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 811-3785
Fidelity Advisor Series I
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, 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, 2013 |
This report on Form N-CSR relates solely to the Registrant's Fidelity Advisor Dividend Growth Fund, Fidelity Advisor Equity Growth Fund, Fidelity Advisor Equity Income Fund, Fidelity Advisor Equity Value Fund, Fidelity Advisor Growth & Income Fund, Fidelity Advisor Growth Opportunities Fund, Fidelity Advisor Large Cap Fund, Fidelity Advisor Stock Selector Mid Cap Fund, Fidelity Advisor Small Cap Fund, Fidelity Advisor Strategic Growth Fund and Fidelity Advisor Value Strategies Fund series (each, a "Fund" and collectively, the "Funds").
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Dividend Growth
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning | Ending | Expenses Paid |
Class A | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,153.60 | $ 5.37 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.95 | $ 5.04 |
Class T | 1.22% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,152.70 | $ 6.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.85 | $ 6.14 |
Class B | 1.80% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,149.80 | $ 9.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.96 | $ 9.05 |
Class C | 1.74% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,149.70 | $ 9.33 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.26 | $ 8.75 |
Institutional Class | .71% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,155.30 | $ 3.82 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.39 | $ 3.58 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 2.3 | 4.8 |
Wells Fargo & Co. | 1.7 | 1.7 |
Citigroup, Inc. | 1.6 | 1.0 |
Google, Inc. Class A | 1.6 | 1.5 |
General Electric Co. | 1.6 | 1.0 |
Procter & Gamble Co. | 1.4 | 1.1 |
Johnson & Johnson | 1.3 | 1.3 |
Bank of America Corp. | 1.2 | 0.0 |
Merck & Co., Inc. | 1.2 | 1.2 |
JPMorgan Chase & Co. | 1.2 | 0.7 |
| 15.1 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 16.9 | 20.2 |
Financials | 16.0 | 13.3 |
Health Care | 13.7 | 12.4 |
Consumer Discretionary | 12.6 | 12.1 |
Industrials | 12.1 | 12.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 98.6% |
| Stocks 98.8% |
| ||||
Bonds 0.1% |
| Bonds 0.0% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 19.3% |
| ** Foreign investments | 17.6% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.5% | |||
Auto Components - 0.2% | |||
Delphi Automotive PLC | 32,976 | $ 1,610 | |
Johnson Controls, Inc. | 1,258 | 47 | |
Tenneco, Inc. (a) | 13,400 | 594 | |
| 2,251 | ||
Automobiles - 0.6% | |||
Ford Motor Co. | 258,663 | 4,056 | |
Harley-Davidson, Inc. | 17,301 | 944 | |
Honda Motor Co. Ltd. | 27,000 | 1,002 | |
| 6,002 | ||
Diversified Consumer Services - 0.6% | |||
Anhanguera Educacional Participacoes SA | 246,000 | 1,506 | |
H&R Block, Inc. | 111,400 | 3,261 | |
Kroton Educacional SA | 81,400 | 1,167 | |
| 5,934 | ||
Hotels, Restaurants & Leisure - 1.6% | |||
Bloomin' Brands, Inc. | 46,500 | 1,082 | |
Brinker International, Inc. | 88,618 | 3,475 | |
Club Mediterranee SA (a) | 22,129 | 508 | |
Hyatt Hotels Corp. Class A (a) | 22,646 | 931 | |
Icahn Enterprises LP rights | 115,176 | 0 | |
Las Vegas Sands Corp. | 6,805 | 394 | |
Penn National Gaming, Inc. (a) | 3,900 | 215 | |
Ruth's Hospitality Group, Inc. | 22,565 | 253 | |
Spur Corp. Ltd. | 59,639 | 175 | |
Starbucks Corp. | 39,801 | 2,510 | |
Texas Roadhouse, Inc. Class A | 76,252 | 1,803 | |
Wyndham Worldwide Corp. | 8,100 | 471 | |
Yum! Brands, Inc. | 46,153 | 3,127 | |
| 14,944 | ||
Household Durables - 0.4% | |||
Taylor Wimpey PLC | 795,900 | 1,199 | |
Toll Brothers, Inc. (a) | 35,900 | 1,227 | |
Whirlpool Corp. | 13,703 | 1,751 | |
| 4,177 | ||
Internet & Catalog Retail - 0.2% | |||
Liberty Media Corp. Interactive Series A (a) | 39,967 | 897 | |
Ocado Group PLC (a)(d) | 254,671 | 1,052 | |
| 1,949 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Leisure Equipment & Products - 0.4% | |||
Amer Group PLC (A Shares) | 31,500 | $ 580 | |
BRP, Inc. | 12,000 | 286 | |
Brunswick Corp. | 41,400 | 1,390 | |
Polaris Industries, Inc. | 10,600 | 1,012 | |
| 3,268 | ||
Media - 3.5% | |||
Antena 3 de Television SA (d) | 19,200 | 127 | |
CBS Corp. Class B | 109,868 | 5,438 | |
Comcast Corp. Class A | 200,893 | 8,066 | |
Ipsos SA | 13,689 | 494 | |
MDC Partners, Inc. Class A (sub. vtg.) | 114,234 | 2,014 | |
Mood Media Corp. (a)(f)(g) | 135,900 | 140 | |
News Corp. Class A | 80,173 | 2,574 | |
Omnicom Group, Inc. | 24,305 | 1,510 | |
The Walt Disney Co. | 78,770 | 4,969 | |
Time Warner, Inc. | 36,291 | 2,118 | |
Valassis Communications, Inc. | 17,865 | 464 | |
Viacom, Inc. Class B (non-vtg.) | 75,026 | 4,943 | |
| 32,857 | ||
Multiline Retail - 0.2% | |||
PPR SA | 7,200 | 1,574 | |
The Bon-Ton Stores, Inc. | 22,200 | 473 | |
| 2,047 | ||
Specialty Retail - 4.0% | |||
American Eagle Outfitters, Inc. | 86,105 | 1,704 | |
Ascena Retail Group, Inc. (a) | 59,026 | 1,200 | |
AutoZone, Inc. (a) | 4,120 | 1,684 | |
Bed Bath & Beyond, Inc. (a) | 12,354 | 843 | |
Body Central Corp. (a) | 103,390 | 1,271 | |
CarMax, Inc. (a) | 3,877 | 181 | |
CST Brands, Inc. (a) | 1 | 0 * | |
Express, Inc. (a) | 87,141 | 1,900 | |
Foot Locker, Inc. | 21,739 | 746 | |
Francescas Holdings Corp. (a) | 32,054 | 915 | |
GNC Holdings, Inc. | 24,300 | 1,094 | |
Home Depot, Inc. | 116,237 | 9,143 | |
Kingfisher PLC | 199,980 | 1,050 | |
L Brands, Inc. | 32,040 | 1,602 | |
Lowe's Companies, Inc. | 127,114 | 5,353 | |
OfficeMax, Inc. | 95,994 | 1,251 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Rent-A-Center, Inc. | 74,082 | $ 2,710 | |
Ross Stores, Inc. | 18,765 | 1,207 | |
Staples, Inc. | 29,831 | 447 | |
SuperGroup PLC (a) | 96,467 | 1,132 | |
TJX Companies, Inc. | 51,601 | 2,612 | |
| 38,045 | ||
Textiles, Apparel & Luxury Goods - 0.8% | |||
Coach, Inc. | 12,384 | 721 | |
lululemon athletica, Inc. (a) | 3,017 | 235 | |
NIKE, Inc. Class B | 48,755 | 3,006 | |
PVH Corp. | 21,461 | 2,472 | |
VF Corp. | 6,250 | 1,149 | |
| 7,583 | ||
TOTAL CONSUMER DISCRETIONARY | 119,057 | ||
CONSUMER STAPLES - 10.0% | |||
Beverages - 2.4% | |||
Anheuser-Busch InBev SA NV | 24,100 | 2,219 | |
Beam, Inc. | 11,077 | 718 | |
Coca-Cola Enterprises, Inc. | 2,100 | 78 | |
Cott Corp. | 129,600 | 1,061 | |
Dr. Pepper Snapple Group, Inc. | 75,784 | 3,485 | |
Molson Coors Brewing Co. Class B | 2,600 | 128 | |
Monster Beverage Corp. (a) | 54,387 | 2,969 | |
Remy Cointreau SA | 4,500 | 522 | |
SABMiller PLC | 24,200 | 1,224 | |
The Coca-Cola Co. | 267,575 | 10,700 | |
| 23,104 | ||
Food & Staples Retailing - 1.6% | |||
Carrefour SA | 4,262 | 126 | |
CVS Caremark Corp. | 114,524 | 6,594 | |
Kroger Co. | 53,952 | 1,817 | |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 20,939 | 992 | |
Wal-Mart Stores, Inc. | 13,767 | 1,030 | |
Walgreen Co. | 98,193 | 4,690 | |
| 15,249 | ||
Food Products - 1.7% | |||
Amira Nature Foods Ltd. | 68,222 | 608 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Astral Foods Ltd. | 54,521 | $ 484 | |
Bunge Ltd. | 17,650 | 1,228 | |
Cal-Maine Foods, Inc. | 2,088 | 93 | |
Danone SA | 13,200 | 973 | |
Green Mountain Coffee Roasters, Inc. (a) | 33,676 | 2,463 | |
Hilton Food Group PLC | 73,331 | 393 | |
Ingredion, Inc. | 13,643 | 929 | |
Kellogg Co. | 31,711 | 1,968 | |
Marine Harvest ASA | 1,172,273 | 1,222 | |
Mead Johnson Nutrition Co. Class A | 19,391 | 1,572 | |
Mondelez International, Inc. | 151,530 | 4,464 | |
| 16,397 | ||
Household Products - 2.0% | |||
Energizer Holdings, Inc. | 21,860 | 2,092 | |
Procter & Gamble Co. | 177,856 | 13,652 | |
Svenska Cellulosa AB (SCA) (B Shares) | 90,000 | 2,249 | |
Unicharm Corp. | 22,500 | 1,258 | |
| 19,251 | ||
Personal Products - 0.3% | |||
Estee Lauder Companies, Inc. Class A | 14,589 | 989 | |
Hengan International Group Co. Ltd. | 76,500 | 846 | |
Herbalife Ltd. | 23,500 | 1,097 | |
Nu Skin Enterprises, Inc. Class A | 3,190 | 188 | |
| 3,120 | ||
Tobacco - 2.0% | |||
Altria Group, Inc. | 45,698 | 1,650 | |
British American Tobacco PLC (United Kingdom) | 37,600 | 2,066 | |
Japan Tobacco, Inc. | 119,600 | 4,070 | |
Philip Morris International, Inc. | 118,863 | 10,806 | |
| 18,592 | ||
TOTAL CONSUMER STAPLES | 95,713 | ||
ENERGY - 10.0% | |||
Energy Equipment & Services - 3.6% | |||
BW Offshore Ltd. | 1,030,952 | 1,376 | |
Cameron International Corp. (a) | 101,914 | 6,204 | |
Cathedral Energy Services Ltd. | 124,600 | 553 | |
Ensco PLC Class A | 79,400 | 4,777 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Essential Energy Services Ltd. | 441,500 | $ 1,060 | |
Halliburton Co. | 82,605 | 3,457 | |
National Oilwell Varco, Inc. | 93,582 | 6,579 | |
Noble Corp. | 47,079 | 1,824 | |
Schlumberger Ltd. | 77,617 | 5,668 | |
Vantage Drilling Co. (a) | 834,115 | 1,602 | |
Xtreme Drilling & Coil Services Corp. (a) | 404,600 | 1,034 | |
Xtreme Drilling & Coil Services Corp. (e) | 132,500 | 339 | |
| 34,473 | ||
Oil, Gas & Consumable Fuels - 6.4% | |||
Access Midstream Partners LP | 34,591 | 1,488 | |
Americas Petrogas, Inc. (a) | 264,700 | 406 | |
Americas Petrogas, Inc. (a)(e) | 286,000 | 439 | |
Anadarko Petroleum Corp. | 47,198 | 4,128 | |
Apache Corp. | 25,078 | 2,060 | |
Atlas Energy LP | 9,400 | 461 | |
Atlas Pipeline Partners LP | 44,607 | 1,660 | |
BPZ Energy, Inc. (a) | 319,601 | 617 | |
Cabot Oil & Gas Corp. | 16,054 | 1,130 | |
Coal India Ltd. | 14,500 | 83 | |
Cobalt International Energy, Inc. (a) | 82,608 | 2,143 | |
Concho Resources, Inc. (a) | 21,740 | 1,819 | |
Crown Point Energy, Inc. (e)(f) | 329,102 | 76 | |
Double Eagle Petroleum Co. (a) | 114,413 | 471 | |
Emerald Oil, Inc. warrants 2/4/16 (a) | 16,536 | 0 | |
Energen Corp. | 37,159 | 2,014 | |
EOG Resources, Inc. | 11,695 | 1,510 | |
EQT Corp. | 29,702 | 2,373 | |
Halcon Resources Corp. (a) | 90,000 | 475 | |
Hess Corp. | 6,253 | 422 | |
InterOil Corp. (a)(d) | 54,502 | 4,524 | |
Magellan Midstream Partners LP | 11,526 | 599 | |
Marathon Petroleum Corp. | 14,652 | 1,209 | |
Markwest Energy Partners LP | 45,610 | 3,003 | |
Motor Oil (HELLAS) Corinth Refineries SA | 2,600 | 26 | |
Noble Energy, Inc. | 14,600 | 842 | |
Northern Oil & Gas, Inc. (a) | 266,609 | 3,511 | |
Occidental Petroleum Corp. | 70,247 | 6,468 | |
Painted Pony Petroleum Ltd. (e) | 49,500 | 446 | |
Painted Pony Petroleum Ltd. Class A (a) | 74,350 | 671 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Pan Orient Energy Corp. | 28,000 | $ 46 | |
Peabody Energy Corp. | 94,423 | 1,857 | |
Phillips 66 | 37,407 | 2,490 | |
Pioneer Natural Resources Co. | 4,893 | 679 | |
Royal Dutch Shell PLC Class A sponsored ADR | 35,352 | 2,346 | |
Southcross Energy Partners LP | 35,641 | 800 | |
Suncor Energy, Inc. | 32,480 | 985 | |
TAG Oil Ltd. (a) | 421,700 | 1,273 | |
TAG Oil Ltd. (e) | 15,900 | 48 | |
The Williams Companies, Inc. | 131,301 | 4,619 | |
Valero Energy Corp. | 17,073 | 694 | |
Western Gas Equity Partners LP | 4,543 | 170 | |
| 61,081 | ||
TOTAL ENERGY | 95,554 | ||
FINANCIALS - 15.9% | |||
Capital Markets - 2.4% | |||
AllianceBernstein Holding LP | 39,040 | 988 | |
Ameriprise Financial, Inc. | 14,045 | 1,145 | |
BlackRock, Inc. Class A | 8,899 | 2,485 | |
Goldman Sachs Group, Inc. | 3,462 | 561 | |
GP Investments Ltd. Class A (depositary receipt) (a) | 456,760 | 1,011 | |
ICG Group, Inc. (a) | 38,648 | 429 | |
Invesco Ltd. | 69,084 | 2,331 | |
KKR & Co. LP | 68,460 | 1,334 | |
Monex Group, Inc. (d) | 4,149 | 1,533 | |
Morgan Stanley | 127,414 | 3,300 | |
Oaktree Capital Group LLC | 33,200 | 1,731 | |
The Blackstone Group LP | 55,420 | 1,213 | |
UBS AG (NY Shares) | 255,742 | 4,483 | |
| 22,544 | ||
Commercial Banks - 3.1% | |||
Axis Bank Ltd. | 3,884 | 98 | |
Bank of Ireland (a) | 14,643 | 3 | |
Barclays PLC sponsored ADR | 160,340 | 3,077 | |
Commerce Bancshares, Inc. | 21,923 | 954 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 56,572 | 503 | |
Huntington Bancshares, Inc. | 8,500 | 66 | |
Itau Unibanco Holding SA sponsored ADR | 49,518 | 745 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Komercni Banka A/S | 200 | $ 38 | |
M&T Bank Corp. | 8,090 | 849 | |
PNC Financial Services Group, Inc. | 34,440 | 2,467 | |
PT Bank Rakyat Indonesia Tbk | 64,000 | 58 | |
Sberbank (Savings Bank of the Russian Federation) sponsored ADR | 42,000 | 514 | |
U.S. Bancorp | 113,357 | 3,974 | |
Wells Fargo & Co. | 392,211 | 15,904 | |
| 29,250 | ||
Consumer Finance - 0.8% | |||
American Express Co. | 9,364 | 709 | |
Capital One Financial Corp. | 82,313 | 5,015 | |
SLM Corp. | 86,898 | 2,063 | |
| 7,787 | ||
Diversified Financial Services - 4.8% | |||
Bank of America Corp. | 863,473 | 11,795 | |
Citigroup, Inc. | 299,573 | 15,575 | |
JPMorgan Chase & Co. | 202,459 | 11,052 | |
McGraw-Hill Companies, Inc. | 53,980 | 2,945 | |
ORIX Corp. | 65,400 | 867 | |
PICO Holdings, Inc. (a) | 154,614 | 3,493 | |
The NASDAQ Stock Market, Inc. | 4,292 | 135 | |
| 45,862 | ||
Insurance - 2.4% | |||
ACE Ltd. | 22,176 | 1,989 | |
AFLAC, Inc. | 31,832 | 1,773 | |
Allied World Assurance Co. Holdings Ltd. | 10,263 | 918 | |
Arthur J. Gallagher & Co. | 13,665 | 597 | |
Assured Guaranty Ltd. | 208,751 | 4,722 | |
Axis Capital Holdings Ltd. | 11,500 | 501 | |
Berkshire Hathaway, Inc. Class B (a) | 16,553 | 1,888 | |
Everest Re Group Ltd. | 8,134 | 1,054 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 2,300 | 929 | |
Marsh & McLennan Companies, Inc. | 27,300 | 1,093 | |
MetLife, Inc. | 63,621 | 2,813 | |
Prudential Financial, Inc. | 30,264 | 2,087 | |
The Travelers Companies, Inc. | 22,053 | 1,846 | |
Validus Holdings Ltd. | 22,230 | 803 | |
| 23,013 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 1.7% | |||
American Tower Corp. | 26,419 | $ 2,056 | |
Beni Stabili SpA SIIQ | 1,669,200 | 1,173 | |
CBL & Associates Properties, Inc. | 58,332 | 1,341 | |
Coresite Realty Corp. | 1,300 | 42 | |
Corrections Corp. of America | 16,228 | 570 | |
Cousins Properties, Inc. | 57,176 | 590 | |
Douglas Emmett, Inc. | 48,532 | 1,237 | |
Education Realty Trust, Inc. | 122,600 | 1,282 | |
Lexington Corporate Properties Trust | 96,600 | 1,216 | |
Parkway Properties, Inc. | 26,500 | 455 | |
Piedmont Office Realty Trust, Inc. Class A | 28,100 | 534 | |
Prologis, Inc. | 30,057 | 1,211 | |
Retail Properties America, Inc. | 21,300 | 325 | |
SL Green Realty Corp. | 17,330 | 1,507 | |
Westfield Group unit | 83,214 | 913 | |
Weyerhaeuser Co. | 48,108 | 1,435 | |
| 15,887 | ||
Real Estate Management & Development - 0.5% | |||
Atrium European Real Estate Ltd. | 14,913 | 88 | |
CBRE Group, Inc. (a) | 165,607 | 3,839 | |
CSI Properties Ltd. | 10,910,000 | 484 | |
Jones Lang LaSalle, Inc. | 4,700 | 432 | |
LEG Immobilien AG | 6,871 | 392 | |
| 5,235 | ||
Thrifts & Mortgage Finance - 0.2% | |||
MGIC Investment Corp. (a) | 156,600 | 968 | |
Radian Group, Inc. | 52,300 | 673 | |
| 1,641 | ||
TOTAL FINANCIALS | 151,219 | ||
HEALTH CARE - 13.5% | |||
Biotechnology - 3.5% | |||
Achillion Pharmaceuticals, Inc. (a) | 42,795 | 357 | |
Alnylam Pharmaceuticals, Inc. (a) | 97,100 | 2,974 | |
Amgen, Inc. | 56,391 | 5,669 | |
Array Biopharma, Inc. (a) | 32,000 | 187 | |
Biogen Idec, Inc. (a) | 15,209 | 3,612 | |
Biovitrum AB (a) | 136,220 | 847 | |
CSL Ltd. | 3,198 | 182 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Cytos Biotechnology AG (a) | 853 | $ 3 | |
Dynavax Technologies Corp. (a) | 457,387 | 1,194 | |
Elan Corp. PLC sponsored ADR (a) | 187,097 | 2,369 | |
Gentium SpA sponsored ADR (a) | 29,591 | 248 | |
Gilead Sciences, Inc. (a) | 107,272 | 5,844 | |
Grifols SA ADR | 66,675 | 1,818 | |
Infinity Pharmaceuticals, Inc. (a) | 79,490 | 2,142 | |
Insmed, Inc. (a) | 15,400 | 207 | |
Isis Pharmaceuticals, Inc. (a) | 35,800 | 775 | |
KaloBios Pharmaceuticals, Inc. | 49,556 | 252 | |
KaloBios Pharmaceuticals, Inc. | 17,800 | 101 | |
Medivation, Inc. (a) | 9,400 | 456 | |
Merrimack Pharmaceuticals, Inc. (a) | 46,100 | 255 | |
Novavax, Inc. (a) | 97,129 | 186 | |
Onyx Pharmaceuticals, Inc. (a) | 8,145 | 777 | |
Theravance, Inc. (a) | 80,201 | 2,810 | |
| 33,265 | ||
Health Care Equipment & Supplies - 1.2% | |||
Ansell Ltd. | 25,568 | 421 | |
Baxter International, Inc. | 10,979 | 772 | |
Boston Scientific Corp. (a) | 172,662 | 1,595 | |
Covidien PLC | 25,773 | 1,639 | |
Genmark Diagnostics, Inc. (a) | 87,606 | 1,305 | |
Hill-Rom Holdings, Inc. | 29,867 | 1,079 | |
Sirona Dental Systems, Inc. (a) | 13,489 | 957 | |
Stryker Corp. | 30,855 | 2,048 | |
Trinity Biotech PLC sponsored ADR | 16,621 | 291 | |
Zimmer Holdings, Inc. | 12,142 | 953 | |
| 11,060 | ||
Health Care Providers & Services - 3.3% | |||
Accretive Health, Inc. (a) | 129,000 | 1,468 | |
AmerisourceBergen Corp. | 45,595 | 2,466 | |
AmSurg Corp. (a) | 27,766 | 987 | |
Apollo Hospitals Enterprise Ltd. | 28,240 | 502 | |
BioScrip, Inc. (a) | 68,596 | 959 | |
Brookdale Senior Living, Inc. (a) | 208,727 | 5,917 | |
DaVita, Inc. (a) | 14,573 | 1,808 | |
Emeritus Corp. (a) | 65,163 | 1,656 | |
Express Scripts Holding Co. (a) | 74,301 | 4,616 | |
McKesson Corp. | 21,045 | 2,396 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
MEDNAX, Inc. (a) | 9,515 | $ 883 | |
Qualicorp SA (a) | 122,700 | 1,086 | |
Quest Diagnostics, Inc. | 28,946 | 1,790 | |
UnitedHealth Group, Inc. | 82,116 | 5,143 | |
| 31,677 | ||
Life Sciences Tools & Services - 0.2% | |||
Agilent Technologies, Inc. | 27,330 | 1,242 | |
Lonza Group AG | 10,483 | 783 | |
| 2,025 | ||
Pharmaceuticals - 5.3% | |||
AbbVie, Inc. | 104,031 | 4,441 | |
Actavis, Inc. (a) | 20,209 | 2,492 | |
Allergan, Inc. | 5,000 | 497 | |
AVANIR Pharmaceuticals Class A (a) | 93,455 | 310 | |
Biodelivery Sciences International, Inc. (a) | 143,414 | 631 | |
Cadence Pharmaceuticals, Inc. (a)(d) | 341,498 | 2,271 | |
Dechra Pharmaceuticals PLC | 43,500 | 452 | |
Endo Health Solutions, Inc. (a) | 50,260 | 1,824 | |
GlaxoSmithKline PLC | 91,400 | 2,365 | |
Horizon Pharma, Inc. | 367,185 | 870 | |
Horizon Pharma, Inc.: | |||
warrants 2/28/17 (a) | 27,294 | 0 * | |
warrants 9/25/17 (a) | 109,700 | 0 * | |
Jazz Pharmaceuticals PLC (a) | 20,720 | 1,408 | |
Johnson & Johnson | 146,419 | 12,326 | |
Merck & Co., Inc. | 240,824 | 11,246 | |
Novo Nordisk A/S Series B | 13,945 | 2,260 | |
Optimer Pharmaceuticals, Inc. (a)(d) | 23,450 | 349 | |
Pfizer, Inc. | 20,462 | 557 | |
Sanofi SA | 28,394 | 3,028 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 14,600 | 1,343 | |
Warner Chilcott PLC | 104,584 | 2,008 | |
| 50,678 | ||
TOTAL HEALTH CARE | 128,705 | ||
INDUSTRIALS - 12.0% | |||
Aerospace & Defense - 1.9% | |||
Finmeccanica SpA (a) | 111,336 | 622 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
General Dynamics Corp. | 13,209 | $ 1,018 | |
Honeywell International, Inc. | 58,917 | 4,623 | |
Meggitt PLC | 248,751 | 2,013 | |
Orbital Sciences Corp. (a) | 5,590 | 102 | |
Textron, Inc. | 67,532 | 1,821 | |
The Boeing Co. | 9,837 | 974 | |
United Technologies Corp. | 78,071 | 7,409 | |
| 18,582 | ||
Air Freight & Logistics - 0.4% | |||
United Parcel Service, Inc. Class B | 50,643 | 4,350 | |
Airlines - 0.1% | |||
Copa Holdings SA Class A | 3,000 | 394 | |
easyJet PLC | 14,500 | 279 | |
| 673 | ||
Building Products - 0.6% | |||
Armstrong World Industries, Inc. (a) | 8,334 | 433 | |
Masco Corp. | 228,053 | 4,794 | |
Ply Gem Holdings, Inc. | 13,200 | 305 | |
| 5,532 | ||
Commercial Services & Supplies - 0.5% | |||
Multiplus SA | 92,800 | 1,500 | |
Republic Services, Inc. | 46,840 | 1,597 | |
Swisher Hygiene, Inc. (a) | 202,331 | 210 | |
Swisher Hygiene, Inc. (Canada) (a) | 77,001 | 80 | |
Waste Management, Inc. | 24,308 | 1,019 | |
West Corp. | 20,500 | 469 | |
| 4,875 | ||
Construction & Engineering - 0.4% | |||
AECOM Technology Corp. (a) | 30,641 | 943 | |
Boart Longyear Ltd. | 251,495 | 161 | |
Fluor Corp. | 12,436 | 786 | |
MasTec, Inc. (a) | 31,210 | 992 | |
URS Corp. | 26,106 | 1,265 | |
| 4,147 | ||
Electrical Equipment - 1.9% | |||
Alstom SA | 43,202 | 1,635 | |
AMETEK, Inc. | 30,332 | 1,309 | |
Bharat Heavy Electricals Ltd. | 157,533 | 556 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - continued | |||
Eaton Corp. PLC | 33,453 | $ 2,210 | |
Emerson Electric Co. | 55,769 | 3,204 | |
Generac Holdings, Inc. | 42,806 | 1,734 | |
Hubbell, Inc. Class B | 14,324 | 1,439 | |
Polypore International, Inc. (a) | 10,200 | 384 | |
Prysmian SpA | 80,029 | 1,721 | |
Regal-Beloit Corp. | 29,687 | 2,004 | |
Roper Industries, Inc. | 12,261 | 1,523 | |
| 17,719 | ||
Industrial Conglomerates - 1.9% | |||
3M Co. | 4,300 | 474 | |
Carlisle Companies, Inc. | 15,347 | 1,004 | |
General Electric Co. | 652,510 | 15,217 | |
Koninklijke Philips Electronics NV | 33,500 | 949 | |
Reunert Ltd. | 20,553 | 146 | |
Siemens AG sponsored ADR | 1,300 | 137 | |
| 17,927 | ||
Machinery - 2.3% | |||
Actuant Corp. Class A | 34,626 | 1,177 | |
Cummins, Inc. | 19,290 | 2,308 | |
Dover Corp. | 13,589 | 1,063 | |
GEA Group AG | 15,363 | 562 | |
Global Brass & Copper Holdings, Inc. | 55,100 | 727 | |
Harsco Corp. | 41,921 | 980 | |
Illinois Tool Works, Inc. | 28,700 | 2,013 | |
Ingersoll-Rand PLC | 62,752 | 3,610 | |
Manitowoc Co., Inc. | 147,803 | 3,105 | |
Pentair Ltd. | 33,160 | 1,931 | |
Stanley Black & Decker, Inc. | 45,156 | 3,577 | |
Terex Corp. (a) | 5,601 | 201 | |
Timken Co. | 18,309 | 1,039 | |
| 22,293 | ||
Marine - 0.1% | |||
Ultrapetrol (Bahamas) Ltd. (a) | 213,416 | 623 | |
Professional Services - 0.5% | |||
CRA International, Inc. (a) | 36,741 | 658 | |
Dun & Bradstreet Corp. | 18,774 | 1,842 | |
Manpower, Inc. | 9,496 | 544 | |
Michael Page International PLC | 159,115 | 930 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - continued | |||
Randstad Holding NV | 11,032 | $ 473 | |
Verisk Analytics, Inc. (a) | 8,200 | 482 | |
| 4,929 | ||
Road & Rail - 1.0% | |||
Con-way, Inc. | 6,000 | 228 | |
CSX Corp. | 48,577 | 1,225 | |
J.B. Hunt Transport Services, Inc. | 6,644 | 489 | |
Norfolk Southern Corp. | 2,300 | 176 | |
Union Pacific Corp. | 45,415 | 7,022 | |
| 9,140 | ||
Trading Companies & Distributors - 0.4% | |||
Houston Wire & Cable Co. | 73,887 | 1,035 | |
Watsco, Inc. | 17,604 | 1,536 | |
WESCO International, Inc. (a) | 17,537 | 1,302 | |
| 3,873 | ||
TOTAL INDUSTRIALS | 114,663 | ||
INFORMATION TECHNOLOGY - 16.7% | |||
Communications Equipment - 1.6% | |||
Cisco Systems, Inc. | 379,213 | 9,131 | |
QUALCOMM, Inc. | 94,628 | 6,007 | |
| 15,138 | ||
Computers & Peripherals - 3.0% | |||
Apple, Inc. | 49,013 | 22,051 | |
EMC Corp. | 60,968 | 1,510 | |
NCR Corp. (a) | 55,625 | 1,858 | |
Seagate Technology | 19,053 | 821 | |
Western Digital Corp. | 35,415 | 2,242 | |
| 28,482 | ||
Electronic Equipment & Components - 0.5% | |||
Corning, Inc. | 102,112 | 1,569 | |
Jabil Circuit, Inc. | 57,408 | 1,152 | |
TE Connectivity Ltd. | 52,722 | 2,340 | |
| 5,061 | ||
Internet Software & Services - 2.1% | |||
Active Network, Inc. (a)(d) | 126,177 | 844 | |
Demandware, Inc. (a) | 17,069 | 522 | |
Google, Inc. Class A (a) | 17,832 | 15,521 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
Halogen Software, Inc. | 11,400 | $ 146 | |
Mail.Ru Group Ltd.: | |||
GDR (e) | 1,900 | 53 | |
GDR (Reg. S) | 31,200 | 871 | |
Marketo, Inc. | 21,900 | 518 | |
Velti PLC (a) | 371,006 | 653 | |
Velti PLC (g) | 192,692 | 305 | |
Yahoo!, Inc. (a) | 8,500 | 224 | |
| 19,657 | ||
IT Services - 3.1% | |||
Accenture PLC Class A | 46,738 | 3,838 | |
Amdocs Ltd. | 32,982 | 1,177 | |
Cognizant Technology Solutions Corp. Class A (a) | 16,182 | 1,046 | |
EPAM Systems, Inc. (a) | 61,400 | 1,422 | |
EVERTEC, Inc. | 34,300 | 687 | |
ExlService Holdings, Inc. (a) | 34,783 | 1,020 | |
Fidelity National Information Services, Inc. | 58,748 | 2,638 | |
MasterCard, Inc. Class A | 6,642 | 3,788 | |
Sapient Corp. (a) | 119,856 | 1,544 | |
Total System Services, Inc. | 57,019 | 1,341 | |
Unisys Corp. (a) | 38,282 | 791 | |
Virtusa Corp. (a) | 33,743 | 792 | |
Visa, Inc. Class A | 54,271 | 9,668 | |
| 29,752 | ||
Office Electronics - 0.3% | |||
Xerox Corp. | 336,980 | 2,962 | |
Semiconductors & Semiconductor Equipment - 2.8% | |||
Altera Corp. | 25,500 | 846 | |
Analog Devices, Inc. | 28,595 | 1,313 | |
Applied Micro Circuits Corp. (a) | 38,200 | 295 | |
ASML Holding NV | 75,012 | 6,096 | |
Avago Technologies Ltd. | 35,435 | 1,336 | |
Broadcom Corp. Class A | 48,450 | 1,740 | |
Freescale Semiconductor Holdings I Ltd. (a) | 103,538 | 1,648 | |
LTX-Credence Corp. (a) | 224,668 | 1,274 | |
MagnaChip Semiconductor Corp. (a) | 34,139 | 632 | |
Maxim Integrated Products, Inc. | 49,396 | 1,457 | |
Microchip Technology, Inc. | 7,639 | 279 | |
Micron Technology, Inc. (a) | 117,220 | 1,369 | |
Monolithic Power Systems, Inc. | 8,500 | 209 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
NXP Semiconductors NV (a) | 59,247 | $ 1,828 | |
Samsung Electronics Co. Ltd. | 2,191 | 2,948 | |
Skyworks Solutions, Inc. (a) | 135,211 | 3,226 | |
| 26,496 | ||
Software - 3.3% | |||
Activision Blizzard, Inc. | 192,233 | 2,774 | |
Adobe Systems, Inc. (a) | 17,338 | 744 | |
Autodesk, Inc. (a) | 36,745 | 1,386 | |
Check Point Software Technologies Ltd. (a) | 40,164 | 2,011 | |
Citrix Systems, Inc. (a) | 38,961 | 2,507 | |
Comverse, Inc. | 42,777 | 1,277 | |
Constellation Software, Inc. | 6,900 | 1,012 | |
Electronic Arts, Inc. (a) | 144,386 | 3,319 | |
Infoblox, Inc. (a) | 15,300 | 372 | |
Jive Software, Inc. (a) | 27,262 | 461 | |
MICROS Systems, Inc. (a) | 17,500 | 739 | |
Microsoft Corp. | 181,889 | 6,344 | |
Oracle Corp. | 166,198 | 5,611 | |
SS&C Technologies Holdings, Inc. (a) | 27,674 | 875 | |
Symantec Corp. | 60,370 | 1,352 | |
Verint Systems, Inc. (a) | 33,979 | 1,141 | |
| 31,925 | ||
TOTAL INFORMATION TECHNOLOGY | 159,473 | ||
MATERIALS - 4.2% | |||
Chemicals - 2.0% | |||
Albemarle Corp. | 17,300 | 1,158 | |
Ashland, Inc. | 19,413 | 1,726 | |
Axiall Corp. | 24,458 | 1,055 | |
Cabot Corp. | 31,565 | 1,292 | |
Eastman Chemical Co. | 23,207 | 1,664 | |
Filtrona PLC | 7,300 | 77 | |
Innospec, Inc. | 8,006 | 328 | |
LyondellBasell Industries NV Class A | 34,896 | 2,326 | |
Monsanto Co. | 30,401 | 3,060 | |
PetroLogistics LP | 15,317 | 207 | |
PolyOne Corp. | 21,412 | 550 | |
PPG Industries, Inc. | 11,185 | 1,718 | |
Royal DSM NV | 2,100 | 138 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
RPM International, Inc. | 30,309 | $ 1,004 | |
W.R. Grace & Co. (a) | 35,870 | 3,031 | |
| 19,334 | ||
Construction Materials - 0.3% | |||
HeidelbergCement Finance AG | 473 | 36 | |
Lafarge SA (Bearer) | 11,900 | 856 | |
Vulcan Materials Co. | 34,077 | 1,826 | |
| 2,718 | ||
Containers & Packaging - 0.3% | |||
Nampak Ltd. | 301,028 | 1,044 | |
Rock-Tenn Co. Class A | 15,404 | 1,522 | |
| 2,566 | ||
Metals & Mining - 1.4% | |||
Agnico Eagle Mines Ltd. (Canada) | 18,298 | 595 | |
Commercial Metals Co. | 93,987 | 1,449 | |
Franco-Nevada Corp. | 2,600 | 108 | |
Freeport-McMoRan Copper & Gold, Inc. | 51,821 | 1,609 | |
Goldcorp, Inc. | 84,700 | 2,514 | |
Ivanplats Ltd. (e) | 746,308 | 1,944 | |
Randgold Resources Ltd. sponsored ADR | 29,300 | 2,297 | |
Turquoise Hill Resources Ltd. (a) | 379,593 | 2,534 | |
| 13,050 | ||
Paper & Forest Products - 0.2% | |||
Canfor Corp. (a) | 17,100 | 287 | |
International Paper Co. | 35,174 | 1,623 | |
| 1,910 | ||
TOTAL MATERIALS | 39,578 | ||
TELECOMMUNICATION SERVICES - 1.1% | |||
Diversified Telecommunication Services - 0.4% | |||
CenturyLink, Inc. | 59,011 | 2,015 | |
PT Telkomunikasi Indonesia Tbk sponsored ADR | 22,319 | 1,009 | |
Verizon Communications, Inc. | 16,997 | 824 | |
| 3,848 | ||
Wireless Telecommunication Services - 0.7% | |||
Megafon OJSC GDR | 18,400 | 575 | |
Mobile TeleSystems OJSC sponsored ADR | 49,034 | 945 | |
SBA Communications Corp. Class A (a) | 37,497 | 2,822 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - continued | |||
Softbank Corp. | 7,700 | $ 385 | |
Vodafone Group PLC | 580,500 | 1,682 | |
| 6,409 | ||
TOTAL TELECOMMUNICATION SERVICES | 10,257 | ||
UTILITIES - 2.6% | |||
Electric Utilities - 1.3% | |||
Edison International | 50,007 | 2,297 | |
Hawaiian Electric Industries, Inc. (d) | 28,968 | 758 | |
ITC Holdings Corp. | 32,738 | 2,834 | |
NextEra Energy, Inc. | 38,627 | 2,921 | |
Northeast Utilities | 79,396 | 3,308 | |
| 12,118 | ||
Gas Utilities - 0.0% | |||
Atmos Energy Corp. | 6,958 | 294 | |
Independent Power Producers & Energy Traders - 0.3% | |||
The AES Corp. | 247,279 | 3,017 | |
Multi-Utilities - 1.0% | |||
CenterPoint Energy, Inc. | 40,739 | 944 | |
Dominion Resources, Inc. | 9,400 | 532 | |
National Grid PLC | 28,500 | 339 | |
PG&E Corp. | 46,700 | 2,097 | |
Sempra Energy | 63,309 | 5,147 | |
| 9,059 | ||
Water Utilities - 0.0% | |||
American Water Works Co., Inc. | 6,010 | 240 | |
TOTAL UTILITIES | 24,728 | ||
TOTAL COMMON STOCKS (Cost $800,601) |
| ||
Preferred Stocks - 0.2% | |||
|
|
|
|
Convertible Preferred Stocks - 0.1% | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Unisys Corp. Series A, 6.25% | 9,500 | 561 | |
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Volkswagen AG | 4,100 | $ 900 | |
TOTAL PREFERRED STOCKS (Cost $1,460) |
|
Corporate Bonds - 0.6% | ||||
| Principal Amount (000s)(h) |
| ||
Convertible Bonds - 0.5% | ||||
ENERGY - 0.1% | ||||
Energy Equipment & Services - 0.0% | ||||
Cal Dive International, Inc. 5% 7/15/17 (e) | $ 330 | 364 | ||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 | 791 | 562 | ||
BPZ Energy, Inc. 6.5% 3/1/15 | 430 | 345 | ||
| 907 | |||
TOTAL ENERGY | 1,271 | |||
HEALTH CARE - 0.2% | ||||
Biotechnology - 0.2% | ||||
Exelixis, Inc. 4.25% 8/15/19 | 1,070 | 1,069 | ||
InterMune, Inc. 2.5% 12/15/17 | 330 | 362 | ||
Theravance, Inc. 2.125% 1/15/23 | 430 | 620 | ||
| 2,051 | |||
INDUSTRIALS - 0.1% | ||||
Building Products - 0.1% | ||||
Aspen Aerogels, Inc. 8% 6/1/14 (g) | 450 | 450 | ||
INFORMATION TECHNOLOGY - 0.1% | ||||
Semiconductors & Semiconductor Equipment - 0.1% | ||||
GT Advanced Technologies, Inc. 3% 10/1/17 | 820 | 739 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s)(h) | Value (000s) | ||
Convertible Bonds - continued | ||||
TELECOMMUNICATION SERVICES - 0.0% | ||||
Wireless Telecommunication Services - 0.0% | ||||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (e) | $ 380 | $ 420 | ||
TOTAL CONVERTIBLE BONDS | 4,931 | |||
Nonconvertible Bonds - 0.1% | ||||
FINANCIALS - 0.1% | ||||
Commercial Banks - 0.1% | ||||
Bank of Ireland 10% 7/30/16 | EUR | 652 | 881 | |
TOTAL CORPORATE BONDS (Cost $5,647) |
|
Money Market Funds - 1.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 5,984,392 | 5,984 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 5,010,295 | 5,010 | |
TOTAL MONEY MARKET FUNDS (Cost $10,994) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $818,702) | 957,214 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (4,379) | ||
NET ASSETS - 100% | $ 952,835 |
Currency Abbreviations | ||
EUR | - | European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,129,000 or 0.4% of net assets. |
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(g) 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 $895,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Aspen Aerogels, Inc. 8% 6/1/14 | 6/1/11 - 12/31/12 | $ 450 |
Mood Media Corp. | 2/2/11 | $ 275 |
Velti PLC | 4/19/13 | $ 289 |
(h) Amount is stated in United States dollars unless otherwise noted. |
* Amount represents less than $1,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4 |
Fidelity Securities Lending Cash Central Fund | 338 |
Total | $ 342 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 119,957 | $ 118,955 | $ 1,002 | $ - |
Consumer Staples | 95,713 | 85,254 | 10,459 | - |
Energy | 95,554 | 95,471 | 83 | - |
Financials | 151,219 | 147,263 | 3,956 | - |
Health Care | 128,705 | 119,695 | 9,010 | - |
Industrials | 114,663 | 112,997 | 1,666 | - |
Information Technology | 160,034 | 156,781 | 3,253 | - |
Materials | 39,578 | 39,578 | - | - |
Telecommunication Services | 10,257 | 8,190 | 2,067 | - |
Utilities | 24,728 | 24,389 | 339 | - |
Corporate Bonds | 5,812 | - | 5,362 | 450 |
Money Market Funds | 10,994 | 10,994 | - | - |
Total Investments in Securities: | $ 957,214 | $ 919,567 | $ 37,197 | $ 450 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 80.7% |
Canada | 2.6% |
United Kingdom | 2.5% |
Ireland | 2.0% |
Bermuda | 1.5% |
Switzerland | 1.3% |
Netherlands | 1.2% |
France | 1.2% |
Others (Individually Less Than 1%) | 7.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $4,640) - See accompanying schedule: Unaffiliated issuers (cost $807,708) | $ 946,220 |
|
Fidelity Central Funds (cost $10,994) | 10,994 |
|
Total Investments (cost $818,702) |
| $ 957,214 |
Cash |
| 9 |
Foreign currency held at value (cost $9) | 9 | |
Receivable for investments sold |
| 11,042 |
Delayed delivery |
| 77 |
Receivable for fund shares sold | 574 | |
Dividends receivable | 1,371 | |
Interest receivable | 145 | |
Distributions receivable from Fidelity Central Funds | 65 | |
Other receivables | 8 | |
Total assets | 970,514 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 10,569 | |
Payable for fund shares redeemed | 1,171 | |
Accrued management fee | 295 | |
Distribution and service plan fees payable | 344 | |
Other affiliated payables | 205 | |
Other payables and accrued expenses | 85 | |
Collateral on securities loaned, at value | 5,010 | |
Total liabilities | 17,679 | |
|
|
|
Net Assets | $ 952,835 | |
Net Assets consist of: |
| |
Paid in capital | $ 861,015 | |
Undistributed net investment income | 514 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (47,203) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 138,509 | |
Net Assets | $ 952,835 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 15.26 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.26) | $ 16.19 | |
Class T: | $ 15.20 | |
|
|
|
Maximum offering price per share (100/96.50 of $15.20) | $ 15.75 | |
Class B: | $ 14.74 | |
|
|
|
Class C: | $ 14.70 | |
|
|
|
Institutional Class: | $ 15.84 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 7,289 |
Interest |
| 334 |
Income from Fidelity Central Funds |
| 342 |
Total income |
| 7,965 |
|
|
|
Expenses | ||
Management fee | $ 2,507 | |
Performance adjustment | (624) | |
Transfer agent fees | 1,059 | |
Distribution and service plan fees | 1,953 | |
Accounting and security lending fees | 154 | |
Custodian fees and expenses | 107 | |
Independent trustees' compensation | 3 | |
Registration fees | 72 | |
Audit | 32 | |
Legal | 2 | |
Miscellaneous | 5 | |
Total expenses before reductions | 5,270 | |
Expense reductions | (99) | 5,171 |
Net investment income (loss) | 2,794 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 53,966 | |
Foreign currency transactions | (23) | |
Total net realized gain (loss) |
| 53,943 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 71,153 | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) |
| 71,154 |
Net gain (loss) | 125,097 | |
Net increase (decrease) in net assets resulting from operations | $ 127,891 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,794 | $ 3,116 |
Net realized gain (loss) | 53,943 | 39,284 |
Change in net unrealized appreciation (depreciation) | 71,154 | 84,266 |
Net increase (decrease) in net assets resulting | 127,891 | 126,666 |
Distributions to shareholders from net investment income | (5,093) | - |
Share transactions - net increase (decrease) | (17,273) | (97,081) |
Total increase (decrease) in net assets | 105,525 | 29,585 |
|
|
|
Net Assets | ||
Beginning of period | 847,310 | 817,725 |
End of period (including undistributed net investment income of $514 and undistributed net investment income of $2,813, respectively) | $ 952,835 | $ 847,310 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 13.33 | $ 11.45 | $ 11.58 | $ 9.95 | $ 6.64 | $ 13.75 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .07 | .02 | .03 H | .04 | .11 |
Net realized and unrealized gain (loss) | 1.97 | 1.81 | (.09) | 1.66 | 3.41 | (6.13) |
Total from investment operations | 2.03 | 1.88 | (.07) | 1.69 | 3.45 | (6.02) |
Distributions from net investment income | (.10) | - | - | (.02) | (.14) | (.10) |
Distributions from net realized gain | - | - | (.06) | (.05) | - | (.99) |
Total distributions | (.10) | - | (.06) | (.06) J | (.14) | (1.09) |
Net asset value, end of period | $ 15.26 | $ 13.33 | $ 11.45 | $ 11.58 | $ 9.95 | $ 6.64 |
Total Return B,C,D | 15.36% | 16.42% | (.63)% | 17.09% | 52.97% | (47.51)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.00% A | 1.21% | 1.36% | 1.36% | 1.08% | 1.08% |
Expenses net of fee waivers, if any | 1.00% A | 1.21% | 1.33% | 1.25% | 1.08% | 1.08% |
Expenses net of all reductions | .98% A | 1.20% | 1.33% | 1.24% | 1.08% | 1.08% |
Net investment income (loss) | .78% A | .53% | .16% | .24% H | .56% | 1.02% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 338 | $ 301 | $ 295 | $ 285 | $ 240 | $ 192 |
Portfolio turnover rate G | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .10%. IExpense 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. JTotal distributions of $.06 per share is comprised of distributions from net investment income of $.018 and distributions from net realized gain of $.045 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 13.26 | $ 11.42 | $ 11.55 | $ 9.92 | $ 6.60 | $ 13.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | .04 | (.01) | - H,J | .03 | .09 |
Net realized and unrealized gain (loss) | 1.97 | 1.80 | (.09) | 1.67 | 3.39 | (6.11) |
Total from investment operations | 2.01 | 1.84 | (.10) | 1.67 | 3.42 | (6.02) |
Distributions from net investment income | (.07) | - | - | - | (.10) | (.06) |
Distributions from net realized gain | - | - | (.03) | (.04) | - | (.99) |
Total distributions | (.07) | - | (.03) | (.04) | (.10) | (1.05) |
Net asset value, end of period | $ 15.20 | $ 13.26 | $ 11.42 | $ 11.55 | $ 9.92 | $ 6.60 |
Total Return B,C,D | 15.27% | 16.11% | (.90)% | 16.88% | 52.60% | (47.66)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.22% A | 1.42% | 1.57% | 1.57% | 1.31% | 1.29% |
Expenses net of fee waivers, if any | 1.22% A | 1.42% | 1.55% | 1.50% | 1.31% | 1.29% |
Expenses net of all reductions | 1.20% A | 1.42% | 1.54% | 1.49% | 1.30% | 1.28% |
Net investment income (loss) | .56% A | .32% | (.06)% | (.01)% H | .34% | .82% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 342 | $ 304 | $ 294 | $ 322 | $ 305 | $ 263 |
Portfolio turnover rate G | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.15)%. IExpense 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. JAmount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 12.82 | $ 11.11 | $ 11.26 | $ 9.68 | $ 6.42 | $ 13.29 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - | (.03) | (.07) | (.05) H | (.01) | .03 |
Net realized and unrealized gain (loss) | 1.92 | 1.74 | (.08) | 1.63 | 3.31 | (5.94) |
Total from investment operations | 1.92 | 1.71 | (.15) | 1.58 | 3.30 | (5.91) |
Distributions from net investment income | - | - | - | - | (.04) | - |
Distributions from net realized gain | - | - | - | - | - | (.96) |
Total distributions | - | - | - | - | (.04) | (.96) |
Net asset value, end of period | $ 14.74 | $ 12.82 | $ 11.11 | $ 11.26 | $ 9.68 | $ 6.42 |
Total ReturnB,C,D | 14.98% | 15.39% | (1.33)% | 16.32% | 51.61% | (47.88)% |
Ratios to Average Net AssetsF,I |
|
|
|
|
| |
Expenses before reductions | 1.80% A | 1.99% | 2.14% | 2.13% | 1.81% | 1.85% |
Expenses net of fee waivers, if any | 1.80% A | 1.99% | 2.09% | 2.00% | 1.81% | 1.85% |
Expenses net of all reductions | 1.78% A | 1.99% | 2.09% | 2.00% | 1.80% | 1.85% |
Net investment income (loss) | (.02)% A | (.25)% | (.61)% | (.51)%H | (.17)% | .26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 15 | $ 17 | $ 22 | $ 43 | $ 69 | $ 75 |
Portfolio turnover rateG | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. IExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 12.79 | $ 11.07 | $ 11.22 | $ 9.65 | $ 6.41 | $ 13.30 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | (.02) | (.07) | (.05) H | (.01) | .03 |
Net realized and unrealized gain (loss) | 1.91 | 1.74 | (.08) | 1.62 | 3.30 | (5.94) |
Total from investment operations | 1.91 | 1.72 | (.15) | 1.57 | 3.29 | (5.91) |
Distributions from net investment income | - J | - | - | - | (.05) | - |
Distributions from net realized gain | - | - | - | - J | - | (.98) |
Total distributions | - | - | - | - J | (.05) | (.98) |
Net asset value, end of period | $ 14.70 | $ 12.79 | $ 11.07 | $ 11.22 | $ 9.65 | $ 6.41 |
Total Return B,C,D | 14.97% | 15.54% | (1.34)% | 16.31% | 51.79% | (47.93)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.74% A | 1.94% | 2.08% | 2.08% | 1.81% | 1.82% |
Expenses net of fee waivers, if any | 1.74% A | 1.94% | 2.06% | 2.00% | 1.81% | 1.82% |
Expenses net of all reductions | 1.72% A | 1.93% | 2.05% | 1.99% | 1.81% | 1.81% |
Net investment income (loss) | .05% A | (.20)% | (.57)% | (.51)% H | (.17)% | .29% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 140 | $ 123 | $ 124 | $ 129 | $ 125 | $ 103 |
Portfolio turnover rate G | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.65)%. IExpense 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. JAmount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 13.86 | $ 11.88 | $ 12.00 | $ 10.31 | $ 6.73 | $ 13.92 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .11 | .06 | .05 G | .08 | .15 |
Net realized and unrealized gain (loss) | 2.05 | 1.87 | (.09) | 1.74 | 3.52 | (6.21) |
Total from investment operations | 2.13 | 1.98 | (.03) | 1.79 | 3.60 | (6.06) |
Distributions from net investment income | (.15) | - | (.02) | (.06) | (.02) | (.14) |
Distributions from net realized gain | - | - | (.07) | (.04) | - | (.99) |
Total distributions | (.15) | - | (.09) | (.10) | (.02) | �� (1.13) |
Net asset value, end of period | $ 15.84 | $ 13.86 | $ 11.88 | $ 12.00 | $ 10.31 | $ 6.73 |
Total Return B,C | 15.53% | 16.67% | (.33)% | 17.47% | 53.57% | (47.34)% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | .71% A | .91% | 1.04% | 1.03% | .70% | .76% |
Expenses net of fee waivers, if any | .71% A | .91% | 1.03% | 1.00% | .70% | .76% |
Expenses net of all reductions | .69% A | .90% | 1.02% | .99% | .69% | .75% |
Net investment income (loss) | 1.07% A | .83% | .46% | .49% G | .94% | 1.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 117 | $ 103 | $ 83 | $ 73 | $ 66 | $ 55 |
Portfolio turnover rate F | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .35%. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Dividend Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, contingent interest, equity-debt classifications, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 168,419 |
Gross unrealized depreciation | (35,068) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 133,351 |
|
|
Tax cost | $ 823,863 |
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.
Fiscal year of expiration |
|
2017 | $ (95,001) |
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 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.
