692,876 | 695,051 | |
| Series 2012-H01 Class FA, 1.53% 11/20/61 (b)(d) | 610,740 | 614,099 | |
| Series 2012-H03 Class FA, 1.53% 1/20/62 (b)(d) | 426,963 | 429,321 | |
| Series 2012-H06 Class FA, 1.46% 1/20/62 (b)(d) | 620,719 | 622,743 | |
| Series 2012-H07 Class FA, 1.46% 3/20/62 (b)(d) | 387,433 | 389,077 | |
| Series 2012-H21 Class DF, 1.48% 5/20/61 (b)(d) | 397,108 | 398,097 | |
| Series 2015-H13 Class FL, 1.2628% 5/20/63 (b)(d) | 1,284,835 | 1,284,463 | |
| Series 2015-H19 Class FA, 1.1828% 4/20/63 (b)(d) | 1,307,680 | 1,306,300 | |
| Series 2016-H20 Class FM, 1.3828% 12/20/62 (b)(d) | 1,350,498 | 1,351,689 | |
| planned amortization class Series 2011-68 Class EC, 3.5% 4/20/41 | 437,187 | 456,977 | |
| sequential payer: | |||
| Series 2013-H06 Class HA, 1.65% 1/20/63 (d) | 465,862 | 464,877 | |
| Series 2013-H26 Class HA, 3.5% 9/20/63 (d) | 3,670,448 | 3,776,532 | |
| Series 2014-H12 Class KA, 2.75% 5/20/64 (d) | 523,210 | 529,968 | |
| Series 2016-H02 Class FM, 1.4828% 9/20/62 (b)(d) | 1,853,427 | 1,854,358 | |
| Series 2016-H04 Class FE, 1.6328% 11/20/65 (b)(d) | 538,437 | 540,403 | |
| Series 2010-H15 Class TP, 5.15% 8/20/60 (d) | 1,342,497 | 1,400,131 | |
| Series 2010-H17 Class XP, 5.2984% 7/20/60 (b)(d) | 1,524,848 | 1,580,109 | |
| Series 2010-H18 Class PL, 5.01% 9/20/60 (b)(d) | 1,172,321 | 1,219,152 | |
| Series 2012-64 Class KI, 3.5% 11/20/36 (e) | 121,312 | 8,995 | |
| Series 2013-124: | |||
| Class ES, 7.343% 4/20/39 (b)(f) | 470,446 | 496,634 | |
| Class ST, 7.4763% 8/20/39 (b)(f) | 1,017,393 | 1,097,906 | |
| Series 2015-H17 Class HA, 2.5% 5/20/65 (d) | 1,609,460 | 1,626,062 | |
| Series 2015-H21: | |||
| Class HA, 2.5% 6/20/63 (d) | 4,528,945 | 4,570,115 | |
| Class JA, 2.5% 6/20/65 (d) | 448,457 | 452,763 | |
| Series 2015-H30 Class HA, 1.75% 9/20/62 (b)(d) | 3,816,272 | 3,792,558 | |
| Series 2016-H13 Class FB, 0.9866% 5/20/66 (b)(d) | 2,205,152 | 2,219,847 | |
| Series 2017-H06 Class FA, 1.17% 8/20/66 (b)(d) | 2,265,567 | 2,269,523 | |
| 55,230,088 | |||
| TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
| (Cost $55,242,021) | 55,230,088 | ||
| Commercial Mortgage Securities - 7.7% | |||
| FMPRE Multifamily Agency floater Series 2017-KT01 Class A, 1.3106% 2/25/20 (b) | 3,784,000 | 3,789,578 | |
| Freddie Mac: | |||
| sequential payer: | |||
| Series K009 Class A2, 3.808% 8/25/20 | 3,660,000 | 3,876,126 | |
| Series K034 Class A1, 2.669% 2/25/23 | 5,802,630 | 5,912,465 | |
| Series K709 Class A2, 2.086% 3/25/19 | 1,480,000 | 1,490,366 | |
| Series K710 Class A2, 1.883% 5/25/19 | 2,402,000 | 2,415,833 | |
| Series K713 Class A2, 2.313% 3/25/20 | 454,000 | 460,567 | |
| Series K717 Class A2, 2.991% 9/25/21 | 2,878,000 | 2,993,075 | |
| Series K032 Class A1, 3.016% 2/25/23 | 1,955,059 | 2,012,857 | |
| Series K036 Class A1, 2.777% 4/25/23 | 3,689,986 | 3,779,565 | |
| Series K504 Class A2, 2.566% 9/25/20 | 227,000 | 231,940 | |
| Series K724 Class A1, 2.776% 3/25/23 | 1,395,503 | 1,434,720 | |
| TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
| (Cost $28,332,460) | 28,397,092 | ||
| Foreign Government and Government Agency Obligations - 5.5% | |||
| Israeli State (guaranteed by U.S. Government through Agency for International Development): | |||
| 5.5% 9/18/23 | 11,600,000 | 13,844,124 | |
| 5.5% 12/4/23 | 4,000 | 4,798 | |
| Jordanian Kingdom 2.503% 10/30/20 | 3,752,000 | 3,854,501 | |
| Ukraine Government 1.471% 9/29/21 | 2,891,000 | 2,829,829 | |
| TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS | |||
| (Cost $20,290,342) | 20,533,252 | ||
| Shares | Value | ||
| Money Market Funds - 2.2% | |||
| Fidelity Cash Central Fund, 0.86% (g) | |||
| (Cost $8,024,497) | 8,022,893 | 8,024,498 | |
| TOTAL INVESTMENT PORTFOLIO - 102.0% | |||
| (Cost $378,566,820) | 378,339,327 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.0)% | (7,312,657) | ||
| NET ASSETS - 100% | $371,026,670 |
| TBA Sale Commitments | ||
| Principal Amount | Value | |
| Fannie Mae | ||
| 4% 6/1/47 | ||
| (Proceeds $104,711) | $(100,000) | $(105,586) |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
| Purchased | |||
| Treasury Contracts | |||
| 67 CBOT 2-Year U.S. Treasury Note Contracts (United States) | Sept. 2017 | 14,504,453 | $3,010 |
The face value of futures purchased as a percentage of Net Assets is 3.9%
Legend
(a) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $55,333.
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(d) Represents an investment in an underlying pool of reverse mortgages which typically do not require regular principal and interest payments as repayment is deferred until a maturity event.
(e) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period.
(f) Coupon is inversely indexed to a floating interest rate multiplied by a specified factor. The price may be considerably more volatile than the price of a comparable fixed rate security.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $8,631 |
| Total | $8,631 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 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: | ||||
| U.S. Government and Government Agency Obligations | $254,493,876 | $-- | $254,493,876 | $-- |
| U.S. Government Agency - Mortgage Securities | 11,660,521 | -- | 11,660,521 | -- |
| Collateralized Mortgage Obligations | 55,230,088 | -- | 55,230,088 | -- |
| Commercial Mortgage Securities | 28,397,092 | -- | 28,397,092 | -- |
| Foreign Government and Government Agency Obligations | 20,533,252 | -- | 20,533,252 | -- |
| Money Market Funds | 8,024,498 | 8,024,498 | -- | -- |
| Total Investments in Securities: | $378,339,327 | $8,024,498 | $370,314,829 | $-- |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $3,010 | $3,010 | $-- | $-- |
| Total Assets | $3,010 | $3,010 | $-- | $-- |
| Total Derivative Instruments: | $3,010 | $3,010 | $-- | $-- |
| Other Financial Instruments: | ||||
| TBA Sale Commitments | $(105,586) | $-- | $(105,586) | $-- |
| Total Other Financial Instruments: | $(105,586) | $-- | $(105,586) | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2017. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Interest Rate Risk | ||
| Futures Contracts(a) | $3,010 | $0 |
| Total Interest Rate Risk | 3,010 | 0 |
| Total Value of Derivatives | $3,010 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| May 31, 2017 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $370,542,323) | $370,314,829 | |
| Fidelity Central Funds (cost $8,024,497) | 8,024,498 | |
| Total Investments (cost $378,566,820) | $378,339,327 | |
| Cash | 40,269 | |
| Receivable for investments sold | 27,058 | |
| Receivable for TBA sale commitments | 104,711 | |
| Receivable for fund shares sold | 93,698 | |
| Interest receivable | 1,273,976 | |
| Distributions receivable from Fidelity Central Funds | 3,321 | |
| Receivable for daily variation margin for derivative instruments | 1,047 | |
| Total assets | 379,883,407 | |
| Liabilities | ||
| Payable for investments purchased | ||
| Regular delivery | $7,999,687 | |
| Delayed delivery | 105,086 | |
| TBA sale commitments, at value | 105,586 | |
| Payable for fund shares redeemed | 492,919 | |
| Distributions payable | 14,097 | |
| Accrued management fee | 139,057 | |
| Other affiliated payables | 305 | |
| Total liabilities | 8,856,737 | |
| Net Assets | $371,026,670 | |
| Net Assets consist of: | ||
| Paid in capital | $372,836,748 | |
| Distributions in excess of net investment income | (359,826) | |
| Accumulated undistributed net realized gain (loss) on investments | (1,224,894) | |
| Net unrealized appreciation (depreciation) on investments | (225,358) | |
| Net Assets, for 37,201,172 shares outstanding | $371,026,670 | |
| Net Asset Value, offering price and redemption price per share ($371,026,670 ÷ 37,201,172 shares) | $9.97 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended May 31, 2017 (Unaudited) | ||
| Investment Income | ||
| Interest | $2,816,409 | |
| Income from Fidelity Central Funds | 8,631 | |
| Total income | 2,825,040 | |
| Expenses | ||
| Management fee | $856,048 | |
| Independent trustees' fees and expenses | 750 | |
| Miscellaneous | 671 | |
| Total expenses before reductions | 857,469 | |
| Expense reductions | (565) | 856,904 |
| Net investment income (loss) | 1,968,136 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (1,143,806) | |