Semiannual Report
3. Significant Accounting Policies - continued
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $348,473 and $368,121, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .42% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 399 | $ 2 |
Class T | .25% | .25% | 809 | 3 |
Class B | .75% | .25% | 81 | 60 |
Class C | .75% | .25% | 664 | 47 |
|
|
| $ 1,953 | $ 112 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 38 |
Class T | 12 |
Class B* | 8 |
Class C* | 2 |
| $ 60 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 400 | .25 |
Class T | 357 | .22 |
Class B | 24 | .30 |
Class C | 159 | .24 |
Institutional Class | 119 | .21 |
| $ 1,059 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $12 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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. 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 $338, including $1 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $99 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 2,287 | $ - |
Class T | 1,666 | - |
Class C | 38 | - |
Institutional Class | 1,102 | - |
Total | $ 5,093 | $ - |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,646 | 4,097 | $ 23,629 | $ 51,727 |
Reinvestment of distributions | 152 | - | 2,006 | - |
Shares redeemed | (2,200) | (7,320) | (31,210) | (93,009) |
Net increase (decrease) | (402) | (3,223) | $ (5,575) | $ (41,282) |
Class T |
|
|
|
|
Shares sold | 2,514 | 4,903 | $ 35,852 | $ 61,627 |
Reinvestment of distributions | 122 | - | 1,600 | - |
Shares redeemed | (3,058) | (7,690) | (43,510) | (96,565) |
Net increase (decrease) | (422) | (2,787) | $ (6,058) | $ (34,938) |
Class B |
|
|
|
|
Shares sold | 37 | 64 | $ 519 | $ 775 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (299) | (764) | (4,135) | (9,292) |
Net increase (decrease) | (262) | (700) | $ (3,616) | $ (8,517) |
Class C |
|
|
|
|
Shares sold | 672 | 1,124 | $ 9,242 | $ 13,734 |
Reinvestment of distributions | 3 | - | 32 | - |
Shares redeemed | (781) | (2,672) | (10,773) | (32,129) |
Net increase (decrease) | (106) | (1,548) | $ (1,499) | $ (18,395) |
Institutional Class |
|
|
|
|
Shares sold | 699 | 2,225 | $ 10,372 | $ 29,308 |
Reinvestment of distributions | 75 | - | 1,032 | - |
Shares redeemed | (794) | (1,777) | (11,929) | (23,257) |
Net increase (decrease) | (20) | 448 | $ (525) | $ 6,051 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
ADGFI-USAN-0713 1.786780.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Dividend Growth
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning | Ending | Expenses Paid |
Class A | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,153.60 | $ 5.37 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.95 | $ 5.04 |
Class T | 1.22% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,152.70 | $ 6.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.85 | $ 6.14 |
Class B | 1.80% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,149.80 | $ 9.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.96 | $ 9.05 |
Class C | 1.74% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,149.70 | $ 9.33 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.26 | $ 8.75 |
Institutional Class | .71% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,155.30 | $ 3.82 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.39 | $ 3.58 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 2.3 | 4.8 |
Wells Fargo & Co. | 1.7 | 1.7 |
Citigroup, Inc. | 1.6 | 1.0 |
Google, Inc. Class A | 1.6 | 1.5 |
General Electric Co. | 1.6 | 1.0 |
Procter & Gamble Co. | 1.4 | 1.1 |
Johnson & Johnson | 1.3 | 1.3 |
Bank of America Corp. | 1.2 | 0.0 |
Merck & Co., Inc. | 1.2 | 1.2 |
JPMorgan Chase & Co. | 1.2 | 0.7 |
| 15.1 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 16.9 | 20.2 |
Financials | 16.0 | 13.3 |
Health Care | 13.7 | 12.4 |
Consumer Discretionary | 12.6 | 12.1 |
Industrials | 12.1 | 12.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 98.6% |
| Stocks 98.8% |
| ||||
Bonds 0.1% |
| Bonds 0.0% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 19.3% |
| ** Foreign investments | 17.6% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.5% | |||
Auto Components - 0.2% | |||
Delphi Automotive PLC | 32,976 | $ 1,610 | |
Johnson Controls, Inc. | 1,258 | 47 | |
Tenneco, Inc. (a) | 13,400 | 594 | |
| 2,251 | ||
Automobiles - 0.6% | |||
Ford Motor Co. | 258,663 | 4,056 | |
Harley-Davidson, Inc. | 17,301 | 944 | |
Honda Motor Co. Ltd. | 27,000 | 1,002 | |
| 6,002 | ||
Diversified Consumer Services - 0.6% | |||
Anhanguera Educacional Participacoes SA | 246,000 | 1,506 | |
H&R Block, Inc. | 111,400 | 3,261 | |
Kroton Educacional SA | 81,400 | 1,167 | |
| 5,934 | ||
Hotels, Restaurants & Leisure - 1.6% | |||
Bloomin' Brands, Inc. | 46,500 | 1,082 | |
Brinker International, Inc. | 88,618 | 3,475 | |
Club Mediterranee SA (a) | 22,129 | 508 | |
Hyatt Hotels Corp. Class A (a) | 22,646 | 931 | |
Icahn Enterprises LP rights | 115,176 | 0 | |
Las Vegas Sands Corp. | 6,805 | 394 | |
Penn National Gaming, Inc. (a) | 3,900 | 215 | |
Ruth's Hospitality Group, Inc. | 22,565 | 253 | |
Spur Corp. Ltd. | 59,639 | 175 | |
Starbucks Corp. | 39,801 | 2,510 | |
Texas Roadhouse, Inc. Class A | 76,252 | 1,803 | |
Wyndham Worldwide Corp. | 8,100 | 471 | |
Yum! Brands, Inc. | 46,153 | 3,127 | |
| 14,944 | ||
Household Durables - 0.4% | |||
Taylor Wimpey PLC | 795,900 | 1,199 | |
Toll Brothers, Inc. (a) | 35,900 | 1,227 | |
Whirlpool Corp. | 13,703 | 1,751 | |
| 4,177 | ||
Internet & Catalog Retail - 0.2% | |||
Liberty Media Corp. Interactive Series A (a) | 39,967 | 897 | |
Ocado Group PLC (a)(d) | 254,671 | 1,052 | |
| 1,949 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Leisure Equipment & Products - 0.4% | |||
Amer Group PLC (A Shares) | 31,500 | $ 580 | |
BRP, Inc. | 12,000 | 286 | |
Brunswick Corp. | 41,400 | 1,390 | |
Polaris Industries, Inc. | 10,600 | 1,012 | |
| 3,268 | ||
Media - 3.5% | |||
Antena 3 de Television SA (d) | 19,200 | 127 | |
CBS Corp. Class B | 109,868 | 5,438 | |
Comcast Corp. Class A | 200,893 | 8,066 | |
Ipsos SA | 13,689 | 494 | |
MDC Partners, Inc. Class A (sub. vtg.) | 114,234 | 2,014 | |
Mood Media Corp. (a)(f)(g) | 135,900 | 140 | |
News Corp. Class A | 80,173 | 2,574 | |
Omnicom Group, Inc. | 24,305 | 1,510 | |
The Walt Disney Co. | 78,770 | 4,969 | |
Time Warner, Inc. | 36,291 | 2,118 | |
Valassis Communications, Inc. | 17,865 | 464 | |
Viacom, Inc. Class B (non-vtg.) | 75,026 | 4,943 | |
| 32,857 | ||
Multiline Retail - 0.2% | |||
PPR SA | 7,200 | 1,574 | |
The Bon-Ton Stores, Inc. | 22,200 | 473 | |
| 2,047 | ||
Specialty Retail - 4.0% | |||
American Eagle Outfitters, Inc. | 86,105 | 1,704 | |
Ascena Retail Group, Inc. (a) | 59,026 | 1,200 | |
AutoZone, Inc. (a) | 4,120 | 1,684 | |
Bed Bath & Beyond, Inc. (a) | 12,354 | 843 | |
Body Central Corp. (a) | 103,390 | 1,271 | |
CarMax, Inc. (a) | 3,877 | 181 | |
CST Brands, Inc. (a) | 1 | 0 * | |
Express, Inc. (a) | 87,141 | 1,900 | |
Foot Locker, Inc. | 21,739 | 746 | |
Francescas Holdings Corp. (a) | 32,054 | 915 | |
GNC Holdings, Inc. | 24,300 | 1,094 | |
Home Depot, Inc. | 116,237 | 9,143 | |
Kingfisher PLC | 199,980 | 1,050 | |
L Brands, Inc. | 32,040 | 1,602 | |
Lowe's Companies, Inc. | 127,114 | 5,353 | |
OfficeMax, Inc. | 95,994 | 1,251 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Rent-A-Center, Inc. | 74,082 | $ 2,710 | |
Ross Stores, Inc. | 18,765 | 1,207 | |
Staples, Inc. | 29,831 | 447 | |
SuperGroup PLC (a) | 96,467 | 1,132 | |
TJX Companies, Inc. | 51,601 | 2,612 | |
| 38,045 | ||
Textiles, Apparel & Luxury Goods - 0.8% | |||
Coach, Inc. | 12,384 | 721 | |
lululemon athletica, Inc. (a) | 3,017 | 235 | |
NIKE, Inc. Class B | 48,755 | 3,006 | |
PVH Corp. | 21,461 | 2,472 | |
VF Corp. | 6,250 | 1,149 | |
| 7,583 | ||
TOTAL CONSUMER DISCRETIONARY | 119,057 | ||
CONSUMER STAPLES - 10.0% | |||
Beverages - 2.4% | |||
Anheuser-Busch InBev SA NV | 24,100 | 2,219 | |
Beam, Inc. | 11,077 | 718 | |
Coca-Cola Enterprises, Inc. | 2,100 | 78 | |
Cott Corp. | 129,600 | 1,061 | |
Dr. Pepper Snapple Group, Inc. | 75,784 | 3,485 | |
Molson Coors Brewing Co. Class B | 2,600 | 128 | |
Monster Beverage Corp. (a) | 54,387 | 2,969 | |
Remy Cointreau SA | 4,500 | 522 | |
SABMiller PLC | 24,200 | 1,224 | |
The Coca-Cola Co. | 267,575 | 10,700 | |
| 23,104 | ||
Food & Staples Retailing - 1.6% | |||
Carrefour SA | 4,262 | 126 | |
CVS Caremark Corp. | 114,524 | 6,594 | |
Kroger Co. | 53,952 | 1,817 | |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 20,939 | 992 | |
Wal-Mart Stores, Inc. | 13,767 | 1,030 | |
Walgreen Co. | 98,193 | 4,690 | |
| 15,249 | ||
Food Products - 1.7% | |||
Amira Nature Foods Ltd. | 68,222 | 608 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Astral Foods Ltd. | 54,521 | $ 484 | |
Bunge Ltd. | 17,650 | 1,228 | |
Cal-Maine Foods, Inc. | 2,088 | 93 | |
Danone SA | 13,200 | 973 | |
Green Mountain Coffee Roasters, Inc. (a) | 33,676 | 2,463 | |
Hilton Food Group PLC | 73,331 | 393 | |
Ingredion, Inc. | 13,643 | 929 | |
Kellogg Co. | 31,711 | 1,968 | |
Marine Harvest ASA | 1,172,273 | 1,222 | |
Mead Johnson Nutrition Co. Class A | 19,391 | 1,572 | |
Mondelez International, Inc. | 151,530 | 4,464 | |
| 16,397 | ||
Household Products - 2.0% | |||
Energizer Holdings, Inc. | 21,860 | 2,092 | |
Procter & Gamble Co. | 177,856 | 13,652 | |
Svenska Cellulosa AB (SCA) (B Shares) | 90,000 | 2,249 | |
Unicharm Corp. | 22,500 | 1,258 | |
| 19,251 | ||
Personal Products - 0.3% | |||
Estee Lauder Companies, Inc. Class A | 14,589 | 989 | |
Hengan International Group Co. Ltd. | 76,500 | 846 | |
Herbalife Ltd. | 23,500 | 1,097 | |
Nu Skin Enterprises, Inc. Class A | 3,190 | 188 | |
| 3,120 | ||
Tobacco - 2.0% | |||
Altria Group, Inc. | 45,698 | 1,650 | |
British American Tobacco PLC (United Kingdom) | 37,600 | 2,066 | |
Japan Tobacco, Inc. | 119,600 | 4,070 | |
Philip Morris International, Inc. | 118,863 | 10,806 | |
| 18,592 | ||
TOTAL CONSUMER STAPLES | 95,713 | ||
ENERGY - 10.0% | |||
Energy Equipment & Services - 3.6% | |||
BW Offshore Ltd. | 1,030,952 | 1,376 | |
Cameron International Corp. (a) | 101,914 | 6,204 | |
Cathedral Energy Services Ltd. | 124,600 | 553 | |
Ensco PLC Class A | 79,400 | 4,777 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Essential Energy Services Ltd. | 441,500 | $ 1,060 | |
Halliburton Co. | 82,605 | 3,457 | |
National Oilwell Varco, Inc. | 93,582 | 6,579 | |
Noble Corp. | 47,079 | 1,824 | |
Schlumberger Ltd. | 77,617 | 5,668 | |
Vantage Drilling Co. (a) | 834,115 | 1,602 | |
Xtreme Drilling & Coil Services Corp. (a) | 404,600 | 1,034 | |
Xtreme Drilling & Coil Services Corp. (e) | 132,500 | 339 | |
| 34,473 | ||
Oil, Gas & Consumable Fuels - 6.4% | |||
Access Midstream Partners LP | 34,591 | 1,488 | |
Americas Petrogas, Inc. (a) | 264,700 | 406 | |
Americas Petrogas, Inc. (a)(e) | 286,000 | 439 | |
Anadarko Petroleum Corp. | 47,198 | 4,128 | |
Apache Corp. | 25,078 | 2,060 | |
Atlas Energy LP | 9,400 | 461 | |
Atlas Pipeline Partners LP | 44,607 | 1,660 | |
BPZ Energy, Inc. (a) | 319,601 | 617 | |
Cabot Oil & Gas Corp. | 16,054 | 1,130 | |
Coal India Ltd. | 14,500 | 83 | |
Cobalt International Energy, Inc. (a) | 82,608 | 2,143 | |
Concho Resources, Inc. (a) | 21,740 | 1,819 | |
Crown Point Energy, Inc. (e)(f) | 329,102 | 76 | |
Double Eagle Petroleum Co. (a) | 114,413 | 471 | |
Emerald Oil, Inc. warrants 2/4/16 (a) | 16,536 | 0 | |
Energen Corp. | 37,159 | 2,014 | |
EOG Resources, Inc. | 11,695 | 1,510 | |
EQT Corp. | 29,702 | 2,373 | |
Halcon Resources Corp. (a) | 90,000 | 475 | |
Hess Corp. | 6,253 | 422 | |
InterOil Corp. (a)(d) | 54,502 | 4,524 | |
Magellan Midstream Partners LP | 11,526 | 599 | |
Marathon Petroleum Corp. | 14,652 | 1,209 | |
Markwest Energy Partners LP | 45,610 | 3,003 | |
Motor Oil (HELLAS) Corinth Refineries SA | 2,600 | 26 | |
Noble Energy, Inc. | 14,600 | 842 | |
Northern Oil & Gas, Inc. (a) | 266,609 | 3,511 | |
Occidental Petroleum Corp. | 70,247 | 6,468 | |
Painted Pony Petroleum Ltd. (e) | 49,500 | 446 | |
Painted Pony Petroleum Ltd. Class A (a) | 74,350 | 671 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Pan Orient Energy Corp. | 28,000 | $ 46 | |
Peabody Energy Corp. | 94,423 | 1,857 | |
Phillips 66 | 37,407 | 2,490 | |
Pioneer Natural Resources Co. | 4,893 | 679 | |
Royal Dutch Shell PLC Class A sponsored ADR | 35,352 | 2,346 | |
Southcross Energy Partners LP | 35,641 | 800 | |
Suncor Energy, Inc. | 32,480 | 985 | |
TAG Oil Ltd. (a) | 421,700 | 1,273 | |
TAG Oil Ltd. (e) | 15,900 | 48 | |
The Williams Companies, Inc. | 131,301 | 4,619 | |
Valero Energy Corp. | 17,073 | 694 | |
Western Gas Equity Partners LP | 4,543 | 170 | |
| 61,081 | ||
TOTAL ENERGY | 95,554 | ||
FINANCIALS - 15.9% | |||
Capital Markets - 2.4% | |||
AllianceBernstein Holding LP | 39,040 | 988 | |
Ameriprise Financial, Inc. | 14,045 | 1,145 | |
BlackRock, Inc. Class A | 8,899 | 2,485 | |
Goldman Sachs Group, Inc. | 3,462 | 561 | |
GP Investments Ltd. Class A (depositary receipt) (a) | 456,760 | 1,011 | |
ICG Group, Inc. (a) | 38,648 | 429 | |
Invesco Ltd. | 69,084 | 2,331 | |
KKR & Co. LP | 68,460 | 1,334 | |
Monex Group, Inc. (d) | 4,149 | 1,533 | |
Morgan Stanley | 127,414 | 3,300 | |
Oaktree Capital Group LLC | 33,200 | 1,731 | |
The Blackstone Group LP | 55,420 | 1,213 | |
UBS AG (NY Shares) | 255,742 | 4,483 | |
| 22,544 | ||
Commercial Banks - 3.1% | |||
Axis Bank Ltd. | 3,884 | 98 | |
Bank of Ireland (a) | 14,643 | 3 | |
Barclays PLC sponsored ADR | 160,340 | 3,077 | |
Commerce Bancshares, Inc. | 21,923 | 954 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 56,572 | 503 | |
Huntington Bancshares, Inc. | 8,500 | 66 | |
Itau Unibanco Holding SA sponsored ADR | 49,518 | 745 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Komercni Banka A/S | 200 | $ 38 | |
M&T Bank Corp. | 8,090 | 849 | |
PNC Financial Services Group, Inc. | 34,440 | 2,467 | |
PT Bank Rakyat Indonesia Tbk | 64,000 | 58 | |
Sberbank (Savings Bank of the Russian Federation) sponsored ADR | 42,000 | 514 | |
U.S. Bancorp | 113,357 | 3,974 | |
Wells Fargo & Co. | 392,211 | 15,904 | |
| 29,250 | ||
Consumer Finance - 0.8% | |||
American Express Co. | 9,364 | 709 | |
Capital One Financial Corp. | 82,313 | 5,015 | |
SLM Corp. | 86,898 | 2,063 | |
| 7,787 | ||
Diversified Financial Services - 4.8% | |||
Bank of America Corp. | 863,473 | 11,795 | |
Citigroup, Inc. | 299,573 | 15,575 | |
JPMorgan Chase & Co. | 202,459 | 11,052 | |
McGraw-Hill Companies, Inc. | 53,980 | 2,945 | |
ORIX Corp. | 65,400 | 867 | |
PICO Holdings, Inc. (a) | 154,614 | 3,493 | |
The NASDAQ Stock Market, Inc. | 4,292 | 135 | |
| 45,862 | ||
Insurance - 2.4% | |||
ACE Ltd. | 22,176 | 1,989 | |
AFLAC, Inc. | 31,832 | 1,773 | |
Allied World Assurance Co. Holdings Ltd. | 10,263 | 918 | |
Arthur J. Gallagher & Co. | 13,665 | 597 | |
Assured Guaranty Ltd. | 208,751 | 4,722 | |
Axis Capital Holdings Ltd. | 11,500 | 501 | |
Berkshire Hathaway, Inc. Class B (a) | 16,553 | 1,888 | |
Everest Re Group Ltd. | 8,134 | 1,054 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 2,300 | 929 | |
Marsh & McLennan Companies, Inc. | 27,300 | 1,093 | |
MetLife, Inc. | 63,621 | 2,813 | |
Prudential Financial, Inc. | 30,264 | 2,087 | |
The Travelers Companies, Inc. | 22,053 | 1,846 | |
Validus Holdings Ltd. | 22,230 | 803 | |
| 23,013 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 1.7% | |||
American Tower Corp. | 26,419 | $ 2,056 | |
Beni Stabili SpA SIIQ | 1,669,200 | 1,173 | |
CBL & Associates Properties, Inc. | 58,332 | 1,341 | |
Coresite Realty Corp. | 1,300 | 42 | |
Corrections Corp. of America | 16,228 | 570 | |
Cousins Properties, Inc. | 57,176 | 590 | |
Douglas Emmett, Inc. | 48,532 | 1,237 | |
Education Realty Trust, Inc. | 122,600 | 1,282 | |
Lexington Corporate Properties Trust | 96,600 | 1,216 | |
Parkway Properties, Inc. | 26,500 | 455 | |
Piedmont Office Realty Trust, Inc. Class A | 28,100 | 534 | |
Prologis, Inc. | 30,057 | 1,211 | |
Retail Properties America, Inc. | 21,300 | 325 | |
SL Green Realty Corp. | 17,330 | 1,507 | |
Westfield Group unit | 83,214 | 913 | |
Weyerhaeuser Co. | 48,108 | 1,435 | |
| 15,887 | ||
Real Estate Management & Development - 0.5% | |||
Atrium European Real Estate Ltd. | 14,913 | 88 | |
CBRE Group, Inc. (a) | 165,607 | 3,839 | |
CSI Properties Ltd. | 10,910,000 | 484 | |
Jones Lang LaSalle, Inc. | 4,700 | 432 | |
LEG Immobilien AG | 6,871 | 392 | |
| 5,235 | ||
Thrifts & Mortgage Finance - 0.2% | |||
MGIC Investment Corp. (a) | 156,600 | 968 | |
Radian Group, Inc. | 52,300 | 673 | |
| 1,641 | ||
TOTAL FINANCIALS | 151,219 | ||
HEALTH CARE - 13.5% | |||
Biotechnology - 3.5% | |||
Achillion Pharmaceuticals, Inc. (a) | 42,795 | 357 | |
Alnylam Pharmaceuticals, Inc. (a) | 97,100 | 2,974 | |
Amgen, Inc. | 56,391 | 5,669 | |
Array Biopharma, Inc. (a) | 32,000 | 187 | |
Biogen Idec, Inc. (a) | 15,209 | 3,612 | |
Biovitrum AB (a) | 136,220 | 847 | |
CSL Ltd. | 3,198 | 182 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Cytos Biotechnology AG (a) | 853 | $ 3 | |
Dynavax Technologies Corp. (a) | 457,387 | 1,194 | |
Elan Corp. PLC sponsored ADR (a) | 187,097 | 2,369 | |
Gentium SpA sponsored ADR (a) | 29,591 | 248 | |
Gilead Sciences, Inc. (a) | 107,272 | 5,844 | |
Grifols SA ADR | 66,675 | 1,818 | |
Infinity Pharmaceuticals, Inc. (a) | 79,490 | 2,142 | |
Insmed, Inc. (a) | 15,400 | 207 | |
Isis Pharmaceuticals, Inc. (a) | 35,800 | 775 | |
KaloBios Pharmaceuticals, Inc. | 49,556 | 252 | |
KaloBios Pharmaceuticals, Inc. | 17,800 | 101 | |
Medivation, Inc. (a) | 9,400 | 456 | |
Merrimack Pharmaceuticals, Inc. (a) | 46,100 | 255 | |
Novavax, Inc. (a) | 97,129 | 186 | |
Onyx Pharmaceuticals, Inc. (a) | 8,145 | 777 | |
Theravance, Inc. (a) | 80,201 | 2,810 | |
| 33,265 | ||
Health Care Equipment & Supplies - 1.2% | |||
Ansell Ltd. | 25,568 | 421 | |
Baxter International, Inc. | 10,979 | 772 | |
Boston Scientific Corp. (a) | 172,662 | 1,595 | |
Covidien PLC | 25,773 | 1,639 | |
Genmark Diagnostics, Inc. (a) | 87,606 | 1,305 | |
Hill-Rom Holdings, Inc. | 29,867 | 1,079 | |
Sirona Dental Systems, Inc. (a) | 13,489 | 957 | |
Stryker Corp. | 30,855 | 2,048 | |
Trinity Biotech PLC sponsored ADR | 16,621 | 291 | |
Zimmer Holdings, Inc. | 12,142 | 953 | |
| 11,060 | ||
Health Care Providers & Services - 3.3% | |||
Accretive Health, Inc. (a) | 129,000 | 1,468 | |
AmerisourceBergen Corp. | 45,595 | 2,466 | |
AmSurg Corp. (a) | 27,766 | 987 | |
Apollo Hospitals Enterprise Ltd. | 28,240 | 502 | |
BioScrip, Inc. (a) | 68,596 | 959 | |
Brookdale Senior Living, Inc. (a) | 208,727 | 5,917 | |
DaVita, Inc. (a) | 14,573 | 1,808 | |
Emeritus Corp. (a) | 65,163 | 1,656 | |
Express Scripts Holding Co. (a) | 74,301 | 4,616 | |
McKesson Corp. | 21,045 | 2,396 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
MEDNAX, Inc. (a) | 9,515 | $ 883 | |
Qualicorp SA (a) | 122,700 | 1,086 | |
Quest Diagnostics, Inc. | 28,946 | 1,790 | |
UnitedHealth Group, Inc. | 82,116 | 5,143 | |
| 31,677 | ||
Life Sciences Tools & Services - 0.2% | |||
Agilent Technologies, Inc. | 27,330 | 1,242 | |
Lonza Group AG | 10,483 | 783 | |
| 2,025 | ||
Pharmaceuticals - 5.3% | |||
AbbVie, Inc. | 104,031 | 4,441 | |
Actavis, Inc. (a) | 20,209 | 2,492 | |
Allergan, Inc. | 5,000 | 497 | |
AVANIR Pharmaceuticals Class A (a) | 93,455 | 310 | |
Biodelivery Sciences International, Inc. (a) | 143,414 | 631 | |
Cadence Pharmaceuticals, Inc. (a)(d) | 341,498 | 2,271 | |
Dechra Pharmaceuticals PLC | 43,500 | 452 | |
Endo Health Solutions, Inc. (a) | 50,260 | 1,824 | |
GlaxoSmithKline PLC | 91,400 | 2,365 | |
Horizon Pharma, Inc. | 367,185 | 870 | |
Horizon Pharma, Inc.: | |||
warrants 2/28/17 (a) | 27,294 | 0 * | |
warrants 9/25/17 (a) | 109,700 | 0 * | |
Jazz Pharmaceuticals PLC (a) | 20,720 | 1,408 | |
Johnson & Johnson | 146,419 | 12,326 | |
Merck & Co., Inc. | 240,824 | 11,246 | |
Novo Nordisk A/S Series B | 13,945 | 2,260 | |
Optimer Pharmaceuticals, Inc. (a)(d) | 23,450 | 349 | |
Pfizer, Inc. | 20,462 | 557 | |
Sanofi SA | 28,394 | 3,028 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 14,600 | 1,343 | |
Warner Chilcott PLC | 104,584 | 2,008 | |
| 50,678 | ||
TOTAL HEALTH CARE | 128,705 | ||
INDUSTRIALS - 12.0% | |||
Aerospace & Defense - 1.9% | |||
Finmeccanica SpA (a) | 111,336 | 622 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
General Dynamics Corp. | 13,209 | $ 1,018 | |
Honeywell International, Inc. | 58,917 | 4,623 | |
Meggitt PLC | 248,751 | 2,013 | |
Orbital Sciences Corp. (a) | 5,590 | 102 | |
Textron, Inc. | 67,532 | 1,821 | |
The Boeing Co. | 9,837 | 974 | |
United Technologies Corp. | 78,071 | 7,409 | |
| 18,582 | ||
Air Freight & Logistics - 0.4% | |||
United Parcel Service, Inc. Class B | 50,643 | 4,350 | |
Airlines - 0.1% | |||
Copa Holdings SA Class A | 3,000 | 394 | |
easyJet PLC | 14,500 | 279 | |
| 673 | ||
Building Products - 0.6% | |||
Armstrong World Industries, Inc. (a) | 8,334 | 433 | |
Masco Corp. | 228,053 | 4,794 | |
Ply Gem Holdings, Inc. | 13,200 | 305 | |
| 5,532 | ||
Commercial Services & Supplies - 0.5% | |||
Multiplus SA | 92,800 | 1,500 | |
Republic Services, Inc. | 46,840 | 1,597 | |
Swisher Hygiene, Inc. (a) | 202,331 | 210 | |
Swisher Hygiene, Inc. (Canada) (a) | 77,001 | 80 | |
Waste Management, Inc. | 24,308 | 1,019 | |
West Corp. | 20,500 | 469 | |
| 4,875 | ||
Construction & Engineering - 0.4% | |||
AECOM Technology Corp. (a) | 30,641 | 943 | |
Boart Longyear Ltd. | 251,495 | 161 | |
Fluor Corp. | 12,436 | 786 | |
MasTec, Inc. (a) | 31,210 | 992 | |
URS Corp. | 26,106 | 1,265 | |
| 4,147 | ||
Electrical Equipment - 1.9% | |||
Alstom SA | 43,202 | 1,635 | |
AMETEK, Inc. | 30,332 | 1,309 | |
Bharat Heavy Electricals Ltd. | 157,533 | 556 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - continued | |||
Eaton Corp. PLC | 33,453 | $ 2,210 | |
Emerson Electric Co. | 55,769 | 3,204 | |
Generac Holdings, Inc. | 42,806 | 1,734 | |
Hubbell, Inc. Class B | 14,324 | 1,439 | |
Polypore International, Inc. (a) | 10,200 | 384 | |
Prysmian SpA | 80,029 | 1,721 | |
Regal-Beloit Corp. | 29,687 | 2,004 | |
Roper Industries, Inc. | 12,261 | 1,523 | |
| 17,719 | ||
Industrial Conglomerates - 1.9% | |||
3M Co. | 4,300 | 474 | |
Carlisle Companies, Inc. | 15,347 | 1,004 | |
General Electric Co. | 652,510 | 15,217 | |
Koninklijke Philips Electronics NV | 33,500 | 949 | |
Reunert Ltd. | 20,553 | 146 | |
Siemens AG sponsored ADR | 1,300 | 137 | |
| 17,927 | ||
Machinery - 2.3% | |||
Actuant Corp. Class A | 34,626 | 1,177 | |
Cummins, Inc. | 19,290 | 2,308 | |
Dover Corp. | 13,589 | 1,063 | |
GEA Group AG | 15,363 | 562 | |
Global Brass & Copper Holdings, Inc. | 55,100 | 727 | |
Harsco Corp. | 41,921 | 980 | |
Illinois Tool Works, Inc. | 28,700 | 2,013 | |
Ingersoll-Rand PLC | 62,752 | 3,610 | |
Manitowoc Co., Inc. | 147,803 | 3,105 | |
Pentair Ltd. | 33,160 | 1,931 | |
Stanley Black & Decker, Inc. | 45,156 | 3,577 | |
Terex Corp. (a) | 5,601 | 201 | |
Timken Co. | 18,309 | 1,039 | |
| 22,293 | ||
Marine - 0.1% | |||
Ultrapetrol (Bahamas) Ltd. (a) | 213,416 | 623 | |
Professional Services - 0.5% | |||
CRA International, Inc. (a) | 36,741 | 658 | |
Dun & Bradstreet Corp. | 18,774 | 1,842 | |
Manpower, Inc. | 9,496 | 544 | |
Michael Page International PLC | 159,115 | 930 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - continued | |||
Randstad Holding NV | 11,032 | $ 473 | |
Verisk Analytics, Inc. (a) | 8,200 | 482 | |
| 4,929 | ||
Road & Rail - 1.0% | |||
Con-way, Inc. | 6,000 | 228 | |
CSX Corp. | 48,577 | 1,225 | |
J.B. Hunt Transport Services, Inc. | 6,644 | 489 | |
Norfolk Southern Corp. | 2,300 | 176 | |
Union Pacific Corp. | 45,415 | 7,022 | |
| 9,140 | ||
Trading Companies & Distributors - 0.4% | |||
Houston Wire & Cable Co. | 73,887 | 1,035 | |
Watsco, Inc. | 17,604 | 1,536 | |
WESCO International, Inc. (a) | 17,537 | 1,302 | |
| 3,873 | ||
TOTAL INDUSTRIALS | 114,663 | ||
INFORMATION TECHNOLOGY - 16.7% | |||
Communications Equipment - 1.6% | |||
Cisco Systems, Inc. | 379,213 | 9,131 | |
QUALCOMM, Inc. | 94,628 | 6,007 | |
| 15,138 | ||
Computers & Peripherals - 3.0% | |||
Apple, Inc. | 49,013 | 22,051 | |
EMC Corp. | 60,968 | 1,510 | |
NCR Corp. (a) | 55,625 | 1,858 | |
Seagate Technology | 19,053 | 821 | |
Western Digital Corp. | 35,415 | 2,242 | |
| 28,482 | ||
Electronic Equipment & Components - 0.5% | |||
Corning, Inc. | 102,112 | 1,569 | |
Jabil Circuit, Inc. | 57,408 | 1,152 | |
TE Connectivity Ltd. | 52,722 | 2,340 | |
| 5,061 | ||
Internet Software & Services - 2.1% | |||
Active Network, Inc. (a)(d) | 126,177 | 844 | |
Demandware, Inc. (a) | 17,069 | 522 | |
Google, Inc. Class A (a) | 17,832 | 15,521 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
Halogen Software, Inc. | 11,400 | $ 146 | |
Mail.Ru Group Ltd.: | |||
GDR (e) | 1,900 | 53 | |
GDR (Reg. S) | 31,200 | 871 | |
Marketo, Inc. | 21,900 | 518 | |
Velti PLC (a) | 371,006 | 653 | |
Velti PLC (g) | 192,692 | 305 | |
Yahoo!, Inc. (a) | 8,500 | 224 | |
| 19,657 | ||
IT Services - 3.1% | |||
Accenture PLC Class A | 46,738 | 3,838 | |
Amdocs Ltd. | 32,982 | 1,177 | |
Cognizant Technology Solutions Corp. Class A (a) | 16,182 | 1,046 | |
EPAM Systems, Inc. (a) | 61,400 | 1,422 | |
EVERTEC, Inc. | 34,300 | 687 | |
ExlService Holdings, Inc. (a) | 34,783 | 1,020 | |
Fidelity National Information Services, Inc. | 58,748 | 2,638 | |
MasterCard, Inc. Class A | 6,642 | 3,788 | |
Sapient Corp. (a) | 119,856 | 1,544 | |
Total System Services, Inc. | 57,019 | 1,341 | |
Unisys Corp. (a) | 38,282 | 791 | |
Virtusa Corp. (a) | 33,743 | 792 | |
Visa, Inc. Class A | 54,271 | 9,668 | |
| 29,752 | ||
Office Electronics - 0.3% | |||
Xerox Corp. | 336,980 | 2,962 | |
Semiconductors & Semiconductor Equipment - 2.8% | |||
Altera Corp. | 25,500 | 846 | |
Analog Devices, Inc. | 28,595 | 1,313 | |
Applied Micro Circuits Corp. (a) | 38,200 | 295 | |
ASML Holding NV | 75,012 | 6,096 | |
Avago Technologies Ltd. | 35,435 | 1,336 | |
Broadcom Corp. Class A | 48,450 | 1,740 | |
Freescale Semiconductor Holdings I Ltd. (a) | 103,538 | 1,648 | |
LTX-Credence Corp. (a) | 224,668 | 1,274 | |
MagnaChip Semiconductor Corp. (a) | 34,139 | 632 | |
Maxim Integrated Products, Inc. | 49,396 | 1,457 | |
Microchip Technology, Inc. | 7,639 | 279 | |
Micron Technology, Inc. (a) | 117,220 | 1,369 | |
Monolithic Power Systems, Inc. | 8,500 | 209 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
NXP Semiconductors NV (a) | 59,247 | $ 1,828 | |
Samsung Electronics Co. Ltd. | 2,191 | 2,948 | |
Skyworks Solutions, Inc. (a) | 135,211 | 3,226 | |
| 26,496 | ||
Software - 3.3% | |||
Activision Blizzard, Inc. | 192,233 | 2,774 | |
Adobe Systems, Inc. (a) | 17,338 | 744 | |
Autodesk, Inc. (a) | 36,745 | 1,386 | |
Check Point Software Technologies Ltd. (a) | 40,164 | 2,011 | |
Citrix Systems, Inc. (a) | 38,961 | 2,507 | |
Comverse, Inc. | 42,777 | 1,277 | |
Constellation Software, Inc. | 6,900 | 1,012 | |
Electronic Arts, Inc. (a) | 144,386 | 3,319 | |
Infoblox, Inc. (a) | 15,300 | 372 | |
Jive Software, Inc. (a) | 27,262 | 461 | |
MICROS Systems, Inc. (a) | 17,500 | 739 | |
Microsoft Corp. | 181,889 | 6,344 | |
Oracle Corp. | 166,198 | 5,611 | |
SS&C Technologies Holdings, Inc. (a) | 27,674 | 875 | |
Symantec Corp. | 60,370 | 1,352 | |
Verint Systems, Inc. (a) | 33,979 | 1,141 | |
| 31,925 | ||
TOTAL INFORMATION TECHNOLOGY | 159,473 | ||
MATERIALS - 4.2% | |||
Chemicals - 2.0% | |||
Albemarle Corp. | 17,300 | 1,158 | |
Ashland, Inc. | 19,413 | 1,726 | |
Axiall Corp. | 24,458 | 1,055 | |
Cabot Corp. | 31,565 | 1,292 | |
Eastman Chemical Co. | 23,207 | 1,664 | |
Filtrona PLC | 7,300 | 77 | |
Innospec, Inc. | 8,006 | 328 | |
LyondellBasell Industries NV Class A | 34,896 | 2,326 | |
Monsanto Co. | 30,401 | 3,060 | |
PetroLogistics LP | 15,317 | 207 | |
PolyOne Corp. | 21,412 | 550 | |
PPG Industries, Inc. | 11,185 | 1,718 | |
Royal DSM NV | 2,100 | 138 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
RPM International, Inc. | 30,309 | $ 1,004 | |
W.R. Grace & Co. (a) | 35,870 | 3,031 | |
| 19,334 | ||
Construction Materials - 0.3% | |||
HeidelbergCement Finance AG | 473 | 36 | |
Lafarge SA (Bearer) | 11,900 | 856 | |
Vulcan Materials Co. | 34,077 | 1,826 | |
| 2,718 | ||
Containers & Packaging - 0.3% | |||
Nampak Ltd. | 301,028 | 1,044 | |
Rock-Tenn Co. Class A | 15,404 | 1,522 | |
| 2,566 | ||
Metals & Mining - 1.4% | |||
Agnico Eagle Mines Ltd. (Canada) | 18,298 | 595 | |
Commercial Metals Co. | 93,987 | 1,449 | |
Franco-Nevada Corp. | 2,600 | 108 | |
Freeport-McMoRan Copper & Gold, Inc. | 51,821 | 1,609 | |
Goldcorp, Inc. | 84,700 | 2,514 | |
Ivanplats Ltd. (e) | 746,308 | 1,944 | |
Randgold Resources Ltd. sponsored ADR | 29,300 | 2,297 | |
Turquoise Hill Resources Ltd. (a) | 379,593 | 2,534 | |
| 13,050 | ||
Paper & Forest Products - 0.2% | |||
Canfor Corp. (a) | 17,100 | 287 | |
International Paper Co. | 35,174 | 1,623 | |
| 1,910 | ||
TOTAL MATERIALS | 39,578 | ||
TELECOMMUNICATION SERVICES - 1.1% | |||
Diversified Telecommunication Services - 0.4% | |||
CenturyLink, Inc. | 59,011 | 2,015 | |
PT Telkomunikasi Indonesia Tbk sponsored ADR | 22,319 | 1,009 | |
Verizon Communications, Inc. | 16,997 | 824 | |
| 3,848 | ||
Wireless Telecommunication Services - 0.7% | |||
Megafon OJSC GDR | 18,400 | 575 | |
Mobile TeleSystems OJSC sponsored ADR | 49,034 | 945 | |
SBA Communications Corp. Class A (a) | 37,497 | 2,822 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - continued | |||
Softbank Corp. | 7,700 | $ 385 | |
Vodafone Group PLC | 580,500 | 1,682 | |
| 6,409 | ||
TOTAL TELECOMMUNICATION SERVICES | 10,257 | ||
UTILITIES - 2.6% | |||
Electric Utilities - 1.3% | |||
Edison International | 50,007 | 2,297 | |
Hawaiian Electric Industries, Inc. (d) | 28,968 | 758 | |
ITC Holdings Corp. | 32,738 | 2,834 | |
NextEra Energy, Inc. | 38,627 | 2,921 | |
Northeast Utilities | 79,396 | 3,308 | |
| 12,118 | ||
Gas Utilities - 0.0% | |||
Atmos Energy Corp. | 6,958 | 294 | |
Independent Power Producers & Energy Traders - 0.3% | |||
The AES Corp. | 247,279 | 3,017 | |
Multi-Utilities - 1.0% | |||
CenterPoint Energy, Inc. | 40,739 | 944 | |
Dominion Resources, Inc. | 9,400 | 532 | |
National Grid PLC | 28,500 | 339 | |
PG&E Corp. | 46,700 | 2,097 | |
Sempra Energy | 63,309 | 5,147 | |
| 9,059 | ||
Water Utilities - 0.0% | |||
American Water Works Co., Inc. | 6,010 | 240 | |
TOTAL UTILITIES | 24,728 | ||
TOTAL COMMON STOCKS (Cost $800,601) |
| ||
Preferred Stocks - 0.2% | |||
|
|
|
|
Convertible Preferred Stocks - 0.1% | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Unisys Corp. Series A, 6.25% | 9,500 | 561 | |
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Volkswagen AG | 4,100 | $ 900 | |
TOTAL PREFERRED STOCKS (Cost $1,460) |
|
Corporate Bonds - 0.6% | ||||
| Principal Amount (000s)(h) |
| ||
Convertible Bonds - 0.5% | ||||
ENERGY - 0.1% | ||||
Energy Equipment & Services - 0.0% | ||||
Cal Dive International, Inc. 5% 7/15/17 (e) | $ 330 | 364 | ||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 | 791 | 562 | ||
BPZ Energy, Inc. 6.5% 3/1/15 | 430 | 345 | ||
| 907 | |||
TOTAL ENERGY | 1,271 | |||
HEALTH CARE - 0.2% | ||||
Biotechnology - 0.2% | ||||
Exelixis, Inc. 4.25% 8/15/19 | 1,070 | 1,069 | ||
InterMune, Inc. 2.5% 12/15/17 | 330 | 362 | ||
Theravance, Inc. 2.125% 1/15/23 | 430 | 620 | ||
| 2,051 | |||
INDUSTRIALS - 0.1% | ||||
Building Products - 0.1% | ||||
Aspen Aerogels, Inc. 8% 6/1/14 (g) | 450 | 450 | ||
INFORMATION TECHNOLOGY - 0.1% | ||||
Semiconductors & Semiconductor Equipment - 0.1% | ||||
GT Advanced Technologies, Inc. 3% 10/1/17 | 820 | 739 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s)(h) | Value (000s) | ||
Convertible Bonds - continued | ||||
TELECOMMUNICATION SERVICES - 0.0% | ||||
Wireless Telecommunication Services - 0.0% | ||||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (e) | $ 380 | $ 420 | ||
TOTAL CONVERTIBLE BONDS | 4,931 | |||
Nonconvertible Bonds - 0.1% | ||||
FINANCIALS - 0.1% | ||||
Commercial Banks - 0.1% | ||||
Bank of Ireland 10% 7/30/16 | EUR | 652 | 881 | |
TOTAL CORPORATE BONDS (Cost $5,647) |
|
Money Market Funds - 1.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 5,984,392 | 5,984 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 5,010,295 | 5,010 | |
TOTAL MONEY MARKET FUNDS (Cost $10,994) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $818,702) | 957,214 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (4,379) | ||
NET ASSETS - 100% | $ 952,835 |
Currency Abbreviations | ||
EUR | - | European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,129,000 or 0.4% of net assets. |
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(g) 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 $895,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Aspen Aerogels, Inc. 8% 6/1/14 | 6/1/11 - 12/31/12 | $ 450 |
Mood Media Corp. | 2/2/11 | $ 275 |
Velti PLC | 4/19/13 | $ 289 |
(h) Amount is stated in United States dollars unless otherwise noted. |
* Amount represents less than $1,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4 |
Fidelity Securities Lending Cash Central Fund | 338 |
Total | $ 342 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 119,957 | $ 118,955 | $ 1,002 | $ - |
Consumer Staples | 95,713 | 85,254 | 10,459 | - |
Energy | 95,554 | 95,471 | 83 | - |
Financials | 151,219 | 147,263 | 3,956 | - |
Health Care | 128,705 | 119,695 | 9,010 | - |
Industrials | 114,663 | 112,997 | 1,666 | - |
Information Technology | 160,034 | 156,781 | 3,253 | - |
Materials | 39,578 | 39,578 | - | - |
Telecommunication Services | 10,257 | 8,190 | 2,067 | - |
Utilities | 24,728 | 24,389 | 339 | - |
Corporate Bonds | 5,812 | - | 5,362 | 450 |
Money Market Funds | 10,994 | 10,994 | - | - |
Total Investments in Securities: | $ 957,214 | $ 919,567 | $ 37,197 | $ 450 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 80.7% |
Canada | 2.6% |
United Kingdom | 2.5% |
Ireland | 2.0% |
Bermuda | 1.5% |
Switzerland | 1.3% |
Netherlands | 1.2% |
France | 1.2% |
Others (Individually Less Than 1%) | 7.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $4,640) - See accompanying schedule: Unaffiliated issuers (cost $807,708) | $ 946,220 |
|
Fidelity Central Funds (cost $10,994) | 10,994 |
|
Total Investments (cost $818,702) |
| $ 957,214 |
Cash |
| 9 |
Foreign currency held at value (cost $9) | 9 | |
Receivable for investments sold |
| 11,042 |
Delayed delivery |
| 77 |
Receivable for fund shares sold | 574 | |
Dividends receivable | 1,371 | |
Interest receivable | 145 | |
Distributions receivable from Fidelity Central Funds | 65 | |
Other receivables | 8 | |
Total assets | 970,514 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 10,569 | |
Payable for fund shares redeemed | 1,171 | |
Accrued management fee | 295 | |
Distribution and service plan fees payable | 344 | |
Other affiliated payables | 205 | |
Other payables and accrued expenses | 85 | |
Collateral on securities loaned, at value | 5,010 | |
Total liabilities | 17,679 | |
|
|
|
Net Assets | $ 952,835 | |
Net Assets consist of: |
| |
Paid in capital | $ 861,015 | |
Undistributed net investment income | 514 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (47,203) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 138,509 | |
Net Assets | $ 952,835 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 15.26 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.26) | $ 16.19 | |
Class T: | $ 15.20 | |
|
|
|
Maximum offering price per share (100/96.50 of $15.20) | $ 15.75 | |
Class B: | $ 14.74 | |
|
|
|
Class C: | $ 14.70 | |
|
|
|
Institutional Class: | $ 15.84 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 7,289 |
Interest |
| 334 |
Income from Fidelity Central Funds |
| 342 |
Total income |
| 7,965 |
|
|
|
Expenses | ||
Management fee | $ 2,507 | |
Performance adjustment | (624) | |
Transfer agent fees | 1,059 | |
Distribution and service plan fees | 1,953 | |
Accounting and security lending fees | 154 | |
Custodian fees and expenses | 107 | |
Independent trustees' compensation | 3 | |
Registration fees | 72 | |
Audit | 32 | |
Legal | 2 | |
Miscellaneous | 5 | |
Total expenses before reductions | 5,270 | |
Expense reductions | (99) | 5,171 |
Net investment income (loss) | 2,794 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 53,966 | |
Foreign currency transactions | (23) | |
Total net realized gain (loss) |
| 53,943 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 71,153 | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) |
| 71,154 |
Net gain (loss) | 125,097 | |
Net increase (decrease) in net assets resulting from operations | $ 127,891 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,794 | $ 3,116 |
Net realized gain (loss) | 53,943 | 39,284 |
Change in net unrealized appreciation (depreciation) | 71,154 | 84,266 |
Net increase (decrease) in net assets resulting | 127,891 | 126,666 |
Distributions to shareholders from net investment income | (5,093) | - |
Share transactions - net increase (decrease) | (17,273) | (97,081) |
Total increase (decrease) in net assets | 105,525 | 29,585 |
|
|
|
Net Assets | ||
Beginning of period | 847,310 | 817,725 |
End of period (including undistributed net investment income of $514 and undistributed net investment income of $2,813, respectively) | $ 952,835 | $ 847,310 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 13.33 | $ 11.45 | $ 11.58 | $ 9.95 | $ 6.64 | $ 13.75 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .07 | .02 | .03 H | .04 | .11 |
Net realized and unrealized gain (loss) | 1.97 | 1.81 | (.09) | 1.66 | 3.41 | (6.13) |
Total from investment operations | 2.03 | 1.88 | (.07) | 1.69 | 3.45 | (6.02) |
Distributions from net investment income | (.10) | - | - | (.02) | (.14) | (.10) |
Distributions from net realized gain | - | - | (.06) | (.05) | - | (.99) |
Total distributions | (.10) | - | (.06) | (.06) J | (.14) | (1.09) |
Net asset value, end of period | $ 15.26 | $ 13.33 | $ 11.45 | $ 11.58 | $ 9.95 | $ 6.64 |
Total Return B,C,D | 15.36% | 16.42% | (.63)% | 17.09% | 52.97% | (47.51)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.00% A | 1.21% | 1.36% | 1.36% | 1.08% | 1.08% |
Expenses net of fee waivers, if any | 1.00% A | 1.21% | 1.33% | 1.25% | 1.08% | 1.08% |
Expenses net of all reductions | .98% A | 1.20% | 1.33% | 1.24% | 1.08% | 1.08% |
Net investment income (loss) | .78% A | .53% | .16% | .24% H | .56% | 1.02% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 338 | $ 301 | $ 295 | $ 285 | $ 240 | $ 192 |
Portfolio turnover rate G | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .10%. IExpense 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. JTotal distributions of $.06 per share is comprised of distributions from net investment income of $.018 and distributions from net realized gain of $.045 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 13.26 | $ 11.42 | $ 11.55 | $ 9.92 | $ 6.60 | $ 13.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | .04 | (.01) | - H,J | .03 | .09 |
Net realized and unrealized gain (loss) | 1.97 | 1.80 | (.09) | 1.67 | 3.39 | (6.11) |
Total from investment operations | 2.01 | 1.84 | (.10) | 1.67 | 3.42 | (6.02) |
Distributions from net investment income | (.07) | - | - | - | (.10) | (.06) |
Distributions from net realized gain | - | - | (.03) | (.04) | - | (.99) |
Total distributions | (.07) | - | (.03) | (.04) | (.10) | (1.05) |
Net asset value, end of period | $ 15.20 | $ 13.26 | $ 11.42 | $ 11.55 | $ 9.92 | $ 6.60 |
Total Return B,C,D | 15.27% | 16.11% | (.90)% | 16.88% | 52.60% | (47.66)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.22% A | 1.42% | 1.57% | 1.57% | 1.31% | 1.29% |
Expenses net of fee waivers, if any | 1.22% A | 1.42% | 1.55% | 1.50% | 1.31% | 1.29% |
Expenses net of all reductions | 1.20% A | 1.42% | 1.54% | 1.49% | 1.30% | 1.28% |
Net investment income (loss) | .56% A | .32% | (.06)% | (.01)% H | .34% | .82% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 342 | $ 304 | $ 294 | $ 322 | $ 305 | $ 263 |
Portfolio turnover rate G | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.15)%. IExpense 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. JAmount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 12.82 | $ 11.11 | $ 11.26 | $ 9.68 | $ 6.42 | $ 13.29 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - | (.03) | (.07) | (.05) H | (.01) | .03 |
Net realized and unrealized gain (loss) | 1.92 | 1.74 | (.08) | 1.63 | 3.31 | (5.94) |
Total from investment operations | 1.92 | 1.71 | (.15) | 1.58 | 3.30 | (5.91) |
Distributions from net investment income | - | - | - | - | (.04) | - |
Distributions from net realized gain | - | - | - | - | - | (.96) |
Total distributions | - | - | - | - | (.04) | (.96) |
Net asset value, end of period | $ 14.74 | $ 12.82 | $ 11.11 | $ 11.26 | $ 9.68 | $ 6.42 |
Total ReturnB,C,D | 14.98% | 15.39% | (1.33)% | 16.32% | 51.61% | (47.88)% |
Ratios to Average Net AssetsF,I |
|
|
|
|
| |
Expenses before reductions | 1.80% A | 1.99% | 2.14% | 2.13% | 1.81% | 1.85% |
Expenses net of fee waivers, if any | 1.80% A | 1.99% | 2.09% | 2.00% | 1.81% | 1.85% |
Expenses net of all reductions | 1.78% A | 1.99% | 2.09% | 2.00% | 1.80% | 1.85% |
Net investment income (loss) | (.02)% A | (.25)% | (.61)% | (.51)%H | (.17)% | .26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 15 | $ 17 | $ 22 | $ 43 | $ 69 | $ 75 |
Portfolio turnover rateG | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. IExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 12.79 | $ 11.07 | $ 11.22 | $ 9.65 | $ 6.41 | $ 13.30 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | (.02) | (.07) | (.05) H | (.01) | .03 |
Net realized and unrealized gain (loss) | 1.91 | 1.74 | (.08) | 1.62 | 3.30 | (5.94) |
Total from investment operations | 1.91 | 1.72 | (.15) | 1.57 | 3.29 | (5.91) |
Distributions from net investment income | - J | - | - | - | (.05) | - |
Distributions from net realized gain | - | - | - | - J | - | (.98) |
Total distributions | - | - | - | - J | (.05) | (.98) |
Net asset value, end of period | $ 14.70 | $ 12.79 | $ 11.07 | $ 11.22 | $ 9.65 | $ 6.41 |
Total Return B,C,D | 14.97% | 15.54% | (1.34)% | 16.31% | 51.79% | (47.93)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.74% A | 1.94% | 2.08% | 2.08% | 1.81% | 1.82% |
Expenses net of fee waivers, if any | 1.74% A | 1.94% | 2.06% | 2.00% | 1.81% | 1.82% |
Expenses net of all reductions | 1.72% A | 1.93% | 2.05% | 1.99% | 1.81% | 1.81% |
Net investment income (loss) | .05% A | (.20)% | (.57)% | (.51)% H | (.17)% | .29% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 140 | $ 123 | $ 124 | $ 129 | $ 125 | $ 103 |
Portfolio turnover rate G | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.65)%. IExpense 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. JAmount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 13.86 | $ 11.88 | $ 12.00 | $ 10.31 | $ 6.73 | $ 13.92 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .11 | .06 | .05 G | .08 | .15 |
Net realized and unrealized gain (loss) | 2.05 | 1.87 | (.09) | 1.74 | 3.52 | (6.21) |
Total from investment operations | 2.13 | 1.98 | (.03) | 1.79 | 3.60 | (6.06) |
Distributions from net investment income | (.15) | - | (.02) | (.06) | (.02) | (.14) |
Distributions from net realized gain | - | - | (.07) | (.04) | - | (.99) |
Total distributions | (.15) | - | (.09) | (.10) | (.02) | (1.13) |
Net asset value, end of period | $ 15.84 | $ 13.86 | $ 11.88 | $ 12.00 | $ 10.31 | $ 6.73 |
Total Return B,C | 15.53% | 16.67% | (.33)% | 17.47% | 53.57% | (47.34)% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | .71% A | .91% | 1.04% | 1.03% | .70% | .76% |
Expenses net of fee waivers, if any | .71% A | .91% | 1.03% | 1.00% | .70% | .76% |
Expenses net of all reductions | .69% A | .90% | 1.02% | .99% | .69% | .75% |
Net investment income (loss) | 1.07% A | .83% | .46% | .49% G | .94% | 1.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 117 | $ 103 | $ 83 | $ 73 | $ 66 | $ 55 |
Portfolio turnover rate F | 78% A | 64% | 68% | 80% | 88% | 122% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .35%. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Dividend Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, contingent interest, equity-debt classifications, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 168,419 |
Gross unrealized depreciation | (35,068) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 133,351 |
|
|
Tax cost | $ 823,863 |
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.