| Futures contracts | 29,480 | |
| Total net realized gain (loss) | (1,114,326) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | 2,322,940 | |
| Futures contracts | 3,108 | |
| Delayed delivery commitments | (875) | |
| Total change in net unrealized appreciation (depreciation) | 2,325,173 | |
| Net gain (loss) | 1,210,847 | |
| Net increase (decrease) in net assets resulting from operations | $3,178,983 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended May 31, 2017 (Unaudited) | Year ended November 30, 2016 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $1,968,136 | $3,487,886 |
| Net realized gain (loss) | (1,114,326) | 1,455,079 |
| Change in net unrealized appreciation (depreciation) | 2,325,173 | (3,461,819) |
| Net increase (decrease) in net assets resulting from operations | 3,178,983 | 1,481,146 |
| Distributions to shareholders from net investment income | (2,171,017) | (3,563,155) |
| Distributions to shareholders from net realized gain | (1,333,910) | (345,919) |
| Total distributions | (3,504,927) | (3,909,074) |
| Share transactions | ||
| Proceeds from sales of shares | 49,637,580 | 189,088,182 |
| Reinvestment of distributions | 3,390,063 | 3,801,271 |
| Cost of shares redeemed | (84,505,928) | (176,160,541) |
| Net increase (decrease) in net assets resulting from share transactions | (31,478,285) | 16,728,912 |
| Total increase (decrease) in net assets | (31,804,229) | 14,300,984 |
| Net Assets | ||
| Beginning of period | 402,830,899 | 388,529,915 |
| End of period | $371,026,670 | $402,830,899 |
| Other Information | ||
| Distributions in excess of net investment income end of period | $(359,826) | $(156,945) |
| Shares | ||
| Sold | 4,993,466 | 18,753,603 |
| Issued in reinvestment of distributions | 341,295 | 377,384 |
| Redeemed | (8,498,441) | (17,477,183) |
| Net increase (decrease) | (3,163,680) | 1,653,804 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Limited Term Government Fund
| Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
| 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $9.98 | $10.04 | $10.09 | $10.08 | $10.17 | $10.27 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .051 | .086 | .079 | .065 | .045 | .048 |
| Net realized and unrealized gain (loss) | .030 | (.048) | (.026) | .043 | (.038) | .075 |
| Total from investment operations | .081 | .038 | .053 | .108 | .007 | .123 |
| Distributions from net investment income | (.057) | (.089) | (.069) | (.062) | (.042) | (.050) |
| Distributions from net realized gain | (.034) | (.009) | (.034) | (.036) | (.055) | (.173) |
| Total distributions | (.091) | (.098) | (.103) | (.098) | (.097) | (.223) |
| Net asset value, end of period | $9.97 | $9.98 | $10.04 | $10.09 | $10.08 | $10.17 |
| Total ReturnB,C | .82% | .37% | .53% | 1.08% | .07% | 1.22% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .45%F | .45% | .45% | .45% | .45% | .45% |
| Expenses net of fee waivers, if any | .45%F | .45% | .45% | .45% | .45% | .45% |
| Expenses net of all reductions | .45%F | .45% | .45% | .45% | .45% | .45% |
| Net investment income (loss) | 1.04%F | .86% | .78% | .65% | .45% | .47% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $371,027 | $402,831 | $388,530 | $365,567 | $389,199 | $497,980 |
| Portfolio turnover rateG | 130%F | 118% | 102% | 107% | 89% | 138% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Annualized
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 (Unaudited)
For the period ended May 31, 2017
1. Organization.
Fidelity Limited Term Government Fund (the Fund) is a fund of Fidelity Advisor Series IV (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 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:
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. Foreign government and government agency obligations and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Collateralized mortgage obligations, commercial mortgage securities, and U.S. government agency mortgage securities, are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2017 is included at the end of the Schedule of Investments.