Fiscal year of expiration |
|
2017 | $ (95,001) |
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 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.
Semiannual Report
3. Significant Accounting Policies - continued
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $348,473 and $368,121, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .42% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 399 | $ 2 |
Class T | .25% | .25% | 809 | 3 |
Class B | .75% | .25% | 81 | 60 |
Class C | .75% | .25% | 664 | 47 |
|
|
| $ 1,953 | $ 112 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 38 |
Class T | 12 |
Class B* | 8 |
Class C* | 2 |
| $ 60 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 400 | .25 |
Class T | 357 | .22 |
Class B | 24 | .30 |
Class C | 159 | .24 |
Institutional Class | 119 | .21 |
| $ 1,059 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $12 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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. 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 $338, including $1 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $99 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 2,287 | $ - |
Class T | 1,666 | - |
Class C | 38 | - |
Institutional Class | 1,102 | - |
Total | $ 5,093 | $ - |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,646 | 4,097 | $ 23,629 | $ 51,727 |
Reinvestment of distributions | 152 | - | 2,006 | - |
Shares redeemed | (2,200) | (7,320) | (31,210) | (93,009) |
Net increase (decrease) | (402) | (3,223) | $ (5,575) | $ (41,282) |
Class T |
|
|
|
|
Shares sold | 2,514 | 4,903 | $ 35,852 | $ 61,627 |
Reinvestment of distributions | 122 | - | 1,600 | - |
Shares redeemed | (3,058) | (7,690) | (43,510) | (96,565) |
Net increase (decrease) | (422) | (2,787) | $ (6,058) | $ (34,938) |
Class B |
|
|
|
|
Shares sold | 37 | 64 | $ 519 | $ 775 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (299) | (764) | (4,135) | (9,292) |
Net increase (decrease) | (262) | (700) | $ (3,616) | $ (8,517) |
Class C |
|
|
|
|
Shares sold | 672 | 1,124 | $ 9,242 | $ 13,734 |
Reinvestment of distributions | 3 | - | 32 | - |
Shares redeemed | (781) | (2,672) | (10,773) | (32,129) |
Net increase (decrease) | (106) | (1,548) | $ (1,499) | $ (18,395) |
Institutional Class |
|
|
|
|
Shares sold | 699 | 2,225 | $ 10,372 | $ 29,308 |
Reinvestment of distributions | 75 | - | 1,032 | - |
Shares redeemed | (794) | (1,777) | (11,929) | (23,257) |
Net increase (decrease) | (20) | 448 | $ (525) | $ 6,051 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
ADGF-USAN-0713 1.786779.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Growth
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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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. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.10 | $ 5.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.30 | $ 5.69 |
Class T | 1.30% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,125.30 | $ 6.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.45 | $ 6.54 |
Class B | 1.89% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,121.70 | $ 10.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.51 | $ 9.50 |
Class C | 1.85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,122.10 | $ 9.79 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.71 | $ 9.30 |
Institutional Class | .79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.10 | $ 4.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.99 | $ 3.98 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 4.9 | 11.5 |
Express Scripts Holding Co. | 3.5 | 3.0 |
Home Depot, Inc. | 3.2 | 2.3 |
Google, Inc. Class A | 2.7 | 1.8 |
Broadcom Corp. Class A | 2.6 | 0.0 |
Harley-Davidson, Inc. | 2.5 | 2.0 |
Green Mountain Coffee Roasters, Inc. | 2.4 | 1.3 |
Gilead Sciences, Inc. | 2.2 | 1.0 |
Facebook, Inc. Class A | 2.2 | 2.1 |
Visa, Inc. Class A | 2.2 | 2.2 |
| 28.4 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 27.0 | 31.3 |
Consumer Discretionary | 20.8 | 19.0 |
Health Care | 17.0 | 10.6 |
Consumer Staples | 9.7 | 13.3 |
Industrials | 7.7 | 7.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 98.3% |
| Stocks 97.9% |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 11.2% |
| **Foreign investments | 11.8% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 20.8% | |||
Automobiles - 3.6% | |||
Harley-Davidson, Inc. | 1,550,754 | $ 84,578 | |
Tesla Motors, Inc. (a)(d) | 391,531 | 38,276 | |
| 122,854 | ||
Diversified Consumer Services - 1.6% | |||
Anhanguera Educacional Participacoes SA | 3,328,500 | 20,374 | |
H&R Block, Inc. | 321,300 | 9,404 | |
Kroton Educacional SA | 1,752,000 | 25,113 | |
| 54,891 | ||
Hotels, Restaurants & Leisure - 4.3% | |||
Bloomin' Brands, Inc. | 124,900 | 2,905 | |
Chipotle Mexican Grill, Inc. (a) | 69,268 | 25,006 | |
Dunkin' Brands Group, Inc. | 485,336 | 19,219 | |
Panera Bread Co. Class A (a) | 109,037 | 20,917 | |
Starbucks Corp. | 806,401 | 50,860 | |
Texas Roadhouse, Inc. Class A | 300,960 | 7,118 | |
Yum! Brands, Inc. | 297,066 | 20,126 | |
| 146,151 | ||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 289,320 | 7,048 | |
Ethan Allen Interiors, Inc. (d) | 116,600 | 3,658 | |
Mohawk Industries, Inc. (a) | 166,562 | 18,517 | |
Toll Brothers, Inc. (a) | 92,800 | 3,171 | |
| 32,394 | ||
Internet & Catalog Retail - 1.1% | |||
Amazon.com, Inc. (a) | 118,029 | 31,753 | |
TripAdvisor, Inc. (a) | 55,597 | 3,585 | |
| 35,338 | ||
Media - 2.0% | |||
Comcast Corp. Class A (special) (non-vtg.) | 667,528 | 25,900 | |
Discovery Communications, Inc. Class C (non-vtg.) (a) | 340,031 | 23,792 | |
Lions Gate Entertainment Corp. (a)(d) | 638,162 | 18,379 | |
| 68,071 | ||
Multiline Retail - 0.6% | |||
Dollarama, Inc. | 306,545 | 21,505 | |
Specialty Retail - 5.3% | |||
GNC Holdings, Inc. | 1,214,084 | 54,670 | |
Home Depot, Inc. | 1,340,050 | 105,408 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
TJX Companies, Inc. | 267,682 | $ 13,547 | |
Williams-Sonoma, Inc. | 74,070 | 3,997 | |
| 177,622 | ||
Textiles, Apparel & Luxury Goods - 1.3% | |||
ECLAT Textile Co. Ltd. | 1,078,000 | 7,716 | |
Michael Kors Holdings Ltd. (a) | 260,297 | 16,352 | |
NIKE, Inc. Class B | 288,504 | 17,789 | |
| 41,857 | ||
TOTAL CONSUMER DISCRETIONARY | 700,683 | ||
CONSUMER STAPLES - 9.7% | |||
Beverages - 1.6% | |||
Remy Cointreau SA | 17,100 | 1,982 | |
SABMiller PLC | 396,234 | 20,048 | |
The Coca-Cola Co. | 807,712 | 32,300 | |
| 54,330 | ||
Food & Staples Retailing - 1.3% | |||
Costco Wholesale Corp. | 176,700 | 19,379 | |
Whole Foods Market, Inc. | 473,382 | 24,550 | |
| 43,929 | ||
Food Products - 4.7% | |||
Green Mountain Coffee Roasters, Inc. (a)(d) | 1,121,291 | 82,000 | |
Mead Johnson Nutrition Co. Class A | 492,027 | 39,889 | |
The Hershey Co. | 401,259 | 35,756 | |
| 157,645 | ||
Personal Products - 0.9% | |||
Herbalife Ltd. | 692,770 | 32,332 | |
Tobacco - 1.2% | |||
British American Tobacco PLC sponsored ADR | 153,100 | 16,806 | |
Philip Morris International, Inc. | 251,819 | 22,893 | |
| 39,699 | ||
TOTAL CONSUMER STAPLES | 327,935 | ||
ENERGY - 4.6% | |||
Energy Equipment & Services - 2.2% | |||
Cameron International Corp. (a) | 535,492 | 32,595 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Dril-Quip, Inc. (a) | 134,988 | $ 12,210 | |
Oceaneering International, Inc. | 398,877 | 28,911 | |
| 73,716 | ||
Oil, Gas & Consumable Fuels - 2.4% | |||
Bonanza Creek Energy, Inc. (a) | 601,743 | 22,355 | |
Cobalt International Energy, Inc. (a) | 433,609 | 11,248 | |
Kosmos Energy Ltd. (a) | 1,304,506 | 13,463 | |
Markwest Energy Partners LP | 198,840 | 13,092 | |
Noble Energy, Inc. | 142,800 | 8,232 | |
Pioneer Natural Resources Co. | 87,602 | 12,149 | |
| 80,539 | ||
TOTAL ENERGY | 154,255 | ||
FINANCIALS - 4.5% | |||
Capital Markets - 2.0% | |||
BlackRock, Inc. Class A | 76,800 | 21,443 | |
Harvest Capital Credit Corp. | 134,600 | 2,039 | |
Invesco Ltd. | 1,212,121 | 40,897 | |
Virtus Investment Partners, Inc. (a) | 17,600 | 4,081 | |
| 68,460 | ||
Commercial Banks - 0.2% | |||
First Republic Bank | 143,600 | 5,336 | |
HDFC Bank Ltd. sponsored ADR | 83,900 | 3,376 | |
| 8,712 | ||
Consumer Finance - 0.2% | |||
Mahindra & Mahindra Financial Services Ltd. | 1,273,305 | 5,680 | |
Insurance - 0.3% | |||
Berkshire Hathaway, Inc. Class B (a) | 77,400 | 8,829 | |
Real Estate Investment Trusts - 1.0% | |||
American Tower Corp. | 421,182 | 32,785 | |
Real Estate Management & Development - 0.8% | |||
CBRE Group, Inc. (a) | 546,539 | 12,669 | |
Realogy Holdings Corp. | 301,715 | 15,581 | |
| 28,250 | ||
TOTAL FINANCIALS | 152,716 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 17.0% | |||
Biotechnology - 8.8% | |||
Acorda Therapeutics, Inc. (a) | 113,157 | $ 3,785 | |
Amgen, Inc. | 425,541 | 42,780 | |
Biogen Idec, Inc. (a) | 280,399 | 66,592 | |
BioMarin Pharmaceutical, Inc. (a) | 568,721 | 35,659 | |
Biovitrum AB (a) | 1,285,413 | 7,996 | |
Cytokinetics, Inc. (a) | 1,427,700 | 1,713 | |
Cytokinetics, Inc. warrants 6/25/17 (a) | 856,620 | 183 | |
Gilead Sciences, Inc. (a) | 1,389,716 | 75,712 | |
Kamada (a) | 321,900 | 3,251 | |
Onyx Pharmaceuticals, Inc. (a) | 190,454 | 18,179 | |
Regeneron Pharmaceuticals, Inc. (a) | 62,875 | 15,208 | |
Theravance, Inc. (a) | 227,639 | 7,976 | |
Thrombogenics NV (a)(d) | 108,971 | 4,550 | |
Vertex Pharmaceuticals, Inc. (a) | 183,095 | 14,704 | |
| 298,288 | ||
Health Care Equipment & Supplies - 0.5% | |||
The Cooper Companies, Inc. | 154,793 | 17,493 | |
Health Care Providers & Services - 4.1% | |||
Apollo Hospitals Enterprise Ltd. | 392,573 | 6,978 | |
BioScrip, Inc. (a) | 421,705 | 5,895 | |
Express Scripts Holding Co. (a) | 1,894,314 | 117,675 | |
Qualicorp SA (a) | 806,600 | 7,137 | |
| 137,685 | ||
Health Care Technology - 0.6% | |||
Cerner Corp. (a) | 191,120 | 18,783 | |
Life Sciences Tools & Services - 0.3% | |||
Illumina, Inc. (a) | 158,493 | 11,145 | |
Pharmaceuticals - 2.7% | |||
Actavis, Inc. (a) | 95,800 | 11,811 | |
Cadence Pharmaceuticals, Inc. (a) | 762,800 | 5,073 | |
Endo Health Solutions, Inc. (a) | 159,210 | 5,779 | |
Novo Nordisk A/S Series B | 110,397 | 17,893 | |
Pacira Pharmaceuticals, Inc. (a) | 268,360 | 7,863 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 451,552 | 41,547 | |
| 89,966 | ||
TOTAL HEALTH CARE | 573,360 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - 7.7% | |||
Aerospace & Defense - 2.5% | |||
Textron, Inc. | 502,169 | $ 13,538 | |
TransDigm Group, Inc. | 161,726 | 23,628 | |
United Technologies Corp. | 478,937 | 45,451 | |
| 82,617 | ||
Airlines - 0.0% | |||
Ryanair Holdings PLC sponsored ADR | 11,600 | 567 | |
Building Products - 0.0% | |||
Ply Gem Holdings, Inc. | 13,800 | 319 | |
Construction & Engineering - 0.3% | |||
EMCOR Group, Inc. | 207,288 | 8,240 | |
Electrical Equipment - 2.0% | |||
AMETEK, Inc. | 359,955 | 15,532 | |
Generac Holdings, Inc. | 91,991 | 3,726 | |
Hubbell, Inc. Class B | 140,610 | 14,121 | |
Roper Industries, Inc. | 276,677 | 34,369 | |
| 67,748 | ||
Industrial Conglomerates - 1.0% | |||
Danaher Corp. | 565,421 | 34,954 | |
Machinery - 0.5% | |||
Graco, Inc. | 42,122 | 2,715 | |
Haitian International Holdings Ltd. | 220,000 | 380 | |
Manitowoc Co., Inc. | 629,400 | 13,224 | |
| 16,319 | ||
Professional Services - 1.0% | |||
Equifax, Inc. | 235,816 | 14,361 | |
Verisk Analytics, Inc. (a) | 340,929 | 20,053 | |
| 34,414 | ||
Trading Companies & Distributors - 0.4% | |||
Beacon Roofing Supply, Inc. (a) | 349,763 | 14,417 | |
TOTAL INDUSTRIALS | 259,595 | ||
INFORMATION TECHNOLOGY - 27.0% | |||
Communications Equipment - 1.4% | |||
QUALCOMM, Inc. | 763,323 | 48,456 | |
Computers & Peripherals - 6.7% | |||
Apple, Inc. | 364,728 | 164,007 | |
SanDisk Corp. (a) | 1,053,511 | 62,178 | |
| 226,185 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 0.0% | |||
Neonode, Inc. (a)(d) | 161,761 | $ 878 | |
Internet Software & Services - 7.3% | |||
Blucora, Inc. (a) | 640,849 | 11,695 | |
CoStar Group, Inc. (a) | 64,422 | 7,203 | |
eBay, Inc. (a) | 296,806 | 16,057 | |
Facebook, Inc. Class A | 3,058,655 | 74,478 | |
Google, Inc. Class A (a) | 105,546 | 91,868 | |
LinkedIn Corp. (a) | 40,731 | 6,824 | |
MercadoLibre, Inc. (d) | 110,990 | 12,722 | |
SciQuest, Inc. (a) | 170,630 | 3,916 | |
SPS Commerce, Inc. (a) | 323,277 | 17,447 | |
Web.com Group, Inc. (a) | 9,812 | 206 | |
Xoom Corp. | 40,500 | 754 | |
Yahoo!, Inc. (a) | 170,079 | 4,473 | |
| 247,643 | ||
IT Services - 2.7% | |||
FleetCor Technologies, Inc. (a) | 201,600 | 17,555 | |
Visa, Inc. Class A | 415,483 | 74,014 | |
| 91,569 | ||
Semiconductors & Semiconductor Equipment - 4.5% | |||
ASML Holding NV (d) | 154,600 | 12,564 | |
Avago Technologies Ltd. | 146,303 | 5,517 | |
Broadcom Corp. Class A | 2,456,538 | 88,214 | |
Micron Technology, Inc. (a) | 3,732,448 | 43,595 | |
| 149,890 | ||
Software - 4.4% | |||
ANSYS, Inc. (a) | 96,140 | 7,162 | |
Citrix Systems, Inc. (a) | 260,941 | 16,792 | |
Computer Modelling Group Ltd. | 453,200 | 10,133 | |
FleetMatics Group PLC | 236,800 | 7,045 | |
Infoblox, Inc. (a) | 77,440 | 1,884 | |
salesforce.com, Inc. (a) | 1,193,092 | 50,504 | |
SolarWinds, Inc. (a) | 891,098 | 37,560 | |
Tableau Software, Inc. | 87,200 | 4,456 | |
VMware, Inc. Class A (a) | 125,256 | 8,908 | |
Workday, Inc. Class A | 52,200 | 3,353 | |
| 147,797 | ||
TOTAL INFORMATION TECHNOLOGY | 912,418 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 5.2% | |||
Chemicals - 3.6% | |||
FMC Corp. | 325,637 | $ 20,421 | |
LyondellBasell Industries NV Class A | 150,445 | 10,027 | |
Monsanto Co. | 655,097 | 65,929 | |
Sherwin-Williams Co. | 131,545 | 24,800 | |
| 121,177 | ||
Construction Materials - 1.2% | |||
Eagle Materials, Inc. | 173,488 | 12,795 | |
James Hardie Industries PLC sponsored ADR | 172,873 | 7,978 | |
Vulcan Materials Co. | 392,923 | 21,053 | |
| 41,826 | ||
Paper & Forest Products - 0.4% | |||
Canfor Corp. (a) | 256,300 | 4,297 | |
Norbord, Inc. (d) | 268,500 | 8,785 | |
| 13,082 | ||
TOTAL MATERIALS | 176,085 | ||
TELECOMMUNICATION SERVICES - 0.7% | |||
Wireless Telecommunication Services - 0.7% | |||
SBA Communications Corp. Class A (a) | 329,888 | 24,831 | |
UTILITIES - 1.1% | |||
Electric Utilities - 1.1% | |||
ITC Holdings Corp. | 432,300 | 37,424 | |
TOTAL COMMON STOCKS (Cost $2,599,658) |
| ||
Money Market Funds - 4.9% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.12% (b) | 69,986,764 | $ 69,987 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 96,597,675 | 96,598 | |
TOTAL MONEY MARKET FUNDS (Cost $166,585) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $2,766,243) | 3,485,887 | ||
NET OTHER ASSETS (LIABILITIES) - (3.2)% | (107,817) | ||
NET ASSETS - 100% | $ 3,378,070 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 56 |
Fidelity Securities Lending Cash Central Fund | 314 |
Total | $ 370 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 700,683 | $ 692,967 | $ 7,716 | $ - |
Consumer Staples | 327,935 | 327,935 | - | - |
Energy | 154,255 | 154,255 | - | - |
Financials | 152,716 | 147,036 | 5,680 | - |
Health Care | 573,360 | 548,306 | 25,054 | - |
Industrials | 259,595 | 259,215 | 380 | - |
Information Technology | 912,418 | 912,418 | - | - |
Materials | 176,085 | 176,085 | - | - |
Telecommunication Services | 24,831 | 24,831 | - | - |
Utilities | 37,424 | 37,424 | - | - |
Money Market Funds | 166,585 | 166,585 | - | - |
Total Investments in Securities: | $ 3,485,887 | $ 3,447,057 | $ 38,830 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 88.8% |
Canada | 3.0% |
Bermuda | 1.6% |
Brazil | 1.5% |
United Kingdom | 1.1% |
Others (Individually Less Than 1%) | 4.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $91,004) - See accompanying schedule: Unaffiliated issuers (cost $2,599,658) | $ 3,319,302 |
|
Fidelity Central Funds (cost $166,585) | 166,585 |
|
Total Investments (cost $2,766,243) |
| $ 3,485,887 |
Cash |
| 136 |
Receivable for investments sold | 17,986 | |
Receivable for fund shares sold | 1,199 | |
Dividends receivable | 2,527 | |
Distributions receivable from Fidelity Central Funds | 95 | |
Prepaid expenses | 1 | |
Other receivables | 166 | |
Total assets | 3,507,997 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 27,521 | |
Payable for fund shares redeemed | 2,592 | |
Accrued management fee | 1,573 | |
Distribution and service plan fees payable | 770 | |
Other affiliated payables | 673 | |
Other payables and accrued expenses | 200 | |
Collateral on securities loaned, at value | 96,598 | |
Total liabilities | 129,927 | |
|
|
|
Net Assets | $ 3,378,070 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,507,789 | |
Accumulated net investment loss | (2,059) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (847,289) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 719,629 | |
Net Assets | $ 3,378,070 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 69.56 | |
|
|
|
Maximum offering price per share (100/94.25 of $69.56) | $ 73.80 | |
Class T: | $ 69.15 | |
|
|
|
Maximum offering price per share (100/96.50 of $69.15) | $ 71.66 | |
Class B: | $ 62.10 | |
|
|
|
Class C: | $ 63.14 | |
|
|
|
Institutional Class: | $ 74.13 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended May 31, 2013 (Unaudited) | |
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Investment Income |
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Dividends |
| $ 18,407 |
Income from Fidelity Central Funds |
| 370 |
Total income |
| 18,777 |
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Expenses | ||
Management fee | $ 8,900 | |
Transfer agent fees | 3,478 | |
Distribution and service plan fees | 4,421 | |
Accounting and security lending fees | 476 | |
Custodian fees and expenses | 62 | |
Independent trustees' compensation | 10 | |
Registration fees | 60 | |
Audit | 32 | |
Legal | 8 | |
Miscellaneous | 16 | |
Total expenses before reductions | 17,463 | |
Expense reductions | (348) | 17,115 |
Net investment income (loss) | 1,662 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
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Unaffiliated issuers | 230,334 | |
Foreign currency transactions | (56) | |
Total net realized gain (loss) |
| 230,278 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 154,563 | |
Assets and liabilities in foreign currencies | (11) | |
Total change in net unrealized appreciation (depreciation) |
| 154,552 |
Net gain (loss) | 384,830 | |
Net increase (decrease) in net assets resulting from operations | $ 386,492 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
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Operations |
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Net investment income (loss) | $ 1,662 | $ 1,561 |
Net realized gain (loss) | 230,278 | 91,215 |
Change in net unrealized appreciation (depreciation) | 154,552 | 277,882 |
Net increase (decrease) in net assets resulting | 386,492 | 370,658 |
Distributions to shareholders from net investment income | (3,311) | - |
Distributions to shareholders from net realized gain | - | (6,141) |
Total distributions | (3,311) | (6,141) |
Share transactions - net increase (decrease) | 33,302 | (218,428) |
Total increase (decrease) in net assets | 416,483 | 146,089 |
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Net Assets | ||
Beginning of period | 2,961,587 | 2,815,498 |
End of period (including accumulated net investment loss of $2,059 and accumulated net investment loss of $410, respectively) | $ 3,378,070 | $ 2,961,587 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 61.77 | $ 54.56 | $ 50.75 | $ 42.07 | $ 34.36 | $ 64.24 |
Income from Investment Operations |
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Net investment income (loss) E | .02 | .02 | (.04) | (.14) | (.01) | .11 |
Net realized and unrealized gain (loss) | 7.77 | 7.30 | 3.90 | 8.82 | 7.79 | (29.99) |
Total from investment operations | 7.79 | 7.32 | 3.86 | 8.68 | 7.78 | (29.88) |
Distributions from net investment income | - | - | - | - | (.06) | - |
Distributions from net realized gain | - | (.11) | (.05) | - | (.02) | - |
Total distributions | - | (.11) | (.05) | - | (.07) I | - |
Net asset value, end of period | $ 69.56 | $ 61.77 | $ 54.56 | $ 50.75 | $ 42.07 | $ 34.36 |
Total Return B, C, D | 12.61% | 13.45% | 7.61% | 20.63% | 22.71% | (46.51)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | 1.13% A | 1.14% | 1.15% | 1.16% | 1.19% | 1.16% |
Expenses net of fee waivers, if any | 1.13% A | 1.14% | 1.15% | 1.16% | 1.19% | 1.16% |
Expenses net of all reductions | 1.11% A | 1.14% | 1.14% | 1.15% | 1.18% | 1.15% |
Net investment income (loss) | .06% A | .04% | (.08)% | (.31)% | (.04)% | .21% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 693 | $ 632 | $ 609 | $ 636 | $ 640 | $ 628 |
Portfolio turnover rate G | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 Total distributions of $.07 per share is comprised of distributions from net investment income of $.059 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 61.45 | $ 54.26 | $ 50.51 | $ 41.94 | $ 34.25 | $ 64.15 |
Income from Investment Operations |
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Net investment income (loss) E | (.03) | (.08) | (.14) | (.22) | (.09) | .02 |
Net realized and unrealized gain (loss) | 7.73 | 7.27 | 3.89 | 8.79 | 7.78 | (29.92) |
Total from investment operations | 7.70 | 7.19 | 3.75 | 8.57 | 7.69 | (29.90) |
Net asset value, end of period | $ 69.15 | $ 61.45 | $ 54.26 | $ 50.51 | $ 41.94 | $ 34.25 |
Total Return B, C, D | 12.53% | 13.25% | 7.42% | 20.43% | 22.45% | (46.61)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | 1.30% A | 1.31% | 1.32% | 1.34% | 1.39% | 1.33% |
Expenses net of fee waivers, if any | 1.30% A | 1.31% | 1.32% | 1.34% | 1.39% | 1.33% |
Expenses net of all reductions | 1.28% A | 1.31% | 1.31% | 1.33% | 1.39% | 1.32% |
Net investment income (loss) | (.11)% A | (.13)% | (.25)% | (.48)% | (.24)% | .04% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 1,167 | $ 1,108 | $ 1,139 | $ 1,246 | $ 1,268 | $ 1,274 |
Portfolio turnover rate G | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 55.36 | $ 49.17 | $ 46.04 | $ 38.45 | $ 31.57 | $ 59.47 |
Income from Investment Operations |
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Net investment income (loss) E | (.20) | (.39) | (.42) | (.44) | (.26) | (.28) |
Net realized and unrealized gain (loss) | 6.94 | 6.58 | 3.55 | 8.03 | 7.14 | (27.62) |
Total from investment operations | 6.74 | 6.19 | 3.13 | 7.59 | 6.88 | (27.90) |
Net asset value, end of period | $ 62.10 | $ 55.36 | $ 49.17 | $ 46.04 | $ 38.45 | $ 31.57 |
Total Return B, C, D | 12.17% | 12.59% | 6.80% | 19.74% | 21.79% | (46.91)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | 1.89% A | 1.90% | 1.90% | 1.91% | 1.94% | 1.91% |
Expenses net of fee waivers, if any | 1.89% A | 1.90% | 1.90% | 1.91% | 1.94% | 1.91% |
Expenses net of all reductions | 1.87% A | 1.90% | 1.90% | 1.91% | 1.93% | 1.90% |
Net investment income (loss) | (.70)% A | (.72)% | (.83)% | (1.06)% | (.79)% | (.54)% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 24 | $ 26 | $ 35 | $ 54 | $ 70 | $ 91 |
Portfolio turnover rate G | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 56.27 | $ 49.96 | $ 46.77 | $ 39.05 | $ 32.06 | $ 60.41 |
Income from Investment Operations |
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Net investment income (loss) E | (.19) | (.37) | (.41) | (.44) | (.26) | (.27) |
Net realized and unrealized gain (loss) | 7.06 | 6.68 | 3.60 | 8.16 | 7.25 | (28.08) |
Total from investment operations | 6.87 | 6.31 | 3.19 | 7.72 | 6.99 | (28.35) |
Net asset value, end of period | $ 63.14 | $ 56.27 | $ 49.96 | $ 46.77 | $ 39.05 | $ 32.06 |
Total Return B, C, D | 12.21% | 12.63% | 6.82% | 19.77% | 21.80% | (46.93)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | 1.85% A | 1.86% | 1.88% | 1.90% | 1.94% | 1.90% |
Expenses net of fee waivers, if any | 1.85% A | 1.86% | 1.88% | 1.90% | 1.94% | 1.90% |
Expenses net of all reductions | 1.83% A | 1.86% | 1.87% | 1.90% | 1.93% | 1.89% |
Net investment income (loss) | (.66)% A | (.68)% | (.81)% | (1.05)% | (.79)% | (.53)% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 139 | $ 133 | $ 136 | $ 143 | $ 142 | $ 141 |
Portfolio turnover rate G | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 65.92 | $ 58.24 | $ 54.14 | $ 44.71 | $ 36.61 | $ 68.21 |
Income from Investment Operations |
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Net investment income (loss) D | .14 | .25 | .16 | .02 | .12 | .32 |
Net realized and unrealized gain (loss) | 8.27 | 7.75 | 4.16 | 9.41 | 8.27 | (31.92) |
Total from investment operations | 8.41 | 8.00 | 4.32 | 9.43 | 8.39 | (31.60) |
Distributions from net investment income | (.20) | - | - | - | (.27) | - |
Distributions from net realized gain | - | (.32) | (.22) | - | (.02) | - |
Total distributions | (.20) | (.32) | (.22) | - | (.29) H | - |
Net asset value, end of period | $ 74.13 | $ 65.92 | $ 58.24 | $ 54.14 | $ 44.71 | $ 36.61 |
Total Return B, C | 12.81% | 13.83% | 7.99% | 21.09% | 23.11% | (46.33)% |
Ratios to Average Net Assets E, G |
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Expenses before reductions | .79% A | .80% | .80% | .80% | .85% | .80% |
Expenses net of fee waivers, if any | .79% A | .80% | .80% | .80% | .85% | .80% |
Expenses net of all reductions | .76% A | .79% | .79% | .80% | .84% | .79% |
Net investment income (loss) | .41% A | .39% | .27% | .05% | .30% | .57% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 1,356 | $ 1,063 | $ 897 | $ 973 | $ 983 | $ 934 |
Portfolio turnover rate F | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $.29 per share is comprised of distributions from net investment income of $.274 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 740,652 |
Gross unrealized depreciation | (28,279) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 712,373 |
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Tax cost | $ 2,773,514 |
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.
Fiscal year of expiration |
|
2016 | $ (186,661) |
2017 | (858,583) |
Total capital loss carryforward | $ (1,045,244) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,221,474 and $1,186,286, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .55% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 814 | $ 3 |
Class T | .25% | .25% | 2,811 | 7 |
Class B | .75% | .25% | 124 | 93 |
Class C | .75% | .25% | 672 | 24 |
|
|
| $ 4,421 | $ 127 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 32 |
Class T | 14 |
Class B* | 11 |
Class C* | 4 |
| $ 61 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 921 | .28 |
Class T | 1,143 | .20 |
Class B | 37 | .30 |
Class C | 171 | .25 |
Institutional Class | 1,206 | .19 |
| $ 3,478 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $18 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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. 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 $314, including $4 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $348 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Institutional Class | $ 3,311 | $ - |
From net realized gain |
|
|
Class A | $ - | $ 1,215 |
Institutional Class | - | 4,926 |
Total | $ - | $ 6,141 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 713 | 1,382 | $ 46,940 | $ 82,422 |
Reinvestment of distributions | - | 21 | - | 1,098 |
Shares redeemed | (975) | (2,338) | (63,146) | (138,919) |
Net increase (decrease) | (262) | (935) | $ (16,206) | $ (55,399) |
Class T |
|
|
|
|
Shares sold | 913 | 2,021 | $ 58,909 | $ 120,048 |
Shares redeemed | (2,061) | (4,996) | (132,659) | (296,134) |
Net increase (decrease) | (1,148) | (2,975) | $ (73,750) | $ (176,086) |
Class B |
|
|
|
|
Shares sold | 4 | 5 | $ 261 | $ 239 |
Shares redeemed | (100) | (239) | (5,784) | (12,835) |
Net increase (decrease) | (96) | (234) | $ (5,523) | $ (12,596) |
Class C |
|
|
|
|
Shares sold | 71 | 154 | $ 4,178 | $ 8,368 |
Shares redeemed | (242) | (504) | (14,205) | (27,593) |
Net increase (decrease) | (171) | (350) | $ (10,027) | $ (19,225) |
Institutional Class |
|
|
|
|
Shares sold | 3,604 | 4,266 | $ 239,519 | $ 270,700 |
Reinvestment of distributions | 50 | 86 | 3,246 | 4,818 |
Shares redeemed | (1,488) | (3,622) | (103,957) | (230,640) |
Net increase (decrease) | 2,166 | 730 | $ 138,808 | $ 44,878 |
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, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 31% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPGI-USAN-0713 1.786784.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Growth
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.10 | $ 5.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.30 | $ 5.69 |
Class T | 1.30% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,125.30 | $ 6.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.45 | $ 6.54 |
Class B | 1.89% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,121.70 | $ 10.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.51 | $ 9.50 |
Class C | 1.85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,122.10 | $ 9.79 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.71 | $ 9.30 |
Institutional Class | .79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.10 | $ 4.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.99 | $ 3.98 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 4.9 | 11.5 |
Express Scripts Holding Co. | 3.5 | 3.0 |
Home Depot, Inc. | 3.2 | 2.3 |
Google, Inc. Class A | 2.7 | 1.8 |
Broadcom Corp. Class A | 2.6 | 0.0 |
Harley-Davidson, Inc. | 2.5 | 2.0 |
Green Mountain Coffee Roasters, Inc. | 2.4 | 1.3 |
Gilead Sciences, Inc. | 2.2 | 1.0 |
Facebook, Inc. Class A | 2.2 | 2.1 |
Visa, Inc. Class A | 2.2 | 2.2 |
| 28.4 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 27.0 | 31.3 |
Consumer Discretionary | 20.8 | 19.0 |
Health Care | 17.0 | 10.6 |
Consumer Staples | 9.7 | 13.3 |
Industrials | 7.7 | 7.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 98.3% |
| Stocks 97.9% |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 11.2% |
| **Foreign investments | 11.8% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 20.8% | |||
Automobiles - 3.6% | |||
Harley-Davidson, Inc. | 1,550,754 | $ 84,578 | |
Tesla Motors, Inc. (a)(d) | 391,531 | 38,276 | |
| 122,854 | ||
Diversified Consumer Services - 1.6% | |||
Anhanguera Educacional Participacoes SA | 3,328,500 | 20,374 | |
H&R Block, Inc. | 321,300 | 9,404 | |
Kroton Educacional SA | 1,752,000 | 25,113 | |
| 54,891 | ||
Hotels, Restaurants & Leisure - 4.3% | |||
Bloomin' Brands, Inc. | 124,900 | 2,905 | |
Chipotle Mexican Grill, Inc. (a) | 69,268 | 25,006 | |
Dunkin' Brands Group, Inc. | 485,336 | 19,219 | |
Panera Bread Co. Class A (a) | 109,037 | 20,917 | |
Starbucks Corp. | 806,401 | 50,860 | |
Texas Roadhouse, Inc. Class A | 300,960 | 7,118 | |
Yum! Brands, Inc. | 297,066 | 20,126 | |
| 146,151 | ||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 289,320 | 7,048 | |
Ethan Allen Interiors, Inc. (d) | 116,600 | 3,658 | |
Mohawk Industries, Inc. (a) | 166,562 | 18,517 | |
Toll Brothers, Inc. (a) | 92,800 | 3,171 | |
| 32,394 | ||
Internet & Catalog Retail - 1.1% | |||
Amazon.com, Inc. (a) | 118,029 | 31,753 | |
TripAdvisor, Inc. (a) | 55,597 | 3,585 | |
| 35,338 | ||
Media - 2.0% | |||
Comcast Corp. Class A (special) (non-vtg.) | 667,528 | 25,900 | |
Discovery Communications, Inc. Class C (non-vtg.) (a) | 340,031 | 23,792 | |
Lions Gate Entertainment Corp. (a)(d) | 638,162 | 18,379 | |
| 68,071 | ||
Multiline Retail - 0.6% | |||
Dollarama, Inc. | 306,545 | 21,505 | |
Specialty Retail - 5.3% | |||
GNC Holdings, Inc. | 1,214,084 | 54,670 | |
Home Depot, Inc. | 1,340,050 | 105,408 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
TJX Companies, Inc. | 267,682 | $ 13,547 | |
Williams-Sonoma, Inc. | 74,070 | 3,997 | |
| 177,622 | ||
Textiles, Apparel & Luxury Goods - 1.3% | |||
ECLAT Textile Co. Ltd. | 1,078,000 | 7,716 | |
Michael Kors Holdings Ltd. (a) | 260,297 | 16,352 | |
NIKE, Inc. Class B | 288,504 | 17,789 | |
| 41,857 | ||
TOTAL CONSUMER DISCRETIONARY | 700,683 | ||
CONSUMER STAPLES - 9.7% | |||
Beverages - 1.6% | |||
Remy Cointreau SA | 17,100 | 1,982 | |
SABMiller PLC | 396,234 | 20,048 | |
The Coca-Cola Co. | 807,712 | 32,300 | |
| 54,330 | ||
Food & Staples Retailing - 1.3% | |||
Costco Wholesale Corp. | 176,700 | 19,379 | |
Whole Foods Market, Inc. | 473,382 | 24,550 | |
| 43,929 | ||
Food Products - 4.7% | |||
Green Mountain Coffee Roasters, Inc. (a)(d) | 1,121,291 | 82,000 | |
Mead Johnson Nutrition Co. Class A | 492,027 | 39,889 | |
The Hershey Co. | 401,259 | 35,756 | |
| 157,645 | ||
Personal Products - 0.9% | |||
Herbalife Ltd. | 692,770 | 32,332 | |
Tobacco - 1.2% | |||
British American Tobacco PLC sponsored ADR | 153,100 | 16,806 | |
Philip Morris International, Inc. | 251,819 | 22,893 | |
| 39,699 | ||
TOTAL CONSUMER STAPLES | 327,935 | ||
ENERGY - 4.6% | |||
Energy Equipment & Services - 2.2% | |||
Cameron International Corp. (a) | 535,492 | 32,595 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Dril-Quip, Inc. (a) | 134,988 | $ 12,210 | |
Oceaneering International, Inc. | 398,877 | 28,911 | |
| 73,716 | ||
Oil, Gas & Consumable Fuels - 2.4% | |||
Bonanza Creek Energy, Inc. (a) | 601,743 | 22,355 | |
Cobalt International Energy, Inc. (a) | 433,609 | 11,248 | |
Kosmos Energy Ltd. (a) | 1,304,506 | 13,463 | |
Markwest Energy Partners LP | 198,840 | 13,092 | |
Noble Energy, Inc. | 142,800 | 8,232 | |
Pioneer Natural Resources Co. | 87,602 | 12,149 | |
| 80,539 | ||
TOTAL ENERGY | 154,255 | ||
FINANCIALS - 4.5% | |||
Capital Markets - 2.0% | |||
BlackRock, Inc. Class A | 76,800 | 21,443 | |
Harvest Capital Credit Corp. | 134,600 | 2,039 | |
Invesco Ltd. | 1,212,121 | 40,897 | |
Virtus Investment Partners, Inc. (a) | 17,600 | 4,081 | |
| 68,460 | ||
Commercial Banks - 0.2% | |||
First Republic Bank | 143,600 | 5,336 | |
HDFC Bank Ltd. sponsored ADR | 83,900 | 3,376 | |
| 8,712 | ||
Consumer Finance - 0.2% | |||
Mahindra & Mahindra Financial Services Ltd. | 1,273,305 | 5,680 | |
Insurance - 0.3% | |||
Berkshire Hathaway, Inc. Class B (a) | 77,400 | 8,829 | |
Real Estate Investment Trusts - 1.0% | |||
American Tower Corp. | 421,182 | 32,785 | |
Real Estate Management & Development - 0.8% | |||
CBRE Group, Inc. (a) | 546,539 | 12,669 | |
Realogy Holdings Corp. | 301,715 | 15,581 | |
| 28,250 | ||
TOTAL FINANCIALS | 152,716 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 17.0% | |||
Biotechnology - 8.8% | |||
Acorda Therapeutics, Inc. (a) | 113,157 | $ 3,785 | |
Amgen, Inc. | 425,541 | 42,780 | |
Biogen Idec, Inc. (a) | 280,399 | 66,592 | |
BioMarin Pharmaceutical, Inc. (a) | 568,721 | 35,659 | |
Biovitrum AB (a) | 1,285,413 | 7,996 | |
Cytokinetics, Inc. (a) | 1,427,700 | 1,713 | |
Cytokinetics, Inc. warrants 6/25/17 (a) | 856,620 | 183 | |
Gilead Sciences, Inc. (a) | 1,389,716 | 75,712 | |
Kamada (a) | 321,900 | 3,251 | |
Onyx Pharmaceuticals, Inc. (a) | 190,454 | 18,179 | |
Regeneron Pharmaceuticals, Inc. (a) | 62,875 | 15,208 | |
Theravance, Inc. (a) | 227,639 | 7,976 | |
Thrombogenics NV (a)(d) | 108,971 | 4,550 | |
Vertex Pharmaceuticals, Inc. (a) | 183,095 | 14,704 | |
| 298,288 | ||
Health Care Equipment & Supplies - 0.5% | |||
The Cooper Companies, Inc. | 154,793 | 17,493 | |
Health Care Providers & Services - 4.1% | |||
Apollo Hospitals Enterprise Ltd. | 392,573 | 6,978 | |
BioScrip, Inc. (a) | 421,705 | 5,895 | |
Express Scripts Holding Co. (a) | 1,894,314 | 117,675 | |
Qualicorp SA (a) | 806,600 | 7,137 | |
| 137,685 | ||
Health Care Technology - 0.6% | |||
Cerner Corp. (a) | 191,120 | 18,783 | |
Life Sciences Tools & Services - 0.3% | |||
Illumina, Inc. (a) | 158,493 | 11,145 | |
Pharmaceuticals - 2.7% | |||
Actavis, Inc. (a) | 95,800 | 11,811 | |
Cadence Pharmaceuticals, Inc. (a) | 762,800 | 5,073 | |
Endo Health Solutions, Inc. (a) | 159,210 | 5,779 | |
Novo Nordisk A/S Series B | 110,397 | 17,893 | |
Pacira Pharmaceuticals, Inc. (a) | 268,360 | 7,863 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 451,552 | 41,547 | |
| 89,966 | ||
TOTAL HEALTH CARE | 573,360 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - 7.7% | |||
Aerospace & Defense - 2.5% | |||
Textron, Inc. | 502,169 | $ 13,538 | |
TransDigm Group, Inc. | 161,726 | 23,628 | |
United Technologies Corp. | 478,937 | 45,451 | |
| 82,617 | ||
Airlines - 0.0% | |||
Ryanair Holdings PLC sponsored ADR | 11,600 | 567 | |
Building Products - 0.0% | |||
Ply Gem Holdings, Inc. | 13,800 | 319 | |
Construction & Engineering - 0.3% | |||
EMCOR Group, Inc. | 207,288 | 8,240 | |
Electrical Equipment - 2.0% | |||
AMETEK, Inc. | 359,955 | 15,532 | |
Generac Holdings, Inc. | 91,991 | 3,726 | |
Hubbell, Inc. Class B | 140,610 | 14,121 | |
Roper Industries, Inc. | 276,677 | 34,369 | |
| 67,748 | ||
Industrial Conglomerates - 1.0% | |||
Danaher Corp. | 565,421 | 34,954 | |
Machinery - 0.5% | |||
Graco, Inc. | 42,122 | 2,715 | |
Haitian International Holdings Ltd. | 220,000 | 380 | |
Manitowoc Co., Inc. | 629,400 | 13,224 | |
| 16,319 | ||
Professional Services - 1.0% | |||
Equifax, Inc. | 235,816 | 14,361 | |
Verisk Analytics, Inc. (a) | 340,929 | 20,053 | |
| 34,414 | ||
Trading Companies & Distributors - 0.4% | |||
Beacon Roofing Supply, Inc. (a) | 349,763 | 14,417 | |
TOTAL INDUSTRIALS | 259,595 | ||
INFORMATION TECHNOLOGY - 27.0% | |||
Communications Equipment - 1.4% | |||
QUALCOMM, Inc. | 763,323 | 48,456 | |
Computers & Peripherals - 6.7% | |||
Apple, Inc. | 364,728 | 164,007 | |
SanDisk Corp. (a) | 1,053,511 | 62,178 | |
| 226,185 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 0.0% | |||
Neonode, Inc. (a)(d) | 161,761 | $ 878 | |
Internet Software & Services - 7.3% | |||
Blucora, Inc. (a) | 640,849 | 11,695 | |
CoStar Group, Inc. (a) | 64,422 | 7,203 | |
eBay, Inc. (a) | 296,806 | 16,057 | |
Facebook, Inc. Class A | 3,058,655 | 74,478 | |
Google, Inc. Class A (a) | 105,546 | 91,868 | |
LinkedIn Corp. (a) | 40,731 | 6,824 | |
MercadoLibre, Inc. (d) | 110,990 | 12,722 | |
SciQuest, Inc. (a) | 170,630 | 3,916 | |
SPS Commerce, Inc. (a) | 323,277 | 17,447 | |
Web.com Group, Inc. (a) | 9,812 | 206 | |
Xoom Corp. | 40,500 | 754 | |
Yahoo!, Inc. (a) | 170,079 | 4,473 | |
| 247,643 | ||
IT Services - 2.7% | |||
FleetCor Technologies, Inc. (a) | 201,600 | 17,555 | |
Visa, Inc. Class A | 415,483 | 74,014 | |
| 91,569 | ||
Semiconductors & Semiconductor Equipment - 4.5% | |||
ASML Holding NV (d) | 154,600 | 12,564 | |
Avago Technologies Ltd. | 146,303 | 5,517 | |
Broadcom Corp. Class A | 2,456,538 | 88,214 | |
Micron Technology, Inc. (a) | 3,732,448 | 43,595 | |
| 149,890 | ||
Software - 4.4% | |||
ANSYS, Inc. (a) | 96,140 | 7,162 | |
Citrix Systems, Inc. (a) | 260,941 | 16,792 | |
Computer Modelling Group Ltd. | 453,200 | 10,133 | |
FleetMatics Group PLC | 236,800 | 7,045 | |
Infoblox, Inc. (a) | 77,440 | 1,884 | |
salesforce.com, Inc. (a) | 1,193,092 | 50,504 | |
SolarWinds, Inc. (a) | 891,098 | 37,560 | |
Tableau Software, Inc. | 87,200 | 4,456 | |
VMware, Inc. Class A (a) | 125,256 | 8,908 | |
Workday, Inc. Class A | 52,200 | 3,353 | |
| 147,797 | ||
TOTAL INFORMATION TECHNOLOGY | 912,418 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 5.2% | |||
Chemicals - 3.6% | |||
FMC Corp. | 325,637 | $ 20,421 | |
LyondellBasell Industries NV Class A | 150,445 | 10,027 | |
Monsanto Co. | 655,097 | 65,929 | |
Sherwin-Williams Co. | 131,545 | 24,800 | |
| 121,177 | ||
Construction Materials - 1.2% | |||
Eagle Materials, Inc. | 173,488 | 12,795 | |
James Hardie Industries PLC sponsored ADR | 172,873 | 7,978 | |
Vulcan Materials Co. | 392,923 | 21,053 | |
| 41,826 | ||
Paper & Forest Products - 0.4% | |||
Canfor Corp. (a) | 256,300 | 4,297 | |
Norbord, Inc. (d) | 268,500 | 8,785 | |
| 13,082 | ||
TOTAL MATERIALS | 176,085 | ||
TELECOMMUNICATION SERVICES - 0.7% | |||
Wireless Telecommunication Services - 0.7% | |||
SBA Communications Corp. Class A (a) | 329,888 | 24,831 | |
UTILITIES - 1.1% | |||
Electric Utilities - 1.1% | |||
ITC Holdings Corp. | 432,300 | 37,424 | |
TOTAL COMMON STOCKS (Cost $2,599,658) |
| ||
Money Market Funds - 4.9% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.12% (b) | 69,986,764 | $ 69,987 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 96,597,675 | 96,598 | |
TOTAL MONEY MARKET FUNDS (Cost $166,585) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $2,766,243) | 3,485,887 | ||
NET OTHER ASSETS (LIABILITIES) - (3.2)% | (107,817) | ||
NET ASSETS - 100% | $ 3,378,070 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 56 |
Fidelity Securities Lending Cash Central Fund | 314 |
Total | $ 370 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 700,683 | $ 692,967 | $ 7,716 | $ - |
Consumer Staples | 327,935 | 327,935 | - | - |
Energy | 154,255 | 154,255 | - | - |
Financials | 152,716 | 147,036 | 5,680 | - |
Health Care | 573,360 | 548,306 | 25,054 | - |
Industrials | 259,595 | 259,215 | 380 | - |
Information Technology | 912,418 | 912,418 | - | - |
Materials | 176,085 | 176,085 | - | - |
Telecommunication Services | 24,831 | 24,831 | - | - |
Utilities | 37,424 | 37,424 | - | - |
Money Market Funds | 166,585 | 166,585 | - | - |
Total Investments in Securities: | $ 3,485,887 | $ 3,447,057 | $ 38,830 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 88.8% |
Canada | 3.0% |
Bermuda | 1.6% |
Brazil | 1.5% |
United Kingdom | 1.1% |
Others (Individually Less Than 1%) | 4.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $91,004) - See accompanying schedule: Unaffiliated issuers (cost $2,599,658) | $ 3,319,302 |
|
Fidelity Central Funds (cost $166,585) | 166,585 |
|
Total Investments (cost $2,766,243) |
| $ 3,485,887 |
Cash |
| 136 |
Receivable for investments sold | 17,986 | |
Receivable for fund shares sold | 1,199 | |
Dividends receivable | 2,527 | |
Distributions receivable from Fidelity Central Funds | 95 | |
Prepaid expenses | 1 | |
Other receivables | 166 | |
Total assets | 3,507,997 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 27,521 | |
Payable for fund shares redeemed | 2,592 | |
Accrued management fee | 1,573 | |
Distribution and service plan fees payable | 770 | |
Other affiliated payables | 673 | |
Other payables and accrued expenses | 200 | |
Collateral on securities loaned, at value | 96,598 | |
Total liabilities | 129,927 | |
|
|
|
Net Assets | $ 3,378,070 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,507,789 | |
Accumulated net investment loss | (2,059) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (847,289) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 719,629 | |
Net Assets | $ 3,378,070 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 69.56 | |
|
|
|
Maximum offering price per share (100/94.25 of $69.56) | $ 73.80 | |
Class T: | $ 69.15 | |
|
|
|
Maximum offering price per share (100/96.50 of $69.15) | $ 71.66 | |
Class B: | $ 62.10 | |
|
|
|
Class C: | $ 63.14 | |
|
|
|
Institutional Class: | $ 74.13 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 18,407 |
Income from Fidelity Central Funds |
| 370 |
Total income |
| 18,777 |
|
|
|
Expenses | ||
Management fee | $ 8,900 | |
Transfer agent fees | 3,478 | |
Distribution and service plan fees | 4,421 | |
Accounting and security lending fees | 476 | |
Custodian fees and expenses | 62 | |
Independent trustees' compensation | 10 | |
Registration fees | 60 | |
Audit | 32 | |
Legal | 8 | |
Miscellaneous | 16 | |
Total expenses before reductions | 17,463 | |
Expense reductions | (348) | 17,115 |
Net investment income (loss) | 1,662 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 230,334 | |
Foreign currency transactions | (56) | |
Total net realized gain (loss) |
| 230,278 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 154,563 | |
Assets and liabilities in foreign currencies | (11) | |
Total change in net unrealized appreciation (depreciation) |
| 154,552 |
Net gain (loss) | 384,830 | |
Net increase (decrease) in net assets resulting from operations | $ 386,492 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,662 | $ 1,561 |
Net realized gain (loss) | 230,278 | 91,215 |
Change in net unrealized appreciation (depreciation) | 154,552 | 277,882 |
Net increase (decrease) in net assets resulting | 386,492 | 370,658 |
Distributions to shareholders from net investment income | (3,311) | - |
Distributions to shareholders from net realized gain | - | (6,141) |
Total distributions | (3,311) | (6,141) |
Share transactions - net increase (decrease) | 33,302 | (218,428) |
Total increase (decrease) in net assets | 416,483 | 146,089 |
|
|
|
Net Assets | ||
Beginning of period | 2,961,587 | 2,815,498 |
End of period (including accumulated net investment loss of $2,059 and accumulated net investment loss of $410, respectively) | $ 3,378,070 | $ 2,961,587 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 61.77 | $ 54.56 | $ 50.75 | $ 42.07 | $ 34.36 | $ 64.24 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .02 | (.04) | (.14) | (.01) | .11 |
Net realized and unrealized gain (loss) | 7.77 | 7.30 | 3.90 | 8.82 | 7.79 | (29.99) |
Total from investment operations | 7.79 | 7.32 | 3.86 | 8.68 | 7.78 | (29.88) |
Distributions from net investment income | - | - | - | - | (.06) | - |
Distributions from net realized gain | - | (.11) | (.05) | - | (.02) | - |
Total distributions | - | (.11) | (.05) | - | (.07) I | - |
Net asset value, end of period | $ 69.56 | $ 61.77 | $ 54.56 | $ 50.75 | $ 42.07 | $ 34.36 |
Total Return B, C, D | 12.61% | 13.45% | 7.61% | 20.63% | 22.71% | (46.51)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.13% A | 1.14% | 1.15% | 1.16% | 1.19% | 1.16% |
Expenses net of fee waivers, if any | 1.13% A | 1.14% | 1.15% | 1.16% | 1.19% | 1.16% |
Expenses net of all reductions | 1.11% A | 1.14% | 1.14% | 1.15% | 1.18% | 1.15% |
Net investment income (loss) | .06% A | .04% | (.08)% | (.31)% | (.04)% | .21% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 693 | $ 632 | $ 609 | $ 636 | $ 640 | $ 628 |
Portfolio turnover rate G | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 Total distributions of $.07 per share is comprised of distributions from net investment income of $.059 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 61.45 | $ 54.26 | $ 50.51 | $ 41.94 | $ 34.25 | $ 64.15 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.08) | (.14) | (.22) | (.09) | .02 |
Net realized and unrealized gain (loss) | 7.73 | 7.27 | 3.89 | 8.79 | 7.78 | (29.92) |
Total from investment operations | 7.70 | 7.19 | 3.75 | 8.57 | 7.69 | (29.90) |
Net asset value, end of period | $ 69.15 | $ 61.45 | $ 54.26 | $ 50.51 | $ 41.94 | $ 34.25 |
Total Return B, C, D | 12.53% | 13.25% | 7.42% | 20.43% | 22.45% | (46.61)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.30% A | 1.31% | 1.32% | 1.34% | 1.39% | 1.33% |
Expenses net of fee waivers, if any | 1.30% A | 1.31% | 1.32% | 1.34% | 1.39% | 1.33% |
Expenses net of all reductions | 1.28% A | 1.31% | 1.31% | 1.33% | 1.39% | 1.32% |
Net investment income (loss) | (.11)% A | (.13)% | (.25)% | (.48)% | (.24)% | .04% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,167 | $ 1,108 | $ 1,139 | $ 1,246 | $ 1,268 | $ 1,274 |
Portfolio turnover rate G | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 55.36 | $ 49.17 | $ 46.04 | $ 38.45 | $ 31.57 | $ 59.47 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.20) | (.39) | (.42) | (.44) | (.26) | (.28) |
Net realized and unrealized gain (loss) | 6.94 | 6.58 | 3.55 | 8.03 | 7.14 | (27.62) |
Total from investment operations | 6.74 | 6.19 | 3.13 | 7.59 | 6.88 | (27.90) |
Net asset value, end of period | $ 62.10 | $ 55.36 | $ 49.17 | $ 46.04 | $ 38.45 | $ 31.57 |
Total Return B, C, D | 12.17% | 12.59% | 6.80% | 19.74% | 21.79% | (46.91)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.89% A | 1.90% | 1.90% | 1.91% | 1.94% | 1.91% |
Expenses net of fee waivers, if any | 1.89% A | 1.90% | 1.90% | 1.91% | 1.94% | 1.91% |
Expenses net of all reductions | 1.87% A | 1.90% | 1.90% | 1.91% | 1.93% | 1.90% |
Net investment income (loss) | (.70)% A | (.72)% | (.83)% | (1.06)% | (.79)% | (.54)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 24 | $ 26 | $ 35 | $ 54 | $ 70 | $ 91 |
Portfolio turnover rate G | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 56.27 | $ 49.96 | $ 46.77 | $ 39.05 | $ 32.06 | $ 60.41 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.19) | (.37) | (.41) | (.44) | (.26) | (.27) |
Net realized and unrealized gain (loss) | 7.06 | 6.68 | 3.60 | 8.16 | 7.25 | (28.08) |
Total from investment operations | 6.87 | 6.31 | 3.19 | 7.72 | 6.99 | (28.35) |
Net asset value, end of period | $ 63.14 | $ 56.27 | $ 49.96 | $ 46.77 | $ 39.05 | $ 32.06 |
Total Return B, C, D | 12.21% | 12.63% | 6.82% | 19.77% | 21.80% | (46.93)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.85% A | 1.86% | 1.88% | 1.90% | 1.94% | 1.90% |
Expenses net of fee waivers, if any | 1.85% A | 1.86% | 1.88% | 1.90% | 1.94% | 1.90% |
Expenses net of all reductions | 1.83% A | 1.86% | 1.87% | 1.90% | 1.93% | 1.89% |
Net investment income (loss) | (.66)% A | (.68)% | (.81)% | (1.05)% | (.79)% | (.53)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 139 | $ 133 | $ 136 | $ 143 | $ 142 | $ 141 |
Portfolio turnover rate G | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 65.92 | $ 58.24 | $ 54.14 | $ 44.71 | $ 36.61 | $ 68.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .14 | .25 | .16 | .02 | .12 | .32 |
Net realized and unrealized gain (loss) | 8.27 | 7.75 | 4.16 | 9.41 | 8.27 | (31.92) |
Total from investment operations | 8.41 | 8.00 | 4.32 | 9.43 | 8.39 | (31.60) |
Distributions from net investment income | (.20) | - | - | - | (.27) | - |
Distributions from net realized gain | - | (.32) | (.22) | - | (.02) | - |
Total distributions | (.20) | (.32) | (.22) | - | (.29) H | - |
Net asset value, end of period | $ 74.13 | $ 65.92 | $ 58.24 | $ 54.14 | $ 44.71 | $ 36.61 |
Total Return B, C | 12.81% | 13.83% | 7.99% | 21.09% | 23.11% | (46.33)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .79% A | .80% | .80% | .80% | .85% | .80% |
Expenses net of fee waivers, if any | .79% A | .80% | .80% | .80% | .85% | .80% |
Expenses net of all reductions | .76% A | .79% | .79% | .80% | .84% | .79% |
Net investment income (loss) | .41% A | .39% | .27% | .05% | .30% | .57% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,356 | $ 1,063 | $ 897 | $ 973 | $ 983 | $ 934 |
Portfolio turnover rate F | 76% A | 73% | 70% | 71% | 135% | 164% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $.29 per share is comprised of distributions from net investment income of $.274 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 740,652 |
Gross unrealized depreciation | (28,279) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 712,373 |
|
|
Tax cost | $ 2,773,514 |
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.
Fiscal year of expiration |
|
2016 | $ (186,661) |
2017 | (858,583) |
Total capital loss carryforward | $ (1,045,244) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,221,474 and $1,186,286, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .55% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 814 | $ 3 |
Class T | .25% | .25% | 2,811 | 7 |
Class B | .75% | .25% | 124 | 93 |
Class C | .75% | .25% | 672 | 24 |
|
|
| $ 4,421 | $ 127 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 32 |
Class T | 14 |
Class B* | 11 |
Class C* | 4 |
| $ 61 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 921 | .28 |
Class T | 1,143 | .20 |
Class B | 37 | .30 |
Class C | 171 | .25 |
Institutional Class | 1,206 | .19 |
| $ 3,478 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $18 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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. 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 $314, including $4 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $348 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Institutional Class | $ 3,311 | $ - |
From net realized gain |
|
|
Class A | $ - | $ 1,215 |
Institutional Class | - | 4,926 |
Total | $ - | $ 6,141 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 713 | 1,382 | $ 46,940 | $ 82,422 |
Reinvestment of distributions | - | 21 | - | 1,098 |
Shares redeemed | (975) | (2,338) | (63,146) | (138,919) |
Net increase (decrease) | (262) | (935) | $ (16,206) | $ (55,399) |
Class T |
|
|
|
|
Shares sold | 913 | 2,021 | $ 58,909 | $ 120,048 |
Shares redeemed | (2,061) | (4,996) | (132,659) | (296,134) |
Net increase (decrease) | (1,148) | (2,975) | $ (73,750) | $ (176,086) |
Class B |
|
|
|
|
Shares sold | 4 | 5 | $ 261 | $ 239 |
Shares redeemed | (100) | (239) | (5,784) | (12,835) |
Net increase (decrease) | (96) | (234) | $ (5,523) | $ (12,596) |
Class C |
|
|
|
|
Shares sold | 71 | 154 | $ 4,178 | $ 8,368 |
Shares redeemed | (242) | (504) | (14,205) | (27,593) |
Net increase (decrease) | (171) | (350) | $ (10,027) | $ (19,225) |
Institutional Class |
|
|
|
|
Shares sold | 3,604 | 4,266 | $ 239,519 | $ 270,700 |
Reinvestment of distributions | 50 | 86 | 3,246 | 4,818 |
Shares redeemed | (1,488) | (3,622) | (103,957) | (230,640) |
Net increase (decrease) | 2,166 | 730 | $ 138,808 | $ 44,878 |
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, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 31% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPG-USAN-0713 1.786783.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Income
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,163.90 | $ 5.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.00 | $ 4.99 |
Class T | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,162.50 | $ 6.47 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.95 | $ 6.04 |
Class B | 1.80% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.20 | $ 9.69 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.96 | $ 9.05 |
Class C | 1.75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.60 | $ 9.42 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.21 | $ 8.80 |
Institutional Class | .72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,165.20 | $ 3.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.34 | $ 3.63 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 3.9 | 3.5 |
Chevron Corp. | 2.9 | 2.9 |
Wells Fargo & Co. | 2.8 | 2.7 |
Comcast Corp. Class A | 2.6 | 3.0 |
Procter & Gamble Co. | 2.4 | 2.9 |
Johnson & Johnson | 2.3 | 2.1 |
Exxon Mobil Corp. | 2.2 | 1.9 |
Cisco Systems, Inc. | 2.2 | 1.5 |
Paychex, Inc. | 2.2 | 2.1 |
General Electric Co. | 2.1 | 2.2 |
| 25.6 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 21.5 | 19.0 |
Health Care | 12.9 | 13.8 |
Energy | 12.3 | 13.6 |
Information Technology | 11.3 | 9.9 |
Industrials | 10.3 | 10.2 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 88.7% |
| Stocks 92.0% |
| ||||
Bonds 0.1% |
| Bonds 0.5% |
| ||||
Convertible |
| Convertible |
| ||||
Other Investments 0.4% |
| Other Investments 0.1% |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 9.9% |
| ** Foreign investments | 12.8% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 88.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 9.3% | |||
Auto Components - 0.2% | |||
Gentex Corp. | 217,433 | $ 4,973 | |
Diversified Consumer Services - 0.2% | |||
H&R Block, Inc. | 59,900 | 1,753 | |
Strayer Education, Inc. (e) | 56,747 | 3,035 | |
| 4,788 | ||
Hotels, Restaurants & Leisure - 1.4% | |||
McDonald's Corp. | 195,417 | 18,871 | |
Texas Roadhouse, Inc. Class A | 259,485 | 6,137 | |
Wynn Resorts Ltd. | 8,050 | 1,094 | |
Yum! Brands, Inc. | 112,383 | 7,614 | |
| 33,716 | ||
Leisure Equipment & Products - 0.4% | |||
New Academy Holding Co. LLC unit (a)(k)(l) | 52,800 | 8,715 | |
Media - 4.2% | |||
Comcast Corp. Class A | 1,536,845 | 61,704 | |
DIRECTV (a) | 41,398 | 2,531 | |
Sinclair Broadcast Group, Inc. Class A | 25,400 | 687 | |
Time Warner, Inc. | 580,275 | 33,871 | |
| 98,793 | ||
Multiline Retail - 1.8% | |||
Kohl's Corp. | 146,883 | 7,551 | |
Target Corp. | 507,567 | 35,276 | |
| 42,827 | ||
Specialty Retail - 0.9% | |||
Lowe's Companies, Inc. | 349,200 | 14,705 | |
Point, Inc. | 29,220 | 1,299 | |
Staples, Inc. | 324,533 | 4,868 | |
| 20,872 | ||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Coach, Inc. | 65,400 | 3,810 | |
TOTAL CONSUMER DISCRETIONARY | 218,494 | ||
CONSUMER STAPLES - 9.6% | |||
Beverages - 2.2% | |||
Anheuser-Busch InBev SA NV | 47,897 | 4,411 | |
Molson Coors Brewing Co. Class B | 164,505 | 8,128 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
PepsiCo, Inc. | 311,559 | $ 25,165 | |
The Coca-Cola Co. | 357,388 | 14,292 | |
| 51,996 | ||
Food & Staples Retailing - 2.4% | |||
CVS Caremark Corp. | 157,900 | 9,092 | |
Safeway, Inc. | 441,832 | 10,167 | |
Sysco Corp. | 106,868 | 3,612 | |
Wal-Mart Stores, Inc. | 145,850 | 10,915 | |
Walgreen Co. | 466,469 | 22,279 | |
| 56,065 | ||
Food Products - 0.9% | |||
Kellogg Co. | 337,652 | 20,951 | |
Household Products - 2.4% | |||
Procter & Gamble Co. | 751,190 | 57,661 | |
Tobacco - 1.7% | |||
Altria Group, Inc. | 436,065 | 15,742 | |
British American Tobacco PLC sponsored ADR | 52,431 | 5,755 | |
Lorillard, Inc. | 287,953 | 12,221 | |
Philip Morris International, Inc. | 71,878 | 6,534 | |
| 40,252 | ||
TOTAL CONSUMER STAPLES | 226,925 | ||
ENERGY - 11.4% | |||
Energy Equipment & Services - 1.3% | |||
Ensco PLC Class A | 68,900 | 4,146 | |
Halliburton Co. | 87,400 | 3,658 | |
National Oilwell Varco, Inc. | 69,605 | 4,893 | |
Noble Corp. | 237,517 | 9,204 | |
Schlumberger Ltd. | 65,900 | 4,813 | |
Trinidad Drilling Ltd. | 455,100 | 3,218 | |
| 29,932 | ||
Oil, Gas & Consumable Fuels - 10.1% | |||
Apache Corp. | 146,027 | 11,993 | |
BG Group PLC | 60,800 | 1,121 | |
Canadian Natural Resources Ltd. | 300,000 | 8,941 | |
Chevron Corp. | 556,069 | 68,257 | |
EV Energy Partners LP | 126,352 | 4,809 | |
Exxon Mobil Corp. | 584,172 | 52,850 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Holly Energy Partners LP | 109,512 | $ 3,938 | |
HollyFrontier Corp. | 73,449 | 3,636 | |
Legacy Reserves LP | 109,599 | 2,904 | |
Markwest Energy Partners LP | 164,388 | 10,823 | |
Occidental Petroleum Corp. | 198,603 | 18,285 | |
Penn West Petroleum Ltd. | 312,800 | 3,198 | |
Royal Dutch Shell PLC Class A sponsored ADR | 165,858 | 11,008 | |
Southcross Energy Partners LP | 51,650 | 1,160 | |
Suncor Energy, Inc. | 385,200 | 11,685 | |
The Williams Companies, Inc. | 557,425 | 19,610 | |
Tsakos Energy Navigation Ltd. | 290,077 | 1,410 | |
Western Gas Equity Partners LP | 16,228 | 607 | |
Williams Partners LP | 58,300 | 2,909 | |
| 239,144 | ||
TOTAL ENERGY | 269,076 | ||
FINANCIALS - 20.3% | |||
Capital Markets - 3.5% | |||
Apollo Investment Corp. | 686,552 | 5,692 | |
Artisan Partners Asset Management, Inc. | 49,078 | 2,293 | |
Ashmore Group PLC | 897,225 | 5,428 | |
BlackRock, Inc. Class A | 38,100 | 10,638 | |
Charles Schwab Corp. | 605,634 | 12,028 | |
Greenhill & Co., Inc. | 37,900 | 1,888 | |
KKR & Co. LP | 757,864 | 14,763 | |
Manning & Napier, Inc. Class A | 57,761 | 1,149 | |
Morgan Stanley | 611,944 | 15,849 | |
The Blackstone Group LP | 543,772 | 11,903 | |
| 81,631 | ||
Commercial Banks - 5.4% | |||
Comerica, Inc. | 122,480 | 4,837 | |
Cullen/Frost Bankers, Inc. (e) | 87,469 | 5,629 | |
M&T Bank Corp. (e) | 124,717 | 13,083 | |
PNC Financial Services Group, Inc. | 66,300 | 4,750 | |
Standard Chartered PLC (United Kingdom) | 333,833 | 7,796 | |
SunTrust Banks, Inc. | 228,901 | 7,345 | |
U.S. Bancorp | 530,600 | 18,603 | |
Wells Fargo & Co. | 1,597,550 | 64,781 | |
| 126,824 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - 4.8% | |||
Bank of America Corp. | 462,094 | $ 6,312 | |
JPMorgan Chase & Co. | 1,671,757 | 91,258 | |
KKR Financial Holdings LLC | 1,381,386 | 14,532 | |
| 112,102 | ||
Insurance - 4.8% | |||
ACE Ltd. | 196,911 | 17,659 | |
AFLAC, Inc. | 150,300 | 8,370 | |
Berkshire Hathaway, Inc. Class B (a) | 58,310 | 6,651 | |
esure Group PLC | 702,700 | 3,326 | |
Hanover Insurance Group, Inc. | 90,074 | 4,524 | |
MetLife, Inc. | 1,036,290 | 45,814 | |
MetLife, Inc. unit | 131,385 | 6,980 | |
Prudential Financial, Inc. | 150,600 | 10,387 | |
Validus Holdings Ltd. | 282,874 | 10,215 | |
| 113,926 | ||
Real Estate Investment Trusts - 1.7% | |||
American Capital Agency Corp. | 291,614 | 7,524 | |
Annaly Capital Management, Inc. | 480,000 | 6,518 | |
CommonWealth REIT | 99,342 | 2,031 | |
Coresite Realty Corp. | 20,320 | 653 | |
First Potomac Realty Trust | 133,536 | 1,827 | |
Home Properties, Inc. | 65,100 | 3,956 | |
Rayonier, Inc. | 112,252 | 6,219 | |
Retail Properties America, Inc. | 389,697 | 5,947 | |
Silver Bay Realty Trust Corp. | 9,038 | 161 | |
Two Harbors Investment Corp. | 288,015 | 3,177 | |
Ventas, Inc. | 39,294 | 2,804 | |
| 40,817 | ||
Real Estate Management & Development - 0.1% | |||
Beazer Pre-Owned Rental Homes, Inc. (k) | 96,000 | 2,016 | |
Thrifts & Mortgage Finance - 0.0% | |||
Radian Group, Inc. | 100 | 1 | |
TOTAL FINANCIALS | 477,317 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 11.9% | |||
Biotechnology - 0.5% | |||
Amgen, Inc. | 68,675 | $ 6,904 | |
PDL BioPharma, Inc. (e) | 493,705 | 4,073 | |
| 10,977 | ||
Health Care Equipment & Supplies - 0.6% | |||
Covidien PLC | 111,200 | 7,072 | |
St. Jude Medical, Inc. | 134,362 | 5,808 | |
| 12,880 | ||
Health Care Providers & Services - 2.5% | |||
Aetna, Inc. | 234,500 | 14,159 | |
McKesson Corp. | 33,310 | 3,793 | |
Quest Diagnostics, Inc. | 76,890 | 4,755 | |
UnitedHealth Group, Inc. | 243,939 | 15,278 | |
WellPoint, Inc. | 284,721 | 21,915 | |
| 59,900 | ||
Health Care Technology - 0.1% | |||
Quality Systems, Inc. | 133,972 | 2,395 | |
Pharmaceuticals - 8.2% | |||
AbbVie, Inc. | 232,256 | 9,915 | |
AstraZeneca PLC sponsored ADR | 309,552 | 15,865 | |
Eli Lilly & Co. | 211,770 | 11,258 | |
Johnson & Johnson | 636,418 | 53,574 | |
Merck & Co., Inc. | 1,035,560 | 48,361 | |
Pfizer, Inc. | 965,113 | 26,280 | |
Sanofi SA | 84,750 | 9,037 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 240,598 | 9,191 | |
Warner Chilcott PLC | 552,268 | 10,604 | |
| 194,085 | ||
TOTAL HEALTH CARE | 280,237 | ||
INDUSTRIALS - 9.6% | |||
Aerospace & Defense - 1.5% | |||
Raytheon Co. | 176,427 | 11,757 | |
The Boeing Co. | 11,322 | 1,121 | |
United Technologies Corp. | 234,207 | 22,226 | |
| 35,104 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Air Freight & Logistics - 1.7% | |||
C.H. Robinson Worldwide, Inc. | 195,900 | $ 11,106 | |
United Parcel Service, Inc. Class B | 346,190 | 29,738 | |
| 40,844 | ||
Commercial Services & Supplies - 1.2% | |||
Intrum Justitia AB | 253,384 | 5,346 | |
Republic Services, Inc. | 665,689 | 22,700 | |
| 28,046 | ||
Electrical Equipment - 0.5% | |||
Eaton Corp. PLC | 48,900 | 3,230 | |
Emerson Electric Co. | 81,900 | 4,706 | |
Hubbell, Inc. Class B | 46,369 | 4,657 | |
| 12,593 | ||
Industrial Conglomerates - 2.1% | |||
General Electric Co. | 2,164,361 | 50,473 | |
Machinery - 1.5% | |||
Briggs & Stratton Corp. | 49,327 | 1,154 | |
Cummins, Inc. | 43,237 | 5,172 | |
Douglas Dynamics, Inc. | 222,450 | 3,110 | |
Harsco Corp. | 98,487 | 2,303 | |
Illinois Tool Works, Inc. | 71,966 | 5,047 | |
Stanley Black & Decker, Inc. | 218,795 | 17,333 | |
| 34,119 | ||
Professional Services - 0.4% | |||
Acacia Research Corp. | 135,002 | 3,375 | |
Michael Page International PLC | 1,043,518 | 6,101 | |
| 9,476 | ||
Road & Rail - 0.4% | |||
Union Pacific Corp. | 52,494 | 8,117 | |
Trading Companies & Distributors - 0.3% | |||
Watsco, Inc. | 84,701 | 7,390 | |
TOTAL INDUSTRIALS | 226,162 | ||
INFORMATION TECHNOLOGY - 9.7% | |||
Communications Equipment - 2.2% | |||
Cisco Systems, Inc. | 2,178,630 | 52,461 | |
Computers & Peripherals - 0.6% | |||
Apple, Inc. | 28,168 | 12,667 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - 4.5% | |||
Accenture PLC Class A | 196,696 | $ 16,151 | |
Cognizant Technology Solutions Corp. Class A (a) | 76,117 | 4,921 | |
Fidelity National Information Services, Inc. | 44,271 | 1,988 | |
IBM Corp. | 139,473 | 29,013 | |
Paychex, Inc. | 1,355,732 | 50,474 | |
The Western Union Co. | 196,200 | 3,214 | |
| 105,761 | ||
Semiconductors & Semiconductor Equipment - 1.1% | |||
Applied Materials, Inc. | 1,069,777 | 16,261 | |
KLA-Tencor Corp. | 86,021 | 4,842 | |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 944,633 | 5,432 | |
| 26,535 | ||
Software - 1.3% | |||
CA Technologies, Inc. | 173,681 | 4,743 | |
Microsoft Corp. | 729,617 | 25,449 | |
| 30,192 | ||
TOTAL INFORMATION TECHNOLOGY | 227,616 | ||
MATERIALS - 0.4% | |||
Chemicals - 0.3% | |||
Eastman Chemical Co. | 44,800 | 3,213 | |
Monsanto Co. | 5,846 | 588 | |
RPM International, Inc. | 89,600 | 2,968 | |
| 6,769 | ||
Metals & Mining - 0.1% | |||
Commercial Metals Co. | 241,941 | 3,731 | |
TOTAL MATERIALS | 10,500 | ||
TELECOMMUNICATION SERVICES - 3.6% | |||
Diversified Telecommunication Services - 2.8% | |||
AT&T, Inc. | 686,827 | 24,032 | |
CenturyLink, Inc. | 189,838 | 6,483 | |
Verizon Communications, Inc. | 730,067 | 35,394 | |
| 65,909 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - 0.8% | |||
Vodafone Group PLC | 6,711,813 | $ 19,452 | |
TOTAL TELECOMMUNICATION SERVICES | 85,361 | ||
UTILITIES - 2.4% | |||
Electric Utilities - 1.6% | |||
FirstEnergy Corp. | 174,069 | 6,790 | |
Hawaiian Electric Industries, Inc. (e) | 146,400 | 3,831 | |
Northeast Utilities | 150,965 | 6,291 | |
PPL Corp. | 417,791 | 12,408 | |
Southern Co. | 203,241 | 8,922 | |
| 38,242 | ||
Multi-Utilities - 0.8% | |||
PG&E Corp. | 139,107 | 6,247 | |
Sempra Energy | 143,514 | 11,668 | |
| 17,915 | ||
TOTAL UTILITIES | 56,157 | ||
TOTAL COMMON STOCKS (Cost $1,739,057) |
| ||
Preferred Stocks - 2.5% | |||
|
|
|
|
Convertible Preferred Stocks - 2.0% | |||
CONSUMER DISCRETIONARY - 0.3% | |||
Automobiles - 0.2% | |||
General Motors Co. 4.75% | 112,600 | 5,496 | |
Media - 0.1% | |||
Interpublic Group of Companies, Inc. 5.25% | 2,000 | 2,494 | |
TOTAL CONSUMER DISCRETIONARY | 7,990 | ||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Apache Corp. 6.00% | 40,900 | 1,914 | |
FINANCIALS - 0.4% | |||
Commercial Banks - 0.3% | |||
Huntington Bancshares, Inc. 8.50% | 5,200 | 6,890 | |
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 0.1% | |||
Health Care REIT, Inc. Series I, 6.50% | 40,200 | $ 2,544 | |
TOTAL FINANCIALS | 9,434 | ||
HEALTH CARE - 0.3% | |||
Health Care Equipment & Supplies - 0.1% | |||
Alere, Inc. 3.00% | 10,339 | 2,453 | |
Health Care Providers & Services - 0.2% | |||
HealthSouth Corp. Series A, 6.50% | 3,500 | 4,274 | |
TOTAL HEALTH CARE | 6,727 | ||
INDUSTRIALS - 0.3% | |||
Aerospace & Defense - 0.3% | |||
United Technologies Corp. 7.50% | 98,200 | 5,925 | |
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
ArcelorMittal SA 6.00% | 64,000 | 1,348 | |
Cliffs Natural Resources, Inc. 7.00% | 57,500 | 1,088 | |
| 2,436 | ||
TELECOMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Intelsat SA Series A, 5.75% | 18,000 | 1,113 | |
UTILITIES - 0.5% | |||
Electric Utilities - 0.4% | |||
NextEra Energy, Inc.: | |||
5.889% | 55,144 | 2,960 | |
Series E, 5.599% | 56,900 | 3,097 | |
PPL Corp. 8.75% | 46,700 | 2,515 | |
| 8,572 | ||
Multi-Utilities - 0.1% | |||
CenterPoint Energy, Inc. 2.00% ZENS | 62,700 | 3,002 | |
TOTAL UTILITIES | 11,574 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 47,113 | ||
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Nonconvertible Preferred Stocks - 0.5% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Automobiles - 0.2% | |||
Volkswagen AG | 17,373 | $ 3,815 | |
FINANCIALS - 0.3% | |||
Consumer Finance - 0.3% | |||
Ally Financial, Inc. 7.00% (g) | 8,105 | 7,923 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 11,738 | ||
TOTAL PREFERRED STOCKS (Cost $50,691) |
|
Corporate Bonds - 3.9% | ||||
| Principal |
| ||
Convertible Bonds - 3.8% | ||||
CONSUMER DISCRETIONARY - 0.2% | ||||
Automobiles - 0.2% | ||||
Volkswagen International Finance NV 5.5% 11/9/15 (g) | EUR | 2,400 | 3,440 | |
ENERGY - 0.4% | ||||
Oil, Gas & Consumable Fuels - 0.4% | ||||
Alpha Natural Resources, Inc. 3.75% 12/15/17 | 3,690 | 3,898 | ||
Amyris, Inc. 3% 2/27/17 | 516 | 367 | ||
Chesapeake Energy Corp. 2.5% 5/15/37 | 2,840 | 2,831 | ||
Cobalt International Energy, Inc. 2.625% 12/1/19 | 1,220 | 1,321 | ||
Ship Finance International Ltd. 3.25% 2/1/18 | 1,990 | 2,008 | ||
| 10,425 | |||
FINANCIALS - 0.4% | ||||
Insurance - 0.2% | ||||
Fidelity National Financial, Inc. 4.25% 8/15/18 | 2,590 | 3,652 | ||
Thrifts & Mortgage Finance - 0.2% | ||||
MGIC Investment Corp. 9% 4/1/63 (g) | 3,390 | 3,930 | ||
Radian Group, Inc. 2.25% 3/1/19 | 1,080 | 1,490 | ||
| 5,420 | |||
TOTAL FINANCIALS | 9,072 | |||
Corporate Bonds - continued | ||||
| Principal | Value (000s) | ||
Convertible Bonds - continued | ||||
HEALTH CARE - 0.7% | ||||
Biotechnology - 0.1% | ||||
InterMune, Inc. 2.5% 12/15/17 | $ 240 | $ 263 | ||
Theravance, Inc. 2.125% 1/15/23 | 740 | 1,067 | ||
| 1,330 | |||
Health Care Equipment & Supplies - 0.1% | ||||
Teleflex, Inc. 3.875% 8/1/17 | 2,150 | 2,943 | ||
Health Care Providers & Services - 0.5% | ||||
Molina Healthcare, Inc. 1.125% 1/15/20 (g) | 2,030 | 2,272 | ||
WellPoint, Inc. 2.75% 10/15/42 (g) | 7,500 | 9,329 | ||
| 11,601 | |||
TOTAL HEALTH CARE | 15,874 | |||
INDUSTRIALS - 0.4% | ||||
Commercial Services & Supplies - 0.2% | ||||
Covanta Holding Corp. 3.25% 6/1/14 | 4,570 | 6,010 | ||
Construction & Engineering - 0.2% | ||||
MasTec, Inc.: | ||||
4% 6/15/14 | 1,580 | 3,218 | ||
4.25% 12/15/14 | 460 | 960 | ||
| 4,178 | |||
TOTAL INDUSTRIALS | 10,188 | |||
INFORMATION TECHNOLOGY - 1.6% | ||||
Communications Equipment - 0.2% | ||||
InterDigital, Inc. 2.5% 3/15/16 | 3,480 | 3,837 | ||
Liberty Interactive LLC 0.75% 3/30/43 (g) | 800 | 843 | ||
| 4,680 | |||
Computers & Peripherals - 0.4% | ||||
EMC Corp. 1.75% 12/1/13 | 3,890 | 6,001 | ||
SanDisk Corp. 1.5% 8/15/17 | 2,030 | 2,701 | ||
| 8,702 | |||
Internet Software & Services - 0.1% | ||||
VeriSign, Inc. 3.25% 8/15/37 | 1,690 | 2,516 | ||
Semiconductors & Semiconductor Equipment - 0.6% | ||||
GT Advanced Technologies, Inc. 3% 10/1/17 | 4,390 | 3,954 | ||
Intel Corp. 3.25% 8/1/39 | 3,620 | 4,706 | ||
Corporate Bonds - continued | ||||
| Principal | Value (000s) | ||
Convertible Bonds - continued | ||||
INFORMATION TECHNOLOGY - continued | ||||
Semiconductors & Semiconductor Equipment - continued | ||||
Micron Technology, Inc.: | ||||
1.625% 2/15/33 (g) | $ 300 | $ 381 | ||
2.125% 2/15/33 (g) | 160 | 203 | ||
3.125% 5/1/32 (g) | 3,160 | 4,385 | ||
| 13,629 | |||
Software - 0.3% | ||||
Nuance Communications, Inc.: | ||||
2.75% 8/15/27 | 1,140 | 1,357 | ||
2.75% 11/1/31 | 6,750 | 6,995 | ||
| 8,352 | |||
TOTAL INFORMATION TECHNOLOGY | 37,879 | |||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (g) | 1,530 | 1,690 | ||
TOTAL CONVERTIBLE BONDS | 88,568 | |||
Nonconvertible Bonds - 0.1% | ||||
FINANCIALS - 0.1% | ||||
Consumer Finance - 0.0% | ||||
GMAC LLC 8% 11/1/31 | 645 | 832 | ||
Diversified Financial Services - 0.1% | ||||
Goldman Sachs Capital II 4% (h)(i) | 2,885 | 2,496 | ||
TOTAL FINANCIALS | 3,328 | |||
TOTAL CORPORATE BONDS (Cost $82,389) |
|
Other - 0.4% | |||
Principal |
| Value (000s) | |
ENERGY - 0.4% | |||
Oil, Gas & Consumable Fuels - 0.4% | |||
EQTY ER Holdings, LLC 12% 1/28/18 (f)(j)(k) | $ 5,667 |
| $ 5,667 |
Shares |
| ||
EQTY ER Holdings, LLC (f)(j)(k) | 2,833,333 |
| 2,833 |
TOTAL OTHER (Cost $8,500) |
|
| |
Money Market Funds - 5.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 120,743,298 | 120,743 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 11,580,425 | 11,580 | |
TOTAL MONEY MARKET FUNDS (Cost $132,323) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $2,012,960) | 2,369,415 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (14,316) | ||
NET ASSETS - 100% | $ 2,355,099 |
Currency Abbreviations | ||
EUR | - | European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(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 $34,396,000 or 1.5% of net assets. |
(h) Security is perpetual in nature with no stated maturity date. |
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(j) Investments represent a non-operating interest in oil and gas wells through an entity owned by the fund that is treated as a corporation for U.S. tax purposes. |
(k) 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 $19,231,000 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. | 5/3/12 - 10/23/12 | $ 1,920 |
EQTY ER Holdings, LLC 12% 1/28/18 | 1/29/13 | $ 5,667 |
EQTY ER Holdings, LLC | 1/29/13 | $ 2,833 |
New Academy Holding Co. LLC unit | 8/1/11 | $ 5,565 |
(l) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
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 | $ 56 |
Fidelity Securities Lending Cash Central Fund | 328 |
Total | $ 384 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales Proceeds | Dividend Income | Value, |
EQTY ER Holdings, LLC 12% 1/28/18 | $ - | $ 5,667 | $ - | $ - | $ 5,667 |
EQTY ER Holdings, LLC | - | 2,833 | - | - | 2,833 |
Total | $ - | $ 8,500 | $ - | $ - | $ 8,500 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 230,299 | $ 217,791 | $ 3,793 | $ 8,715 |
Consumer Staples | 226,925 | 222,514 | 4,411 | - |
Energy | 270,990 | 270,990 | - | - |
Financials | 494,674 | 475,211 | 17,447 | 2,016 |
Health Care | 286,964 | 273,653 | 13,311 | - |
Industrials | 232,087 | 232,087 | - | - |
Information Technology | 227,616 | 227,616 | - | - |
Materials | 12,936 | 10,500 | 2,436 | - |
Telecommunication Services | 86,474 | 67,022 | 19,452 | - |
Utilities | 67,731 | 59,254 | 8,477 | - |
Corporate Bonds | 91,896 | 1,357 | 90,539 | - |
Other/Energy | 8,500 | - | - | 8,500 |
Money Market Funds | 132,323 | 132,323 | - | - |
Total Investments in Securities: | $ 2,369,415 | $ 2,190,318 | $ 159,866 | $ 19,231 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $11,103) - See accompanying schedule: Unaffiliated issuers (cost $1,872,137) | $ 2,228,592 |
|
Fidelity Central Funds (cost $132,323) | 132,323 |
|
Other affiliated issuers (cost $8,500) | 8,500 |
|
Total Investments (cost $2,012,960) |
| $ 2,369,415 |
Cash |
| 171 |
Receivable for investments sold | 4,508 | |
Receivable for fund shares sold | 968 | |
Dividends receivable | 5,835 | |
Interest receivable | 672 | |
Distributions receivable from Fidelity Central Funds | 56 | |
Prepaid expenses | 1 | |
Other receivables | 113 | |
Total assets | 2,381,739 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 9,938 | |
Payable for fund shares redeemed | 2,888 | |
Accrued management fee | 899 | |
Distribution and service plan fees payable | 715 | |
Other affiliated payables | 486 | |
Other payables and accrued expenses | 134 | |
Collateral on securities loaned, at value | 11,580 | |
Total liabilities | 26,640 | |
|
|
|
Net Assets | $ 2,355,099 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,210,808 | |
Undistributed net investment income | 9,193 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (221,346) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 356,444 | |
Net Assets | $ 2,355,099 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 29.35 | |
|
|
|
Maximum offering price per share (100/94.25 of $29.35) | $ 31.14 | |
Class T: | $ 29.80 | |
|
|
|
Maximum offering price per share (100/96.50 of $29.80) | $ 30.88 | |
Class B: | $ 29.52 | |
|
|
|
Class C: | $ 29.48 | |
|
|
|
|
|
|
Institutional Class: | $ 30.29 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 33,486 |
Interest |
| 1,732 |
Income from Fidelity Central Funds |
| 384 |
Total income |
| 35,602 |
|
|
|
Expenses | ||
Management fee | $ 5,100 | |
Transfer agent fees | 2,506 | |
Distribution and service plan fees | 4,043 | |
Accounting and security lending fees | 339 | |
Custodian fees and expenses | 23 | |
Independent trustees' compensation | 7 | |
Registration fees | 61 | |
Audit | 36 | |
Legal | 4 | |
Miscellaneous | 10 | |
Total expenses before reductions | 12,129 | |
Expense reductions | (196) | 11,933 |
Net investment income (loss) | 23,669 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 97,559 | |
Foreign currency transactions | (20) | |
Total net realized gain (loss) |
| 97,539 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 215,196 | |
Assets and liabilities in foreign currencies | (8) | |
Total change in net unrealized appreciation (depreciation) |
| 215,188 |
Net gain (loss) | 312,727 | |
Net increase (decrease) in net assets resulting from operations | $ 336,396 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 23,669 | $ 50,901 |
Net realized gain (loss) | 97,539 | 109,033 |
Change in net unrealized appreciation (depreciation) | 215,188 | 183,817 |
Net increase (decrease) in net assets resulting | 336,396 | 343,751 |
Distributions to shareholders from net investment income | (24,329) | (45,384) |
Distributions to shareholders from net realized gain | (2,444) | - |
Total distributions | (26,773) | (45,384) |
Share transactions - net increase (decrease) | (73,913) | (210,314) |
Total increase (decrease) in net assets | 235,710 | 88,053 |
|
|
|
Net Assets | ||
Beginning of period | 2,119,389 | 2,031,336 |
End of period (including undistributed net investment income of $9,193 and undistributed net investment income of $9,853, respectively) | $ 2,355,099 | $ 2,119,389 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.55 | $ 22.18 | $ 21.07 | $ 20.26 | $ 16.72 | $ 30.63 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .30 | .61 | .42 | .25 | .28 | .36 |
Net realized and unrealized gain (loss) | 3.84 | 3.32 | 1.11 | .81 | 3.58 | (12.22) |
Total from investment operations | 4.14 | 3.93 | 1.53 | 1.06 | 3.86 | (11.86) |
Distributions from net investment income | (.31) | (.56) | (.42) | (.25) | (.32) | (.37) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.34) | (.56) | (.42) | (.25) | (.32) | (2.05) |
Net asset value, end of period | $ 29.35 | $ 25.55 | $ 22.18 | $ 21.07 | $ 20.26 | $ 16.72 |
Total Return B, C, D | 16.39% | 17.90% | 7.25% | 5.26% | 23.58% | (41.34)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .99% A | 1.02% | 1.03% | 1.04% | 1.07% | 1.01% |
Expenses net of fee waivers, if any | .99% A | 1.02% | 1.03% | 1.04% | 1.07% | 1.01% |
Expenses net of all reductions | .97% A | 1.01% | 1.02% | 1.04% | 1.07% | 1.00% |
Net investment income (loss) | 2.20% A | 2.52% | 1.82% | 1.21% | 1.67% | 1.46% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 723 | $ 646 | $ 634 | $ 719 | $ 831 | $ 801 |
Portfolio turnover rate G | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.94 | $ 22.50 | $ 21.37 | $ 20.54 | $ 16.94 | $ 31.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .28 | .57 | .38 | .22 | .25 | .31 |
Net realized and unrealized gain (loss) | 3.90 | 3.37 | 1.13 | .82 | 3.63 | (12.39) |
Total from investment operations | 4.18 | 3.94 | 1.51 | 1.04 | 3.88 | (12.08) |
Distributions from net investment income | (.29) | (.50) | (.38) | (.21) | (.28) | (.31) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.32) | (.50) | (.38) | (.21) | (.28) | (1.99) |
Net asset value, end of period | $ 29.80 | $ 25.94 | $ 22.50 | $ 21.37 | $ 20.54 | $ 16.94 |
Total Return B, C, D | 16.25% | 17.70% | 7.02% | 5.09% | 23.35% | (41.49)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.20% A | 1.21% | 1.22% | 1.23% | 1.28% | 1.21% |
Expenses net of fee waivers, if any | 1.20% A | 1.21% | 1.22% | 1.23% | 1.28% | 1.21% |
Expenses net of all reductions | 1.18% A | 1.21% | 1.21% | 1.22% | 1.27% | 1.21% |
Net investment income (loss) | 1.99% A | 2.32% | 1.63% | 1.03% | 1.47% | 1.25% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 942 | $ 854 | $ 862 | $ 1,108 | $ 1,264 | $ 1,286 |
Portfolio turnover rate G | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.69 | $ 22.29 | $ 21.16 | $ 20.33 | $ 16.77 | $ 30.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .19 | .42 | .24 | .09 | .15 | .17 |
Net realized and unrealized gain (loss) | 3.87 | 3.34 | 1.12 | .82 | 3.59 | (12.26) |
Total from investment operations | 4.06 | 3.76 | 1.36 | .91 | 3.74 | (12.09) |
Distributions from net investment income | (.20) | (.36) | (.23) | (.08) | (.18) | (.13) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.23) | (.36) | (.23) | (.08) | (.18) | (1.81) |
Net asset value, end of period | $ 29.52 | $ 25.69 | $ 22.29 | $ 21.16 | $ 20.33 | $ 16.77 |
Total Return B, C, D | 15.92% | 16.97% | 6.43% | 4.49% | 22.59% | (41.80)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.80% A | 1.80% | 1.81% | 1.82% | 1.84% | 1.80% |
Expenses net of fee waivers, if any | 1.80% A | 1.80% | 1.81% | 1.82% | 1.84% | 1.80% |
Expenses net of all reductions | 1.78% A | 1.80% | 1.80% | 1.81% | 1.84% | 1.80% |
Net investment income (loss) | 1.39% A | 1.73% | 1.04% | .44% | .90% | .66% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 29 | $ 31 | $ 42 | $ 63 | $ 88 | $ 115 |
Portfolio turnover rate G | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.66 | $ 22.27 | $ 21.16 | $ 20.34 | $ 16.78 | $ 30.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .20 | .43 | .25 | .09 | .16 | .17 |
Net realized and unrealized gain (loss) | 3.86 | 3.33 | 1.11 | .82 | 3.59 | (12.26) |
Total from investment operations | 4.06 | 3.76 | 1.36 | .91 | 3.75 | (12.09) |
Distributions from net investment income | (.21) | (.37) | (.25) | (.09) | (.19) | (.15) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.24) | (.37) | (.25) | (.09) | (.19) | (1.83) |
Net asset value, end of period | $ 29.48 | $ 25.66 | $ 22.27 | $ 21.16 | $ 20.34 | $ 16.78 |
Total Return B, C, D | 15.96% | 17.03% | 6.40% | 4.50% | 22.63% | (41.79)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.75% A | 1.77% | 1.78% | 1.80% | 1.83% | 1.77% |
Expenses net of fee waivers, if any | 1.75% A | 1.77% | 1.78% | 1.80% | 1.83% | 1.77% |
Expenses net of all reductions | 1.73% A | 1.77% | 1.77% | 1.79% | 1.83% | 1.77% |
Net investment income (loss) | 1.45% A | 1.76% | 1.06% | .46% | .91% | .70% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 171 | $ 143 | $ 134 | $ 149 | $ 165 | $ 170 |
Portfolio turnover rate G | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 26.36 | $ 22.86 | $ 21.70 | $ 20.85 | $ 17.20 | $ 31.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .35 | .70 | .50 | .32 | .34 | .44 |
Net realized and unrealized gain (loss) | 3.96 | 3.43 | 1.14 | .83 | 3.68 | (12.57) |
Total from investment operations | 4.31 | 4.13 | 1.64 | 1.15 | 4.02 | (12.13) |
Distributions from net investment income | (.35) | (.63) | (.48) | (.30) | (.37) | (.45) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.38) | (.63) | (.48) | (.30) | (.37) | (2.13) |
Net asset value, end of period | $ 30.29 | $ 26.36 | $ 22.86 | $ 21.70 | $ 20.85 | $ 17.20 |
Total Return B, C | 16.52% | 18.27% | 7.55% | 5.56% | 23.90% | (41.18)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .72% A | .73% | .74% | .77% | .79% | .72% |
Expenses net of fee waivers, if any | .72% A | .73% | .74% | .77% | .79% | .72% |
Expenses net of all reductions | .71% A | .73% | .73% | .76% | .78% | .72% |
Net investment income (loss) | 2.47% A | 2.80% | 2.10% | 1.49% | 1.96% | 1.75% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 489 | $ 445 | $ 360 | $ 464 | $ 1,127 | $ 1,249 |
Portfolio turnover rate F | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, equity-debt classifications, deferred trustee compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 383,973 |
Gross unrealized depreciation | (38,487) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 345,486 |
|
|
Tax cost | $ 2,023,929 |
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.