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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, swaps, prior period premium and discount on debt securities, market discount, deferred trustees compensation, financing transactions and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $1,530,457 |
| Gross unrealized depreciation | (1,678,626) |
| Net unrealized appreciation (depreciation) on securities | $(148,169) |
| Tax cost | $378,487,496 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
To-Be-Announced (TBA) Securities and Mortgage Dollar Rolls. During the period, the Fund transacted in TBA securities that involved buying or selling mortgage-backed securities (MBS) on a forward commitment basis. A TBA transaction typically does not designate the actual security to be delivered and only includes an approximate principal amount; however delivered securities must meet specified terms defined by industry guidelines, including issuer, rate and current principal amount outstanding on underlying mortgage pools. The Fund may enter into a TBA transaction with the intent to take possession of or deliver the underlying MBS, or the Fund may elect to extend the settlement by entering into either a mortgage or reverse mortgage dollar roll. Mortgage dollar rolls are transactions where a fund sells TBA securities and simultaneously agrees to repurchase MBS on a later date at a lower price and with the same counterparty. Reverse mortgage dollar rolls involve the purchase and simultaneous agreement to sell TBA securities on a later date at a lower price. Transactions in mortgage dollar rolls and reverse mortgage dollar rolls are accounted for as purchases and sales and may result in an increase to the Fund’s portfolio turnover rate.
Purchases and sales of TBA securities involve risks similar to those discussed above for delayed delivery and when-issued securities. Also, if the counterparty in a mortgage dollar roll or a reverse mortgage dollar roll transaction files for bankruptcy or becomes insolvent, the Fund’s right to repurchase or sell securities may be limited. Additionally, when a fund sells TBA securities without already owning or having the right to obtain the deliverable securities (an uncovered forward commitment to sell), it incurs a risk of loss because it could have to purchase the securities at a price that is higher than the price at which it sold them. A fund may be unable to purchase the deliverable securities if the corresponding market is illiquid.
TBA securities subject to a forward commitment to sell at period end are included at the end of the Fund's Schedule of Investments under the caption "TBA Sale Commitments.” The proceeds and value of these commitments are reflected in the Fund's Statement of Assets and Liabilities as Receivable for TBA sale commitments and TBA sale commitments, at value, respectively.
New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2019. Management is currently evaluating the potential impact of these changes to the financial statements.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Interest Rate Risk | Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the bond market and fluctuations in interest rates.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $29,480 and a change in net unrealized appreciation (depreciation) of $3,108 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $13,759,809 and $0, respectively.
6. 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 the Fund's average net assets. Under the management contract, the investment adviser pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense, including commitment fees. The management fee is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
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.
7. 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 $671 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 maintained at the Fund's custodian and/or invested in cash equivalents. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, 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 interest income. Total security lending income during the period amounted to $10,822.
9. Expense Reductions.
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 management fee by $565.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (December 1, 2016 to May 31, 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 December 1, 2016 | Ending Account Value May 31, 2017 | Expenses Paid During Period-B December 1, 2016 to May 31, 2017 | |
| Actual | .45% | $1,000.00 | $1,008.20 | $2.25 |
| Hypothetical-C | $1,000.00 | $1,022.69 | $2.27 |
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 182/365 (to reflect the one-half year period).
C 5% return per year before expenses
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Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Advisor Series IV’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series IV’s (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable
assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12.
Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series IV
By: | /s/Stephanie J. Dorsey |
Stephanie J. Dorsey | |
President and Treasurer | |
Date: | July 25, 2017 |
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/Stephanie J. Dorsey |
Stephanie J. Dorsey | |
President and Treasurer | |
Date: | July 25, 2017 |
By: | /s/Howard J. Galligan III |
Howard J. Galligan III | |
Chief Financial Officer | |
Date: | July 25, 2017 |