Fiscal year of expiration |
|
2017 | $ (302,542) |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $365,370 and $509,631, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .45% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 858 | $ 4 |
Class T | .25% | .25% | 2,255 | 4 |
Class B | .75% | .25% | 153 | 115 |
Class C | .75% | .25% | 777 | 67 |
|
|
| $ 4,043 | $ 190 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 69 |
Class T | 20 |
Class B* | 12 |
Class C* | 3 |
| $ 104 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 836 | .24 |
Class T | 899 | .20 |
Class B | 46 | .30 |
Class C | 195 | .25 |
Institutional Class | 530 | .23 |
| $ 2,506 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $7 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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 $328, including $1 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $195 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 7,854 | $ 14,971 |
Class T | 9,266 | 17,872 |
Class B | 233 | 544 |
Class C | 1,183 | 2,166 |
Institutional Class | 5,793 | 9,831 |
Total | $ 24,329 | $ 45,384 |
From net realized gain |
|
|
Class A | $ 754 | $ - |
Class T | 982 | - |
Class B | 36 | - |
Class C | 167 | - |
Institutional Class | 505 | - |
Total | $ 2,444 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,704 | 3,213 | $ 47,162 | $ 77,551 |
Reinvestment of distributions | 304 | 577 | 7,936 | 13,763 |
Shares redeemed | (2,655) | (7,076) | (72,684) | (170,494) |
Net increase (decrease) | (647) | (3,286) | $ (17,586) | $ (79,180) |
Class T |
|
|
|
|
Shares sold | 2,127 | 3,722 | $ 59,781 | $ 91,180 |
Reinvestment of distributions | 372 | 709 | 9,838 | 17,138 |
Shares redeemed | (3,804) | (9,817) | (106,052) | (240,587) |
Net increase (decrease) | (1,305) | (5,386) | $ (36,433) | $ (132,269) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 20 | 27 | $ 541 | $ 663 |
Reinvestment of distributions | 9 | 21 | 245 | 492 |
Shares redeemed | (261) | (695) | (7,222) | (16,864) |
Net increase (decrease) | (232) | (647) | $ (6,436) | $ (15,709) |
Class C |
|
|
|
|
Shares sold | 715 | 618 | $ 20,003 | $ 15,024 |
Reinvestment of distributions | 45 | 79 | 1,180 | 1,896 |
Shares redeemed | (528) | (1,166) | (14,539) | (28,340) |
Net increase (decrease) | 232 | (469) | $ 6,644 | $ (11,420) |
Institutional Class |
|
|
|
|
Shares sold | 1,140 | 5,436 | $ 32,192 | $ 134,907 |
Reinvestment of distributions | 224 | 377 | 6,047 | 9,300 |
Shares redeemed | (2,085) | (4,659) | (58,341) | (115,943) |
Net increase (decrease) | (721) | 1,154 | $ (20,102) | $ 28,264 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPII-USAN-0713 1.786786.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Income
Fund - Class A, Class T, Class B and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,163.90 | $ 5.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.00 | $ 4.99 |
Class T | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,162.50 | $ 6.47 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.95 | $ 6.04 |
Class B | 1.80% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.20 | $ 9.69 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.96 | $ 9.05 |
Class C | 1.75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.60 | $ 9.42 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.21 | $ 8.80 |
Institutional Class | .72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,165.20 | $ 3.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.34 | $ 3.63 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 3.9 | 3.5 |
Chevron Corp. | 2.9 | 2.9 |
Wells Fargo & Co. | 2.8 | 2.7 |
Comcast Corp. Class A | 2.6 | 3.0 |
Procter & Gamble Co. | 2.4 | 2.9 |
Johnson & Johnson | 2.3 | 2.1 |
Exxon Mobil Corp. | 2.2 | 1.9 |
Cisco Systems, Inc. | 2.2 | 1.5 |
Paychex, Inc. | 2.2 | 2.1 |
General Electric Co. | 2.1 | 2.2 |
| 25.6 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 21.5 | 19.0 |
Health Care | 12.9 | 13.8 |
Energy | 12.3 | 13.6 |
Information Technology | 11.3 | 9.9 |
Industrials | 10.3 | 10.2 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 88.7% |
| Stocks 92.0% |
| ||||
Bonds 0.1% |
| Bonds 0.5% |
| ||||
Convertible |
| Convertible |
| ||||
Other Investments 0.4% |
| Other Investments 0.1% |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 9.9% |
| ** Foreign investments | 12.8% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 88.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 9.3% | |||
Auto Components - 0.2% | |||
Gentex Corp. | 217,433 | $ 4,973 | |
Diversified Consumer Services - 0.2% | |||
H&R Block, Inc. | 59,900 | 1,753 | |
Strayer Education, Inc. (e) | 56,747 | 3,035 | |
| 4,788 | ||
Hotels, Restaurants & Leisure - 1.4% | |||
McDonald's Corp. | 195,417 | 18,871 | |
Texas Roadhouse, Inc. Class A | 259,485 | 6,137 | |
Wynn Resorts Ltd. | 8,050 | 1,094 | |
Yum! Brands, Inc. | 112,383 | 7,614 | |
| 33,716 | ||
Leisure Equipment & Products - 0.4% | |||
New Academy Holding Co. LLC unit (a)(k)(l) | 52,800 | 8,715 | |
Media - 4.2% | |||
Comcast Corp. Class A | 1,536,845 | 61,704 | |
DIRECTV (a) | 41,398 | 2,531 | |
Sinclair Broadcast Group, Inc. Class A | 25,400 | 687 | |
Time Warner, Inc. | 580,275 | 33,871 | |
| 98,793 | ||
Multiline Retail - 1.8% | |||
Kohl's Corp. | 146,883 | 7,551 | |
Target Corp. | 507,567 | 35,276 | |
| 42,827 | ||
Specialty Retail - 0.9% | |||
Lowe's Companies, Inc. | 349,200 | 14,705 | |
Point, Inc. | 29,220 | 1,299 | |
Staples, Inc. | 324,533 | 4,868 | |
| 20,872 | ||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Coach, Inc. | 65,400 | 3,810 | |
TOTAL CONSUMER DISCRETIONARY | 218,494 | ||
CONSUMER STAPLES - 9.6% | |||
Beverages - 2.2% | |||
Anheuser-Busch InBev SA NV | 47,897 | 4,411 | |
Molson Coors Brewing Co. Class B | 164,505 | 8,128 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
PepsiCo, Inc. | 311,559 | $ 25,165 | |
The Coca-Cola Co. | 357,388 | 14,292 | |
| 51,996 | ||
Food & Staples Retailing - 2.4% | |||
CVS Caremark Corp. | 157,900 | 9,092 | |
Safeway, Inc. | 441,832 | 10,167 | |
Sysco Corp. | 106,868 | 3,612 | |
Wal-Mart Stores, Inc. | 145,850 | 10,915 | |
Walgreen Co. | 466,469 | 22,279 | |
| 56,065 | ||
Food Products - 0.9% | |||
Kellogg Co. | 337,652 | 20,951 | |
Household Products - 2.4% | |||
Procter & Gamble Co. | 751,190 | 57,661 | |
Tobacco - 1.7% | |||
Altria Group, Inc. | 436,065 | 15,742 | |
British American Tobacco PLC sponsored ADR | 52,431 | 5,755 | |
Lorillard, Inc. | 287,953 | 12,221 | |
Philip Morris International, Inc. | 71,878 | 6,534 | |
| 40,252 | ||
TOTAL CONSUMER STAPLES | 226,925 | ||
ENERGY - 11.4% | |||
Energy Equipment & Services - 1.3% | |||
Ensco PLC Class A | 68,900 | 4,146 | |
Halliburton Co. | 87,400 | 3,658 | |
National Oilwell Varco, Inc. | 69,605 | 4,893 | |
Noble Corp. | 237,517 | 9,204 | |
Schlumberger Ltd. | 65,900 | 4,813 | |
Trinidad Drilling Ltd. | 455,100 | 3,218 | |
| 29,932 | ||
Oil, Gas & Consumable Fuels - 10.1% | |||
Apache Corp. | 146,027 | 11,993 | |
BG Group PLC | 60,800 | 1,121 | |
Canadian Natural Resources Ltd. | 300,000 | 8,941 | |
Chevron Corp. | 556,069 | 68,257 | |
EV Energy Partners LP | 126,352 | 4,809 | |
Exxon Mobil Corp. | 584,172 | 52,850 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Holly Energy Partners LP | 109,512 | $ 3,938 | |
HollyFrontier Corp. | 73,449 | 3,636 | |
Legacy Reserves LP | 109,599 | 2,904 | |
Markwest Energy Partners LP | 164,388 | 10,823 | |
Occidental Petroleum Corp. | 198,603 | 18,285 | |
Penn West Petroleum Ltd. | 312,800 | 3,198 | |
Royal Dutch Shell PLC Class A sponsored ADR | 165,858 | 11,008 | |
Southcross Energy Partners LP | 51,650 | 1,160 | |
Suncor Energy, Inc. | 385,200 | 11,685 | |
The Williams Companies, Inc. | 557,425 | 19,610 | |
Tsakos Energy Navigation Ltd. | 290,077 | 1,410 | |
Western Gas Equity Partners LP | 16,228 | 607 | |
Williams Partners LP | 58,300 | 2,909 | |
| 239,144 | ||
TOTAL ENERGY | 269,076 | ||
FINANCIALS - 20.3% | |||
Capital Markets - 3.5% | |||
Apollo Investment Corp. | 686,552 | 5,692 | |
Artisan Partners Asset Management, Inc. | 49,078 | 2,293 | |
Ashmore Group PLC | 897,225 | 5,428 | |
BlackRock, Inc. Class A | 38,100 | 10,638 | |
Charles Schwab Corp. | 605,634 | 12,028 | |
Greenhill & Co., Inc. | 37,900 | 1,888 | |
KKR & Co. LP | 757,864 | 14,763 | |
Manning & Napier, Inc. Class A | 57,761 | 1,149 | |
Morgan Stanley | 611,944 | 15,849 | |
The Blackstone Group LP | 543,772 | 11,903 | |
| 81,631 | ||
Commercial Banks - 5.4% | |||
Comerica, Inc. | 122,480 | 4,837 | |
Cullen/Frost Bankers, Inc. (e) | 87,469 | 5,629 | |
M&T Bank Corp. (e) | 124,717 | 13,083 | |
PNC Financial Services Group, Inc. | 66,300 | 4,750 | |
Standard Chartered PLC (United Kingdom) | 333,833 | 7,796 | |
SunTrust Banks, Inc. | 228,901 | 7,345 | |
U.S. Bancorp | 530,600 | 18,603 | |
Wells Fargo & Co. | 1,597,550 | 64,781 | |
| 126,824 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - 4.8% | |||
Bank of America Corp. | 462,094 | $ 6,312 | |
JPMorgan Chase & Co. | 1,671,757 | 91,258 | |
KKR Financial Holdings LLC | 1,381,386 | 14,532 | |
| 112,102 | ||
Insurance - 4.8% | |||
ACE Ltd. | 196,911 | 17,659 | |
AFLAC, Inc. | 150,300 | 8,370 | |
Berkshire Hathaway, Inc. Class B (a) | 58,310 | 6,651 | |
esure Group PLC | 702,700 | 3,326 | |
Hanover Insurance Group, Inc. | 90,074 | 4,524 | |
MetLife, Inc. | 1,036,290 | 45,814 | |
MetLife, Inc. unit | 131,385 | 6,980 | |
Prudential Financial, Inc. | 150,600 | 10,387 | |
Validus Holdings Ltd. | 282,874 | 10,215 | |
| 113,926 | ||
Real Estate Investment Trusts - 1.7% | |||
American Capital Agency Corp. | 291,614 | 7,524 | |
Annaly Capital Management, Inc. | 480,000 | 6,518 | |
CommonWealth REIT | 99,342 | 2,031 | |
Coresite Realty Corp. | 20,320 | 653 | |
First Potomac Realty Trust | 133,536 | 1,827 | |
Home Properties, Inc. | 65,100 | 3,956 | |
Rayonier, Inc. | 112,252 | 6,219 | |
Retail Properties America, Inc. | 389,697 | 5,947 | |
Silver Bay Realty Trust Corp. | 9,038 | 161 | |
Two Harbors Investment Corp. | 288,015 | 3,177 | |
Ventas, Inc. | 39,294 | 2,804 | |
| 40,817 | ||
Real Estate Management & Development - 0.1% | |||
Beazer Pre-Owned Rental Homes, Inc. (k) | 96,000 | 2,016 | |
Thrifts & Mortgage Finance - 0.0% | |||
Radian Group, Inc. | 100 | 1 | |
TOTAL FINANCIALS | 477,317 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 11.9% | |||
Biotechnology - 0.5% | |||
Amgen, Inc. | 68,675 | $ 6,904 | |
PDL BioPharma, Inc. (e) | 493,705 | 4,073 | |
| 10,977 | ||
Health Care Equipment & Supplies - 0.6% | |||
Covidien PLC | 111,200 | 7,072 | |
St. Jude Medical, Inc. | 134,362 | 5,808 | |
| 12,880 | ||
Health Care Providers & Services - 2.5% | |||
Aetna, Inc. | 234,500 | 14,159 | |
McKesson Corp. | 33,310 | 3,793 | |
Quest Diagnostics, Inc. | 76,890 | 4,755 | |
UnitedHealth Group, Inc. | 243,939 | 15,278 | |
WellPoint, Inc. | 284,721 | 21,915 | |
| 59,900 | ||
Health Care Technology - 0.1% | |||
Quality Systems, Inc. | 133,972 | 2,395 | |
Pharmaceuticals - 8.2% | |||
AbbVie, Inc. | 232,256 | 9,915 | |
AstraZeneca PLC sponsored ADR | 309,552 | 15,865 | |
Eli Lilly & Co. | 211,770 | 11,258 | |
Johnson & Johnson | 636,418 | 53,574 | |
Merck & Co., Inc. | 1,035,560 | 48,361 | |
Pfizer, Inc. | 965,113 | 26,280 | |
Sanofi SA | 84,750 | 9,037 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 240,598 | 9,191 | |
Warner Chilcott PLC | 552,268 | 10,604 | |
| 194,085 | ||
TOTAL HEALTH CARE | 280,237 | ||
INDUSTRIALS - 9.6% | |||
Aerospace & Defense - 1.5% | |||
Raytheon Co. | 176,427 | 11,757 | |
The Boeing Co. | 11,322 | 1,121 | |
United Technologies Corp. | 234,207 | 22,226 | |
| 35,104 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Air Freight & Logistics - 1.7% | |||
C.H. Robinson Worldwide, Inc. | 195,900 | $ 11,106 | |
United Parcel Service, Inc. Class B | 346,190 | 29,738 | |
| 40,844 | ||
Commercial Services & Supplies - 1.2% | |||
Intrum Justitia AB | 253,384 | 5,346 | |
Republic Services, Inc. | 665,689 | 22,700 | |
| 28,046 | ||
Electrical Equipment - 0.5% | |||
Eaton Corp. PLC | 48,900 | 3,230 | |
Emerson Electric Co. | 81,900 | 4,706 | |
Hubbell, Inc. Class B | 46,369 | 4,657 | |
| 12,593 | ||
Industrial Conglomerates - 2.1% | |||
General Electric Co. | 2,164,361 | 50,473 | |
Machinery - 1.5% | |||
Briggs & Stratton Corp. | 49,327 | 1,154 | |
Cummins, Inc. | 43,237 | 5,172 | |
Douglas Dynamics, Inc. | 222,450 | 3,110 | |
Harsco Corp. | 98,487 | 2,303 | |
Illinois Tool Works, Inc. | 71,966 | 5,047 | |
Stanley Black & Decker, Inc. | 218,795 | 17,333 | |
| 34,119 | ||
Professional Services - 0.4% | |||
Acacia Research Corp. | 135,002 | 3,375 | |
Michael Page International PLC | 1,043,518 | 6,101 | |
| 9,476 | ||
Road & Rail - 0.4% | |||
Union Pacific Corp. | 52,494 | 8,117 | |
Trading Companies & Distributors - 0.3% | |||
Watsco, Inc. | 84,701 | 7,390 | |
TOTAL INDUSTRIALS | 226,162 | ||
INFORMATION TECHNOLOGY - 9.7% | |||
Communications Equipment - 2.2% | |||
Cisco Systems, Inc. | 2,178,630 | 52,461 | |
Computers & Peripherals - 0.6% | |||
Apple, Inc. | 28,168 | 12,667 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - 4.5% | |||
Accenture PLC Class A | 196,696 | $ 16,151 | |
Cognizant Technology Solutions Corp. Class A (a) | 76,117 | 4,921 | |
Fidelity National Information Services, Inc. | 44,271 | 1,988 | |
IBM Corp. | 139,473 | 29,013 | |
Paychex, Inc. | 1,355,732 | 50,474 | |
The Western Union Co. | 196,200 | 3,214 | |
| 105,761 | ||
Semiconductors & Semiconductor Equipment - 1.1% | |||
Applied Materials, Inc. | 1,069,777 | 16,261 | |
KLA-Tencor Corp. | 86,021 | 4,842 | |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 944,633 | 5,432 | |
| 26,535 | ||
Software - 1.3% | |||
CA Technologies, Inc. | 173,681 | 4,743 | |
Microsoft Corp. | 729,617 | 25,449 | |
| 30,192 | ||
TOTAL INFORMATION TECHNOLOGY | 227,616 | ||
MATERIALS - 0.4% | |||
Chemicals - 0.3% | |||
Eastman Chemical Co. | 44,800 | 3,213 | |
Monsanto Co. | 5,846 | 588 | |
RPM International, Inc. | 89,600 | 2,968 | |
| 6,769 | ||
Metals & Mining - 0.1% | |||
Commercial Metals Co. | 241,941 | 3,731 | |
TOTAL MATERIALS | 10,500 | ||
TELECOMMUNICATION SERVICES - 3.6% | |||
Diversified Telecommunication Services - 2.8% | |||
AT&T, Inc. | 686,827 | 24,032 | |
CenturyLink, Inc. | 189,838 | 6,483 | |
Verizon Communications, Inc. | 730,067 | 35,394 | |
| 65,909 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - 0.8% | |||
Vodafone Group PLC | 6,711,813 | $ 19,452 | |
TOTAL TELECOMMUNICATION SERVICES | 85,361 | ||
UTILITIES - 2.4% | |||
Electric Utilities - 1.6% | |||
FirstEnergy Corp. | 174,069 | 6,790 | |
Hawaiian Electric Industries, Inc. (e) | 146,400 | 3,831 | |
Northeast Utilities | 150,965 | 6,291 | |
PPL Corp. | 417,791 | 12,408 | |
Southern Co. | 203,241 | 8,922 | |
| 38,242 | ||
Multi-Utilities - 0.8% | |||
PG&E Corp. | 139,107 | 6,247 | |
Sempra Energy | 143,514 | 11,668 | |
| 17,915 | ||
TOTAL UTILITIES | 56,157 | ||
TOTAL COMMON STOCKS (Cost $1,739,057) |
| ||
Preferred Stocks - 2.5% | |||
|
|
|
|
Convertible Preferred Stocks - 2.0% | |||
CONSUMER DISCRETIONARY - 0.3% | |||
Automobiles - 0.2% | |||
General Motors Co. 4.75% | 112,600 | 5,496 | |
Media - 0.1% | |||
Interpublic Group of Companies, Inc. 5.25% | 2,000 | 2,494 | |
TOTAL CONSUMER DISCRETIONARY | 7,990 | ||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Apache Corp. 6.00% | 40,900 | 1,914 | |
FINANCIALS - 0.4% | |||
Commercial Banks - 0.3% | |||
Huntington Bancshares, Inc. 8.50% | 5,200 | 6,890 | |
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 0.1% | |||
Health Care REIT, Inc. Series I, 6.50% | 40,200 | $ 2,544 | |
TOTAL FINANCIALS | 9,434 | ||
HEALTH CARE - 0.3% | |||
Health Care Equipment & Supplies - 0.1% | |||
Alere, Inc. 3.00% | 10,339 | 2,453 | |
Health Care Providers & Services - 0.2% | |||
HealthSouth Corp. Series A, 6.50% | 3,500 | 4,274 | |
TOTAL HEALTH CARE | 6,727 | ||
INDUSTRIALS - 0.3% | |||
Aerospace & Defense - 0.3% | |||
United Technologies Corp. 7.50% | 98,200 | 5,925 | |
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
ArcelorMittal SA 6.00% | 64,000 | 1,348 | |
Cliffs Natural Resources, Inc. 7.00% | 57,500 | 1,088 | |
| 2,436 | ||
TELECOMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Intelsat SA Series A, 5.75% | 18,000 | 1,113 | |
UTILITIES - 0.5% | |||
Electric Utilities - 0.4% | |||
NextEra Energy, Inc.: | |||
5.889% | 55,144 | 2,960 | |
Series E, 5.599% | 56,900 | 3,097 | |
PPL Corp. 8.75% | 46,700 | 2,515 | |
| 8,572 | ||
Multi-Utilities - 0.1% | |||
CenterPoint Energy, Inc. 2.00% ZENS | 62,700 | 3,002 | |
TOTAL UTILITIES | 11,574 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 47,113 | ||
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Nonconvertible Preferred Stocks - 0.5% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Automobiles - 0.2% | |||
Volkswagen AG | 17,373 | $ 3,815 | |
FINANCIALS - 0.3% | |||
Consumer Finance - 0.3% | |||
Ally Financial, Inc. 7.00% (g) | 8,105 | 7,923 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 11,738 | ||
TOTAL PREFERRED STOCKS (Cost $50,691) |
|
Corporate Bonds - 3.9% | ||||
| Principal |
| ||
Convertible Bonds - 3.8% | ||||
CONSUMER DISCRETIONARY - 0.2% | ||||
Automobiles - 0.2% | ||||
Volkswagen International Finance NV 5.5% 11/9/15 (g) | EUR | 2,400 | 3,440 | |
ENERGY - 0.4% | ||||
Oil, Gas & Consumable Fuels - 0.4% | ||||
Alpha Natural Resources, Inc. 3.75% 12/15/17 | 3,690 | 3,898 | ||
Amyris, Inc. 3% 2/27/17 | 516 | 367 | ||
Chesapeake Energy Corp. 2.5% 5/15/37 | 2,840 | 2,831 | ||
Cobalt International Energy, Inc. 2.625% 12/1/19 | 1,220 | 1,321 | ||
Ship Finance International Ltd. 3.25% 2/1/18 | 1,990 | 2,008 | ||
| 10,425 | |||
FINANCIALS - 0.4% | ||||
Insurance - 0.2% | ||||
Fidelity National Financial, Inc. 4.25% 8/15/18 | 2,590 | 3,652 | ||
Thrifts & Mortgage Finance - 0.2% | ||||
MGIC Investment Corp. 9% 4/1/63 (g) | 3,390 | 3,930 | ||
Radian Group, Inc. 2.25% 3/1/19 | 1,080 | 1,490 | ||
| 5,420 | |||
TOTAL FINANCIALS | 9,072 | |||
Corporate Bonds - continued | ||||
| Principal | Value (000s) | ||
Convertible Bonds - continued | ||||
HEALTH CARE - 0.7% | ||||
Biotechnology - 0.1% | ||||
InterMune, Inc. 2.5% 12/15/17 | $ 240 | $ 263 | ||
Theravance, Inc. 2.125% 1/15/23 | 740 | 1,067 | ||
| 1,330 | |||
Health Care Equipment & Supplies - 0.1% | ||||
Teleflex, Inc. 3.875% 8/1/17 | 2,150 | 2,943 | ||
Health Care Providers & Services - 0.5% | ||||
Molina Healthcare, Inc. 1.125% 1/15/20 (g) | 2,030 | 2,272 | ||
WellPoint, Inc. 2.75% 10/15/42 (g) | 7,500 | 9,329 | ||
| 11,601 | |||
TOTAL HEALTH CARE | 15,874 | |||
INDUSTRIALS - 0.4% | ||||
Commercial Services & Supplies - 0.2% | ||||
Covanta Holding Corp. 3.25% 6/1/14 | 4,570 | 6,010 | ||
Construction & Engineering - 0.2% | ||||
MasTec, Inc.: | ||||
4% 6/15/14 | 1,580 | 3,218 | ||
4.25% 12/15/14 | 460 | 960 | ||
| 4,178 | |||
TOTAL INDUSTRIALS | 10,188 | |||
INFORMATION TECHNOLOGY - 1.6% | ||||
Communications Equipment - 0.2% | ||||
InterDigital, Inc. 2.5% 3/15/16 | 3,480 | 3,837 | ||
Liberty Interactive LLC 0.75% 3/30/43 (g) | 800 | 843 | ||
| 4,680 | |||
Computers & Peripherals - 0.4% | ||||
EMC Corp. 1.75% 12/1/13 | 3,890 | 6,001 | ||
SanDisk Corp. 1.5% 8/15/17 | 2,030 | 2,701 | ||
| 8,702 | |||
Internet Software & Services - 0.1% | ||||
VeriSign, Inc. 3.25% 8/15/37 | 1,690 | 2,516 | ||
Semiconductors & Semiconductor Equipment - 0.6% | ||||
GT Advanced Technologies, Inc. 3% 10/1/17 | 4,390 | 3,954 | ||
Intel Corp. 3.25% 8/1/39 | 3,620 | 4,706 | ||
Corporate Bonds - continued | ||||
| Principal | Value (000s) | ||
Convertible Bonds - continued | ||||
INFORMATION TECHNOLOGY - continued | ||||
Semiconductors & Semiconductor Equipment - continued | ||||
Micron Technology, Inc.: | ||||
1.625% 2/15/33 (g) | $ 300 | $ 381 | ||
2.125% 2/15/33 (g) | 160 | 203 | ||
3.125% 5/1/32 (g) | 3,160 | 4,385 | ||
| 13,629 | |||
Software - 0.3% | ||||
Nuance Communications, Inc.: | ||||
2.75% 8/15/27 | 1,140 | 1,357 | ||
2.75% 11/1/31 | 6,750 | 6,995 | ||
| 8,352 | |||
TOTAL INFORMATION TECHNOLOGY | 37,879 | |||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (g) | 1,530 | 1,690 | ||
TOTAL CONVERTIBLE BONDS | 88,568 | |||
Nonconvertible Bonds - 0.1% | ||||
FINANCIALS - 0.1% | ||||
Consumer Finance - 0.0% | ||||
GMAC LLC 8% 11/1/31 | 645 | 832 | ||
Diversified Financial Services - 0.1% | ||||
Goldman Sachs Capital II 4% (h)(i) | 2,885 | 2,496 | ||
TOTAL FINANCIALS | 3,328 | |||
TOTAL CORPORATE BONDS (Cost $82,389) |
|
Other - 0.4% | |||
Principal |
| Value (000s) | |
ENERGY - 0.4% | |||
Oil, Gas & Consumable Fuels - 0.4% | |||
EQTY ER Holdings, LLC 12% 1/28/18 (f)(j)(k) | $ 5,667 |
| $ 5,667 |
Shares |
| ||
EQTY ER Holdings, LLC (f)(j)(k) | 2,833,333 |
| 2,833 |
TOTAL OTHER (Cost $8,500) |
|
| |
Money Market Funds - 5.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 120,743,298 | 120,743 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 11,580,425 | 11,580 | |
TOTAL MONEY MARKET FUNDS (Cost $132,323) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $2,012,960) | 2,369,415 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (14,316) | ||
NET ASSETS - 100% | $ 2,355,099 |
Currency Abbreviations | ||
EUR | - | European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(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 $34,396,000 or 1.5% of net assets. |
(h) Security is perpetual in nature with no stated maturity date. |
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(j) Investments represent a non-operating interest in oil and gas wells through an entity owned by the fund that is treated as a corporation for U.S. tax purposes. |
(k) 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 $19,231,000 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. | 5/3/12 - 10/23/12 | $ 1,920 |
EQTY ER Holdings, LLC 12% 1/28/18 | 1/29/13 | $ 5,667 |
EQTY ER Holdings, LLC | 1/29/13 | $ 2,833 |
New Academy Holding Co. LLC unit | 8/1/11 | $ 5,565 |
(l) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
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 | $ 56 |
Fidelity Securities Lending Cash Central Fund | 328 |
Total | $ 384 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales Proceeds | Dividend Income | Value, |
EQTY ER Holdings, LLC 12% 1/28/18 | $ - | $ 5,667 | $ - | $ - | $ 5,667 |
EQTY ER Holdings, LLC | - | 2,833 | - | - | 2,833 |
Total | $ - | $ 8,500 | $ - | $ - | $ 8,500 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 230,299 | $ 217,791 | $ 3,793 | $ 8,715 |
Consumer Staples | 226,925 | 222,514 | 4,411 | - |
Energy | 270,990 | 270,990 | - | - |
Financials | 494,674 | 475,211 | 17,447 | 2,016 |
Health Care | 286,964 | 273,653 | 13,311 | - |
Industrials | 232,087 | 232,087 | - | - |
Information Technology | 227,616 | 227,616 | - | - |
Materials | 12,936 | 10,500 | 2,436 | - |
Telecommunication Services | 86,474 | 67,022 | 19,452 | - |
Utilities | 67,731 | 59,254 | 8,477 | - |
Corporate Bonds | 91,896 | 1,357 | 90,539 | - |
Other/Energy | 8,500 | - | - | 8,500 |
Money Market Funds | 132,323 | 132,323 | - | - |
Total Investments in Securities: | $ 2,369,415 | $ 2,190,318 | $ 159,866 | $ 19,231 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $11,103) - See accompanying schedule: Unaffiliated issuers (cost $1,872,137) | $ 2,228,592 |
|
Fidelity Central Funds (cost $132,323) | 132,323 |
|
Other affiliated issuers (cost $8,500) | 8,500 |
|
Total Investments (cost $2,012,960) |
| $ 2,369,415 |
Cash |
| 171 |
Receivable for investments sold | 4,508 | |
Receivable for fund shares sold | 968 | |
Dividends receivable | 5,835 | |
Interest receivable | 672 | |
Distributions receivable from Fidelity Central Funds | 56 | |
Prepaid expenses | 1 | |
Other receivables | 113 | |
Total assets | 2,381,739 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 9,938 | |
Payable for fund shares redeemed | 2,888 | |
Accrued management fee | 899 | |
Distribution and service plan fees payable | 715 | |
Other affiliated payables | 486 | |
Other payables and accrued expenses | 134 | |
Collateral on securities loaned, at value | 11,580 | |
Total liabilities | 26,640 | |
|
|
|
Net Assets | $ 2,355,099 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,210,808 | |
Undistributed net investment income | 9,193 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (221,346) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 356,444 | |
Net Assets | $ 2,355,099 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 29.35 | |
|
|
|
Maximum offering price per share (100/94.25 of $29.35) | $ 31.14 | |
Class T: | $ 29.80 | |
|
|
|
Maximum offering price per share (100/96.50 of $29.80) | $ 30.88 | |
Class B: | $ 29.52 | |
|
|
|
Class C: | $ 29.48 | |
|
|
|
|
|
|
Institutional Class: | $ 30.29 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 33,486 |
Interest |
| 1,732 |
Income from Fidelity Central Funds |
| 384 |
Total income |
| 35,602 |
|
|
|
Expenses | ||
Management fee | $ 5,100 | |
Transfer agent fees | 2,506 | |
Distribution and service plan fees | 4,043 | |
Accounting and security lending fees | 339 | |
Custodian fees and expenses | 23 | |
Independent trustees' compensation | 7 | |
Registration fees | 61 | |
Audit | 36 | |
Legal | 4 | |
Miscellaneous | 10 | |
Total expenses before reductions | 12,129 | |
Expense reductions | (196) | 11,933 |
Net investment income (loss) | 23,669 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 97,559 | |
Foreign currency transactions | (20) | |
Total net realized gain (loss) |
| 97,539 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 215,196 | |
Assets and liabilities in foreign currencies | (8) | |
Total change in net unrealized appreciation (depreciation) |
| 215,188 |
Net gain (loss) | 312,727 | |
Net increase (decrease) in net assets resulting from operations | $ 336,396 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 23,669 | $ 50,901 |
Net realized gain (loss) | 97,539 | 109,033 |
Change in net unrealized appreciation (depreciation) | 215,188 | 183,817 |
Net increase (decrease) in net assets resulting | 336,396 | 343,751 |
Distributions to shareholders from net investment income | (24,329) | (45,384) |
Distributions to shareholders from net realized gain | (2,444) | - |
Total distributions | (26,773) | (45,384) |
Share transactions - net increase (decrease) | (73,913) | (210,314) |
Total increase (decrease) in net assets | 235,710 | 88,053 |
|
|
|
Net Assets | ||
Beginning of period | 2,119,389 | 2,031,336 |
End of period (including undistributed net investment income of $9,193 and undistributed net investment income of $9,853, respectively) | $ 2,355,099 | $ 2,119,389 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.55 | $ 22.18 | $ 21.07 | $ 20.26 | $ 16.72 | $ 30.63 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .30 | .61 | .42 | .25 | .28 | .36 |
Net realized and unrealized gain (loss) | 3.84 | 3.32 | 1.11 | .81 | 3.58 | (12.22) |
Total from investment operations | 4.14 | 3.93 | 1.53 | 1.06 | 3.86 | (11.86) |
Distributions from net investment income | (.31) | (.56) | (.42) | (.25) | (.32) | (.37) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.34) | (.56) | (.42) | (.25) | (.32) | (2.05) |
Net asset value, end of period | $ 29.35 | $ 25.55 | $ 22.18 | $ 21.07 | $ 20.26 | $ 16.72 |
Total Return B, C, D | 16.39% | 17.90% | 7.25% | 5.26% | 23.58% | (41.34)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .99% A | 1.02% | 1.03% | 1.04% | 1.07% | 1.01% |
Expenses net of fee waivers, if any | .99% A | 1.02% | 1.03% | 1.04% | 1.07% | 1.01% |
Expenses net of all reductions | .97% A | 1.01% | 1.02% | 1.04% | 1.07% | 1.00% |
Net investment income (loss) | 2.20% A | 2.52% | 1.82% | 1.21% | 1.67% | 1.46% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 723 | $ 646 | $ 634 | $ 719 | $ 831 | $ 801 |
Portfolio turnover rate G | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.94 | $ 22.50 | $ 21.37 | $ 20.54 | $ 16.94 | $ 31.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .28 | .57 | .38 | .22 | .25 | .31 |
Net realized and unrealized gain (loss) | 3.90 | 3.37 | 1.13 | .82 | 3.63 | (12.39) |
Total from investment operations | 4.18 | 3.94 | 1.51 | 1.04 | 3.88 | (12.08) |
Distributions from net investment income | (.29) | (.50) | (.38) | (.21) | (.28) | (.31) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.32) | (.50) | (.38) | (.21) | (.28) | (1.99) |
Net asset value, end of period | $ 29.80 | $ 25.94 | $ 22.50 | $ 21.37 | $ 20.54 | $ 16.94 |
Total Return B, C, D | 16.25% | 17.70% | 7.02% | 5.09% | 23.35% | (41.49)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.20% A | 1.21% | 1.22% | 1.23% | 1.28% | 1.21% |
Expenses net of fee waivers, if any | 1.20% A | 1.21% | 1.22% | 1.23% | 1.28% | 1.21% |
Expenses net of all reductions | 1.18% A | 1.21% | 1.21% | 1.22% | 1.27% | 1.21% |
Net investment income (loss) | 1.99% A | 2.32% | 1.63% | 1.03% | 1.47% | 1.25% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 942 | $ 854 | $ 862 | $ 1,108 | $ 1,264 | $ 1,286 |
Portfolio turnover rate G | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.69 | $ 22.29 | $ 21.16 | $ 20.33 | $ 16.77 | $ 30.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .19 | .42 | .24 | .09 | .15 | .17 |
Net realized and unrealized gain (loss) | 3.87 | 3.34 | 1.12 | .82 | 3.59 | (12.26) |
Total from investment operations | 4.06 | 3.76 | 1.36 | .91 | 3.74 | (12.09) |
Distributions from net investment income | (.20) | (.36) | (.23) | (.08) | (.18) | (.13) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.23) | (.36) | (.23) | (.08) | (.18) | (1.81) |
Net asset value, end of period | $ 29.52 | $ 25.69 | $ 22.29 | $ 21.16 | $ 20.33 | $ 16.77 |
Total Return B, C, D | 15.92% | 16.97% | 6.43% | 4.49% | 22.59% | (41.80)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.80% A | 1.80% | 1.81% | 1.82% | 1.84% | 1.80% |
Expenses net of fee waivers, if any | 1.80% A | 1.80% | 1.81% | 1.82% | 1.84% | 1.80% |
Expenses net of all reductions | 1.78% A | 1.80% | 1.80% | 1.81% | 1.84% | 1.80% |
Net investment income (loss) | 1.39% A | 1.73% | 1.04% | .44% | .90% | .66% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 29 | $ 31 | $ 42 | $ 63 | $ 88 | $ 115 |
Portfolio turnover rate G | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.66 | $ 22.27 | $ 21.16 | $ 20.34 | $ 16.78 | $ 30.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .20 | .43 | .25 | .09 | .16 | .17 |
Net realized and unrealized gain (loss) | 3.86 | 3.33 | 1.11 | .82 | 3.59 | (12.26) |
Total from investment operations | 4.06 | 3.76 | 1.36 | .91 | 3.75 | (12.09) |
Distributions from net investment income | (.21) | (.37) | (.25) | (.09) | (.19) | (.15) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.24) | (.37) | (.25) | (.09) | (.19) | (1.83) |
Net asset value, end of period | $ 29.48 | $ 25.66 | $ 22.27 | $ 21.16 | $ 20.34 | $ 16.78 |
Total Return B, C, D | 15.96% | 17.03% | 6.40% | 4.50% | 22.63% | (41.79)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.75% A | 1.77% | 1.78% | 1.80% | 1.83% | 1.77% |
Expenses net of fee waivers, if any | 1.75% A | 1.77% | 1.78% | 1.80% | 1.83% | 1.77% |
Expenses net of all reductions | 1.73% A | 1.77% | 1.77% | 1.79% | 1.83% | 1.77% |
Net investment income (loss) | 1.45% A | 1.76% | 1.06% | .46% | .91% | .70% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 171 | $ 143 | $ 134 | $ 149 | $ 165 | $ 170 |
Portfolio turnover rate G | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30 | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 26.36 | $ 22.86 | $ 21.70 | $ 20.85 | $ 17.20 | $ 31.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .35 | .70 | .50 | .32 | .34 | .44 |
Net realized and unrealized gain (loss) | 3.96 | 3.43 | 1.14 | .83 | 3.68 | (12.57) |
Total from investment operations | 4.31 | 4.13 | 1.64 | 1.15 | 4.02 | (12.13) |
Distributions from net investment income | (.35) | (.63) | (.48) | (.30) | (.37) | (.45) |
Distributions from net realized gain | (.03) | - | - | - | - | (1.68) |
Total distributions | (.38) | (.63) | (.48) | (.30) | (.37) | (2.13) |
Net asset value, end of period | $ 30.29 | $ 26.36 | $ 22.86 | $ 21.70 | $ 20.85 | $ 17.20 |
Total Return B, C | 16.52% | 18.27% | 7.55% | 5.56% | 23.90% | (41.18)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .72% A | .73% | .74% | .77% | .79% | .72% |
Expenses net of fee waivers, if any | .72% A | .73% | .74% | .77% | .79% | .72% |
Expenses net of all reductions | .71% A | .73% | .73% | .76% | .78% | .72% |
Net investment income (loss) | 2.47% A | 2.80% | 2.10% | 1.49% | 1.96% | 1.75% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 489 | $ 445 | $ 360 | $ 464 | $ 1,127 | $ 1,249 |
Portfolio turnover rate F | 34% A | 49% | 89% | 29% | 76% | 78% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, equity-debt classifications, deferred trustee compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 383,973 |
Gross unrealized depreciation | (38,487) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 345,486 |
|
|
Tax cost | $ 2,023,929 |
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.
Fiscal year of expiration |
|
2017 | $ (302,542) |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $365,370 and $509,631, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .45% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 858 | $ 4 |
Class T | .25% | .25% | 2,255 | 4 |
Class B | .75% | .25% | 153 | 115 |
Class C | .75% | .25% | 777 | 67 |
|
|
| $ 4,043 | $ 190 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 69 |
Class T | 20 |
Class B* | 12 |
Class C* | 3 |
| $ 104 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 836 | .24 |
Class T | 899 | .20 |
Class B | 46 | .30 |
Class C | 195 | .25 |
Institutional Class | 530 | .23 |
| $ 2,506 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $7 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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 $328, including $1 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $195 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 7,854 | $ 14,971 |
Class T | 9,266 | 17,872 |
Class B | 233 | 544 |
Class C | 1,183 | 2,166 |
Institutional Class | 5,793 | 9,831 |
Total | $ 24,329 | $ 45,384 |
From net realized gain |
|
|
Class A | $ 754 | $ - |
Class T | 982 | - |
Class B | 36 | - |
Class C | 167 | - |
Institutional Class | 505 | - |
Total | $ 2,444 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,704 | 3,213 | $ 47,162 | $ 77,551 |
Reinvestment of distributions | 304 | 577 | 7,936 | 13,763 |
Shares redeemed | (2,655) | (7,076) | (72,684) | (170,494) |
Net increase (decrease) | (647) | (3,286) | $ (17,586) | $ (79,180) |
Class T |
|
|
|
|
Shares sold | 2,127 | 3,722 | $ 59,781 | $ 91,180 |
Reinvestment of distributions | 372 | 709 | 9,838 | 17,138 |
Shares redeemed | (3,804) | (9,817) | (106,052) | (240,587) |
Net increase (decrease) | (1,305) | (5,386) | $ (36,433) | $ (132,269) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 20 | 27 | $ 541 | $ 663 |
Reinvestment of distributions | 9 | 21 | 245 | 492 |
Shares redeemed | (261) | (695) | (7,222) | (16,864) |
Net increase (decrease) | (232) | (647) | $ (6,436) | $ (15,709) |
Class C |
|
|
|
|
Shares sold | 715 | 618 | $ 20,003 | $ 15,024 |
Reinvestment of distributions | 45 | 79 | 1,180 | 1,896 |
Shares redeemed | (528) | (1,166) | (14,539) | (28,340) |
Net increase (decrease) | 232 | (469) | $ 6,644 | $ (11,420) |
Institutional Class |
|
|
|
|
Shares sold | 1,140 | 5,436 | $ 32,192 | $ 134,907 |
Reinvestment of distributions | 224 | 377 | 6,047 | 9,300 |
Shares redeemed | (2,085) | (4,659) | (58,341) | (115,943) |
Net increase (decrease) | (721) | 1,154 | $ (20,102) | $ 28,264 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPI-USAN-0713 1.786785.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Value
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) website at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,174.20 | $ 6.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.70 | $ 6.29 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,173.40 | $ 8.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.45 | $ 7.54 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,170.50 | $ 10.82 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.96 | $ 10.05 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,170.30 | $ 10.82 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.96 | $ 10.05 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.60 | $ 5.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.24 | $ 4.73 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Chevron Corp. | 4.8 | 4.5 |
Berkshire Hathaway, Inc. Class B | 3.9 | 3.8 |
Exxon Mobil Corp. | 3.6 | 3.7 |
Wells Fargo & Co. | 3.4 | 3.0 |
JPMorgan Chase & Co. | 3.1 | 2.1 |
Cisco Systems, Inc. | 2.5 | 2.0 |
Merck & Co., Inc. | 2.2 | 2.2 |
U.S. Bancorp | 2.0 | 2.0 |
UnitedHealth Group, Inc. | 1.9 | 1.8 |
CVS Caremark Corp. | 1.8 | 1.6 |
| 29.2 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 25.7 | 23.9 |
Health Care | 16.2 | 14.7 |
Energy | 14.4 | 12.0 |
Information Technology | 12.2 | 10.2 |
Consumer Discretionary | 11.5 | 11.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 98.0% |
| Stocks 97.8% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 14.6% |
| ** Foreign investments | 14.7% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 11.5% | |||
Diversified Consumer Services - 0.5% | |||
Steiner Leisure Ltd. (a) | 7,400 | $ 375,846 | |
Media - 5.9% | |||
Comcast Corp. Class A | 32,850 | 1,318,928 | |
John Wiley & Sons, Inc. Class A | 14,115 | 560,366 | |
The Walt Disney Co. | 12,695 | 800,801 | |
Time Warner Cable, Inc. | 8,757 | 836,381 | |
Viacom, Inc. Class B (non-vtg.) | 13,600 | 896,104 | |
| 4,412,580 | ||
Multiline Retail - 2.5% | |||
Kohl's Corp. | 9,400 | 483,254 | |
Macy's, Inc. | 11,547 | 558,182 | |
Target Corp. | 11,300 | 785,350 | |
| 1,826,786 | ||
Specialty Retail - 2.2% | |||
Advance Auto Parts, Inc. | 7,700 | 627,704 | |
American Eagle Outfitters, Inc. | 24,788 | 490,555 | |
AutoZone, Inc. (a) | 1,315 | 537,611 | |
| 1,655,870 | ||
Textiles, Apparel & Luxury Goods - 0.4% | |||
Coach, Inc. | 4,800 | 279,648 | |
TOTAL CONSUMER DISCRETIONARY | 8,550,730 | ||
CONSUMER STAPLES - 6.9% | |||
Food & Staples Retailing - 2.9% | |||
CVS Caremark Corp. | 23,400 | 1,347,372 | |
Walgreen Co. | 17,900 | 854,904 | |
| 2,202,276 | ||
Food Products - 1.2% | |||
Amira Nature Foods Ltd. | 50,800 | 452,628 | |
The J.M. Smucker Co. | 4,208 | 424,840 | |
| 877,468 | ||
Household Products - 2.3% | |||
Energizer Holdings, Inc. | 7,300 | 698,683 | |
Procter & Gamble Co. | 12,962 | 994,963 | |
| 1,693,646 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Tobacco - 0.5% | |||
British American Tobacco PLC sponsored ADR | 3,355 | $ 368,278 | |
TOTAL CONSUMER STAPLES | 5,141,668 | ||
ENERGY - 14.4% | |||
Energy Equipment & Services - 2.3% | |||
Enerflex Ltd. (d) | 27,000 | 346,371 | |
Ensco PLC Class A | 6,597 | 396,941 | |
National Oilwell Varco, Inc. | 13,500 | 949,050 | |
| 1,692,362 | ||
Oil, Gas & Consumable Fuels - 12.1% | |||
Chevron Corp. | 28,897 | 3,547,101 | |
ENI SpA | 30,074 | 683,929 | |
Exxon Mobil Corp. | 29,322 | 2,652,761 | |
Marathon Petroleum Corp. | 7,300 | 602,250 | |
Phillips 66 | 10,600 | 705,642 | |
Suncor Energy, Inc. | 25,000 | 758,380 | |
| 8,950,063 | ||
TOTAL ENERGY | 10,642,425 | ||
FINANCIALS - 25.7% | |||
Capital Markets - 2.0% | |||
Bank of New York Mellon Corp. | 25,800 | 775,548 | |
Goldman Sachs Group, Inc. | 2,400 | 388,992 | |
MLP AG | 50,388 | 345,142 | |
| 1,509,682 | ||
Commercial Banks - 7.3% | |||
East West Bancorp, Inc. | 14,800 | 389,832 | |
PNC Financial Services Group, Inc. | 14,579 | 1,044,440 | |
U.S. Bancorp | 42,266 | 1,481,846 | |
Wells Fargo & Co. | 62,232 | 2,523,508 | |
| 5,439,626 | ||
Consumer Finance - 2.7% | |||
American Express Co. | 12,300 | 931,233 | |
Capital One Financial Corp. | 17,318 | 1,055,186 | |
| 1,986,419 | ||
Diversified Financial Services - 5.3% | |||
JPMorgan Chase & Co. | 42,692 | 2,330,556 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
McGraw-Hill Companies, Inc. | 8,732 | $ 476,331 | |
Moody's Corp. | 2,749 | 182,644 | |
The NASDAQ Stock Market, Inc. | 29,534 | 929,140 | |
| 3,918,671 | ||
Insurance - 8.4% | |||
ACE Ltd. | 7,900 | 708,472 | |
Berkshire Hathaway, Inc. Class B (a) | 25,617 | 2,922,131 | |
Everest Re Group Ltd. | 3,696 | 479,039 | |
Greenlight Capital Re, Ltd. (a) | 14,425 | 348,941 | |
Marsh & McLennan Companies, Inc. | 10,400 | 416,208 | |
MetLife, Inc. | 16,579 | 732,958 | |
The Travelers Companies, Inc. | 6,887 | 576,580 | |
| 6,184,329 | ||
TOTAL FINANCIALS | 19,038,727 | ||
HEALTH CARE - 16.2% | |||
Biotechnology - 1.0% | |||
Amgen, Inc. | 7,000 | 703,710 | |
Health Care Equipment & Supplies - 2.1% | |||
Covidien PLC | 14,400 | 915,840 | |
Stryker Corp. | 9,800 | 650,622 | |
| 1,566,462 | ||
Health Care Providers & Services - 6.1% | |||
CIGNA Corp. | 14,362 | 975,180 | |
Express Scripts Holding Co. (a) | 12,099 | 751,590 | |
Laboratory Corp. of America Holdings (a) | 6,700 | 666,583 | |
McKesson Corp. | 6,729 | 766,164 | |
UnitedHealth Group, Inc. | 22,200 | 1,390,386 | |
| 4,549,903 | ||
Pharmaceuticals - 7.0% | |||
AstraZeneca PLC sponsored ADR | 7,100 | 363,875 | |
Endo Health Solutions, Inc. (a) | 8,257 | 299,729 | |
GlaxoSmithKline PLC sponsored ADR | 18,161 | 940,195 | |
Jazz Pharmaceuticals PLC (a) | 6,338 | 430,794 | |
Johnson & Johnson | 6,708 | 564,679 | |
Merck & Co., Inc. | 35,230 | 1,645,241 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Pfizer, Inc. | 3,694 | $ 100,588 | |
Sanofi SA sponsored ADR | 16,230 | 861,651 | |
| 5,206,752 | ||
TOTAL HEALTH CARE | 12,026,827 | ||
INDUSTRIALS - 6.2% | |||
Aerospace & Defense - 0.9% | |||
United Technologies Corp. | 7,147 | 678,250 | |
Electrical Equipment - 0.6% | |||
Emerson Electric Co. | 7,360 | 422,906 | |
Industrial Conglomerates - 2.7% | |||
3M Co. | 8,300 | 915,241 | |
Danaher Corp. | 7,800 | 482,196 | |
General Electric Co. | 26,447 | 616,744 | |
| 2,014,181 | ||
Machinery - 0.8% | |||
Stanley Black & Decker, Inc. | 7,000 | 554,540 | |
Professional Services - 1.2% | |||
Dun & Bradstreet Corp. (d) | 9,335 | 916,137 | |
TOTAL INDUSTRIALS | 4,586,014 | ||
INFORMATION TECHNOLOGY - 12.2% | |||
Communications Equipment - 2.9% | |||
Brocade Communications Systems, Inc. (a) | 58,709 | 318,790 | |
Cisco Systems, Inc. | 76,600 | 1,844,528 | |
| 2,163,318 | ||
Computers & Peripherals - 2.5% | |||
Apple, Inc. | 900 | 404,712 | |
EMC Corp. | 23,000 | 569,480 | |
Hewlett-Packard Co. | 21,252 | 518,974 | |
Lexmark International, Inc. Class A (d) | 11,763 | 358,889 | |
| 1,852,055 | ||
Electronic Equipment & Components - 1.1% | |||
Corning, Inc. | 40,100 | 616,337 | |
Tech Data Corp. (a) | 3,900 | 195,468 | |
| 811,805 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - 4.0% | |||
Amdocs Ltd. | 13,400 | $ 478,380 | |
CACI International, Inc. Class A (a) | 6,700 | 429,738 | |
Cognizant Technology Solutions Corp. Class A (a) | 6,400 | 413,760 | |
Fidelity National Information Services, Inc. | 7,990 | 358,751 | |
Fiserv, Inc. (a) | 8,800 | 767,008 | |
The Western Union Co. | 31,600 | 517,608 | |
| 2,965,245 | ||
Software - 1.7% | |||
CA Technologies, Inc. | 18,245 | 498,271 | |
Microsoft Corp. | 21,500 | 749,920 | |
| 1,248,191 | ||
TOTAL INFORMATION TECHNOLOGY | 9,040,614 | ||
MATERIALS - 1.2% | |||
Chemicals - 0.4% | |||
Cytec Industries, Inc. | 4,200 | 300,174 | |
Containers & Packaging - 0.8% | |||
Ball Corp. | 13,100 | 565,396 | |
TOTAL MATERIALS | 865,570 | ||
TELECOMMUNICATION SERVICES - 1.4% | |||
Wireless Telecommunication Services - 1.4% | |||
Vodafone Group PLC | 357,700 | 1,036,655 | |
UTILITIES - 2.3% | |||
Electric Utilities - 2.3% | |||
American Electric Power Co., Inc. | 17,700 | 811,014 | |
Edison International | 19,093 | 877,132 | |
| 1,688,146 | ||
TOTAL COMMON STOCKS (Cost $59,972,804) |
|
Convertible Bonds - 0.7% | ||||
| Principal Amount | Value | ||
INDUSTRIALS - 0.7% | ||||
Marine - 0.7% | ||||
DryShips, Inc. 5% 12/1/14 | $ 620,000 | $ 554,900 | ||
TOTAL CONVERTIBLE BONDS (Cost $508,040) |
|
Money Market Funds - 3.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 1,146,134 | 1,146,134 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 1,230,300 | 1,230,300 | |
TOTAL MONEY MARKET FUNDS (Cost $2,376,434) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $62,857,278) | 75,548,710 | ||
NET OTHER ASSETS (LIABILITIES) - (1.9)% | (1,437,818) | ||
NET ASSETS - 100% | $ 74,110,892 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 1,196 |
Fidelity Securities Lending Cash Central Fund | 2,590 |
Total | $ 3,786 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 8,550,730 | $ 8,550,730 | $ - | $ - |
Consumer Staples | 5,141,668 | 5,141,668 | - | - |
Energy | 10,642,425 | 9,958,496 | 683,929 | - |
Financials | 19,038,727 | 19,038,727 | - | - |
Health Care | 12,026,827 | 12,026,827 | - | - |
Industrials | 4,586,014 | 4,586,014 | - | - |
Information Technology | 9,040,614 | 9,040,614 | - | - |
Materials | 865,570 | 865,570 | - | - |
Telecommunication Services | 1,036,655 | - | 1,036,655 | - |
Utilities | 1,688,146 | 1,688,146 | - | - |
Corporate Bonds | 554,900 | - | 554,900 | - |
Money Market Funds | 2,376,434 | 2,376,434 | - | - |
Total Investments in Securities: | $ 75,548,710 | $ 73,273,226 | $ 2,275,484 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 85.4% |
United Kingdom | 4.2% |
Ireland | 1.8% |
Canada | 1.5% |
France | 1.2% |
Switzerland | 1.0% |
Others (Individually Less Than 1%) | 4.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $1,191,903) - See accompanying schedule: Unaffiliated issuers (cost $60,480,844) | $ 73,172,276 |
|
Fidelity Central Funds (cost $2,376,434) | 2,376,434 |
|
Total Investments (cost $62,857,278) |
| $ 75,548,710 |
Cash |
| 5,505 |
Receivable for investments sold | 152,090 | |
Receivable for fund shares sold | 21,551 | |
Dividends receivable | 186,836 | |
Interest receivable | 15,500 | |
Distributions receivable from Fidelity Central Funds | 1,252 | |
Prepaid expenses | 29 | |
Other receivables | 901 | |
Total assets | 75,932,374 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 402,060 | |
Payable for fund shares redeemed | 76,327 | |
Accrued management fee | 34,716 | |
Distribution and service plan fees payable | 28,042 | |
Other affiliated payables | 19,549 | |
Other payables and accrued expenses | 30,488 | |
Collateral on securities loaned, at value | 1,230,300 | |
Total liabilities | 1,821,482 | |
|
|
|
Net Assets | $ 74,110,892 | |
Net Assets consist of: |
| |
Paid in capital | $ 85,406,449 | |
Undistributed net investment income | 232,998 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (24,219,923) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 12,691,368 | |
Net Assets | $ 74,110,892 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 12.29 | |
|
|
|
Maximum offering price per share (100/94.25 of $12.29) | $ 13.04 | |
Class T: | $ 12.28 | |
|
|
|
Maximum offering price per share (100/96.50 of $12.28) | $ 12.73 | |
Class B: | $ 12.19 | |
|
|
|
Class C: | $ 12.07 | |
|
|
|
|
|
|
Institutional Class: | $ 12.47 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
| Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 763,298 |
Interest |
| 46,361 |
Income from Fidelity Central Funds |
| 3,786 |
Total income |
| 813,445 |
|
|
|
Expenses | ||
Management fee | $ 190,968 | |
Performance adjustment | (49,360) | |
Transfer agent fees | 101,573 | |
Distribution and service plan fees | 157,898 | |
Accounting and security lending fees | 13,411 | |
Custodian fees and expenses | 5,860 | |
Independent trustees' compensation | 208 | |
Registration fees | 58,094 | |
Audit | 30,608 | |
Legal | 139 | |
Miscellaneous | 287 | |
Total expenses before reductions | 509,686 | |
Expense reductions | (18,920) | 490,766 |
Net investment income (loss) | 322,679 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 4,815,944 | |
Foreign currency transactions | 609 | |
Total net realized gain (loss) |
| 4,816,553 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 5,820,518 | |
Assets and liabilities in foreign currencies | (27) | |
Total change in net unrealized appreciation (depreciation) |
| 5,820,491 |
Net gain (loss) | 10,637,044 | |
Net increase (decrease) in net assets resulting from operations | $ 10,959,723 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 322,679 | $ 664,905 |
Net realized gain (loss) | 4,816,553 | 6,112,162 |
Change in net unrealized appreciation (depreciation) | 5,820,491 | 3,630,671 |
Net increase (decrease) in net assets resulting | 10,959,723 | 10,407,738 |
Distributions to shareholders from net investment income | (666,191) | (227,180) |
Share transactions - net increase (decrease) | (566,549) | (11,212,076) |
Total increase (decrease) in net assets | 9,726,983 | (1,031,518) |
|
|
|
Net Assets | ||
Beginning of period | 64,383,909 | 65,415,427 |
End of period (including undistributed net investment income of $232,998 and undistributed net investment income of $576,510, respectively) | $ 74,110,892 | $ 64,383,909 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.60 | $ 9.09 | $ 8.85 | $ 8.07 | $ 6.70 | $ 12.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .07 | .12 | .06 | .07 H | .06 | .10 |
Net realized and unrealized gain (loss) | 1.75 | 1.44 | .27 | .77 | 1.42 | (5.05) |
Total from investment operations | 1.82 | 1.56 | .33 | .84 | 1.48 | (4.95) |
Distributions from net investment income | (.13) | (.05) | (.09) | (.06) | (.11) | - |
Distributions from net realized gain | - | - | - | - | - | (.56) |
Total distributions | (.13) | (.05) | (.09) | (.06) | (.11) | (.56) |
Net asset value, end of period | $ 12.29 | $ 10.60 | $ 9.09 | $ 8.85 | $ 8.07 | $ 6.70 |
Total Return B, C, D | 17.42% | 17.27% | 3.72% | 10.42% | 22.49% | (42.50)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.27% A | 1.30% | 1.27% | 1.28% | 1.33% | 1.28% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.22% A | 1.25% | 1.25% | 1.25% | 1.24% | 1.25% |
Net investment income (loss) | 1.14% A | 1.20% | .59% | .83% H | .89% | .97% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 34,077 | $ 29,282 | $ 27,910 | $ 34,244 | $ 36,306 | $ 32,365 |
Portfolio turnover rate G | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 .20%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.57 | $ 9.06 | $ 8.81 | $ 8.04 | $ 6.67 | $ 12.14 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .05 | .09 | .03 | .05 H | .04 | .07 |
Net realized and unrealized gain (loss) | 1.77 | 1.44 | .28 | .76 | 1.42 | (5.02) |
Total from investment operations | 1.82 | 1.53 | .31 | .81 | 1.46 | (4.95) |
Distributions from net investment income | (.11) | (.02) | (.06) | (.04) | (.09) | - |
Distributions from net realized gain | - | - | - | - | - | (.52) |
Total distributions | (.11) | (.02) | (.06) | (.04) | (.09) | (.52) |
Net asset value, end of period | $ 12.28 | $ 10.57 | $ 9.06 | $ 8.81 | $ 8.04 | $ 6.67 |
Total Return B, C, D | 17.34% | 16.94% | 3.53% | 10.06% | 22.12% | (42.62)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.53% A | 1.55% | 1.53% | 1.54% | 1.59% | 1.53% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.47% A | 1.50% | 1.50% | 1.49% | 1.49% | 1.50% |
Net investment income (loss) | .89% A | .95% | .34% | .58% H | .64% | .72% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 24,700 | $ 21,212 | $ 21,319 | $ 25,208 | $ 29,288 | $ 33,023 |
Portfolio turnover rate G | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.05)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.45 | $ 8.98 | $ 8.73 | $ 7.96 | $ 6.57 | $ 11.96 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .04 | (.01) | .01 H | .01 | .02 |
Net realized and unrealized gain (loss) | 1.76 | 1.43 | .27 | .76 | 1.40 | (4.97) |
Total from investment operations | 1.78 | 1.47 | .26 | .77 | 1.41 | (4.95) |
Distributions from net investment income | (.04) | - | (.01) | - | (.02) | - |
Distributions from net realized gain | - | - | - | - | - | (.44) |
Total distributions | (.04) | - | (.01) | - | (.02) | (.44) |
Net asset value, end of period | $ 12.19 | $ 10.45 | $ 8.98 | $ 8.73 | $ 7.96 | $ 6.57 |
Total Return B, C, D | 17.05% | 16.37% | 2.96% | 9.67% | 21.46% | (42.96)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.03% A | 2.06% | 2.02% | 2.03% | 2.08% | 2.03% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.97% A | 2.00% | 2.00% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | .39% A | .45% | (.16)% | .08% H | .14% | .22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,842 | $ 2,981 | $ 3,884 | $ 5,478 | $ 7,007 | $ 8,296 |
Portfolio turnover rate G | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.55)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.37 | $ 8.91 | $ 8.67 | $ 7.91 | $ 6.55 | $ 11.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .04 | (.01) | .01 H | .01 | .02 |
Net realized and unrealized gain (loss) | 1.74 | 1.42 | .27 | .75 | 1.39 | (4.94) |
Total from investment operations | 1.76 | 1.46 | .26 | .76 | 1.40 | (4.92) |
Distributions from net investment income | (.06) | - | (.02) | - J | (.04) | - |
Distributions from net realized gain | - | - | - | - | - | (.46) |
Total distributions | (.06) | - | (.02) | - J | (.04) | (.46) |
Net asset value, end of period | $ 12.07 | $ 10.37 | $ 8.91 | $ 8.67 | $ 7.91 | $ 6.55 |
Total Return B, C, D | 17.03% | 16.39% | 2.95% | 9.64% | 21.46% | (42.90)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.02% A | 2.05% | 2.02% | 2.03% | 2.08% | 2.03% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.97% A | 2.00% | 2.00% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | .39% A | .45% | (.16)% | .08% H | .14% | .22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,998 | $ 8,785 | $ 8,922 | $ 10,265 | $ 11,556 | $ 11,104 |
Portfolio turnover rate G | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.55)%.
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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.75 | $ 9.22 | $ 8.97 | $ 8.18 | $ 6.80 | $ 12.38 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .15 | .08 | .09 G | .08 | .12 |
Net realized and unrealized gain (loss) | 1.79 | 1.45 | .29 | .78 | 1.43 | (5.11) |
Total from investment operations | 1.87 | 1.60 | .37 | .87 | 1.51 | (4.99) |
Distributions from net investment income | (.15) | (.07) | (.12) | (.08) | (.13) | - |
Distributions from net realized gain | - | - | - | - | - | (.59) |
Total distributions | (.15) | (.07) | (.12) | (.08) | (.13) | (.59) |
Net asset value, end of period | $ 12.47 | $ 10.75 | $ 9.22 | $ 8.97 | $ 8.18 | $ 6.80 |
Total Return B, C | 17.66% | 17.49% | 4.05% | 10.65% | 22.71% | (42.34)% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .94% A | .96% | 1.01% | 1.03% | 1.08% | 1.01% |
Expenses net of fee waivers, if any | .94% A | .96% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | .91% A | .96% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | 1.45% A | 1.49% | .84% | 1.08% G | 1.14% | 1.22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,494 | $ 2,123 | $ 3,381 | $ 6,617 | $ 6,168 | $ 5,173 |
Portfolio turnover rate F | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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 .45%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
1. Organization.
Fidelity Advisor® Equity Value Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
yield or price of bonds of comparable quality, coupon, maturity and type as well as 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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, capital loss carryforwards, loss deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 12,898,224 |
Gross unrealized depreciation | (581,771) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 12,316,453 |
|
|
Tax cost | $ 63,232,257 |
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.
Fiscal year of expiration |
|
2016 | $ (6,986,240) |
2017 | (21,548,406) |
Total capital loss carryforward | $ (28,534,646) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $23,022,245 and $23,958,489, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 39,257 | $ - |
Class T | .25% | .25% | 56,882 | - |
Class B | .75% | .25% | 14,727 | 11,048 |
Class C | .75% | .25% | 47,032 | 4,014 |
|
|
| $ 157,898 | $ 15,062 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 7,968 |
Class T | 1,623 |
Class B* | 2,512 |
Class C* | 1,951 |
| $ 14,054 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 46,484 | .30 |
Class T | 34,337 | .30 |
Class B | 4,396 | .30 |
Class C | 13,896 | .30 |
Institutional Class | 2,460 | .21 |
| $ 101,573 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $834 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $87 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
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. 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 $2,590, including $13 from securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
|
|
|
Class A | 1.25% | $ 3,415 |
Class T | 1.50% | 3,084 |
Class B | 2.00% | 355 |
Class C | 2.00% | 995 |
|
| $ 7,849 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expenses Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $11,068 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 368,863 | $ 153,829 |
Class T | 207,812 | 48,135 |
Class B | 10,127 | - |
Class C | 48,842 | - |
Institutional Class | 30,547 | 25,216 |
Total | $ 666,191 | $ 227,180 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 271,084 | 512,068 | $ 3,100,460 | $ 5,071,992 |
Reinvestment of distributions | 32,284 | 15,952 | 339,948 | 141,492 |
Shares redeemed | (294,472) | (833,957) | (3,308,199) | (8,294,641) |
Net increase (decrease) | 8,896 | (305,937) | $ 132,209 | $ (3,081,157) |
Class T |
|
|
|
|
Shares sold | 204,152 | 358,551 | $ 2,335,271 | $ 3,605,553 |
Reinvestment of distributions | 19,297 | 5,241 | 203,195 | 46,483 |
Shares redeemed | (218,823) | (709,166) | (2,462,478) | (7,062,030) |
Net increase (decrease) | 4,626 | (345,374) | $ 75,988 | $ (3,409,994) |
Class B |
|
|
|
|
Shares sold | 2,529 | 1,897 | $ 29,130 | $ 19,084 |
Reinvestment of distributions | 894 | - | 9,368 | - |
Shares redeemed | (55,574) | (148,957) | (630,921) | (1,471,427) |
Net increase (decrease) | (52,151) | (147,060) | $ (592,423) | $ (1,452,343) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class C |
|
|
|
|
Shares sold | 81,613 | 132,946 | $ 907,299 | $ 1,314,514 |
Reinvestment of distributions | 4,183 | - | 43,420 | - |
Shares redeemed | (104,646) | (286,550) | (1,161,398) | (2,827,158) |
Net increase (decrease) | (18,850) | (153,604) | $ (210,679) | $ (1,512,644) |
Institutional Class |
|
|
|
|
Shares sold | 26,314 | 19,258 | $ 303,421 | $ 195,293 |
Reinvestment of distributions | 2,690 | 2,110 | 28,699 | 18,952 |
Shares redeemed | (26,451) | (190,665) | (303,764) | (1,970,183) |
Net increase (decrease) | 2,553 | (169,297) | $ 28,356 | $ (1,755,938) |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
AEVI-USAN-0713 1.786788.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Value
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,174.20 | $ 6.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.70 | $ 6.29 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,173.40 | $ 8.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.45 | $ 7.54 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,170.50 | $ 10.82 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.96 | $ 10.05 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,170.30 | $ 10.82 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.96 | $ 10.05 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.60 | $ 5.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.24 | $ 4.73 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Chevron Corp. | 4.8 | 4.5 |
Berkshire Hathaway, Inc. Class B | 3.9 | 3.8 |
Exxon Mobil Corp. | 3.6 | 3.7 |
Wells Fargo & Co. | 3.4 | 3.0 |
JPMorgan Chase & Co. | 3.1 | 2.1 |
Cisco Systems, Inc. | 2.5 | 2.0 |
Merck & Co., Inc. | 2.2 | 2.2 |
U.S. Bancorp | 2.0 | 2.0 |
UnitedHealth Group, Inc. | 1.9 | 1.8 |
CVS Caremark Corp. | 1.8 | 1.6 |
| 29.2 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 25.7 | 23.9 |
Health Care | 16.2 | 14.7 |
Energy | 14.4 | 12.0 |
Information Technology | 12.2 | 10.2 |
Consumer Discretionary | 11.5 | 11.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 98.0% |
| Stocks 97.8% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 14.6% |
| ** Foreign investments | 14.7% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 11.5% | |||
Diversified Consumer Services - 0.5% | |||
Steiner Leisure Ltd. (a) | 7,400 | $ 375,846 | |
Media - 5.9% | |||
Comcast Corp. Class A | 32,850 | 1,318,928 | |
John Wiley & Sons, Inc. Class A | 14,115 | 560,366 | |
The Walt Disney Co. | 12,695 | 800,801 | |
Time Warner Cable, Inc. | 8,757 | 836,381 | |
Viacom, Inc. Class B (non-vtg.) | 13,600 | 896,104 | |
| 4,412,580 | ||
Multiline Retail - 2.5% | |||
Kohl's Corp. | 9,400 | 483,254 | |
Macy's, Inc. | 11,547 | 558,182 | |
Target Corp. | 11,300 | 785,350 | |
| 1,826,786 | ||
Specialty Retail - 2.2% | |||
Advance Auto Parts, Inc. | 7,700 | 627,704 | |
American Eagle Outfitters, Inc. | 24,788 | 490,555 | |
AutoZone, Inc. (a) | 1,315 | 537,611 | |
| 1,655,870 | ||
Textiles, Apparel & Luxury Goods - 0.4% | |||
Coach, Inc. | 4,800 | 279,648 | |
TOTAL CONSUMER DISCRETIONARY | 8,550,730 | ||
CONSUMER STAPLES - 6.9% | |||
Food & Staples Retailing - 2.9% | |||
CVS Caremark Corp. | 23,400 | 1,347,372 | |
Walgreen Co. | 17,900 | 854,904 | |
| 2,202,276 | ||
Food Products - 1.2% | |||
Amira Nature Foods Ltd. | 50,800 | 452,628 | |
The J.M. Smucker Co. | 4,208 | 424,840 | |
| 877,468 | ||
Household Products - 2.3% | |||
Energizer Holdings, Inc. | 7,300 | 698,683 | |
Procter & Gamble Co. | 12,962 | 994,963 | |
| 1,693,646 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Tobacco - 0.5% | |||
British American Tobacco PLC sponsored ADR | 3,355 | $ 368,278 | |
TOTAL CONSUMER STAPLES | 5,141,668 | ||
ENERGY - 14.4% | |||
Energy Equipment & Services - 2.3% | |||
Enerflex Ltd. (d) | 27,000 | 346,371 | |
Ensco PLC Class A | 6,597 | 396,941 | |
National Oilwell Varco, Inc. | 13,500 | 949,050 | |
| 1,692,362 | ||
Oil, Gas & Consumable Fuels - 12.1% | |||
Chevron Corp. | 28,897 | 3,547,101 | |
ENI SpA | 30,074 | 683,929 | |
Exxon Mobil Corp. | 29,322 | 2,652,761 | |
Marathon Petroleum Corp. | 7,300 | 602,250 | |
Phillips 66 | 10,600 | 705,642 | |
Suncor Energy, Inc. | 25,000 | 758,380 | |
| 8,950,063 | ||
TOTAL ENERGY | 10,642,425 | ||
FINANCIALS - 25.7% | |||
Capital Markets - 2.0% | |||
Bank of New York Mellon Corp. | 25,800 | 775,548 | |
Goldman Sachs Group, Inc. | 2,400 | 388,992 | |
MLP AG | 50,388 | 345,142 | |
| 1,509,682 | ||
Commercial Banks - 7.3% | |||
East West Bancorp, Inc. | 14,800 | 389,832 | |
PNC Financial Services Group, Inc. | 14,579 | 1,044,440 | |
U.S. Bancorp | 42,266 | 1,481,846 | |
Wells Fargo & Co. | 62,232 | 2,523,508 | |
| 5,439,626 | ||
Consumer Finance - 2.7% | |||
American Express Co. | 12,300 | 931,233 | |
Capital One Financial Corp. | 17,318 | 1,055,186 | |
| 1,986,419 | ||
Diversified Financial Services - 5.3% | |||
JPMorgan Chase & Co. | 42,692 | 2,330,556 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
McGraw-Hill Companies, Inc. | 8,732 | $ 476,331 | |
Moody's Corp. | 2,749 | 182,644 | |
The NASDAQ Stock Market, Inc. | 29,534 | 929,140 | |
| 3,918,671 | ||
Insurance - 8.4% | |||
ACE Ltd. | 7,900 | 708,472 | |
Berkshire Hathaway, Inc. Class B (a) | 25,617 | 2,922,131 | |
Everest Re Group Ltd. | 3,696 | 479,039 | |
Greenlight Capital Re, Ltd. (a) | 14,425 | 348,941 | |
Marsh & McLennan Companies, Inc. | 10,400 | 416,208 | |
MetLife, Inc. | 16,579 | 732,958 | |
The Travelers Companies, Inc. | 6,887 | 576,580 | |
| 6,184,329 | ||
TOTAL FINANCIALS | 19,038,727 | ||
HEALTH CARE - 16.2% | |||
Biotechnology - 1.0% | |||
Amgen, Inc. | 7,000 | 703,710 | |
Health Care Equipment & Supplies - 2.1% | |||
Covidien PLC | 14,400 | 915,840 | |
Stryker Corp. | 9,800 | 650,622 | |
| 1,566,462 | ||
Health Care Providers & Services - 6.1% | |||
CIGNA Corp. | 14,362 | 975,180 | |
Express Scripts Holding Co. (a) | 12,099 | 751,590 | |
Laboratory Corp. of America Holdings (a) | 6,700 | 666,583 | |
McKesson Corp. | 6,729 | 766,164 | |
UnitedHealth Group, Inc. | 22,200 | 1,390,386 | |
| 4,549,903 | ||
Pharmaceuticals - 7.0% | |||
AstraZeneca PLC sponsored ADR | 7,100 | 363,875 | |
Endo Health Solutions, Inc. (a) | 8,257 | 299,729 | |
GlaxoSmithKline PLC sponsored ADR | 18,161 | 940,195 | |
Jazz Pharmaceuticals PLC (a) | 6,338 | 430,794 | |
Johnson & Johnson | 6,708 | 564,679 | |
Merck & Co., Inc. | 35,230 | 1,645,241 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Pfizer, Inc. | 3,694 | $ 100,588 | |
Sanofi SA sponsored ADR | 16,230 | 861,651 | |
| 5,206,752 | ||
TOTAL HEALTH CARE | 12,026,827 | ||
INDUSTRIALS - 6.2% | |||
Aerospace & Defense - 0.9% | |||
United Technologies Corp. | 7,147 | 678,250 | |
Electrical Equipment - 0.6% | |||
Emerson Electric Co. | 7,360 | 422,906 | |
Industrial Conglomerates - 2.7% | |||
3M Co. | 8,300 | 915,241 | |
Danaher Corp. | 7,800 | 482,196 | |
General Electric Co. | 26,447 | 616,744 | |
| 2,014,181 | ||
Machinery - 0.8% | |||
Stanley Black & Decker, Inc. | 7,000 | 554,540 | |
Professional Services - 1.2% | |||
Dun & Bradstreet Corp. (d) | 9,335 | 916,137 | |
TOTAL INDUSTRIALS | 4,586,014 | ||
INFORMATION TECHNOLOGY - 12.2% | |||
Communications Equipment - 2.9% | |||
Brocade Communications Systems, Inc. (a) | 58,709 | 318,790 | |
Cisco Systems, Inc. | 76,600 | 1,844,528 | |
| 2,163,318 | ||
Computers & Peripherals - 2.5% | |||
Apple, Inc. | 900 | 404,712 | |
EMC Corp. | 23,000 | 569,480 | |
Hewlett-Packard Co. | 21,252 | 518,974 | |
Lexmark International, Inc. Class A (d) | 11,763 | 358,889 | |
| 1,852,055 | ||
Electronic Equipment & Components - 1.1% | |||
Corning, Inc. | 40,100 | 616,337 | |
Tech Data Corp. (a) | 3,900 | 195,468 | |
| 811,805 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - 4.0% | |||
Amdocs Ltd. | 13,400 | $ 478,380 | |
CACI International, Inc. Class A (a) | 6,700 | 429,738 | |
Cognizant Technology Solutions Corp. Class A (a) | 6,400 | 413,760 | |
Fidelity National Information Services, Inc. | 7,990 | 358,751 | |
Fiserv, Inc. (a) | 8,800 | 767,008 | |
The Western Union Co. | 31,600 | 517,608 | |
| 2,965,245 | ||
Software - 1.7% | |||
CA Technologies, Inc. | 18,245 | 498,271 | |
Microsoft Corp. | 21,500 | 749,920 | |
| 1,248,191 | ||
TOTAL INFORMATION TECHNOLOGY | 9,040,614 | ||
MATERIALS - 1.2% | |||
Chemicals - 0.4% | |||
Cytec Industries, Inc. | 4,200 | 300,174 | |
Containers & Packaging - 0.8% | |||
Ball Corp. | 13,100 | 565,396 | |
TOTAL MATERIALS | 865,570 | ||
TELECOMMUNICATION SERVICES - 1.4% | |||
Wireless Telecommunication Services - 1.4% | |||
Vodafone Group PLC | 357,700 | 1,036,655 | |
UTILITIES - 2.3% | |||
Electric Utilities - 2.3% | |||
American Electric Power Co., Inc. | 17,700 | 811,014 | |
Edison International | 19,093 | 877,132 | |
| 1,688,146 | ||
TOTAL COMMON STOCKS (Cost $59,972,804) |
|
Convertible Bonds - 0.7% | ||||
| Principal Amount | Value | ||
INDUSTRIALS - 0.7% | ||||
Marine - 0.7% | ||||
DryShips, Inc. 5% 12/1/14 | $ 620,000 | $ 554,900 | ||
TOTAL CONVERTIBLE BONDS (Cost $508,040) |
|
Money Market Funds - 3.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 1,146,134 | 1,146,134 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 1,230,300 | 1,230,300 | |
TOTAL MONEY MARKET FUNDS (Cost $2,376,434) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $62,857,278) | 75,548,710 | ||
NET OTHER ASSETS (LIABILITIES) - (1.9)% | (1,437,818) | ||
NET ASSETS - 100% | $ 74,110,892 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 1,196 |
Fidelity Securities Lending Cash Central Fund | 2,590 |
Total | $ 3,786 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 8,550,730 | $ 8,550,730 | $ - | $ - |
Consumer Staples | 5,141,668 | 5,141,668 | - | - |
Energy | 10,642,425 | 9,958,496 | 683,929 | - |
Financials | 19,038,727 | 19,038,727 | - | - |
Health Care | 12,026,827 | 12,026,827 | - | - |
Industrials | 4,586,014 | 4,586,014 | - | - |
Information Technology | 9,040,614 | 9,040,614 | - | - |
Materials | 865,570 | 865,570 | - | - |
Telecommunication Services | 1,036,655 | - | 1,036,655 | - |
Utilities | 1,688,146 | 1,688,146 | - | - |
Corporate Bonds | 554,900 | - | 554,900 | - |
Money Market Funds | 2,376,434 | 2,376,434 | - | - |
Total Investments in Securities: | $ 75,548,710 | $ 73,273,226 | $ 2,275,484 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 85.4% |
United Kingdom | 4.2% |
Ireland | 1.8% |
Canada | 1.5% |
France | 1.2% |
Switzerland | 1.0% |
Others (Individually Less Than 1%) | 4.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $1,191,903) - See accompanying schedule: Unaffiliated issuers (cost $60,480,844) | $ 73,172,276 |
|
Fidelity Central Funds (cost $2,376,434) | 2,376,434 |
|
Total Investments (cost $62,857,278) |
| $ 75,548,710 |
Cash |
| 5,505 |
Receivable for investments sold | 152,090 | |
Receivable for fund shares sold | 21,551 | |
Dividends receivable | 186,836 | |
Interest receivable | 15,500 | |
Distributions receivable from Fidelity Central Funds | 1,252 | |
Prepaid expenses | 29 | |
Other receivables | 901 | |
Total assets | 75,932,374 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 402,060 | |
Payable for fund shares redeemed | 76,327 | |
Accrued management fee | 34,716 | |
Distribution and service plan fees payable | 28,042 | |
Other affiliated payables | 19,549 | |
Other payables and accrued expenses | 30,488 | |
Collateral on securities loaned, at value | 1,230,300 | |
Total liabilities | 1,821,482 | |
|
|
|
Net Assets | $ 74,110,892 | |
Net Assets consist of: |
| |
Paid in capital | $ 85,406,449 | |
Undistributed net investment income | 232,998 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (24,219,923) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 12,691,368 | |
Net Assets | $ 74,110,892 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 12.29 | |
|
|
|
Maximum offering price per share (100/94.25 of $12.29) | $ 13.04 | |
Class T: | $ 12.28 | |
|
|
|
Maximum offering price per share (100/96.50 of $12.28) | $ 12.73 | |
Class B: | $ 12.19 | |
|
|
|
Class C: | $ 12.07 | |
|
|
|
|
|
|
Institutional Class: | $ 12.47 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
| Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 763,298 |
Interest |
| 46,361 |
Income from Fidelity Central Funds |
| 3,786 |
Total income |
| 813,445 |
|
|
|
Expenses | ||
Management fee | $ 190,968 | |
Performance adjustment | (49,360) | |
Transfer agent fees | 101,573 | |
Distribution and service plan fees | 157,898 | |
Accounting and security lending fees | 13,411 | |
Custodian fees and expenses | 5,860 | |
Independent trustees' compensation | 208 | |
Registration fees | 58,094 | |
Audit | 30,608 | |
Legal | 139 | |
Miscellaneous | 287 | |
Total expenses before reductions | 509,686 | |
Expense reductions | (18,920) | 490,766 |
Net investment income (loss) | 322,679 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 4,815,944 | |
Foreign currency transactions | 609 | |
Total net realized gain (loss) |
| 4,816,553 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 5,820,518 | |
Assets and liabilities in foreign currencies | (27) | |
Total change in net unrealized appreciation (depreciation) |
| 5,820,491 |
Net gain (loss) | 10,637,044 | |
Net increase (decrease) in net assets resulting from operations | $ 10,959,723 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 322,679 | $ 664,905 |
Net realized gain (loss) | 4,816,553 | 6,112,162 |
Change in net unrealized appreciation (depreciation) | 5,820,491 | 3,630,671 |
Net increase (decrease) in net assets resulting | 10,959,723 | 10,407,738 |
Distributions to shareholders from net investment income | (666,191) | (227,180) |
Share transactions - net increase (decrease) | (566,549) | (11,212,076) |
Total increase (decrease) in net assets | 9,726,983 | (1,031,518) |
|
|
|
Net Assets | ||
Beginning of period | 64,383,909 | 65,415,427 |
End of period (including undistributed net investment income of $232,998 and undistributed net investment income of $576,510, respectively) | $ 74,110,892 | $ 64,383,909 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.60 | $ 9.09 | $ 8.85 | $ 8.07 | $ 6.70 | $ 12.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .07 | .12 | .06 | .07 H | .06 | .10 |
Net realized and unrealized gain (loss) | 1.75 | 1.44 | .27 | .77 | 1.42 | (5.05) |
Total from investment operations | 1.82 | 1.56 | .33 | .84 | 1.48 | (4.95) |
Distributions from net investment income | (.13) | (.05) | (.09) | (.06) | (.11) | - |
Distributions from net realized gain | - | - | - | - | - | (.56) |
Total distributions | (.13) | (.05) | (.09) | (.06) | (.11) | (.56) |
Net asset value, end of period | $ 12.29 | $ 10.60 | $ 9.09 | $ 8.85 | $ 8.07 | $ 6.70 |
Total Return B, C, D | 17.42% | 17.27% | 3.72% | 10.42% | 22.49% | (42.50)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.27% A | 1.30% | 1.27% | 1.28% | 1.33% | 1.28% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.22% A | 1.25% | 1.25% | 1.25% | 1.24% | 1.25% |
Net investment income (loss) | 1.14% A | 1.20% | .59% | .83% H | .89% | .97% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 34,077 | $ 29,282 | $ 27,910 | $ 34,244 | $ 36,306 | $ 32,365 |
Portfolio turnover rate G | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 .20%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.57 | $ 9.06 | $ 8.81 | $ 8.04 | $ 6.67 | $ 12.14 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .05 | .09 | .03 | .05 H | .04 | .07 |
Net realized and unrealized gain (loss) | 1.77 | 1.44 | .28 | .76 | 1.42 | (5.02) |
Total from investment operations | 1.82 | 1.53 | .31 | .81 | 1.46 | (4.95) |
Distributions from net investment income | (.11) | (.02) | (.06) | (.04) | (.09) | - |
Distributions from net realized gain | - | - | - | - | - | (.52) |
Total distributions | (.11) | (.02) | (.06) | (.04) | (.09) | (.52) |
Net asset value, end of period | $ 12.28 | $ 10.57 | $ 9.06 | $ 8.81 | $ 8.04 | $ 6.67 |
Total Return B, C, D | 17.34% | 16.94% | 3.53% | 10.06% | 22.12% | (42.62)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.53% A | 1.55% | 1.53% | 1.54% | 1.59% | 1.53% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.47% A | 1.50% | 1.50% | 1.49% | 1.49% | 1.50% |
Net investment income (loss) | .89% A | .95% | .34% | .58% H | .64% | .72% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 24,700 | $ 21,212 | $ 21,319 | $ 25,208 | $ 29,288 | $ 33,023 |
Portfolio turnover rate G | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.05)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.45 | $ 8.98 | $ 8.73 | $ 7.96 | $ 6.57 | $ 11.96 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .04 | (.01) | .01 H | .01 | .02 |
Net realized and unrealized gain (loss) | 1.76 | 1.43 | .27 | .76 | 1.40 | (4.97) |
Total from investment operations | 1.78 | 1.47 | .26 | .77 | 1.41 | (4.95) |
Distributions from net investment income | (.04) | - | (.01) | - | (.02) | - |
Distributions from net realized gain | - | - | - | - | - | (.44) |
Total distributions | (.04) | - | (.01) | - | (.02) | (.44) |
Net asset value, end of period | $ 12.19 | $ 10.45 | $ 8.98 | $ 8.73 | $ 7.96 | $ 6.57 |
Total Return B, C, D | 17.05% | 16.37% | 2.96% | 9.67% | 21.46% | (42.96)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.03% A | 2.06% | 2.02% | 2.03% | 2.08% | 2.03% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.97% A | 2.00% | 2.00% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | .39% A | .45% | (.16)% | .08% H | .14% | .22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,842 | $ 2,981 | $ 3,884 | $ 5,478 | $ 7,007 | $ 8,296 |
Portfolio turnover rate G | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.55)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.37 | $ 8.91 | $ 8.67 | $ 7.91 | $ 6.55 | $ 11.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .04 | (.01) | .01 H | .01 | .02 |
Net realized and unrealized gain (loss) | 1.74 | 1.42 | .27 | .75 | 1.39 | (4.94) |
Total from investment operations | 1.76 | 1.46 | .26 | .76 | 1.40 | (4.92) |
Distributions from net investment income | (.06) | - | (.02) | - J | (.04) | - |
Distributions from net realized gain | - | - | - | - | - | (.46) |
Total distributions | (.06) | - | (.02) | - J | (.04) | (.46) |
Net asset value, end of period | $ 12.07 | $ 10.37 | $ 8.91 | $ 8.67 | $ 7.91 | $ 6.55 |
Total Return B, C, D | 17.03% | 16.39% | 2.95% | 9.64% | 21.46% | (42.90)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.02% A | 2.05% | 2.02% | 2.03% | 2.08% | 2.03% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.97% A | 2.00% | 2.00% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | .39% A | .45% | (.16)% | .08% H | .14% | .22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,998 | $ 8,785 | $ 8,922 | $ 10,265 | $ 11,556 | $ 11,104 |
Portfolio turnover rate G | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.55)%.
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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.75 | $ 9.22 | $ 8.97 | $ 8.18 | $ 6.80 | $ 12.38 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .15 | .08 | .09 G | .08 | .12 |
Net realized and unrealized gain (loss) | 1.79 | 1.45 | .29 | .78 | 1.43 | (5.11) |
Total from investment operations | 1.87 | 1.60 | .37 | .87 | 1.51 | (4.99) |
Distributions from net investment income | (.15) | (.07) | (.12) | (.08) | (.13) | - |
Distributions from net realized gain | - | - | - | - | - | (.59) |
Total distributions | (.15) | (.07) | (.12) | (.08) | (.13) | (.59) |
Net asset value, end of period | $ 12.47 | $ 10.75 | $ 9.22 | $ 8.97 | $ 8.18 | $ 6.80 |
Total Return B, C | 17.66% | 17.49% | 4.05% | 10.65% | 22.71% | (42.34)% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .94% A | .96% | 1.01% | 1.03% | 1.08% | 1.01% |
Expenses net of fee waivers, if any | .94% A | .96% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | .91% A | .96% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | 1.45% A | 1.49% | .84% | 1.08% G | 1.14% | 1.22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,494 | $ 2,123 | $ 3,381 | $ 6,617 | $ 6,168 | $ 5,173 |
Portfolio turnover rate F | 69% A | 77% | 65% | 103% | 135% | 170% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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 .45%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
1. Organization.
Fidelity Advisor® Equity Value Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
yield or price of bonds of comparable quality, coupon, maturity and type as well as 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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, capital loss carryforwards, loss deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 12,898,224 |
Gross unrealized depreciation | (581,771) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 12,316,453 |
|
|
Tax cost | $ 63,232,257 |
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.
Fiscal year of expiration |
|
2016 | $ (6,986,240) |
2017 | (21,548,406) |
Total capital loss carryforward | $ (28,534,646) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $23,022,245 and $23,958,489, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 39,257 | $ - |
Class T | .25% | .25% | 56,882 | - |
Class B | .75% | .25% | 14,727 | 11,048 |
Class C | .75% | .25% | 47,032 | 4,014 |
|
|
| $ 157,898 | $ 15,062 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 7,968 |
Class T | 1,623 |
Class B* | 2,512 |
Class C* | 1,951 |
| $ 14,054 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 46,484 | .30 |
Class T | 34,337 | .30 |
Class B | 4,396 | .30 |
Class C | 13,896 | .30 |
Institutional Class | 2,460 | .21 |
| $ 101,573 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $834 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $87 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
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. 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 $2,590, including $13 from securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
|
|
|
Class A | 1.25% | $ 3,415 |
Class T | 1.50% | 3,084 |
Class B | 2.00% | 355 |
Class C | 2.00% | 995 |
|
| $ 7,849 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expenses Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $11,068 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 368,863 | $ 153,829 |
Class T | 207,812 | 48,135 |
Class B | 10,127 | - |
Class C | 48,842 | - |
Institutional Class | 30,547 | 25,216 |
Total | $ 666,191 | $ 227,180 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 271,084 | 512,068 | $ 3,100,460 | $ 5,071,992 |
Reinvestment of distributions | 32,284 | 15,952 | 339,948 | 141,492 |
Shares redeemed | (294,472) | (833,957) | (3,308,199) | (8,294,641) |
Net increase (decrease) | 8,896 | (305,937) | $ 132,209 | $ (3,081,157) |
Class T |
|
|
|
|
Shares sold | 204,152 | 358,551 | $ 2,335,271 | $ 3,605,553 |
Reinvestment of distributions | 19,297 | 5,241 | 203,195 | 46,483 |
Shares redeemed | (218,823) | (709,166) | (2,462,478) | (7,062,030) |
Net increase (decrease) | 4,626 | (345,374) | $ 75,988 | $ (3,409,994) |
Class B |
|
|
|
|
Shares sold | 2,529 | 1,897 | $ 29,130 | $ 19,084 |
Reinvestment of distributions | 894 | - | 9,368 | - |
Shares redeemed | (55,574) | (148,957) | (630,921) | (1,471,427) |
Net increase (decrease) | (52,151) | (147,060) | $ (592,423) | $ (1,452,343) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class C |
|
|
|
|
Shares sold | 81,613 | 132,946 | $ 907,299 | $ 1,314,514 |
Reinvestment of distributions | 4,183 | - | 43,420 | - |
Shares redeemed | (104,646) | (286,550) | (1,161,398) | (2,827,158) |
Net increase (decrease) | (18,850) | (153,604) | $ (210,679) | $ (1,512,644) |
Institutional Class |
|
|
|
|
Shares sold | 26,314 | 19,258 | $ 303,421 | $ 195,293 |
Reinvestment of distributions | 2,690 | 2,110 | 28,699 | 18,952 |
Shares redeemed | (26,451) | (190,665) | (303,764) | (1,970,183) |
Net increase (decrease) | 2,553 | (169,297) | $ 28,356 | $ (1,755,938) |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
AEV-USAN-0713 1.786787.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Growth & Income
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning | Ending | Expenses Paid |
Class A | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,183.10 | $ 5.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.80 | $ 5.19 |
Class T | 1.26% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,181.70 | $ 6.85 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.65 | $ 6.34 |
Class B | 1.81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,178.50 | $ 9.83 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.91 | $ 9.10 |
Class C | 1.75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,178.90 | $ 9.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.21 | $ 8.80 |
Institutional Class | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,185.20 | $ 3.81 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.44 | $ 3.53 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 3.9 | 3.9 |
Apple, Inc. | 3.4 | 4.5 |
General Electric Co. | 2.9 | 2.6 |
Wells Fargo & Co. | 2.8 | 3.2 |
Chevron Corp. | 2.8 | 3.0 |
Microsoft Corp. | 2.5 | 1.8 |
Procter & Gamble Co. | 2.1 | 2.3 |
Citigroup, Inc. | 2.1 | 1.5 |
Occidental Petroleum Corp. | 2.1 | 0.8 |
Target Corp. | 2.0 | 1.6 |
| 26.6 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 20.6 | 18.1 |
Information Technology | 16.8 | 16.6 |
Health Care | 13.9 | 12.1 |
Energy | 12.3 | 11.4 |
Industrials | 11.0 | 12.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 98.7% |
| Stocks 98.2% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 10.9% |
| ** Foreign investments | 11.0% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 10.2% | |||
Auto Components - 0.2% | |||
Gentex Corp. | 100,856 | $ 2,307 | |
Automobiles - 0.5% | |||
Ford Motor Co. | 336,349 | 5,274 | |
Distributors - 0.3% | |||
Li & Fung Ltd. | 1,600,000 | 2,221 | |
LKQ Corp. (a) | 50,090 | 1,226 | |
| 3,447 | ||
Diversified Consumer Services - 0.2% | |||
H&R Block, Inc. | 62,900 | 1,841 | |
Hotels, Restaurants & Leisure - 1.4% | |||
Darden Restaurants, Inc. | 6,248 | 324 | |
McDonald's Corp. | 95,345 | 9,207 | |
Wyndham Worldwide Corp. | 21,333 | 1,240 | |
Yum! Brands, Inc. | 69,664 | 4,720 | |
| 15,491 | ||
Leisure Equipment & Products - 0.1% | |||
Mattel, Inc. | 22,326 | 999 | |
Media - 3.4% | |||
Comcast Corp. Class A (special) (non-vtg.) | 465,329 | 18,055 | |
Scripps Networks Interactive, Inc. Class A | 32,370 | 2,180 | |
Time Warner, Inc. | 224,376 | 13,097 | |
Viacom, Inc. Class B (non-vtg.) | 49,190 | 3,241 | |
| 36,573 | ||
Multiline Retail - 2.2% | |||
Kohl's Corp. | 41,321 | 2,124 | |
Target Corp. | 304,062 | 21,132 | |
| 23,256 | ||
Specialty Retail - 1.8% | |||
Lowe's Companies, Inc. | 399,440 | 16,820 | |
Staples, Inc. | 149,529 | 2,243 | |
| 19,063 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Coach, Inc. | 24,295 | 1,415 | |
TOTAL CONSUMER DISCRETIONARY | 109,666 | ||
CONSUMER STAPLES - 10.5% | |||
Beverages - 2.6% | |||
Molson Coors Brewing Co. Class B | 38,927 | 1,923 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
PepsiCo, Inc. | 123,463 | $ 9,972 | |
The Coca-Cola Co. | 397,664 | 15,903 | |
| 27,798 | ||
Food & Staples Retailing - 1.9% | |||
CVS Caremark Corp. | 97,951 | 5,640 | |
Walgreen Co. | 300,976 | 14,375 | |
| 20,015 | ||
Food Products - 0.9% | |||
Danone SA | 47,567 | 3,508 | |
Kellogg Co. | 92,537 | 5,742 | |
| 9,250 | ||
Household Products - 2.9% | |||
Kimberly-Clark Corp. | 88,967 | 8,615 | |
Procter & Gamble Co. | 287,135 | 22,040 | |
Svenska Cellulosa AB (SCA) (B Shares) | 26,100 | 652 | |
| 31,307 | ||
Tobacco - 2.2% | |||
British American Tobacco PLC sponsored ADR | 129,959 | 14,266 | |
Lorillard, Inc. | 203,557 | 8,639 | |
Philip Morris International, Inc. | 7,432 | 676 | |
| 23,581 | ||
TOTAL CONSUMER STAPLES | 111,951 | ||
ENERGY - 12.2% | |||
Energy Equipment & Services - 1.3% | |||
Ensco PLC Class A | 38,159 | 2,296 | |
Exterran Partners LP | 35,120 | 973 | |
Halliburton Co. | 162,819 | 6,814 | |
Schlumberger Ltd. | 56,934 | 4,158 | |
| 14,241 | ||
Oil, Gas & Consumable Fuels - 10.9% | |||
Access Midstream Partners LP | 35,729 | 1,537 | |
Apache Corp. | 57,948 | 4,759 | |
Atlas Pipeline Partners LP | 83,860 | 3,120 | |
BG Group PLC | 103,215 | 1,902 | |
BP PLC sponsored ADR | 95,529 | 4,099 | |
Canadian Natural Resources Ltd. | 220,350 | 6,567 | |
Chevron Corp. | 239,771 | 29,432 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
ENI SpA | 50,900 | $ 1,158 | |
Exxon Mobil Corp. | 100,425 | 9,085 | |
Legacy Reserves LP | 18,676 | 495 | |
Magellan Midstream Partners LP | 3,954 | 206 | |
Markwest Energy Partners LP | 78,498 | 5,168 | |
Occidental Petroleum Corp. | 238,932 | 21,998 | |
Royal Dutch Shell PLC Class A (United Kingdom) | 296,939 | 9,882 | |
Suncor Energy, Inc. | 299,890 | 9,097 | |
The Williams Companies, Inc. | 211,603 | 7,444 | |
Western Gas Partners LP | 11,100 | 653 | |
| 116,602 | ||
TOTAL ENERGY | 130,843 | ||
FINANCIALS - 20.6% | |||
Capital Markets - 4.3% | |||
Apollo Investment Corp. | 86,794 | 720 | |
Artisan Partners Asset Management, Inc. | 4,500 | 210 | |
Ashmore Group PLC | 145,708 | 882 | |
BlackRock, Inc. Class A | 13,900 | 3,881 | |
Charles Schwab Corp. | 581,300 | 11,545 | |
Greenhill & Co., Inc. | 10,301 | 513 | |
KKR & Co. LP | 202,701 | 3,949 | |
Morgan Stanley | 421,430 | 10,915 | |
Northern Trust Corp. | 84,132 | 4,892 | |
State Street Corp. | 93,279 | 6,173 | |
The Blackstone Group LP | 87,437 | 1,914 | |
UBS AG | 47,604 | 835 | |
| 46,429 | ||
Commercial Banks - 5.9% | |||
BNP Paribas SA | 10,900 | 642 | |
Comerica, Inc. | 156,157 | 6,167 | |
PNC Financial Services Group, Inc. | 121,516 | 8,705 | |
Standard Chartered PLC (United Kingdom) | 144,510 | 3,375 | |
SunTrust Banks, Inc. | 66,995 | 2,150 | |
U.S. Bancorp | 322,803 | 11,317 | |
Wells Fargo & Co. | 746,921 | 30,288 | |
| 62,644 | ||
Consumer Finance - 0.2% | |||
SLM Corp. | 111,545 | 2,648 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - 7.8% | |||
Bank of America Corp. | 840,069 | $ 11,475 | |
Citigroup, Inc. | 423,292 | 22,007 | |
JPMorgan Chase & Co. | 770,109 | 42,035 | |
KKR Financial Holdings LLC | 455,079 | 4,787 | |
NYSE Euronext | 38,506 | 1,549 | |
The NASDAQ Stock Market, Inc. | 35,781 | 1,126 | |
| 82,979 | ||
Insurance - 1.5% | |||
AFLAC, Inc. | 12,009 | 669 | |
Arthur J. Gallagher & Co. | 7,400 | 323 | |
MetLife, Inc. | 223,728 | 9,891 | |
MetLife, Inc. unit | 58,400 | 3,103 | |
Prudential Financial, Inc. | 32,146 | 2,217 | |
| 16,203 | ||
Real Estate Investment Trusts - 0.5% | |||
American Capital Agency Corp. | 4,100 | 106 | |
Aviv REIT, Inc. | 5,500 | 143 | |
BioMed Realty Trust, Inc. | 16,600 | 347 | |
Invesco Mortgage Capital, Inc. | 5,700 | 106 | |
MFA Financial, Inc. | 12,200 | 107 | |
Sun Communities, Inc. | 89,746 | 4,485 | |
| 5,294 | ||
Real Estate Management & Development - 0.1% | |||
Beazer Pre-Owned Rental Homes, Inc. (e) | 67,500 | 1,418 | |
Thrifts & Mortgage Finance - 0.3% | |||
Radian Group, Inc. | 218,390 | 2,811 | |
TOTAL FINANCIALS | 220,426 | ||
HEALTH CARE - 13.2% | |||
Biotechnology - 0.8% | |||
Amgen, Inc. | 85,656 | 8,611 | |
Health Care Equipment & Supplies - 1.0% | |||
Abbott Laboratories | 56,226 | 2,062 | |
ResMed, Inc. (d) | 10,018 | 481 | |
St. Jude Medical, Inc. | 99,478 | 4,300 | |
Stryker Corp. | 57,159 | 3,795 | |
| 10,638 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - 3.7% | |||
Aetna, Inc. | 96,128 | $ 5,804 | |
AmerisourceBergen Corp. | 13,200 | 714 | |
Fresenius Medical Care AG & Co. KGaA | 13,500 | 917 | |
Humana, Inc. | 7,700 | 622 | |
McKesson Corp. | 69,233 | 7,883 | |
Quest Diagnostics, Inc. | 150,508 | 9,307 | |
UnitedHealth Group, Inc. | 119,267 | 7,470 | |
WellPoint, Inc. | 93,507 | 7,197 | |
| 39,914 | ||
Health Care Technology - 0.2% | |||
Quality Systems, Inc. | 85,400 | 1,527 | |
Life Sciences Tools & Services - 0.3% | |||
Lonza Group AG | 34,912 | 2,609 | |
Pharmaceuticals - 7.2% | |||
AbbVie, Inc. | 181,055 | 7,729 | |
AstraZeneca PLC sponsored ADR | 55,426 | 2,841 | |
Eli Lilly & Co. | 29,304 | 1,558 | |
GlaxoSmithKline PLC sponsored ADR | 186,033 | 9,631 | |
Johnson & Johnson | 206,157 | 17,354 | |
Merck & Co., Inc. | 449,900 | 21,010 | |
Novartis AG sponsored ADR | 61,493 | 4,413 | |
Pfizer, Inc. | 220,780 | 6,012 | |
Sanofi SA | 37,334 | 3,981 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 47,029 | 1,797 | |
Warner Chilcott PLC | 56,800 | 1,091 | |
| 77,417 | ||
TOTAL HEALTH CARE | 140,716 | ||
INDUSTRIALS - 10.9% | |||
Aerospace & Defense - 2.3% | |||
Honeywell International, Inc. | 27,671 | 2,171 | |
Rockwell Collins, Inc. | 62,178 | 4,026 | |
The Boeing Co. | 111,994 | 11,090 | |
United Technologies Corp. | 73,431 | 6,969 | |
| 24,256 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Air Freight & Logistics - 1.5% | |||
C.H. Robinson Worldwide, Inc. | 72,071 | $ 4,086 | |
United Parcel Service, Inc. Class B | 145,924 | 12,535 | |
| 16,621 | ||
Commercial Services & Supplies - 0.2% | |||
Pitney Bowes, Inc. (d) | 64,421 | 946 | |
Ritchie Brothers Auctioneers, Inc. (d) | 36,800 | 760 | |
| 1,706 | ||
Electrical Equipment - 0.4% | |||
Hubbell, Inc. Class B | 42,282 | 4,246 | |
Industrial Conglomerates - 2.9% | |||
General Electric Co. | 1,339,557 | 31,238 | |
Machinery - 1.3% | |||
Douglas Dynamics, Inc. | 157,195 | 2,198 | |
Illinois Tool Works, Inc. | 24,950 | 1,750 | |
Ingersoll-Rand PLC | 73,627 | 4,236 | |
ITT Corp. | 38,441 | 1,159 | |
Stanley Black & Decker, Inc. | 51,599 | 4,088 | |
| 13,431 | ||
Marine - 0.0% | |||
Irish Continental Group PLC unit | 17,007 | 507 | |
Professional Services - 0.3% | |||
Acacia Research Corp. | 24,900 | 623 | |
Amadeus Fire AG | 7,943 | 524 | |
Dun & Bradstreet Corp. | 13,200 | 1,295 | |
Michael Page International PLC | 181,494 | 1,061 | |
| 3,503 | ||
Road & Rail - 1.4% | |||
CSX Corp. | 302,054 | 7,615 | |
J.B. Hunt Transport Services, Inc. | 41,780 | 3,078 | |
Norfolk Southern Corp. | 55,308 | 4,236 | |
| 14,929 | ||
Trading Companies & Distributors - 0.6% | |||
MSC Industrial Direct Co., Inc. Class A | 28,300 | 2,340 | |
W.W. Grainger, Inc. | 14,173 | 3,649 | |
Watsco, Inc. | 5,851 | 510 | |
| 6,499 | ||
TOTAL INDUSTRIALS | 116,936 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - 16.8% | |||
Communications Equipment - 2.3% | |||
Cisco Systems, Inc. | 706,545 | $ 17,014 | |
QUALCOMM, Inc. | 118,513 | 7,523 | |
| 24,537 | ||
Computers & Peripherals - 3.5% | |||
Apple, Inc. | 79,814 | 35,891 | |
EMC Corp. | 40,700 | 1,008 | |
| 36,899 | ||
Electronic Equipment & Components - 0.0% | |||
Arrow Electronics, Inc. (a) | 12,034 | 478 | |
Internet Software & Services - 1.8% | |||
Google, Inc. Class A (a) | 22,641 | 19,707 | |
IT Services - 5.6% | |||
Accenture PLC Class A | 18,202 | 1,495 | |
Cognizant Technology Solutions Corp. Class A (a) | 64,210 | 4,151 | |
Fidelity National Information Services, Inc. | 135,540 | 6,086 | |
IBM Corp. | 20,300 | 4,223 | |
MasterCard, Inc. Class A | 17,239 | 9,831 | |
Paychex, Inc. | 493,786 | 18,384 | |
The Western Union Co. | 382,361 | 6,263 | |
Visa, Inc. Class A | 53,535 | 9,537 | |
| 59,970 | ||
Semiconductors & Semiconductor Equipment - 1.0% | |||
Altera Corp. | 73,505 | 2,440 | |
Analog Devices, Inc. | 59,173 | 2,718 | |
Applied Materials, Inc. | 336,064 | 5,108 | |
| 10,266 | ||
Software - 2.6% | |||
Microsoft Corp. | 746,207 | 26,028 | |
Oracle Corp. | 39,692 | 1,340 | |
| 27,368 | ||
TOTAL INFORMATION TECHNOLOGY | 179,225 | ||
MATERIALS - 1.2% | |||
Chemicals - 1.2% | |||
Air Products & Chemicals, Inc. | 11,032 | 1,042 | |
Airgas, Inc. | 27,852 | 2,866 | |
E.I. du Pont de Nemours & Co. | 55,052 | 3,071 | |
FMC Corp. | 14,859 | 932 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Sigma Aldrich Corp. | 5,233 | $ 438 | |
Syngenta AG (Switzerland) | 11,406 | 4,449 | |
| 12,798 | ||
Metals & Mining - 0.0% | |||
Freeport-McMoRan Copper & Gold, Inc. | 4,100 | 127 | |
TOTAL MATERIALS | 12,925 | ||
TELECOMMUNICATION SERVICES - 2.1% | |||
Diversified Telecommunication Services - 1.3% | |||
CenturyLink, Inc. | 30,986 | 1,058 | |
Verizon Communications, Inc. | 269,928 | 13,086 | |
| 14,144 | ||
Wireless Telecommunication Services - 0.8% | |||
Vodafone Group PLC sponsored ADR | 287,550 | 8,325 | |
TOTAL TELECOMMUNICATION SERVICES | 22,469 | ||
UTILITIES - 1.0% | |||
Electric Utilities - 0.7% | |||
Duke Energy Corp. | 15,281 | 1,023 | |
EDF SA (d) | 32,000 | 732 | |
FirstEnergy Corp. | 50,161 | 1,957 | |
Hawaiian Electric Industries, Inc. | 36,800 | 963 | |
ITC Holdings Corp. | 13,250 | 1,147 | |
Northeast Utilities | 16,365 | 682 | |
PPL Corp. | 31,266 | 929 | |
| 7,433 | ||
Multi-Utilities - 0.3% | |||
National Grid PLC | 17,865 | 212 | |
PG&E Corp. | 24,838 | 1,115 | |
Sempra Energy | 25,800 | 2,098 | |
| 3,425 | ||
TOTAL UTILITIES | 10,858 | ||
TOTAL COMMON STOCKS (Cost $845,693) |
| ||
Convertible Preferred Stocks - 0.8% | |||
Shares | Value (000s) | ||
ENERGY - 0.0% | |||
Oil, Gas & Consumable Fuels - 0.0% | |||
Apache Corp. 6.00% | 14,200 | $ 664 | |
HEALTH CARE - 0.7% | |||
Health Care Equipment & Supplies - 0.7% | |||
Alere, Inc. 3.00% | 30,588 | 7,257 | |
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
United Technologies Corp. 7.50% | 18,900 | 1,140 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $9,666) |
|
Convertible Bonds - 0.1% | ||||
| Principal Amount (000s) |
| ||
ENERGY - 0.1% | ||||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 (Cost $1,592) | $ 1,592 |
|
Money Market Funds - 0.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 3,404,468 | 3,404 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 1,711,430 | 1,711 | |
TOTAL MONEY MARKET FUNDS (Cost $5,115) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $862,066) | 1,071,322 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (1,487) | ||
NET ASSETS - 100% | $ 1,069,835 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $1,418,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. | 5/3/12 - 10/23/12 | $ 1,350 |
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 | $ 2 |
Fidelity Securities Lending Cash Central Fund | 25 |
Total | $ 27 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 109,666 | $ 107,445 | $ 2,221 | $ - |
Consumer Staples | 111,951 | 111,951 | - | - |
Energy | 131,507 | 120,467 | 11,040 | - |
Financials | 220,426 | 215,070 | 3,938 | 1,418 |
Health Care | 147,973 | 143,075 | 4,898 | - |
Industrials | 118,076 | 118,076 | - | - |
Information Technology | 179,225 | 179,225 | - | - |
Materials | 12,925 | 8,476 | 4,449 | - |
Telecommunication Services | 22,469 | 22,469 | - | - |
Utilities | 10,858 | 10,646 | 212 | - |
Corporate Bonds | 1,131 | - | 1,131 | - |
Money Market Funds | 5,115 | 5,115 | - | - |
Total Investments in Securities: | $ 1,071,322 | $ 1,042,015 | $ 27,889 | $ 1,418 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 89.1% |
United Kingdom | 5.5% |
Canada | 1.6% |
Switzerland | 1.2% |
Others (Individually Less Than 1%) | 2.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $1,611) - See accompanying schedule: Unaffiliated issuers (cost $856,951) | $ 1,066,207 |
|
Fidelity Central Funds (cost $5,115) | 5,115 |
|
Total Investments (cost $862,066) |
| $ 1,071,322 |
Receivable for investments sold | 4,644 | |
Receivable for fund shares sold | 695 | |
Dividends receivable | 2,599 | |
Interest receivable | 12 | |
Distributions receivable from Fidelity Central Funds | 22 | |
Prepaid expenses | 1 | |
Other receivables | 6 | |
Total assets | 1,079,301 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 6,167 | |
Payable for fund shares redeemed | 733 | |
Accrued management fee | 409 | |
Distribution and service plan fees payable | 185 | |
Other affiliated payables | 214 | |
Other payables and accrued expenses | 47 | |
Collateral on securities loaned, at value | 1,711 | |
Total liabilities | 9,466 | |
|
|
|
Net Assets | $ 1,069,835 | |
Net Assets consist of: |
| |
Paid in capital | $ 764,161 | |
Undistributed net investment income | 6,696 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 89,727 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 209,251 | |
Net Assets | $ 1,069,835 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 23.21 | |
|
|
|
Maximum offering price per share (100/94.25 of $23.21) | $ 24.63 | |
Class T: | $ 23.20 | |
|
|
|
Maximum offering price per share (100/96.50 of $23.20) | $ 24.04 | |
Class B: | $ 22.29 | |
|
|
|
Class C: | $ 22.20 | |
|
|
|
Institutional Class: | $ 23.39 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 13,855 |
Interest |
| 39 |
Income from Fidelity Central Funds |
| 27 |
Total income |
| 13,921 |
|
|
|
Expenses | ||
Management fee | $ 2,342 | |
Transfer agent fees | 1,099 | |
Distribution and service plan fees | 1,047 | |
Accounting and security lending fees | 170 | |
Custodian fees and expenses | 42 | |
Independent trustees' compensation | 3 | |
Registration fees | 44 | |
Audit | 36 | |
Legal | 2 | |
Interest | 1 | |
Miscellaneous | 7 | |
Total expenses before reductions | 4,793 | |
Expense reductions | (138) | 4,655 |
Net investment income (loss) | 9,266 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 44,219 | |
Redemption in-kind with affiliated entities | 94,937 |
|
Foreign currency transactions | 2 | |
Total net realized gain (loss) |
| 139,158 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 22,931 | |
Assets and liabilities in foreign currencies | (8) | |
Total change in net unrealized appreciation (depreciation) |
| 22,923 |
Net gain (loss) | 162,081 | |
Net increase (decrease) in net assets resulting from operations | $ 171,347 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 9,266 | $ 28,263 |
Net realized gain (loss) | 139,158 | 38,247 |
Change in net unrealized appreciation (depreciation) | 22,923 | 189,073 |
Net increase (decrease) in net assets resulting | 171,347 | 255,583 |
Distributions to shareholders from net investment income | (2,542) | (45,234) |
Distributions to shareholders from net realized gain | - | (2,237) |
Total distributions | (2,542) | (47,471) |
Share transactions - net increase (decrease) | (548,148) | (170,346) |
Total increase (decrease) in net assets | (379,343) | 37,766 |
|
|
|
Net Assets | ||
Beginning of period | 1,449,178 | 1,411,412 |
End of period (including undistributed net investment income of $6,696 and distributions in excess of net investment income of $28, respectively) | $ 1,069,835 | $ 1,449,178 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.67 | $ 17.00 | $ 16.05 | $ 14.67 | $ 11.96 | $ 21.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .18 | .33 | .21 | .04 | .08 | .12 |
Net realized and unrealized gain (loss) | 3.41 | 2.90 | .78 | 1.41 | 2.75 | (8.82) |
Total from investment operations | 3.59 | 3.23 | .99 | 1.45 | 2.83 | (8.70) |
Distributions from net investment income | (.05) | (.53) | (.04) | (.07) | (.12) | (.09) |
Distributions from net realized gain | - | (.03) | - | - | - | (1.10) |
Total distributions | (.05) | (.56) | (.04) | (.07) | (.12) | (1.18) J |
Net asset value, end of period | $ 23.21 | $ 19.67 | $ 17.00 | $ 16.05 | $ 14.67 | $ 11.96 |
Total Return B,C,D | 18.31% | 19.20% | 6.17% | 9.90% | 23.96% | (42.07)% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.03% A | 1.05% | 1.06% | 1.05% | 1.09% | 1.06% |
Expenses net of fee waivers, if any | 1.03% A | 1.05% | 1.06% | 1.05% | 1.09% | 1.06% |
Expenses net of all reductions | 1.00% A | 1.04% | 1.05% | 1.05% | 1.08% | 1.06% |
Net investment income (loss) | 1.70% A | 1.75% | 1.22% | .26% | .60% | .67% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 211 | $ 183 | $ 170 | $ 232 | $ 252 | $ 228 |
Portfolio turnover rate G | 52% A | 57% | 123% | 102% | 117% | 124% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 The portfolio turnover rate does not include the assets acquired in the merger.
J Total distributions of $1.183 per share is comprised of distributions from net investment income of $.085 and distributions from net realized gain of $1.098 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.68 | $ 16.97 | $ 16.02 | $ 14.64 | $ 11.90 | $ 21.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .16 | .29 | .17 | - J | .04 | .08 |
Net realized and unrealized gain (loss) | 3.41 | 2.89 | .78 | 1.41 | 2.75 | (8.76) |
Total from investment operations | 3.57 | 3.18 | .95 | 1.41 | 2.79 | (8.68) |
Distributions from net investment income | (.05) | (.44) | - | (.03) | (.05) | (.02) |
Distributions from net realized gain | - | (.03) | - | - | - | (1.10) |
Total distributions | (.05) | (.47) | - | (.03) | (.05) | (1.12) K |
Net asset value, end of period | $ 23.20 | $ 19.68 | $ 16.97 | $ 16.02 | $ 14.64 | $ 11.90 |
Total Return B,C,D | 18.17% | 18.93% | 5.93% | 9.63% | 23.57% | (42.16)% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.26% A | 1.27% | 1.29% | 1.31% | 1.34% | 1.28% |
Expenses net of fee waivers, if any | 1.26% A | 1.27% | 1.29% | 1.31% | 1.34% | 1.28% |
Expenses net of all reductions | 1.23% A | 1.26% | 1.28% | 1.30% | 1.34% | 1.28% |
Net investment income (loss) | 1.48% A | 1.53% | .99% | .01% | .35% | .45% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 187 | $ 166 | $ 158 | $ 178 | $ 201 | $ 204 |
Portfolio turnover rate G | 52% A | 57% | 123% | 102% | 117% | 124% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
K Total distributions of $1.118 per share is comprised of distributions from net investment income of $.020 and distributions from net realized gain of $1.098 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.95 | $ 16.24 | $ 15.41 | $ 14.13 | $ 11.49 | $ 21.02 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .09 | .18 | .08 | (.07) | (.02) | (.01) |
Net realized and unrealized gain (loss) | 3.29 | 2.78 | .75 | 1.35 | 2.66 | (8.48) |
Total from investment operations | 3.38 | 2.96 | .83 | 1.28 | 2.64 | (8.49) |
Distributions from net investment income | (.04) | (.22) | - | - | - | - |
Distributions from net realized gain | - | (.03) | - | - | - | (1.04) |
Total distributions | (.04) | (.25) | - | - | - | (1.04) |
Net asset value, end of period | $ 22.29 | $ 18.95 | $ 16.24 | $ 15.41 | $ 14.13 | $ 11.49 |
Total Return B,C,D | 17.85% | 18.31% | 5.39% | 9.06% | 22.98% | (42.48)% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.81% A | 1.81% | 1.81% | 1.82% | 1.85% | 1.81% |
Expenses net of fee waivers, if any | 1.81% A | 1.81% | 1.81% | 1.82% | 1.85% | 1.81% |
Expenses net of all reductions | 1.79% A | 1.81% | 1.80% | 1.81% | 1.84% | 1.81% |
Net investment income (loss) | .92% A | .99% | .47% | (.51)% | (.16)% | (.08)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 11 | $ 11 | $ 13 | $ 19 | $ 27 | $ 31 |
Portfolio turnover rate G | 52% A | 57% | 123% | 102% | 117% | 124% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.87 | $ 16.23 | $ 15.39 | $ 14.12 | $ 11.47 | $ 20.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .10 | .19 | .08 | (.07) | (.02) | (.01) |
Net realized and unrealized gain (loss) | 3.27 | 2.77 | .76 | 1.34 | 2.67 | (8.47) |
Total from investment operations | 3.37 | 2.96 | .84 | 1.27 | 2.65 | (8.48) |
Distributions from net investment income | (.04) | (.29) | - | - | - | - |
Distributions from net realized gain | - | (.03) | - | - | - | (1.04) |
Total distributions | (.04) | (.32) | - | - | - | (1.04) |
Net asset value, end of period | $ 22.20 | $ 18.87 | $ 16.23 | $ 15.39 | $ 14.12 | $ 11.47 |
Total Return B,C,D | 17.89% | 18.33% | 5.46% | 8.99% | 23.10% | (42.49)% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.75% A | 1.76% | 1.78% | 1.80% | 1.84% | 1.79% |
Expenses net of fee waivers, if any | 1.75% A | 1.76% | 1.78% | 1.80% | 1.84% | 1.79% |
Expenses net of all reductions | 1.72% A | 1.76% | 1.77% | 1.80% | 1.83% | 1.78% |
Net investment income (loss) | .98% A | 1.04% | .50% | (.49)% | (.15)% | (.05)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 66 | $ 58 | $ 53 | $ 58 | $ 63 | $ 59 |
Portfolio turnover rate G | 52% A | 57% | 123% | 102% | 117% | 124% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.79 | $ 17.16 | $ 16.19 | $ 14.80 | $ 12.07 | $ 22.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .22 | .40 | .27 | .09 | .12 | .18 |
Net realized and unrealized gain (loss) | 3.44 | 2.91 | .79 | 1.41 | 2.78 | (8.89) |
Total from investment operations | 3.66 | 3.31 | 1.06 | 1.50 | 2.90 | (8.71) |
Distributions from net investment income | (.06) | (.65) | (.09) | (.11) | (.17) | (.15) |
Distributions from net realized gain | - | (.03) | - | - | - | (1.10) |
Total distributions | (.06) | (.68) | (.09) | (.11) | (.17) | (1.25) I |
Net asset value, end of period | $ 23.39 | $ 19.79 | $ 17.16 | $ 16.19 | $ 14.80 | $ 12.07 |
Total Return B,C | 18.52% | 19.59% | 6.56% | 10.23% | 24.36% | (41.88)% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | .70% A | .71% | .72% | .73% | .77% | .74% |
Expenses net of fee waivers, if any | .70% A | .71% | .72% | .73% | .77% | .74% |
Expenses net of all reductions | .67% A | .70% | .71% | .72% | .77% | .73% |
Net investment income (loss) | 2.03% A | 2.09% | 1.56% | .59% | .92% | 1.00% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 596 | $ 1,031 | $ 1,017 | $ 870 | $ 1,017 | $ 725 |
Portfolio turnover rate F | 52% A | 57% | 123% | 102% | 117% | 124% H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H The portfolio turnover rate does not include the assets acquired in the merger.
I Total distributions of $1.252 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $1.098 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Growth & Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, partnerships, equity-debt classifications, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 213,378 |
Gross unrealized depreciation | (10,454) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 202,924 |
|
|
Tax cost | $ 868,398 |
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.
Fiscal year of expiration |
|
2016 | $ (3,650) |
2017 | (35,212) |
Total capital loss carryforward | $ (38,862) |
The capital loss carryforward expiring fiscal 2016 was acquired from Capital One Appreciation Fund.
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.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $275,984 and $810,524, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .46% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 245 | $ 1 |
Class T | .25% | .25% | 439 | 1 |
Class B | .75% | .25% | 54 | 40 |
Class C | .75% | .25% | 309 | 20 |
|
|
| $ 1,047 | $ 62 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 25 |
Class T | 9 |
Class B* | 8 |
Class C* | 1 |
| $ 43 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 258 | .26 |
Class T | 212 | .24 |
Class B | 16 | .30 |
Class C | 73 | .23 |
Institutional Class | 540 | .18 |
| $ 1,099 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 $13 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 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 | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 5,624 | .39% | $ 1 |
Redemptions In-Kind. During the period, 25,355 shares of the Fund held by affiliated entities were redeemed for cash and securities with a value of $503,299. The net realized gain of $94,937 on securities delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. 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 FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Security Lending - continued
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. 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 $240. 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 $25, including two hundred and fifty seven dollars from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $138 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by ninety-four dollars.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 483 | $ 4,963 |
Class T | 402 | 3,843 |
Class B | 21 | 142 |
Class C | 120 | 894 |
Institutional Class | 1,516 | 35,392 |
Total | $ 2,542 | $ 45,234 |
Semiannual Report
9. Distributions to Shareholders - continued
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 283 |
Class T | - | 258 |
Class B | - | 18 |
Class C | - | 94 |
Institutional Class | - | 1,584 |
Total | $ - | $ 2,237 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 687 | 1,303 | $ 14,690 | $ 24,427 |
Reinvestment of distributions | 22 | 252 | 431 | 4,662 |
Shares redeemed | (897) | (2,279) | (18,975) | (42,887) |
Net increase (decrease) | (188) | (724) | $ (3,854) | $ (13,798) |
Class T |
|
|
|
|
Shares sold | 390 | 780 | $ 8,397 | $ 14,651 |
Reinvestment of distributions | 19 | 212 | 386 | 3,940 |
Shares redeemed | (815) | (1,871) | (17,329) | (34,844) |
Net increase (decrease) | (406) | (879) | $ (8,546) | $ (16,253) |
Class B |
|
|
|
|
Shares sold | 8 | 14 | $ 177 | $ 233 |
Reinvestment of distributions | 1 | 8 | 19 | 147 |
Shares redeemed | (117) | (242) | (2,396) | (4,364) |
Net increase (decrease) | (108) | (220) | $ (2,200) | $ (3,984) |
Class C |
|
|
|
|
Shares sold | 208 | 306 | $ 4,293 | $ 5,607 |
Reinvestment of distributions | 5 | 47 | 103 | 851 |
Shares redeemed | (325) | (558) | (6,664) | (10,063) |
Net increase (decrease) | (112) | (205) | $ (2,268) | $ (3,605) |
Institutional Class |
|
|
|
|
Shares sold | 2,329 | 9,408 | $ 49,169 | $ 179,442 |
Reinvestment of distributions | 75 | 1,996 | 1,511 | 36,899 |
Shares redeemed | (29,034)A | (18,539) | (581,960)A | (349,047) |
Net increase (decrease) | (26,630) | (7,135) | $ (531,280) | $ (132,706) |
A Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind).
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 54% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
AGAII-USAN-0713 1.786792.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Growth & Income
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense RatioB | Beginning | Ending | Expenses Paid |
Class A | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,183.10 | $ 5.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.80 | $ 5.19 |
Class T | 1.26% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,181.70 | $ 6.85 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.65 | $ 6.34 |
Class B | 1.81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,178.50 | $ 9.83 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.91 | $ 9.10 |
Class C | 1.75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,178.90 | $ 9.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.21 | $ 8.80 |
Institutional Class | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,185.20 | $ 3.81 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.44 | $ 3.53 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 3.9 | 3.9 |
Apple, Inc. | 3.4 | 4.5 |
General Electric Co. | 2.9 | 2.6 |
Wells Fargo & Co. | 2.8 | 3.2 |
Chevron Corp. | 2.8 | 3.0 |
Microsoft Corp. | 2.5 | 1.8 |
Procter & Gamble Co. | 2.1 | 2.3 |
Citigroup, Inc. | 2.1 | 1.5 |
Occidental Petroleum Corp. | 2.1 | 0.8 |
Target Corp. | 2.0 | 1.6 |
| 26.6 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 20.6 | 18.1 |
Information Technology | 16.8 | 16.6 |
Health Care | 13.9 | 12.1 |
Energy | 12.3 | 11.4 |
Industrials | 11.0 | 12.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 98.7% |
| Stocks 98.2% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 10.9% |
| ** Foreign investments | 11.0% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 10.2% | |||
Auto Components - 0.2% | |||
Gentex Corp. | 100,856 | $ 2,307 | |
Automobiles - 0.5% | |||
Ford Motor Co. | 336,349 | 5,274 | |
Distributors - 0.3% | |||
Li & Fung Ltd. | 1,600,000 | 2,221 | |
LKQ Corp. (a) | 50,090 | 1,226 | |
| 3,447 | ||
Diversified Consumer Services - 0.2% | |||
H&R Block, Inc. | 62,900 | 1,841 | |
Hotels, Restaurants & Leisure - 1.4% | |||
Darden Restaurants, Inc. | 6,248 | 324 | |
McDonald's Corp. | 95,345 | 9,207 | |
Wyndham Worldwide Corp. | 21,333 | 1,240 | |
Yum! Brands, Inc. | 69,664 | 4,720 | |
| 15,491 | ||
Leisure Equipment & Products - 0.1% | |||
Mattel, Inc. | 22,326 | 999 | |
Media - 3.4% | |||
Comcast Corp. Class A (special) (non-vtg.) | 465,329 | 18,055 | |
Scripps Networks Interactive, Inc. Class A | 32,370 | 2,180 | |
Time Warner, Inc. | 224,376 | 13,097 | |
Viacom, Inc. Class B (non-vtg.) | 49,190 | 3,241 | |
| 36,573 | ||
Multiline Retail - 2.2% | |||
Kohl's Corp. | 41,321 | 2,124 | |
Target Corp. | 304,062 | 21,132 | |
| 23,256 | ||
Specialty Retail - 1.8% | |||
Lowe's Companies, Inc. | 399,440 | 16,820 | |
Staples, Inc. | 149,529 | 2,243 | |
| 19,063 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Coach, Inc. | 24,295 | 1,415 | |
TOTAL CONSUMER DISCRETIONARY | 109,666 | ||
CONSUMER STAPLES - 10.5% | |||
Beverages - 2.6% | |||
Molson Coors Brewing Co. Class B | 38,927 | 1,923 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
PepsiCo, Inc. | 123,463 | $ 9,972 | |
The Coca-Cola Co. | 397,664 | 15,903 | |
| 27,798 | ||
Food & Staples Retailing - 1.9% | |||
CVS Caremark Corp. | 97,951 | 5,640 | |
Walgreen Co. | 300,976 | 14,375 | |
| 20,015 | ||
Food Products - 0.9% | |||
Danone SA | 47,567 | 3,508 | |
Kellogg Co. | 92,537 | 5,742 | |
| 9,250 | ||
Household Products - 2.9% | |||
Kimberly-Clark Corp. | 88,967 | 8,615 | |
Procter & Gamble Co. | 287,135 | 22,040 | |
Svenska Cellulosa AB (SCA) (B Shares) | 26,100 | 652 | |
| 31,307 | ||
Tobacco - 2.2% | |||
British American Tobacco PLC sponsored ADR | 129,959 | 14,266 | |
Lorillard, Inc. | 203,557 | 8,639 | |
Philip Morris International, Inc. | 7,432 | 676 | |
| 23,581 | ||
TOTAL CONSUMER STAPLES | 111,951 | ||
ENERGY - 12.2% | |||
Energy Equipment & Services - 1.3% | |||
Ensco PLC Class A | 38,159 | 2,296 | |
Exterran Partners LP | 35,120 | 973 | |
Halliburton Co. | 162,819 | 6,814 | |
Schlumberger Ltd. | 56,934 | 4,158 | |
| 14,241 | ||
Oil, Gas & Consumable Fuels - 10.9% | |||
Access Midstream Partners LP | 35,729 | 1,537 | |
Apache Corp. | 57,948 | 4,759 | |
Atlas Pipeline Partners LP | 83,860 | 3,120 | |
BG Group PLC | 103,215 | 1,902 | |
BP PLC sponsored ADR | 95,529 | 4,099 | |
Canadian Natural Resources Ltd. | 220,350 | 6,567 | |
Chevron Corp. | 239,771 | 29,432 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
ENI SpA | 50,900 | $ 1,158 | |
Exxon Mobil Corp. | 100,425 | 9,085 | |
Legacy Reserves LP | 18,676 | 495 | |
Magellan Midstream Partners LP | 3,954 | 206 | |
Markwest Energy Partners LP | 78,498 | 5,168 | |
Occidental Petroleum Corp. | 238,932 | 21,998 | |
Royal Dutch Shell PLC Class A (United Kingdom) | 296,939 | 9,882 | |
Suncor Energy, Inc. | 299,890 | 9,097 | |
The Williams Companies, Inc. | 211,603 | 7,444 | |
Western Gas Partners LP | 11,100 | 653 | |
| 116,602 | ||
TOTAL ENERGY | 130,843 | ||
FINANCIALS - 20.6% | |||
Capital Markets - 4.3% | |||
Apollo Investment Corp. | 86,794 | 720 | |
Artisan Partners Asset Management, Inc. | 4,500 | 210 | |
Ashmore Group PLC | 145,708 | 882 | |
BlackRock, Inc. Class A | 13,900 | 3,881 | |
Charles Schwab Corp. | 581,300 | 11,545 | |
Greenhill & Co., Inc. | 10,301 | 513 | |
KKR & Co. LP | 202,701 | 3,949 | |
Morgan Stanley | 421,430 | 10,915 | |
Northern Trust Corp. | 84,132 | 4,892 | |
State Street Corp. | 93,279 | 6,173 | |
The Blackstone Group LP | 87,437 | 1,914 | |
UBS AG | 47,604 | 835 | |
| 46,429 | ||
Commercial Banks - 5.9% | |||
BNP Paribas SA | 10,900 | 642 | |
Comerica, Inc. | 156,157 | 6,167 | |
PNC Financial Services Group, Inc. | 121,516 | 8,705 | |
Standard Chartered PLC (United Kingdom) | 144,510 | 3,375 | |
SunTrust Banks, Inc. | 66,995 | 2,150 | |
U.S. Bancorp | 322,803 | 11,317 | |
Wells Fargo & Co. | 746,921 | 30,288 | |
| 62,644 | ||
Consumer Finance - 0.2% | |||
SLM Corp. | 111,545 | 2,648 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - 7.8% | |||
Bank of America Corp. | 840,069 | $ 11,475 | |
Citigroup, Inc. | 423,292 | 22,007 | |
JPMorgan Chase & Co. | 770,109 | 42,035 | |
KKR Financial Holdings LLC | 455,079 | 4,787 | |
NYSE Euronext | 38,506 | 1,549 | |
The NASDAQ Stock Market, Inc. | 35,781 | 1,126 | |
| 82,979 | ||
Insurance - 1.5% | |||
AFLAC, Inc. | 12,009 | 669 | |
Arthur J. Gallagher & Co. | 7,400 | 323 | |
MetLife, Inc. | 223,728 | 9,891 | |
MetLife, Inc. unit | 58,400 | 3,103 | |
Prudential Financial, Inc. | 32,146 | 2,217 | |
| 16,203 | ||
Real Estate Investment Trusts - 0.5% | |||
American Capital Agency Corp. | 4,100 | 106 | |
Aviv REIT, Inc. | 5,500 | 143 | |
BioMed Realty Trust, Inc. | 16,600 | 347 | |
Invesco Mortgage Capital, Inc. | 5,700 | 106 | |
MFA Financial, Inc. | 12,200 | 107 | |
Sun Communities, Inc. | 89,746 | 4,485 | |
| 5,294 | ||
Real Estate Management & Development - 0.1% | |||
Beazer Pre-Owned Rental Homes, Inc. (e) | 67,500 | 1,418 | |
Thrifts & Mortgage Finance - 0.3% | |||
Radian Group, Inc. | 218,390 | 2,811 | |
TOTAL FINANCIALS | 220,426 | ||
HEALTH CARE - 13.2% | |||
Biotechnology - 0.8% | |||
Amgen, Inc. | 85,656 | 8,611 | |
Health Care Equipment & Supplies - 1.0% | |||
Abbott Laboratories | 56,226 | 2,062 | |
ResMed, Inc. (d) | 10,018 | 481 | |
St. Jude Medical, Inc. | 99,478 | 4,300 | |
Stryker Corp. | 57,159 | 3,795 | |
| 10,638 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - 3.7% | |||
Aetna, Inc. | 96,128 | $ 5,804 | |
AmerisourceBergen Corp. | 13,200 | 714 | |
Fresenius Medical Care AG & Co. KGaA | 13,500 | 917 | |
Humana, Inc. | 7,700 | 622 | |
McKesson Corp. | 69,233 | 7,883 | |
Quest Diagnostics, Inc. | 150,508 | 9,307 | |
UnitedHealth Group, Inc. | 119,267 | 7,470 | |
WellPoint, Inc. | 93,507 | 7,197 | |
| 39,914 | ||
Health Care Technology - 0.2% | |||
Quality Systems, Inc. | 85,400 | 1,527 | |
Life Sciences Tools & Services - 0.3% | |||
Lonza Group AG | 34,912 | 2,609 | |
Pharmaceuticals - 7.2% | |||
AbbVie, Inc. | 181,055 | 7,729 | |
AstraZeneca PLC sponsored ADR | 55,426 | 2,841 | |
Eli Lilly & Co. | 29,304 | 1,558 | |
GlaxoSmithKline PLC sponsored ADR | 186,033 | 9,631 | |
Johnson & Johnson | 206,157 | 17,354 | |
Merck & Co., Inc. | 449,900 | 21,010 | |
Novartis AG sponsored ADR | 61,493 | 4,413 | |
Pfizer, Inc. | 220,780 | 6,012 | |
Sanofi SA | 37,334 | 3,981 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 47,029 | 1,797 | |
Warner Chilcott PLC | 56,800 | 1,091 | |
| 77,417 | ||
TOTAL HEALTH CARE | 140,716 | ||
INDUSTRIALS - 10.9% | |||
Aerospace & Defense - 2.3% | |||
Honeywell International, Inc. | 27,671 | 2,171 | |
Rockwell Collins, Inc. | 62,178 | 4,026 | |
The Boeing Co. | 111,994 | 11,090 | |
United Technologies Corp. | 73,431 | 6,969 | |
| 24,256 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Air Freight & Logistics - 1.5% | |||
C.H. Robinson Worldwide, Inc. | 72,071 | $ 4,086 | |
United Parcel Service, Inc. Class B | 145,924 | 12,535 | |
| 16,621 | ||
Commercial Services & Supplies - 0.2% | |||
Pitney Bowes, Inc. (d) | 64,421 | 946 | |
Ritchie Brothers Auctioneers, Inc. (d) | 36,800 | 760 | |
| 1,706 | ||
Electrical Equipment - 0.4% | |||
Hubbell, Inc. Class B | 42,282 | 4,246 | |
Industrial Conglomerates - 2.9% | |||
General Electric Co. | 1,339,557 | 31,238 | |
Machinery - 1.3% | |||
Douglas Dynamics, Inc. | 157,195 | 2,198 | |
Illinois Tool Works, Inc. | 24,950 | 1,750 | |
Ingersoll-Rand PLC | 73,627 | 4,236 | |
ITT Corp. | 38,441 | 1,159 | |
Stanley Black & Decker, Inc. | 51,599 | 4,088 | |
| 13,431 | ||
Marine - 0.0% | |||
Irish Continental Group PLC unit | 17,007 | 507 | |
Professional Services - 0.3% | |||
Acacia Research Corp. | 24,900 | 623 | |
Amadeus Fire AG | 7,943 | 524 | |
Dun & Bradstreet Corp. | 13,200 | 1,295 | |
Michael Page International PLC | 181,494 | 1,061 | |
| 3,503 | ||
Road & Rail - 1.4% | |||
CSX Corp. | 302,054 | 7,615 | |
J.B. Hunt Transport Services, Inc. | 41,780 | 3,078 | |
Norfolk Southern Corp. | 55,308 | 4,236 | |
| 14,929 | ||
Trading Companies & Distributors - 0.6% | |||
MSC Industrial Direct Co., Inc. Class A | 28,300 | 2,340 | |
W.W. Grainger, Inc. | 14,173 | 3,649 | |
Watsco, Inc. | 5,851 | 510 | |
| 6,499 | ||
TOTAL INDUSTRIALS | 116,936 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - 16.8% | |||
Communications Equipment - 2.3% | |||
Cisco Systems, Inc. | 706,545 | $ 17,014 | |
QUALCOMM, Inc. | 118,513 | 7,523 | |
| 24,537 | ||
Computers & Peripherals - 3.5% | |||
Apple, Inc. | 79,814 | 35,891 | |
EMC Corp. | 40,700 | 1,008 | |
| 36,899 | ||
Electronic Equipment & Components - 0.0% | |||
Arrow Electronics, Inc. (a) | 12,034 | 478 | |
Internet Software & Services - 1.8% | |||
Google, Inc. Class A (a) | 22,641 | 19,707 | |
IT Services - 5.6% | |||
Accenture PLC Class A | 18,202 | 1,495 | |
Cognizant Technology Solutions Corp. Class A (a) | 64,210 | 4,151 | |
Fidelity National Information Services, Inc. | 135,540 | 6,086 | |
IBM Corp. | 20,300 | 4,223 | |
MasterCard, Inc. Class A | 17,239 | 9,831 | |
Paychex, Inc. | 493,786 | 18,384 | |
The Western Union Co. | 382,361 | 6,263 | |
Visa, Inc. Class A | 53,535 | 9,537 | |
| 59,970 | ||
Semiconductors & Semiconductor Equipment - 1.0% | |||
Altera Corp. | 73,505 | 2,440 | |
Analog Devices, Inc. | 59,173 | 2,718 | |
Applied Materials, Inc. | 336,064 | 5,108 | |
| 10,266 | ||
Software - 2.6% | |||
Microsoft Corp. | 746,207 | 26,028 | |
Oracle Corp. | 39,692 | 1,340 | |
| 27,368 | ||
TOTAL INFORMATION TECHNOLOGY | 179,225 | ||
MATERIALS - 1.2% | |||
Chemicals - 1.2% | |||
Air Products & Chemicals, Inc. | 11,032 | 1,042 | |
Airgas, Inc. | 27,852 | 2,866 | |
E.I. du Pont de Nemours & Co. | 55,052 | 3,071 | |
FMC Corp. | 14,859 | 932 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Sigma Aldrich Corp. | 5,233 | $ 438 | |
Syngenta AG (Switzerland) | 11,406 | 4,449 | |
| 12,798 | ||
Metals & Mining - 0.0% | |||
Freeport-McMoRan Copper & Gold, Inc. | 4,100 | 127 | |
TOTAL MATERIALS | 12,925 | ||
TELECOMMUNICATION SERVICES - 2.1% | |||
Diversified Telecommunication Services - 1.3% | |||
CenturyLink, Inc. | 30,986 | 1,058 | |
Verizon Communications, Inc. | 269,928 | 13,086 | |
| 14,144 | ||
Wireless Telecommunication Services - 0.8% | |||
Vodafone Group PLC sponsored ADR | 287,550 | 8,325 | |
TOTAL TELECOMMUNICATION SERVICES | 22,469 | ||
UTILITIES - 1.0% | |||
Electric Utilities - 0.7% | |||
Duke Energy Corp. | 15,281 | 1,023 | |
EDF SA (d) | 32,000 | 732 | |
FirstEnergy Corp. | 50,161 | 1,957 | |
Hawaiian Electric Industries, Inc. | 36,800 | 963 | |
ITC Holdings Corp. | 13,250 | 1,147 | |
Northeast Utilities | 16,365 | 682 | |
PPL Corp. | 31,266 | 929 | |
| 7,433 | ||
Multi-Utilities - 0.3% | |||
National Grid PLC | 17,865 | 212 | |
PG&E Corp. | 24,838 | 1,115 | |
Sempra Energy | 25,800 | 2,098 | |
| 3,425 | ||
TOTAL UTILITIES | 10,858 | ||
TOTAL COMMON STOCKS (Cost $845,693) |
| ||
Convertible Preferred Stocks - 0.8% | |||
Shares | Value (000s) | ||
ENERGY - 0.0% | |||
Oil, Gas & Consumable Fuels - 0.0% | |||
Apache Corp. 6.00% | 14,200 | $ 664 | |
HEALTH CARE - 0.7% | |||
Health Care Equipment & Supplies - 0.7% | |||
Alere, Inc. 3.00% | 30,588 | 7,257 | |
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
United Technologies Corp. 7.50% | 18,900 | 1,140 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $9,666) |
|
Convertible Bonds - 0.1% | ||||
| Principal Amount (000s) |
| ||
ENERGY - 0.1% | ||||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 (Cost $1,592) | $ 1,592 |
|
Money Market Funds - 0.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 3,404,468 | 3,404 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 1,711,430 | 1,711 | |
TOTAL MONEY MARKET FUNDS (Cost $5,115) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $862,066) | 1,071,322 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (1,487) | ||
NET ASSETS - 100% | $ 1,069,835 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $1,418,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. | 5/3/12 - 10/23/12 | $ 1,350 |
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 | $ 2 |
Fidelity Securities Lending Cash Central Fund | 25 |
Total | $ 27 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 109,666 | $ 107,445 | $ 2,221 | $ - |
Consumer Staples | 111,951 | 111,951 | - | - |
Energy | 131,507 | 120,467 | 11,040 | - |
Financials | 220,426 | 215,070 | 3,938 | 1,418 |
Health Care | 147,973 | 143,075 | 4,898 | - |
Industrials | 118,076 | 118,076 | - | - |
Information Technology | 179,225 | 179,225 | - | - |
Materials | 12,925 | 8,476 | 4,449 | - |
Telecommunication Services | 22,469 | 22,469 | - | - |
Utilities | 10,858 | 10,646 | 212 | - |
Corporate Bonds | 1,131 | - | 1,131 | - |
Money Market Funds | 5,115 | 5,115 | - | - |
Total Investments in Securities: | $ 1,071,322 | $ 1,042,015 | $ 27,889 | $ 1,418 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 89.1% |
United Kingdom | 5.5% |
Canada | 1.6% |
Switzerland | 1.2% |
Others (Individually Less Than 1%) | 2.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $1,611) - See accompanying schedule: Unaffiliated issuers (cost $856,951) | $ 1,066,207 |
|
Fidelity Central Funds (cost $5,115) | 5,115 |
|
Total Investments (cost $862,066) |
| $ 1,071,322 |
Receivable for investments sold | 4,644 | |
Receivable for fund shares sold | 695 | |
Dividends receivable | 2,599 | |
Interest receivable | 12 | |
Distributions receivable from Fidelity Central Funds | 22 | |
Prepaid expenses | 1 | |
Other receivables | 6 | |
Total assets | 1,079,301 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 6,167 | |
Payable for fund shares redeemed | 733 | |
Accrued management fee | 409 | |
Distribution and service plan fees payable | 185 | |
Other affiliated payables | 214 | |
Other payables and accrued expenses | 47 | |
Collateral on securities loaned, at value | 1,711 | |
Total liabilities | 9,466 | |
|
|
|
Net Assets | $ 1,069,835 | |
Net Assets consist of: |
| |
Paid in capital | $ 764,161 | |
Undistributed net investment income | 6,696 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 89,727 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 209,251 | |
Net Assets | $ 1,069,835 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 23.21 | |
|
|
|
Maximum offering price per share (100/94.25 of $23.21) | $ 24.63 | |
Class T: | $ 23.20 | |
|
|
|
Maximum offering price per share (100/96.50 of $23.20) | $ 24.04 | |
Class B: | $ 22.29 | |
|
|
|
Class C: | $ 22.20 | |
|
|
|
Institutional Class: | $ 23.39 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 13,855 |
Interest |
| 39 |
Income from Fidelity Central Funds |
| 27 |
Total income |
| 13,921 |
|
|
|
Expenses | ||
Management fee | $ 2,342 | |
Transfer agent fees | 1,099 | |
Distribution and service plan fees | 1,047 | |
Accounting and security lending fees | 170 | |
Custodian fees and expenses | 42 | |
Independent trustees' compensation | 3 | |
Registration fees | 44 | |
Audit | 36 | |
Legal | 2 | |
Interest | 1 | |
Miscellaneous | 7 | |
Total expenses before reductions | 4,793 | |
Expense reductions | (138) | 4,655 |
Net investment income (loss) | 9,266 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 44,219 | |
Redemption in-kind with affiliated entities | 94,937 |
|
Foreign currency transactions | 2 | |
Total net realized gain (loss) |
| 139,158 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 22,931 | |
Assets and liabilities in foreign currencies | (8) | |
Total change in net unrealized appreciation (depreciation) |
| 22,923 |
Net gain (loss) | 162,081 | |
Net increase (decrease) in net assets resulting from operations | $ 171,347 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 9,266 | $ 28,263 |
Net realized gain (loss) | 139,158 | 38,247 |
Change in net unrealized appreciation (depreciation) | 22,923 | 189,073 |
Net increase (decrease) in net assets resulting | 171,347 | 255,583 |
Distributions to shareholders from net investment income | (2,542) | (45,234) |
Distributions to shareholders from net realized gain | - | (2,237) |
Total distributions | (2,542) | (47,471) |
Share transactions - net increase (decrease) | (548,148) | (170,346) |
Total increase (decrease) in net assets | (379,343) | 37,766 |
|
|
|
Net Assets | ||
Beginning of period | 1,449,178 | 1,411,412 |
End of period (including undistributed net investment income of $6,696 and distributions in excess of net investment income of $28, respectively) | $ 1,069,835 | $ 1,449,178 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.67 | $ 17.00 | $ 16.05 | $ 14.67 | $ 11.96 | $ 21.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .18 | .33 | .21 | .04 | .08 | .12 |
Net realized and unrealized gain (loss) | 3.41 | 2.90 | .78 | 1.41 | 2.75 | (8.82) |
Total from investment operations | 3.59 | 3.23 | .99 | 1.45 | 2.83 | (8.70) |
Distributions from net investment income | (.05) | (.53) | (.04) | (.07) | (.12) | (.09) |
Distributions from net realized gain | - | (.03) | - | - | - | (1.10) |
Total distributions | (.05) | (.56) | (.04) | (.07) | (.12) | (1.18) J |
Net asset value, end of period | $ 23.21 | $ 19.67 | $ 17.00 | $ 16.05 | $ 14.67 | $ 11.96 |
Total Return B,C,D | 18.31% | 19.20% | 6.17% | 9.90% | 23.96% | (42.07)% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.03% A | 1.05% | 1.06% | 1.05% | 1.09% | 1.06% |
Expenses net of fee waivers, if any | 1.03% A | 1.05% | 1.06% | 1.05% | 1.09% | 1.06% |
Expenses net of all reductions | 1.00% A | 1.04% | 1.05% | 1.05% | 1.08% | 1.06% |
Net investment income (loss) | 1.70% A | 1.75% | 1.22% | .26% | .60% | .67% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 211 | $ 183 | $ 170 | $ 232 | $ 252 | $ 228 |
Portfolio turnover rate G | 52% A | 57% | 123% | 102% | 117% | 124% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 The portfolio turnover rate does not include the assets acquired in the merger.
J Total distributions of $1.183 per share is comprised of distributions from net investment income of $.085 and distributions from net realized gain of $1.098 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.68 | $ 16.97 | $ 16.02 | $ 14.64 | $ 11.90 | $ 21.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .16 | .29 | .17 | - J | .04 | .08 |
Net realized and unrealized gain (loss) | 3.41 | 2.89 | .78 | 1.41 | 2.75 | (8.76) |
Total from investment operations | 3.57 | 3.18 | .95 | 1.41 | 2.79 | (8.68) |
Distributions from net investment income | (.05) | (.44) | - | (.03) | (.05) | (.02) |
Distributions from net realized gain | - | (.03) | - | - | - | (1.10) |
Total distributions | (.05) | (.47) | - | (.03) | (.05) | (1.12) K |
Net asset value, end of period | $ 23.20 | $ 19.68 | $ 16.97 | $ 16.02 | $ 14.64 | $ 11.90 |
Total Return B,C,D | 18.17% | 18.93% | 5.93% | 9.63% | 23.57% | (42.16)% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.26% A | 1.27% | 1.29% | 1.31% | 1.34% | 1.28% |
Expenses net of fee waivers, if any | 1.26% A | 1.27% | 1.29% | 1.31% | 1.34% | 1.28% |
Expenses net of all reductions | 1.23% A | 1.26% | 1.28% | 1.30% | 1.34% | 1.28% |
Net investment income (loss) | 1.48% A | 1.53% | .99% | .01% | .35% | .45% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 187 | $ 166 | $ 158 | $ 178 | $ 201 | $ 204 |
Portfolio turnover rate G | 52% A | 57% | 123% | 102% | 117% | 124% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
K Total distributions of $1.118 per share is comprised of distributions from net investment income of $.020 and distributions from net realized gain of $1.098 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.95 | $ 16.24 | $ 15.41 | $ 14.13 | $ 11.49 | $ 21.02 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .09 | .18 | .08 | (.07) | (.02) | (.01) |
Net realized and unrealized gain (loss) | 3.29 | 2.78 | .75 | 1.35 | 2.66 | (8.48) |
Total from investment operations | 3.38 | 2.96 | .83 | 1.28 | 2.64 | (8.49) |
Distributions from net investment income | (.04) | (.22) | - | - | - | - |
Distributions from net realized gain | - | (.03) | - | - | - | (1.04) |
Total distributions | (.04) | (.25) | - | - | - | (1.04) |
Net asset value, end of period | $ 22.29 | $ 18.95 | $ 16.24 | $ 15.41 | $ 14.13 | $ 11.49 |
Total Return B,C,D | 17.85% | 18.31% | 5.39% | 9.06% | 22.98% | (42.48)% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.81% A | 1.81% | 1.81% | 1.82% | 1.85% | 1.81% |
Expenses net of fee waivers, if any | 1.81% A | 1.81% | 1.81% | 1.82% | 1.85% | 1.81% |
Expenses net of all reductions | 1.79% A | 1.81% | 1.80% | 1.81% | 1.84% | 1.81% |
Net investment income (loss) | .92% A | .99% | .47% | (.51)% | (.16)% | (.08)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 11 | $ 11 | $ 13 | $ 19 | $ 27 | $ 31 |
Portfolio turnover rate G | 52% A | 57% | 123% | 102% | 117% | 124% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.87 | $ 16.23 | $ 15.39 | $ 14.12 | $ 11.47 | $ 20.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .10 | .19 | .08 | (.07) | (.02) | (.01) |
Net realized and unrealized gain (loss) | 3.27 | 2.77 | .76 | 1.34 | 2.67 | (8.47) |
Total from investment operations | 3.37 | 2.96 | .84 | 1.27 | 2.65 | (8.48) |
Distributions from net investment income | (.04) | (.29) | - | - | - | - |
Distributions from net realized gain | - | (.03) | - | - | - | (1.04) |
Total distributions | (.04) | (.32) | - | - | - | (1.04) |
Net asset value, end of period | $ 22.20 | $ 18.87 | $ 16.23 | $ 15.39 | $ 14.12 | $ 11.47 |
Total Return B,C,D | 17.89% | 18.33% | 5.46% | 8.99% | 23.10% | (42.49)% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.75% A | 1.76% | 1.78% | 1.80% | 1.84% | 1.79% |
Expenses net of fee waivers, if any | 1.75% A | 1.76% | 1.78% | 1.80% | 1.84% | 1.79% |
Expenses net of all reductions | 1.72% A | 1.76% | 1.77% | 1.80% | 1.83% | 1.78% |
Net investment income (loss) | .98% A | 1.04% | .50% | (.49)% | (.15)% | (.05)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 66 | $ 58 | $ 53 | $ 58 | $ 63 | $ 59 |
Portfolio turnover rate G | 52% A | 57% | 123% | 102% | 117% | 124% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.79 | $ 17.16 | $ 16.19 | $ 14.80 | $ 12.07 | $ 22.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .22 | .40 | .27 | .09 | .12 | .18 |
Net realized and unrealized gain (loss) | 3.44 | 2.91 | .79 | 1.41 | 2.78 | (8.89) |
Total from investment operations | 3.66 | 3.31 | 1.06 | 1.50 | 2.90 | (8.71) |
Distributions from net investment income | (.06) | (.65) | (.09) | (.11) | (.17) | (.15) |
Distributions from net realized gain | - | (.03) | - | - | - | (1.10) |
Total distributions | (.06) | (.68) | (.09) | (.11) | (.17) | (1.25) I |
Net asset value, end of period | $ 23.39 | $ 19.79 | $ 17.16 | $ 16.19 | $ 14.80 | $ 12.07 |
Total Return B,C | 18.52% | 19.59% | 6.56% | 10.23% | 24.36% | (41.88)% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | .70% A | .71% | .72% | .73% | .77% | .74% |
Expenses net of fee waivers, if any | .70% A | .71% | .72% | .73% | .77% | .74% |
Expenses net of all reductions | .67% A | .70% | .71% | .72% | .77% | .73% |
Net investment income (loss) | 2.03% A | 2.09% | 1.56% | .59% | .92% | 1.00% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 596 | $ 1,031 | $ 1,017 | $ 870 | $ 1,017 | $ 725 |
Portfolio turnover rate F | 52% A | 57% | 123% | 102% | 117% | 124% H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H The portfolio turnover rate does not include the assets acquired in the merger.
I Total distributions of $1.252 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $1.098 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Growth & Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, partnerships, equity-debt classifications, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 213,378 |
Gross unrealized depreciation | (10,454) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 202,924 |
|
|
Tax cost | $ 868,398 |
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.
Fiscal year of expiration |
|
2016 | $ (3,650) |
2017 | (35,212) |
Total capital loss carryforward | $ (38,862) |
The capital loss carryforward expiring fiscal 2016 was acquired from Capital One Appreciation Fund.
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.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $275,984 and $810,524, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .46% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 245 | $ 1 |
Class T | .25% | .25% | 439 | 1 |
Class B | .75% | .25% | 54 | 40 |
Class C | .75% | .25% | 309 | 20 |
|
|
| $ 1,047 | $ 62 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 25 |
Class T | 9 |
Class B* | 8 |
Class C* | 1 |
| $ 43 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 258 | .26 |
Class T | 212 | .24 |
Class B | 16 | .30 |
Class C | 73 | .23 |
Institutional Class | 540 | .18 |
| $ 1,099 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 $13 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 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 | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 5,624 | .39% | $ 1 |
Redemptions In-Kind. During the period, 25,355 shares of the Fund held by affiliated entities were redeemed for cash and securities with a value of $503,299. The net realized gain of $94,937 on securities delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. 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 FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Security Lending - continued
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. 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 $240. 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 $25, including two hundred and fifty seven dollars from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $138 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by ninety-four dollars.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 483 | $ 4,963 |
Class T | 402 | 3,843 |
Class B | 21 | 142 |
Class C | 120 | 894 |
Institutional Class | 1,516 | 35,392 |
Total | $ 2,542 | $ 45,234 |
Semiannual Report
9. Distributions to Shareholders - continued
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 283 |
Class T | - | 258 |
Class B | - | 18 |
Class C | - | 94 |
Institutional Class | - | 1,584 |
Total | $ - | $ 2,237 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 687 | 1,303 | $ 14,690 | $ 24,427 |
Reinvestment of distributions | 22 | 252 | 431 | 4,662 |
Shares redeemed | (897) | (2,279) | (18,975) | (42,887) |
Net increase (decrease) | (188) | (724) | $ (3,854) | $ (13,798) |
Class T |
|
|
|
|
Shares sold | 390 | 780 | $ 8,397 | $ 14,651 |
Reinvestment of distributions | 19 | 212 | 386 | 3,940 |
Shares redeemed | (815) | (1,871) | (17,329) | (34,844) |
Net increase (decrease) | (406) | (879) | $ (8,546) | $ (16,253) |
Class B |
|
|
|
|
Shares sold | 8 | 14 | $ 177 | $ 233 |
Reinvestment of distributions | 1 | 8 | 19 | 147 |
Shares redeemed | (117) | (242) | (2,396) | (4,364) |
Net increase (decrease) | (108) | (220) | $ (2,200) | $ (3,984) |
Class C |
|
|
|
|
Shares sold | 208 | 306 | $ 4,293 | $ 5,607 |
Reinvestment of distributions | 5 | 47 | 103 | 851 |
Shares redeemed | (325) | (558) | (6,664) | (10,063) |
Net increase (decrease) | (112) | (205) | $ (2,268) | $ (3,605) |
Institutional Class |
|
|
|
|
Shares sold | 2,329 | 9,408 | $ 49,169 | $ 179,442 |
Reinvestment of distributions | 75 | 1,996 | 1,511 | 36,899 |
Shares redeemed | (29,034)A | (18,539) | (581,960)A | (349,047) |
Net increase (decrease) | (26,630) | (7,135) | $ (531,280) | $ (132,706) |
A Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind).
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 54% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
AGAI-USAN-0713 1.786791.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Growth Opportunities
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,168.10 | $ 6.76 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.70 | $ 6.29 |
Class T | 1.44% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,166.80 | $ 7.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.75 | $ 7.24 |
Class B | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,163.60 | $ 10.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.81 | $ 10.20 |
Class C | 1.98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,163.50 | $ 10.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.06 | $ 9.95 |
Institutional Class | .93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,169.80 | $ 5.03 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.29 | $ 4.68 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 4.8 | 8.9 |
Google, Inc. Class A | 4.6 | 3.9 |
salesforce.com, Inc. | 3.6 | 3.8 |
Regeneron Pharmaceuticals, Inc. | 3.5 | 3.8 |
lululemon athletica, Inc. | 2.7 | 2.9 |
Seattle Genetics, Inc. | 2.3 | 1.8 |
Cree, Inc. | 1.9 | 1.2 |
Green Mountain Coffee Roasters, Inc. | 1.7 | 1.0 |
NVIDIA Corp. | 1.7 | 1.4 |
Alkermes PLC | 1.5 | 0.9 |
| 28.3 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 34.7 | 37.7 |
Health Care | 19.4 | 17.7 |
Consumer Discretionary | 18.5 | 18.4 |
Consumer Staples | 9.2 | 9.0 |
Industrials | 7.1 | 5.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 99.2% |
| Stocks 98.7% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 6.2% |
| ** Foreign investments | 6.7% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 18.5% | |||
Auto Components - 0.2% | |||
Tenneco, Inc. (a) | 115,600 | $ 5,128 | |
Automobiles - 0.7% | |||
Honda Motor Co. Ltd. | 29,300 | 1,088 | |
Tesla Motors, Inc. (a)(d) | 178,400 | 17,440 | |
| 18,528 | ||
Hotels, Restaurants & Leisure - 3.5% | |||
Arcos Dorados Holdings, Inc. Class A (d) | 222,600 | 3,067 | |
BJ's Restaurants, Inc. (a) | 163,400 | 6,134 | |
Buffalo Wild Wings, Inc. (a) | 75,000 | 7,197 | |
Chipotle Mexican Grill, Inc. (a) | 22,100 | 7,978 | |
Chuys Holdings, Inc. | 114,500 | 3,990 | |
Dunkin' Brands Group, Inc. | 163,600 | 6,479 | |
Las Vegas Sands Corp. | 112,092 | 6,490 | |
McDonald's Corp. | 135,600 | 13,095 | |
Starbucks Corp. | 278,000 | 17,533 | |
Starwood Hotels & Resorts Worldwide, Inc. | 171,500 | 11,713 | |
The Cheesecake Factory, Inc. | 64,300 | 2,567 | |
| 86,243 | ||
Household Durables - 1.5% | |||
iRobot Corp. (a) | 29,200 | 987 | |
Lennar Corp. Class A | 407,400 | 16,019 | |
SodaStream International Ltd. (a) | 94,839 | 6,051 | |
Tempur-Pedic International, Inc. (a) | 21,654 | 916 | |
Toll Brothers, Inc. (a) | 240,300 | 8,211 | |
Tupperware Brands Corp. | 54,600 | 4,422 | |
| 36,606 | ||
Internet & Catalog Retail - 2.1% | |||
Amazon.com, Inc. (a) | 109,000 | 29,324 | |
priceline.com, Inc. (a) | 13,500 | 10,853 | |
Shutterfly, Inc. (a) | 79,400 | 3,870 | |
TripAdvisor, Inc. (a) | 110,600 | 7,133 | |
| 51,180 | ||
Media - 1.8% | |||
AMC Networks, Inc. Class A (a) | 77,000 | 4,930 | |
Comcast Corp. Class A | 121,800 | 4,890 | |
DIRECTV (a) | 138,300 | 8,454 | |
DreamWorks Animation SKG, Inc. Class A (a) | 50,200 | 1,101 | |
IMAX Corp. (a) | 434,100 | 11,248 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
Lions Gate Entertainment Corp. (a)(d) | 241,100 | $ 6,944 | |
The Walt Disney Co. | 123,300 | 7,778 | |
| 45,345 | ||
Multiline Retail - 0.4% | |||
J.C. Penney Co., Inc. (d) | 185,800 | 3,266 | |
Target Corp. | 91,300 | 6,345 | |
| 9,611 | ||
Specialty Retail - 3.0% | |||
Abercrombie & Fitch Co. Class A | 117,300 | 5,874 | |
Bed Bath & Beyond, Inc. (a) | 64,700 | 4,416 | |
CarMax, Inc. (a) | 122,100 | 5,711 | |
DSW, Inc. Class A | 41,200 | 3,048 | |
Five Below, Inc. | 105,600 | 4,038 | |
Francescas Holdings Corp. (a) | 73,000 | 2,084 | |
Home Depot, Inc. | 215,300 | 16,935 | |
Lumber Liquidators Holdings, Inc. (a) | 396,300 | 32,540 | |
Staples, Inc. | 76,300 | 1,145 | |
| 75,791 | ||
Textiles, Apparel & Luxury Goods - 5.3% | |||
Coach, Inc. | 34,300 | 1,998 | |
Fifth & Pacific Companies, Inc. (a) | 146,100 | 3,140 | |
Fossil, Inc. (a) | 171,700 | 18,235 | |
lululemon athletica, Inc. (a)(d) | 872,016 | 67,852 | |
Michael Kors Holdings Ltd. (a) | 197,700 | 12,420 | |
NIKE, Inc. Class B | 150,400 | 9,274 | |
Prada SpA | 454,000 | 4,351 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 130,100 | 2,927 | |
Steven Madden Ltd. (a) | 176,400 | 8,555 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 48,600 | 3,013 | |
| 131,765 | ||
TOTAL CONSUMER DISCRETIONARY | 460,197 | ||
CONSUMER STAPLES - 9.2% | |||
Beverages - 1.7% | |||
Monster Beverage Corp. (a) | 62,500 | 3,412 | |
PepsiCo, Inc. | 174,500 | 14,094 | |
The Coca-Cola Co. | 632,900 | 25,310 | |
| 42,816 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - 1.8% | |||
Costco Wholesale Corp. | 68,700 | $ 7,534 | |
CVS Caremark Corp. | 126,500 | 7,284 | |
Drogasil SA | 20,617 | 218 | |
Fresh Market, Inc. (a) | 56,433 | 2,796 | |
Wal-Mart Stores, Inc. | 233,480 | 17,474 | |
Whole Foods Market, Inc. | 198,800 | 10,310 | |
| 45,616 | ||
Food Products - 2.4% | |||
Archer Daniels Midland Co. | 38,200 | 1,231 | |
Bunge Ltd. | 59,300 | 4,127 | |
Green Mountain Coffee Roasters, Inc. (a) | 590,300 | 43,169 | |
Mead Johnson Nutrition Co. Class A | 81,400 | 6,599 | |
Mondelez International, Inc. | 115,400 | 3,400 | |
| 58,526 | ||
Household Products - 0.5% | |||
Procter & Gamble Co. | 160,100 | 12,289 | |
Personal Products - 0.6% | |||
Avon Products, Inc. | 100,242 | 2,363 | |
Herbalife Ltd. | 246,100 | 11,485 | |
| 13,848 | ||
Tobacco - 2.2% | |||
Altria Group, Inc. | 529,000 | 19,097 | |
Japan Tobacco, Inc. | 34,800 | 1,184 | |
Lorillard, Inc. | 150,600 | 6,391 | |
Philip Morris International, Inc. | 319,250 | 29,023 | |
| 55,695 | ||
TOTAL CONSUMER STAPLES | 228,790 | ||
ENERGY - 4.4% | |||
Energy Equipment & Services - 1.6% | |||
FMC Technologies, Inc. (a) | 95,840 | 5,334 | |
Halliburton Co. | 118,300 | 4,951 | |
National Oilwell Varco, Inc. | 83,988 | 5,904 | |
Schlumberger Ltd. | 341,800 | 24,962 | |
| 41,151 | ||
Oil, Gas & Consumable Fuels - 2.8% | |||
Anadarko Petroleum Corp. | 74,200 | 6,490 | |
Chesapeake Energy Corp. (d) | 165,264 | 3,609 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Concho Resources, Inc. (a) | 60,900 | $ 5,095 | |
Continental Resources, Inc. (a) | 87,800 | 7,123 | |
EOG Resources, Inc. | 20,600 | 2,659 | |
Hess Corp. | 135,100 | 9,107 | |
Noble Energy, Inc. | 91,400 | 5,269 | |
Occidental Petroleum Corp. | 133,700 | 12,310 | |
PDC Energy, Inc. (a) | 48,700 | 2,493 | |
Peabody Energy Corp. | 118,100 | 2,323 | |
Phillips 66 | 36,700 | 2,443 | |
Pioneer Natural Resources Co. | 27,400 | 3,800 | |
Range Resources Corp. | 16,300 | 1,225 | |
Valero Energy Corp. | 117,000 | 4,754 | |
| 68,700 | ||
TOTAL ENERGY | 109,851 | ||
FINANCIALS - 3.5% | |||
Capital Markets - 0.5% | |||
BlackRock, Inc. Class A | 4,900 | 1,368 | |
Charles Schwab Corp. | 323,700 | 6,429 | |
Goldman Sachs Group, Inc. | 22,791 | 3,694 | |
T. Rowe Price Group, Inc. | 30,300 | 2,299 | |
| 13,790 | ||
Commercial Banks - 0.3% | |||
Signature Bank (a) | 31,800 | 2,454 | |
Wells Fargo & Co. | 125,000 | 5,069 | |
| 7,523 | ||
Consumer Finance - 1.4% | |||
Discover Financial Services | 738,333 | 35,004 | |
Diversified Financial Services - 1.0% | |||
Bank of America Corp. | 297,800 | 4,068 | |
BM&F Bovespa SA | 765,958 | 4,960 | |
Citigroup, Inc. | 74,200 | 3,858 | |
CME Group, Inc. | 22,000 | 1,494 | |
JPMorgan Chase & Co. | 200,900 | 10,967 | |
| 25,347 | ||
Real Estate Investment Trusts - 0.2% | |||
Simon Property Group, Inc. | 25,978 | 4,324 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Management & Development - 0.1% | |||
The St. Joe Co. (a)(d) | 100,400 | $ 2,050 | |
TOTAL FINANCIALS | 88,038 | ||
HEALTH CARE - 19.3% | |||
Biotechnology - 16.0% | |||
ACADIA Pharmaceuticals, Inc. (a) | 51,900 | 730 | |
Alexion Pharmaceuticals, Inc. (a) | 39,500 | 3,853 | |
Alkermes PLC (a) | 1,180,900 | 36,903 | |
Alnylam Pharmaceuticals, Inc. (a) | 74,800 | 2,291 | |
Amarin Corp. PLC ADR (a)(d) | 265,000 | 1,852 | |
Amgen, Inc. | 201,400 | 20,247 | |
Biogen Idec, Inc. (a) | 45,600 | 10,830 | |
Celgene Corp. (a) | 55,235 | 6,830 | |
Celldex Therapeutics, Inc. (a) | 95,800 | 1,225 | |
Cepheid, Inc. (a) | 136,353 | 4,740 | |
Chimerix, Inc. | 21,500 | 462 | |
Elan Corp. PLC sponsored ADR (a) | 854,500 | 10,818 | |
Exelixis, Inc. (a)(d) | 2,173,411 | 10,519 | |
Gilead Sciences, Inc. (a) | 511,200 | 27,850 | |
ImmunoGen, Inc. (a)(d) | 1,473,851 | 27,075 | |
Immunomedics, Inc. (a)(d) | 1,324,087 | 5,177 | |
InterMune, Inc. (a) | 110,400 | 1,091 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 227,500 | 3,037 | |
Isis Pharmaceuticals, Inc. (a)(d) | 1,401,553 | 30,344 | |
Lexicon Pharmaceuticals, Inc. (a) | 9,721,004 | 23,233 | |
Merrimack Pharmaceuticals, Inc. (a) | 591,500 | 3,277 | |
Metabolix, Inc. (a)(d) | 246,795 | 405 | |
NPS Pharmaceuticals, Inc. (a) | 505,700 | 7,965 | |
Prothena Corp. PLC (a) | 76,602 | 761 | |
Receptos, Inc. | 87,600 | 1,390 | |
Regeneron Pharmaceuticals, Inc. (a) | 355,900 | 86,082 | |
Rigel Pharmaceuticals, Inc. (a) | 900,748 | 4,161 | |
Seattle Genetics, Inc. (a)(d) | 1,670,467 | 57,330 | |
Transition Therapeutics, Inc. (a) | 957,597 | 3,208 | |
Vertex Pharmaceuticals, Inc. (a) | 68,690 | 5,516 | |
| 399,202 | ||
Health Care Equipment & Supplies - 0.6% | |||
Abbott Laboratories | 156,200 | 5,728 | |
Baxter International, Inc. | 42,300 | 2,975 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Cyberonics, Inc. (a) | 79,700 | $ 3,802 | |
Steris Corp. | 59,100 | 2,680 | |
| 15,185 | ||
Health Care Providers & Services - 0.9% | |||
Accretive Health, Inc. (a) | 356,900 | 4,062 | |
BioScrip, Inc. (a) | 523,500 | 7,319 | |
Catamaran Corp. (a) | 30,500 | 1,496 | |
Express Scripts Holding Co. (a) | 125,167 | 7,775 | |
McKesson Corp. | 20,900 | 2,380 | |
| 23,032 | ||
Health Care Technology - 0.2% | |||
athenahealth, Inc. (a) | 52,500 | 4,439 | |
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a)(d) | 19,300 | 1,357 | |
Pharmaceuticals - 1.5% | |||
AbbVie, Inc. | 156,200 | 6,668 | |
Allergan, Inc. | 84,600 | 8,417 | |
Auxilium Pharmaceuticals, Inc. (a) | 146,300 | 2,183 | |
Bristol-Myers Squibb Co. | 239,700 | 11,029 | |
Hospira, Inc. (a) | 49,600 | 1,720 | |
Johnson & Johnson | 37,800 | 3,182 | |
Questcor Pharmaceuticals, Inc. | 112,600 | 3,848 | |
| 37,047 | ||
TOTAL HEALTH CARE | 480,262 | ||
INDUSTRIALS - 7.1% | |||
Aerospace & Defense - 0.9% | |||
Honeywell International, Inc. | 125,800 | 9,870 | |
The Boeing Co. | 132,500 | 13,120 | |
| 22,990 | ||
Air Freight & Logistics - 0.8% | |||
FedEx Corp. | 22,400 | 2,158 | |
United Parcel Service, Inc. Class B | 210,400 | 18,073 | |
| 20,231 | ||
Airlines - 1.1% | |||
Delta Air Lines, Inc. (a) | 67,000 | 1,207 | |
Southwest Airlines Co. | 528,000 | 7,482 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Airlines - continued | |||
Spirit Airlines, Inc. (a) | 266,300 | $ 8,104 | |
United Continental Holdings, Inc. (a) | 345,900 | 11,228 | |
| 28,021 | ||
Construction & Engineering - 0.1% | |||
Quanta Services, Inc. (a) | 97,859 | 2,776 | |
Electrical Equipment - 0.2% | |||
Roper Industries, Inc. | 38,800 | 4,820 | |
Industrial Conglomerates - 1.1% | |||
3M Co. | 69,100 | 7,620 | |
Danaher Corp. | 240,100 | 14,843 | |
General Electric Co. | 147,600 | 3,442 | |
| 25,905 | ||
Machinery - 0.9% | |||
Caterpillar, Inc. | 140,500 | 12,055 | |
Cummins, Inc. | 29,400 | 3,517 | |
Deere & Co. | 58,100 | 5,061 | |
ITT Corp. | 24,100 | 727 | |
Xylem, Inc. | 63,000 | 1,773 | |
| 23,133 | ||
Road & Rail - 2.0% | |||
CSX Corp. | 324,100 | 8,171 | |
Hertz Global Holdings, Inc. (a) | 545,100 | 14,080 | |
Kansas City Southern | 10,800 | 1,196 | |
Union Pacific Corp. | 165,600 | 25,605 | |
| 49,052 | ||
TOTAL INDUSTRIALS | 176,928 | ||
INFORMATION TECHNOLOGY - 34.7% | |||
Communications Equipment - 2.4% | |||
F5 Networks, Inc. (a) | 12,600 | 1,048 | |
Infinera Corp. (a)(d) | 1,483,881 | 15,625 | |
Juniper Networks, Inc. (a) | 65,500 | 1,161 | |
QUALCOMM, Inc. | 575,865 | 36,556 | |
Riverbed Technology, Inc. (a) | 115,800 | 1,790 | |
ViaSat, Inc. (a) | 49,600 | 3,475 | |
| 59,655 | ||
Computers & Peripherals - 5.5% | |||
3D Systems Corp. (a)(d) | 35,700 | 1,732 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Apple, Inc. | 263,758 | $ 118,606 | |
Fusion-io, Inc. (a)(d) | 617,332 | 8,933 | |
SanDisk Corp. (a) | 49,200 | 2,904 | |
Silicon Graphics International Corp. (a)(d) | 272,600 | 4,116 | |
Stratasys Ltd. (a) | 15,500 | 1,303 | |
| 137,594 | ||
Internet Software & Services - 7.1% | |||
Akamai Technologies, Inc. (a) | 31,400 | 1,448 | |
Baidu.com, Inc. sponsored ADR (a) | 24,100 | 2,329 | |
Cornerstone OnDemand, Inc. (a) | 140,000 | 5,690 | |
eBay, Inc. (a) | 425,700 | 23,030 | |
Facebook, Inc. Class A | 462,341 | 11,258 | |
Google, Inc. Class A (a) | 131,465 | 114,428 | |
LinkedIn Corp. (a) | 18,800 | 3,150 | |
Rackspace Hosting, Inc. (a) | 133,802 | 5,022 | |
Tencent Holdings Ltd. | 133,100 | 5,239 | |
Trulia, Inc. (d) | 20,400 | 627 | |
Web.com Group, Inc. (a) | 282,600 | 5,932 | |
| 178,153 | ||
IT Services - 3.4% | |||
Cognizant Technology Solutions Corp. Class A (a) | 127,216 | 8,225 | |
IBM Corp. | 117,900 | 24,526 | |
MasterCard, Inc. Class A | 34,100 | 19,446 | |
Visa, Inc. Class A | 183,600 | 32,707 | |
| 84,904 | ||
Semiconductors & Semiconductor Equipment - 7.6% | |||
Analog Devices, Inc. | 19,600 | 900 | |
Applied Materials, Inc. | 211,300 | 3,212 | |
Applied Micro Circuits Corp. (a) | 1,382,925 | 10,662 | |
Broadcom Corp. Class A | 135,400 | 4,862 | |
Cree, Inc. (a) | 737,800 | 46,002 | |
Cypress Semiconductor Corp. | 1,548,066 | 17,400 | |
Intel Corp. | 299,400 | 7,269 | |
Mellanox Technologies Ltd. (a) | 192,200 | 9,969 | |
NVIDIA Corp. | 2,816,030 | 40,804 | |
Rambus, Inc. (a) | 1,441,100 | 11,356 | |
Silicon Laboratories, Inc. (a) | 767,800 | 32,985 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Skyworks Solutions, Inc. (a) | 32,300 | $ 771 | |
Xilinx, Inc. | 60,800 | 2,472 | |
| 188,664 | ||
Software - 8.7% | |||
Adobe Systems, Inc. (a) | 81,800 | 3,510 | |
Citrix Systems, Inc. (a) | 46,000 | 2,960 | |
Concur Technologies, Inc. (a) | 66,400 | 5,360 | |
Interactive Intelligence Group, Inc. (a) | 78,700 | 3,951 | |
Microsoft Corp. | 813,700 | 28,382 | |
NetSuite, Inc. (a) | 133,800 | 11,721 | |
Oracle Corp. | 338,200 | 11,418 | |
QLIK Technologies, Inc. (a) | 272,274 | 8,375 | |
Red Hat, Inc. (a) | 675,830 | 32,595 | |
salesforce.com, Inc. (a) | 2,088,400 | 88,402 | |
ServiceNow, Inc. | 125,400 | 4,610 | |
SolarWinds, Inc. (a) | 94,700 | 3,992 | |
Solera Holdings, Inc. | 13,500 | 739 | |
Splunk, Inc. (a) | 41,100 | 1,922 | |
TiVo, Inc. (a) | 262,000 | 3,390 | |
VMware, Inc. Class A (a) | 25,200 | 1,792 | |
Workday, Inc. Class A | 54,400 | 3,494 | |
| 216,613 | ||
TOTAL INFORMATION TECHNOLOGY | 865,583 | ||
MATERIALS - 1.9% | |||
Chemicals - 1.8% | |||
CF Industries Holdings, Inc. | 9,200 | 1,757 | |
E.I. du Pont de Nemours & Co. | 96,400 | 5,378 | |
Eastman Chemical Co. | 31,200 | 2,238 | |
Monsanto Co. | 345,400 | 34,761 | |
| 44,134 | ||
Metals & Mining - 0.1% | |||
Nucor Corp. | 76,800 | 3,418 | |
TOTAL MATERIALS | 47,552 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.3% | |||
Verizon Communications, Inc. | 178,400 | 8,649 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - 0.3% | |||
Sprint Nextel Corp. (a) | 920,700 | $ 6,721 | |
TOTAL TELECOMMUNICATION SERVICES | 15,370 | ||
TOTAL COMMON STOCKS (Cost $1,734,932) |
| ||
Preferred Stocks - 0.1% | |||
|
|
|
|
Convertible Preferred Stocks - 0.1% | |||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
aTyr Pharma, Inc. 8.00% (e) | 638,618 | 1,615 | |
Nonconvertible Preferred Stocks - 0.0% | |||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Equilibrate Asia Therapeutics Series D (e) | 676,657 | 11 | |
Equilibrate Worldwide Therapeutics Series D (e) | 676,657 | 27 | |
Neuropathic Worldwide Therapeutics Series D (e) | 676,657 | 5 | |
Oculus Worldwide Therapeutics Series D (e) | 676,657 | 8 | |
Orchestrate U.S. Therapeutics, Inc. Series D (e) | 676,657 | 12 | |
Orchestrate Worldwide Therapeutics Series D (e) | 676,657 | 21 | |
| 84 | ||
TOTAL PREFERRED STOCKS (Cost $1,699) |
| ||
Money Market Funds - 3.5% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 7,533,641 | 7,534 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 78,638,726 | 78,639 | |
TOTAL MONEY MARKET FUNDS (Cost $86,173) |
| ||
Cash Equivalents - 0.3% | |||
Maturity Amount (000s) | Value (000s) | ||
Investments in repurchase agreements in a joint trading account at 0.06%, dated 5/31/13 due 6/3/13 (Collateralized by U.S. Treasury Obligations) # | $ 8,378 | $ 8,378 | |
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $1,831,182) | 2,568,821 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (76,986) | ||
NET ASSETS - 100% | $ 2,491,835 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $1,699,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
aTyr Pharma, Inc. 8.00% | 4/8/13 | $ 1,615 |
Security | Acquisition Date | Acquisition Cost (000s) |
Equilibrate Asia Therapeutics Series D | 5/17/13 | $ 11 |
Equilibrate Worldwide Therapeutics Series D | 5/17/13 | $ 27 |
Neuropathic Worldwide Therapeutics Series D | 5/17/13 | $ 5 |
Oculus Worldwide Therapeutics Series D | 5/17/13 | $ 8 |
Orchestrate U.S. Therapeutics, Inc. Series D | 5/17/13 | $ 12 |
Orchestrate Worldwide Therapeutics Series D | 5/17/13 | $ 21 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$8,378,000 due 6/03/13 at 0.06% | |
Barclays Capital, Inc. | $ 2,344 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,628 |
UBS Securities LLC | 4,406 |
| $ 8,378 |
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 | $ 18 |
Fidelity Securities Lending Cash Central Fund | 507 |
Total | $ 525 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 460,197 | $ 454,758 | $ 5,439 | $ - |
Consumer Staples | 228,790 | 227,606 | 1,184 | - |
Energy | 109,851 | 109,851 | - | - |
Financials | 88,038 | 88,038 | - | - |
Health Care | 481,961 | 480,262 | - | 1,699 |
Industrials | 176,928 | 176,928 | - | - |
Information Technology | 865,583 | 860,344 | 5,239 | - |
Materials | 47,552 | 47,552 | - | - |
Telecommunication Services | 15,370 | 15,370 | - | - |
Money Market Funds | 86,173 | 86,173 | - | - |
Cash Equivalents | 8,378 | - | 8,378 | - |
Total Investments in Securities: | $ 2,568,821 | $ 2,546,882 | $ 20,240 | $ 1,699 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $76,030 and repurchase agreements of $8,378) - See accompanying schedule: Unaffiliated issuers (cost $1,745,009) | $ 2,482,648 |
|
Fidelity Central Funds (cost $86,173) | 86,173 |
|
Total Investments (cost $1,831,182) |
| $ 2,568,821 |
Receivable for investments sold | 4,192 | |
Receivable for fund shares sold | 2,526 | |
Dividends receivable | 2,417 | |
Distributions receivable from Fidelity Central Funds | 94 | |
Prepaid expenses | 1 | |
Other receivables | 145 | |
Total assets | 2,578,196 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,951 | |
Payable for fund shares redeemed | 2,913 | |
Accrued management fee | 1,457 | |
Distribution and service plan fees payable | 736 | |
Other affiliated payables | 485 | |
Other payables and accrued expenses | 180 | |
Collateral on securities loaned, at value | 78,639 | |
Total liabilities | 86,361 | |
|
|
|
Net Assets | $ 2,491,835 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,092,389 | |
Accumulated net investment loss | (8,339) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (329,851) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 737,636 | |
Net Assets | $ 2,491,835 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 48.29 | |
|
|
|
Maximum offering price per share (100/94.25 of $48.29) | $ 51.24 | |
Class T: | $ 48.47 | |
|
|
|
Maximum offering price per share (100/96.50 of $48.47) | $ 50.23 | |
Class B: | $ 44.94 | |
|
|
|
Class C: | $ 45.18 | |
|
|
|
Institutional Class: | $ 50.23 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 12,710 |
Income from Fidelity Central Funds |
| 525 |
Total income |
| 13,235 |
|
|
|
Expenses | ||
Management fee | $ 6,315 | |
Performance adjustment | 1,567 | |
Transfer agent fees | 2,455 | |
Distribution and service plan fees | 4,059 | |
Accounting and security lending fees | 350 | |
Custodian fees and expenses | 18 | |
Independent trustees' compensation | 7 | |
Registration fees | 71 | |
Audit | 31 | |
Legal | 4 | |
Miscellaneous | 12 | |
Total expenses before reductions | 14,889 | |
Expense reductions | (77) | 14,812 |
Net investment income (loss) | (1,577) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 85,907 | |
Foreign currency transactions | (5) | |
Total net realized gain (loss) |
| 85,902 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 271,842 | |
Assets and liabilities in foreign currencies | (2) | |
Total change in net unrealized appreciation (depreciation) |
| 271,840 |
Net gain (loss) | 357,742 | |
Net increase (decrease) in net assets resulting from operations | $ 356,165 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,577) | $ (7,218) |
Net realized gain (loss) | 85,902 | 165,968 |
Change in net unrealized appreciation (depreciation) | 271,840 | 117,910 |
Net increase (decrease) in net assets resulting | 356,165 | 276,660 |
Share transactions - net increase (decrease) | 30,895 | 182,997 |
Total increase (decrease) in net assets | 387,060 | 459,657 |
|
|
|
Net Assets | ||
Beginning of period | 2,104,775 | 1,645,118 |
End of period (including accumulated net investment loss of $8,339 and accumulated net investment loss of $6,762, respectively) | $ 2,491,835 | $ 2,104,775 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 41.34 | $ 35.39 | $ 32.30 | $ 26.30 | $ 18.92 | $ 41.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.11) | (.08) | - J | .10 | (.02) |
Net realized and unrealized gain (loss) | 6.97 | 6.06 | 3.17 | 6.13 | 7.28 | (22.78) |
Total from investment operations | 6.95 | 5.95 | 3.09 | 6.13 | 7.38 | (22.80) |
Distributions from net investment income | - | - | - | (.11) | - | - |
Distributions from net realized gain | - | - | - | (.02) | - | - |
Total distributions | - | - | - | (.13) | - | - |
Net asset value, end of period | $ 48.29 | $ 41.34 | $ 35.39 | $ 32.30 | $ 26.30 | $ 18.92 |
Total Return B, C, D | 16.81% | 16.81% | 9.57% | 23.42% | 39.01% | (54.65)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.25% A | 1.30% | 1.08% | .90% | .80% | 1.08% |
Expenses net of fee waivers, if any | 1.25% A | 1.29% | 1.08% | .90% | .80% | 1.08% |
Expenses net of all reductions | 1.24% A | 1.29% | 1.07% | .90% | .80% | 1.08% |
Net investment income (loss) | (.08)% A | (.29)% | (.23)% | -% H | .45% | (.05)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 442 | $ 359 | $ 267 | $ 255 | $ 236 | $ 192 |
Portfolio turnover rate G | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Amount represents less than .01%.
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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 41.54 | $ 35.62 | $ 32.58 | $ 26.52 | $ 19.12 | $ 42.24 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.19) | (.15) | (.06) | .05 | (.08) |
Net realized and unrealized gain (loss) | 6.99 | 6.11 | 3.19 | 6.19 | 7.35 | (23.04) |
Total from investment operations | 6.93 | 5.92 | 3.04 | 6.13 | 7.40 | (23.12) |
Distributions from net investment income | - | - | - | (.05) | - | - |
Distributions from net realized gain | - | - | - | (.02) | - | - |
Total distributions | - | - | - | (.07) | - | - |
Net asset value, end of period | $ 48.47 | $ 41.54 | $ 35.62 | $ 32.58 | $ 26.52 | $ 19.12 |
Total Return B, C, D | 16.68% | 16.62% | 9.33% | 23.18% | 38.70% | (54.73)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.44% A | 1.48% | 1.25% | 1.10% | 1.03% | 1.27% |
Expenses net of fee waivers, if any | 1.44% A | 1.48% | 1.25% | 1.10% | 1.03% | 1.27% |
Expenses net of all reductions | 1.43% A | 1.48% | 1.25% | 1.09% | 1.02% | 1.26% |
Net investment income (loss) | (.27)% A | (.48)% | (.40)% | (.20)% | .23% | (.24)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,310 | $ 1,187 | $ 1,102 | $ 1,126 | $ 1,051 | $ 876 |
Portfolio turnover rate G | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 38.62 | $ 33.31 | $ 30.64 | $ 25.01 | $ 18.13 | $ 40.28 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.18) | (.39) | (.33) | (.21) | (.06) | (.26) |
Net realized and unrealized gain (loss) | 6.50 | 5.70 | 3.00 | 5.84 | 6.94 | (21.89) |
Total from investment operations | 6.32 | 5.31 | 2.67 | 5.63 | 6.88 | (22.15) |
Net asset value, end of period | $ 44.94 | $ 38.62 | $ 33.31 | $ 30.64 | $ 25.01 | $ 18.13 |
Total Return B, C, D | 16.36% | 15.94% | 8.71% | 22.51% | 37.95% | (54.99)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 2.03% A | 2.07% | 1.83% | 1.66% | 1.56% | 1.83% |
Expenses net of fee waivers, if any | 2.03% A | 2.05% | 1.83% | 1.66% | 1.56% | 1.83% |
Expenses net of all reductions | 2.02% A | 2.05% | 1.83% | 1.65% | 1.55% | 1.82% |
Net investment income (loss) | (.86)% A | (1.05)% | (.98)% | (.76)% | (.30)% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 12 | $ 13 | $ 14 | $ 18 | $ 21 | $ 20 |
Portfolio turnover rate G | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 38.83 | $ 33.48 | $ 30.79 | $ 25.14 | $ 18.22 | $ 40.47 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.17) | (.38) | (.33) | (.21) | (.06) | (.26) |
Net realized and unrealized gain (loss) | 6.52 | 5.73 | 3.02 | 5.86 | 6.98 | (21.99) |
Total from investment operations | 6.35 | 5.35 | 2.69 | 5.65 | 6.92 | (22.25) |
Net asset value, end of period | $ 45.18 | $ 38.83 | $ 33.48 | $ 30.79 | $ 25.14 | $ 18.22 |
Total Return B, C, D | 16.35% | 15.98% | 8.74% | 22.47% | 37.98% | (54.98)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.98% A | 2.04% | 1.82% | 1.65% | 1.56% | 1.83% |
Expenses net of fee waivers, if any | 1.98% A | 2.03% | 1.82% | 1.65% | 1.56% | 1.83% |
Expenses net of all reductions | 1.97% A | 2.02% | 1.82% | 1.65% | 1.55% | 1.83% |
Net investment income (loss) | (.81)% A | (1.02)% | (.97)% | (.75)% | (.30)% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 104 | $ 71 | $ 47 | $ 41 | $ 37 | $ 30 |
Portfolio turnover rate G | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 42.94 | $ 36.63 | $ 33.33 | $ 27.11 | $ 19.43 | $ 42.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .01 | .05 | .10 | .17 | .12 |
Net realized and unrealized gain (loss) | 7.24 | 6.30 | 3.25 | 6.33 | 7.51 | (23.39) |
Total from investment operations | 7.29 | 6.31 | 3.30 | 6.43 | 7.68 | (23.27) |
Distributions from net investment income | - | - | - | (.19) | - | - |
Distributions from net realized gain | - | - | - | (.02) | - | - |
Total distributions | - | - | - | (.21) | - | - |
Net asset value, end of period | $ 50.23 | $ 42.94 | $ 36.63 | $ 33.33 | $ 27.11 | $ 19.43 |
Total Return B, C | 16.98% | 17.23% | 9.90% | 23.86% | 39.53% | (54.50)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .93% A | .97% | .72% | .57% | .46% | .70% |
Expenses net of fee waivers, if any | .93% A | .97% | .72% | .57% | .46% | .70% |
Expenses net of all reductions | .93% A | .97% | .72% | .56% | .46% | .70% |
Net investment income (loss) | .24% A | .04% | .13% | .33% | .79% | .33% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 623 | $ 475 | $ 215 | $ 118 | $ 26 | $ 31 |
Portfolio turnover rate F | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Growth Opportunities Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. 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 income taxes is required.
The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 846,106 |
Gross unrealized depreciation | (110,388) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 735,718 |
|
|
Tax cost | $ 1,833,103 |
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.
Fiscal year of expiration |
|
2017 | $ (413,255) |
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $256,389 and $216,787, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .69% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 491 | $ 5 |
Class T | .25% | .25% | 3,085 | 1 |
Class B | .75% | .25% | 63 | 48 |
Class C | .75% | .25% | 420 | 134 |
|
|
| $ 4,059 | $ 188 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 76 |
Class T | 24 |
Class B* | 4 |
Class C* | 5 |
| $ 109 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 517 | .26 |
Class T | 1,269 | .21 |
Class B | 19 | .30 |
Class C | 104 | .25 |
Institutional Class | 546 | .20 |
| $ 2,455 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $6 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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 $3,779. 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 $507, including $70 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $77 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,418 | 3,450 | $ 63,269 | $ 139,006 |
Shares redeemed | (953) | (2,315) | (41,939) | (91,797) |
Net increase (decrease) | 465 | 1,135 | $ 21,330 | $ 47,209 |
Class T |
|
|
|
|
Shares sold | 1,346 | 3,463 | $ 59,658 | $ 139,248 |
Shares redeemed | (2,885) | (5,834) | (127,716) | (232,825) |
Net increase (decrease) | (1,539) | (2,371) | $ (68,058) | $ (93,577) |
Class B |
|
|
|
|
Shares sold | 8 | 58 | $ 318 | $ 2,241 |
Shares redeemed | (73) | (126) | (2,982) | (4,712) |
Net increase (decrease) | (65) | (68) | $ (2,664) | $ (2,471) |
Class C |
|
|
|
|
Shares sold | 659 | 834 | $ 27,483 | $ 31,589 |
Shares redeemed | (178) | (408) | (7,388) | (15,301) |
Net increase (decrease) | 481 | 426 | $ 20,095 | $ 16,288 |
Institutional Class |
|
|
|
|
Shares sold | 2,547 | 8,961 | $ 115,530 | $ 367,678 |
Shares redeemed | (1,199) | (3,778) | (55,338) | (152,130) |
Net increase (decrease) | 1,348 | 5,183 | $ 60,192 | $ 215,548 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
GOI-USAN-0713 1.786794.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Growth Opportunities
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,168.10 | $ 6.76 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.70 | $ 6.29 |
Class T | 1.44% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,166.80 | $ 7.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.75 | $ 7.24 |
Class B | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,163.60 | $ 10.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.81 | $ 10.20 |
Class C | 1.98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,163.50 | $ 10.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.06 | $ 9.95 |
Institutional Class | .93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,169.80 | $ 5.03 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.29 | $ 4.68 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 4.8 | 8.9 |
Google, Inc. Class A | 4.6 | 3.9 |
salesforce.com, Inc. | 3.6 | 3.8 |
Regeneron Pharmaceuticals, Inc. | 3.5 | 3.8 |
lululemon athletica, Inc. | 2.7 | 2.9 |
Seattle Genetics, Inc. | 2.3 | 1.8 |
Cree, Inc. | 1.9 | 1.2 |
Green Mountain Coffee Roasters, Inc. | 1.7 | 1.0 |
NVIDIA Corp. | 1.7 | 1.4 |
Alkermes PLC | 1.5 | 0.9 |
| 28.3 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 34.7 | 37.7 |
Health Care | 19.4 | 17.7 |
Consumer Discretionary | 18.5 | 18.4 |
Consumer Staples | 9.2 | 9.0 |
Industrials | 7.1 | 5.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013 * | As of November 30, 2012 ** | ||||||
Stocks 99.2% |
| Stocks 98.7% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 6.2% |
| ** Foreign investments | 6.7% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 18.5% | |||
Auto Components - 0.2% | |||
Tenneco, Inc. (a) | 115,600 | $ 5,128 | |
Automobiles - 0.7% | |||
Honda Motor Co. Ltd. | 29,300 | 1,088 | |
Tesla Motors, Inc. (a)(d) | 178,400 | 17,440 | |
| 18,528 | ||
Hotels, Restaurants & Leisure - 3.5% | |||
Arcos Dorados Holdings, Inc. Class A (d) | 222,600 | 3,067 | |
BJ's Restaurants, Inc. (a) | 163,400 | 6,134 | |
Buffalo Wild Wings, Inc. (a) | 75,000 | 7,197 | |
Chipotle Mexican Grill, Inc. (a) | 22,100 | 7,978 | |
Chuys Holdings, Inc. | 114,500 | 3,990 | |
Dunkin' Brands Group, Inc. | 163,600 | 6,479 | |
Las Vegas Sands Corp. | 112,092 | 6,490 | |
McDonald's Corp. | 135,600 | 13,095 | |
Starbucks Corp. | 278,000 | 17,533 | |
Starwood Hotels & Resorts Worldwide, Inc. | 171,500 | 11,713 | |
The Cheesecake Factory, Inc. | 64,300 | 2,567 | |
| 86,243 | ||
Household Durables - 1.5% | |||
iRobot Corp. (a) | 29,200 | 987 | |
Lennar Corp. Class A | 407,400 | 16,019 | |
SodaStream International Ltd. (a) | 94,839 | 6,051 | |
Tempur-Pedic International, Inc. (a) | 21,654 | 916 | |
Toll Brothers, Inc. (a) | 240,300 | 8,211 | |
Tupperware Brands Corp. | 54,600 | 4,422 | |
| 36,606 | ||
Internet & Catalog Retail - 2.1% | |||
Amazon.com, Inc. (a) | 109,000 | 29,324 | |
priceline.com, Inc. (a) | 13,500 | 10,853 | |
Shutterfly, Inc. (a) | 79,400 | 3,870 | |
TripAdvisor, Inc. (a) | 110,600 | 7,133 | |
| 51,180 | ||
Media - 1.8% | |||
AMC Networks, Inc. Class A (a) | 77,000 | 4,930 | |
Comcast Corp. Class A | 121,800 | 4,890 | |
DIRECTV (a) | 138,300 | 8,454 | |
DreamWorks Animation SKG, Inc. Class A (a) | 50,200 | 1,101 | |
IMAX Corp. (a) | 434,100 | 11,248 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
Lions Gate Entertainment Corp. (a)(d) | 241,100 | $ 6,944 | |
The Walt Disney Co. | 123,300 | 7,778 | |
| 45,345 | ||
Multiline Retail - 0.4% | |||
J.C. Penney Co., Inc. (d) | 185,800 | 3,266 | |
Target Corp. | 91,300 | 6,345 | |
| 9,611 | ||
Specialty Retail - 3.0% | |||
Abercrombie & Fitch Co. Class A | 117,300 | 5,874 | |
Bed Bath & Beyond, Inc. (a) | 64,700 | 4,416 | |
CarMax, Inc. (a) | 122,100 | 5,711 | |
DSW, Inc. Class A | 41,200 | 3,048 | |
Five Below, Inc. | 105,600 | 4,038 | |
Francescas Holdings Corp. (a) | 73,000 | 2,084 | |
Home Depot, Inc. | 215,300 | 16,935 | |
Lumber Liquidators Holdings, Inc. (a) | 396,300 | 32,540 | |
Staples, Inc. | 76,300 | 1,145 | |
| 75,791 | ||
Textiles, Apparel & Luxury Goods - 5.3% | |||
Coach, Inc. | 34,300 | 1,998 | |
Fifth & Pacific Companies, Inc. (a) | 146,100 | 3,140 | |
Fossil, Inc. (a) | 171,700 | 18,235 | |
lululemon athletica, Inc. (a)(d) | 872,016 | 67,852 | |
Michael Kors Holdings Ltd. (a) | 197,700 | 12,420 | |
NIKE, Inc. Class B | 150,400 | 9,274 | |
Prada SpA | 454,000 | 4,351 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 130,100 | 2,927 | |
Steven Madden Ltd. (a) | 176,400 | 8,555 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 48,600 | 3,013 | |
| 131,765 | ||
TOTAL CONSUMER DISCRETIONARY | 460,197 | ||
CONSUMER STAPLES - 9.2% | |||
Beverages - 1.7% | |||
Monster Beverage Corp. (a) | 62,500 | 3,412 | |
PepsiCo, Inc. | 174,500 | 14,094 | |
The Coca-Cola Co. | 632,900 | 25,310 | |
| 42,816 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - 1.8% | |||
Costco Wholesale Corp. | 68,700 | $ 7,534 | |
CVS Caremark Corp. | 126,500 | 7,284 | |
Drogasil SA | 20,617 | 218 | |
Fresh Market, Inc. (a) | 56,433 | 2,796 | |
Wal-Mart Stores, Inc. | 233,480 | 17,474 | |
Whole Foods Market, Inc. | 198,800 | 10,310 | |
| 45,616 | ||
Food Products - 2.4% | |||
Archer Daniels Midland Co. | 38,200 | 1,231 | |
Bunge Ltd. | 59,300 | 4,127 | |
Green Mountain Coffee Roasters, Inc. (a) | 590,300 | 43,169 | |
Mead Johnson Nutrition Co. Class A | 81,400 | 6,599 | |
Mondelez International, Inc. | 115,400 | 3,400 | |
| 58,526 | ||
Household Products - 0.5% | |||
Procter & Gamble Co. | 160,100 | 12,289 | |
Personal Products - 0.6% | |||
Avon Products, Inc. | 100,242 | 2,363 | |
Herbalife Ltd. | 246,100 | 11,485 | |
| 13,848 | ||
Tobacco - 2.2% | |||
Altria Group, Inc. | 529,000 | 19,097 | |
Japan Tobacco, Inc. | 34,800 | 1,184 | |
Lorillard, Inc. | 150,600 | 6,391 | |
Philip Morris International, Inc. | 319,250 | 29,023 | |
| 55,695 | ||
TOTAL CONSUMER STAPLES | 228,790 | ||
ENERGY - 4.4% | |||
Energy Equipment & Services - 1.6% | |||
FMC Technologies, Inc. (a) | 95,840 | 5,334 | |
Halliburton Co. | 118,300 | 4,951 | |
National Oilwell Varco, Inc. | 83,988 | 5,904 | |
Schlumberger Ltd. | 341,800 | 24,962 | |
| 41,151 | ||
Oil, Gas & Consumable Fuels - 2.8% | |||
Anadarko Petroleum Corp. | 74,200 | 6,490 | |
Chesapeake Energy Corp. (d) | 165,264 | 3,609 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Concho Resources, Inc. (a) | 60,900 | $ 5,095 | |
Continental Resources, Inc. (a) | 87,800 | 7,123 | |
EOG Resources, Inc. | 20,600 | 2,659 | |
Hess Corp. | 135,100 | 9,107 | |
Noble Energy, Inc. | 91,400 | 5,269 | |
Occidental Petroleum Corp. | 133,700 | 12,310 | |
PDC Energy, Inc. (a) | 48,700 | 2,493 | |
Peabody Energy Corp. | 118,100 | 2,323 | |
Phillips 66 | 36,700 | 2,443 | |
Pioneer Natural Resources Co. | 27,400 | 3,800 | |
Range Resources Corp. | 16,300 | 1,225 | |
Valero Energy Corp. | 117,000 | 4,754 | |
| 68,700 | ||
TOTAL ENERGY | 109,851 | ||
FINANCIALS - 3.5% | |||
Capital Markets - 0.5% | |||
BlackRock, Inc. Class A | 4,900 | 1,368 | |
Charles Schwab Corp. | 323,700 | 6,429 | |
Goldman Sachs Group, Inc. | 22,791 | 3,694 | |
T. Rowe Price Group, Inc. | 30,300 | 2,299 | |
| 13,790 | ||
Commercial Banks - 0.3% | |||
Signature Bank (a) | 31,800 | 2,454 | |
Wells Fargo & Co. | 125,000 | 5,069 | |
| 7,523 | ||
Consumer Finance - 1.4% | |||
Discover Financial Services | 738,333 | 35,004 | |
Diversified Financial Services - 1.0% | |||
Bank of America Corp. | 297,800 | 4,068 | |
BM&F Bovespa SA | 765,958 | 4,960 | |
Citigroup, Inc. | 74,200 | 3,858 | |
CME Group, Inc. | 22,000 | 1,494 | |
JPMorgan Chase & Co. | 200,900 | 10,967 | |
| 25,347 | ||
Real Estate Investment Trusts - 0.2% | |||
Simon Property Group, Inc. | 25,978 | 4,324 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Management & Development - 0.1% | |||
The St. Joe Co. (a)(d) | 100,400 | $ 2,050 | |
TOTAL FINANCIALS | 88,038 | ||
HEALTH CARE - 19.3% | |||
Biotechnology - 16.0% | |||
ACADIA Pharmaceuticals, Inc. (a) | 51,900 | 730 | |
Alexion Pharmaceuticals, Inc. (a) | 39,500 | 3,853 | |
Alkermes PLC (a) | 1,180,900 | 36,903 | |
Alnylam Pharmaceuticals, Inc. (a) | 74,800 | 2,291 | |
Amarin Corp. PLC ADR (a)(d) | 265,000 | 1,852 | |
Amgen, Inc. | 201,400 | 20,247 | |
Biogen Idec, Inc. (a) | 45,600 | 10,830 | |
Celgene Corp. (a) | 55,235 | 6,830 | |
Celldex Therapeutics, Inc. (a) | 95,800 | 1,225 | |
Cepheid, Inc. (a) | 136,353 | 4,740 | |
Chimerix, Inc. | 21,500 | 462 | |
Elan Corp. PLC sponsored ADR (a) | 854,500 | 10,818 | |
Exelixis, Inc. (a)(d) | 2,173,411 | 10,519 | |
Gilead Sciences, Inc. (a) | 511,200 | 27,850 | |
ImmunoGen, Inc. (a)(d) | 1,473,851 | 27,075 | |
Immunomedics, Inc. (a)(d) | 1,324,087 | 5,177 | |
InterMune, Inc. (a) | 110,400 | 1,091 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 227,500 | 3,037 | |
Isis Pharmaceuticals, Inc. (a)(d) | 1,401,553 | 30,344 | |
Lexicon Pharmaceuticals, Inc. (a) | 9,721,004 | 23,233 | |
Merrimack Pharmaceuticals, Inc. (a) | 591,500 | 3,277 | |
Metabolix, Inc. (a)(d) | 246,795 | 405 | |
NPS Pharmaceuticals, Inc. (a) | 505,700 | 7,965 | |
Prothena Corp. PLC (a) | 76,602 | 761 | |
Receptos, Inc. | 87,600 | 1,390 | |
Regeneron Pharmaceuticals, Inc. (a) | 355,900 | 86,082 | |
Rigel Pharmaceuticals, Inc. (a) | 900,748 | 4,161 | |
Seattle Genetics, Inc. (a)(d) | 1,670,467 | 57,330 | |
Transition Therapeutics, Inc. (a) | 957,597 | 3,208 | |
Vertex Pharmaceuticals, Inc. (a) | 68,690 | 5,516 | |
| 399,202 | ||
Health Care Equipment & Supplies - 0.6% | |||
Abbott Laboratories | 156,200 | 5,728 | |
Baxter International, Inc. | 42,300 | 2,975 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Cyberonics, Inc. (a) | 79,700 | $ 3,802 | |
Steris Corp. | 59,100 | 2,680 | |
| 15,185 | ||
Health Care Providers & Services - 0.9% | |||
Accretive Health, Inc. (a) | 356,900 | 4,062 | |
BioScrip, Inc. (a) | 523,500 | 7,319 | |
Catamaran Corp. (a) | 30,500 | 1,496 | |
Express Scripts Holding Co. (a) | 125,167 | 7,775 | |
McKesson Corp. | 20,900 | 2,380 | |
| 23,032 | ||
Health Care Technology - 0.2% | |||
athenahealth, Inc. (a) | 52,500 | 4,439 | |
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a)(d) | 19,300 | 1,357 | |
Pharmaceuticals - 1.5% | |||
AbbVie, Inc. | 156,200 | 6,668 | |
Allergan, Inc. | 84,600 | 8,417 | |
Auxilium Pharmaceuticals, Inc. (a) | 146,300 | 2,183 | |
Bristol-Myers Squibb Co. | 239,700 | 11,029 | |
Hospira, Inc. (a) | 49,600 | 1,720 | |
Johnson & Johnson | 37,800 | 3,182 | |
Questcor Pharmaceuticals, Inc. | 112,600 | 3,848 | |
| 37,047 | ||
TOTAL HEALTH CARE | 480,262 | ||
INDUSTRIALS - 7.1% | |||
Aerospace & Defense - 0.9% | |||
Honeywell International, Inc. | 125,800 | 9,870 | |
The Boeing Co. | 132,500 | 13,120 | |
| 22,990 | ||
Air Freight & Logistics - 0.8% | |||
FedEx Corp. | 22,400 | 2,158 | |
United Parcel Service, Inc. Class B | 210,400 | 18,073 | |
| 20,231 | ||
Airlines - 1.1% | |||
Delta Air Lines, Inc. (a) | 67,000 | 1,207 | |
Southwest Airlines Co. | 528,000 | 7,482 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Airlines - continued | |||
Spirit Airlines, Inc. (a) | 266,300 | $ 8,104 | |
United Continental Holdings, Inc. (a) | 345,900 | 11,228 | |
| 28,021 | ||
Construction & Engineering - 0.1% | |||
Quanta Services, Inc. (a) | 97,859 | 2,776 | |
Electrical Equipment - 0.2% | |||
Roper Industries, Inc. | 38,800 | 4,820 | |
Industrial Conglomerates - 1.1% | |||
3M Co. | 69,100 | 7,620 | |
Danaher Corp. | 240,100 | 14,843 | |
General Electric Co. | 147,600 | 3,442 | |
| 25,905 | ||
Machinery - 0.9% | |||
Caterpillar, Inc. | 140,500 | 12,055 | |
Cummins, Inc. | 29,400 | 3,517 | |
Deere & Co. | 58,100 | 5,061 | |
ITT Corp. | 24,100 | 727 | |
Xylem, Inc. | 63,000 | 1,773 | |
| 23,133 | ||
Road & Rail - 2.0% | |||
CSX Corp. | 324,100 | 8,171 | |
Hertz Global Holdings, Inc. (a) | 545,100 | 14,080 | |
Kansas City Southern | 10,800 | 1,196 | |
Union Pacific Corp. | 165,600 | 25,605 | |
| 49,052 | ||
TOTAL INDUSTRIALS | 176,928 | ||
INFORMATION TECHNOLOGY - 34.7% | |||
Communications Equipment - 2.4% | |||
F5 Networks, Inc. (a) | 12,600 | 1,048 | |
Infinera Corp. (a)(d) | 1,483,881 | 15,625 | |
Juniper Networks, Inc. (a) | 65,500 | 1,161 | |
QUALCOMM, Inc. | 575,865 | 36,556 | |
Riverbed Technology, Inc. (a) | 115,800 | 1,790 | |
ViaSat, Inc. (a) | 49,600 | 3,475 | |
| 59,655 | ||
Computers & Peripherals - 5.5% | |||
3D Systems Corp. (a)(d) | 35,700 | 1,732 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Apple, Inc. | 263,758 | $ 118,606 | |
Fusion-io, Inc. (a)(d) | 617,332 | 8,933 | |
SanDisk Corp. (a) | 49,200 | 2,904 | |
Silicon Graphics International Corp. (a)(d) | 272,600 | 4,116 | |
Stratasys Ltd. (a) | 15,500 | 1,303 | |
| 137,594 | ||
Internet Software & Services - 7.1% | |||
Akamai Technologies, Inc. (a) | 31,400 | 1,448 | |
Baidu.com, Inc. sponsored ADR (a) | 24,100 | 2,329 | |
Cornerstone OnDemand, Inc. (a) | 140,000 | 5,690 | |
eBay, Inc. (a) | 425,700 | 23,030 | |
Facebook, Inc. Class A | 462,341 | 11,258 | |
Google, Inc. Class A (a) | 131,465 | 114,428 | |
LinkedIn Corp. (a) | 18,800 | 3,150 | |
Rackspace Hosting, Inc. (a) | 133,802 | 5,022 | |
Tencent Holdings Ltd. | 133,100 | 5,239 | |
Trulia, Inc. (d) | 20,400 | 627 | |
Web.com Group, Inc. (a) | 282,600 | 5,932 | |
| 178,153 | ||
IT Services - 3.4% | |||
Cognizant Technology Solutions Corp. Class A (a) | 127,216 | 8,225 | |
IBM Corp. | 117,900 | 24,526 | |
MasterCard, Inc. Class A | 34,100 | 19,446 | |
Visa, Inc. Class A | 183,600 | 32,707 | |
| 84,904 | ||
Semiconductors & Semiconductor Equipment - 7.6% | |||
Analog Devices, Inc. | 19,600 | 900 | |
Applied Materials, Inc. | 211,300 | 3,212 | |
Applied Micro Circuits Corp. (a) | 1,382,925 | 10,662 | |
Broadcom Corp. Class A | 135,400 | 4,862 | |
Cree, Inc. (a) | 737,800 | 46,002 | |
Cypress Semiconductor Corp. | 1,548,066 | 17,400 | |
Intel Corp. | 299,400 | 7,269 | |
Mellanox Technologies Ltd. (a) | 192,200 | 9,969 | |
NVIDIA Corp. | 2,816,030 | 40,804 | |
Rambus, Inc. (a) | 1,441,100 | 11,356 | |
Silicon Laboratories, Inc. (a) | 767,800 | 32,985 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Skyworks Solutions, Inc. (a) | 32,300 | $ 771 | |
Xilinx, Inc. | 60,800 | 2,472 | |
| 188,664 | ||
Software - 8.7% | |||
Adobe Systems, Inc. (a) | 81,800 | 3,510 | |
Citrix Systems, Inc. (a) | 46,000 | 2,960 | |
Concur Technologies, Inc. (a) | 66,400 | 5,360 | |
Interactive Intelligence Group, Inc. (a) | 78,700 | 3,951 | |
Microsoft Corp. | 813,700 | 28,382 | |
NetSuite, Inc. (a) | 133,800 | 11,721 | |
Oracle Corp. | 338,200 | 11,418 | |
QLIK Technologies, Inc. (a) | 272,274 | 8,375 | |
Red Hat, Inc. (a) | 675,830 | 32,595 | |
salesforce.com, Inc. (a) | 2,088,400 | 88,402 | |
ServiceNow, Inc. | 125,400 | 4,610 | |
SolarWinds, Inc. (a) | 94,700 | 3,992 | |
Solera Holdings, Inc. | 13,500 | 739 | |
Splunk, Inc. (a) | 41,100 | 1,922 | |
TiVo, Inc. (a) | 262,000 | 3,390 | |
VMware, Inc. Class A (a) | 25,200 | 1,792 | |
Workday, Inc. Class A | 54,400 | 3,494 | |
| 216,613 | ||
TOTAL INFORMATION TECHNOLOGY | 865,583 | ||
MATERIALS - 1.9% | |||
Chemicals - 1.8% | |||
CF Industries Holdings, Inc. | 9,200 | 1,757 | |
E.I. du Pont de Nemours & Co. | 96,400 | 5,378 | |
Eastman Chemical Co. | 31,200 | 2,238 | |
Monsanto Co. | 345,400 | 34,761 | |
| 44,134 | ||
Metals & Mining - 0.1% | |||
Nucor Corp. | 76,800 | 3,418 | |
TOTAL MATERIALS | 47,552 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.3% | |||
Verizon Communications, Inc. | 178,400 | 8,649 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - 0.3% | |||
Sprint Nextel Corp. (a) | 920,700 | $ 6,721 | |
TOTAL TELECOMMUNICATION SERVICES | 15,370 | ||
TOTAL COMMON STOCKS (Cost $1,734,932) |
| ||
Preferred Stocks - 0.1% | |||
|
|
|
|
Convertible Preferred Stocks - 0.1% | |||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
aTyr Pharma, Inc. 8.00% (e) | 638,618 | 1,615 | |
Nonconvertible Preferred Stocks - 0.0% | |||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Equilibrate Asia Therapeutics Series D (e) | 676,657 | 11 | |
Equilibrate Worldwide Therapeutics Series D (e) | 676,657 | 27 | |
Neuropathic Worldwide Therapeutics Series D (e) | 676,657 | 5 | |
Oculus Worldwide Therapeutics Series D (e) | 676,657 | 8 | |
Orchestrate U.S. Therapeutics, Inc. Series D (e) | 676,657 | 12 | |
Orchestrate Worldwide Therapeutics Series D (e) | 676,657 | 21 | |
| 84 | ||
TOTAL PREFERRED STOCKS (Cost $1,699) |
| ||
Money Market Funds - 3.5% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 7,533,641 | 7,534 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 78,638,726 | 78,639 | |
TOTAL MONEY MARKET FUNDS (Cost $86,173) |
| ||
Cash Equivalents - 0.3% | |||
Maturity Amount (000s) | Value (000s) | ||
Investments in repurchase agreements in a joint trading account at 0.06%, dated 5/31/13 due 6/3/13 (Collateralized by U.S. Treasury Obligations) # | $ 8,378 | $ 8,378 | |
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $1,831,182) | 2,568,821 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (76,986) | ||
NET ASSETS - 100% | $ 2,491,835 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $1,699,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
aTyr Pharma, Inc. 8.00% | 4/8/13 | $ 1,615 |
Security | Acquisition Date | Acquisition Cost (000s) |
Equilibrate Asia Therapeutics Series D | 5/17/13 | $ 11 |
Equilibrate Worldwide Therapeutics Series D | 5/17/13 | $ 27 |
Neuropathic Worldwide Therapeutics Series D | 5/17/13 | $ 5 |
Oculus Worldwide Therapeutics Series D | 5/17/13 | $ 8 |
Orchestrate U.S. Therapeutics, Inc. Series D | 5/17/13 | $ 12 |
Orchestrate Worldwide Therapeutics Series D | 5/17/13 | $ 21 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$8,378,000 due 6/03/13 at 0.06% | |
Barclays Capital, Inc. | $ 2,344 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,628 |
UBS Securities LLC | 4,406 |
| $ 8,378 |
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 | $ 18 |
Fidelity Securities Lending Cash Central Fund | 507 |
Total | $ 525 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 460,197 | $ 454,758 | $ 5,439 | $ - |
Consumer Staples | 228,790 | 227,606 | 1,184 | - |
Energy | 109,851 | 109,851 | - | - |
Financials | 88,038 | 88,038 | - | - |
Health Care | 481,961 | 480,262 | - | 1,699 |
Industrials | 176,928 | 176,928 | - | - |
Information Technology | 865,583 | 860,344 | 5,239 | - |
Materials | 47,552 | 47,552 | - | - |
Telecommunication Services | 15,370 | 15,370 | - | - |
Money Market Funds | 86,173 | 86,173 | - | - |
Cash Equivalents | 8,378 | - | 8,378 | - |
Total Investments in Securities: | $ 2,568,821 | $ 2,546,882 | $ 20,240 | $ 1,699 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $76,030 and repurchase agreements of $8,378) - See accompanying schedule: Unaffiliated issuers (cost $1,745,009) | $ 2,482,648 |
|
Fidelity Central Funds (cost $86,173) | 86,173 |
|
Total Investments (cost $1,831,182) |
| $ 2,568,821 |
Receivable for investments sold | 4,192 | |
Receivable for fund shares sold | 2,526 | |
Dividends receivable | 2,417 | |
Distributions receivable from Fidelity Central Funds | 94 | |
Prepaid expenses | 1 | |
Other receivables | 145 | |
Total assets | 2,578,196 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,951 | |
Payable for fund shares redeemed | 2,913 | |
Accrued management fee | 1,457 | |
Distribution and service plan fees payable | 736 | |
Other affiliated payables | 485 | |
Other payables and accrued expenses | 180 | |
Collateral on securities loaned, at value | 78,639 | |
Total liabilities | 86,361 | |
|
|
|
Net Assets | $ 2,491,835 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,092,389 | |
Accumulated net investment loss | (8,339) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (329,851) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 737,636 | |
Net Assets | $ 2,491,835 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 48.29 | |
|
|
|
Maximum offering price per share (100/94.25 of $48.29) | $ 51.24 | |
Class T: | $ 48.47 | |
|
|
|
Maximum offering price per share (100/96.50 of $48.47) | $ 50.23 | |
Class B: | $ 44.94 | |
|
|
|
Class C: | $ 45.18 | |
|
|
|
Institutional Class: | $ 50.23 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 12,710 |
Income from Fidelity Central Funds |
| 525 |
Total income |
| 13,235 |
|
|
|
Expenses | ||
Management fee | $ 6,315 | |
Performance adjustment | 1,567 | |
Transfer agent fees | 2,455 | |
Distribution and service plan fees | 4,059 | |
Accounting and security lending fees | 350 | |
Custodian fees and expenses | 18 | |
Independent trustees' compensation | 7 | |
Registration fees | 71 | |
Audit | 31 | |
Legal | 4 | |
Miscellaneous | 12 | |
Total expenses before reductions | 14,889 | |
Expense reductions | (77) | 14,812 |
Net investment income (loss) | (1,577) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 85,907 | |
Foreign currency transactions | (5) | |
Total net realized gain (loss) |
| 85,902 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 271,842 | |
Assets and liabilities in foreign currencies | (2) | |
Total change in net unrealized appreciation (depreciation) |
| 271,840 |
Net gain (loss) | 357,742 | |
Net increase (decrease) in net assets resulting from operations | $ 356,165 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,577) | $ (7,218) |
Net realized gain (loss) | 85,902 | 165,968 |
Change in net unrealized appreciation (depreciation) | 271,840 | 117,910 |
Net increase (decrease) in net assets resulting | 356,165 | 276,660 |
Share transactions - net increase (decrease) | 30,895 | 182,997 |
Total increase (decrease) in net assets | 387,060 | 459,657 |
|
|
|
Net Assets | ||
Beginning of period | 2,104,775 | 1,645,118 |
End of period (including accumulated net investment loss of $8,339 and accumulated net investment loss of $6,762, respectively) | $ 2,491,835 | $ 2,104,775 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 41.34 | $ 35.39 | $ 32.30 | $ 26.30 | $ 18.92 | $ 41.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.11) | (.08) | - J | .10 | (.02) |
Net realized and unrealized gain (loss) | 6.97 | 6.06 | 3.17 | 6.13 | 7.28 | (22.78) |
Total from investment operations | 6.95 | 5.95 | 3.09 | 6.13 | 7.38 | (22.80) |
Distributions from net investment income | - | - | - | (.11) | - | - |
Distributions from net realized gain | - | - | - | (.02) | - | - |
Total distributions | - | - | - | (.13) | - | - |
Net asset value, end of period | $ 48.29 | $ 41.34 | $ 35.39 | $ 32.30 | $ 26.30 | $ 18.92 |
Total Return B, C, D | 16.81% | 16.81% | 9.57% | 23.42% | 39.01% | (54.65)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.25% A | 1.30% | 1.08% | .90% | .80% | 1.08% |
Expenses net of fee waivers, if any | 1.25% A | 1.29% | 1.08% | .90% | .80% | 1.08% |
Expenses net of all reductions | 1.24% A | 1.29% | 1.07% | .90% | .80% | 1.08% |
Net investment income (loss) | (.08)% A | (.29)% | (.23)% | -% H | .45% | (.05)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 442 | $ 359 | $ 267 | $ 255 | $ 236 | $ 192 |
Portfolio turnover rate G | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Amount represents less than .01%.
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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 41.54 | $ 35.62 | $ 32.58 | $ 26.52 | $ 19.12 | $ 42.24 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.19) | (.15) | (.06) | .05 | (.08) |
Net realized and unrealized gain (loss) | 6.99 | 6.11 | 3.19 | 6.19 | 7.35 | (23.04) |
Total from investment operations | 6.93 | 5.92 | 3.04 | 6.13 | 7.40 | (23.12) |
Distributions from net investment income | - | - | - | (.05) | - | - |
Distributions from net realized gain | - | - | - | (.02) | - | - |
Total distributions | - | - | - | (.07) | - | - |
Net asset value, end of period | $ 48.47 | $ 41.54 | $ 35.62 | $ 32.58 | $ 26.52 | $ 19.12 |
Total Return B, C, D | 16.68% | 16.62% | 9.33% | 23.18% | 38.70% | (54.73)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.44% A | 1.48% | 1.25% | 1.10% | 1.03% | 1.27% |
Expenses net of fee waivers, if any | 1.44% A | 1.48% | 1.25% | 1.10% | 1.03% | 1.27% |
Expenses net of all reductions | 1.43% A | 1.48% | 1.25% | 1.09% | 1.02% | 1.26% |
Net investment income (loss) | (.27)% A | (.48)% | (.40)% | (.20)% | .23% | (.24)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,310 | $ 1,187 | $ 1,102 | $ 1,126 | $ 1,051 | $ 876 |
Portfolio turnover rate G | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 38.62 | $ 33.31 | $ 30.64 | $ 25.01 | $ 18.13 | $ 40.28 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.18) | (.39) | (.33) | (.21) | (.06) | (.26) |
Net realized and unrealized gain (loss) | 6.50 | 5.70 | 3.00 | 5.84 | 6.94 | (21.89) |
Total from investment operations | 6.32 | 5.31 | 2.67 | 5.63 | 6.88 | (22.15) |
Net asset value, end of period | $ 44.94 | $ 38.62 | $ 33.31 | $ 30.64 | $ 25.01 | $ 18.13 |
Total Return B, C, D | 16.36% | 15.94% | 8.71% | 22.51% | 37.95% | (54.99)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 2.03% A | 2.07% | 1.83% | 1.66% | 1.56% | 1.83% |
Expenses net of fee waivers, if any | 2.03% A | 2.05% | 1.83% | 1.66% | 1.56% | 1.83% |
Expenses net of all reductions | 2.02% A | 2.05% | 1.83% | 1.65% | 1.55% | 1.82% |
Net investment income (loss) | (.86)% A | (1.05)% | (.98)% | (.76)% | (.30)% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 12 | $ 13 | $ 14 | $ 18 | $ 21 | $ 20 |
Portfolio turnover rate G | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 38.83 | $ 33.48 | $ 30.79 | $ 25.14 | $ 18.22 | $ 40.47 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.17) | (.38) | (.33) | (.21) | (.06) | (.26) |
Net realized and unrealized gain (loss) | 6.52 | 5.73 | 3.02 | 5.86 | 6.98 | (21.99) |
Total from investment operations | 6.35 | 5.35 | 2.69 | 5.65 | 6.92 | (22.25) |
Net asset value, end of period | $ 45.18 | $ 38.83 | $ 33.48 | $ 30.79 | $ 25.14 | $ 18.22 |
Total Return B, C, D | 16.35% | 15.98% | 8.74% | 22.47% | 37.98% | (54.98)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.98% A | 2.04% | 1.82% | 1.65% | 1.56% | 1.83% |
Expenses net of fee waivers, if any | 1.98% A | 2.03% | 1.82% | 1.65% | 1.56% | 1.83% |
Expenses net of all reductions | 1.97% A | 2.02% | 1.82% | 1.65% | 1.55% | 1.83% |
Net investment income (loss) | (.81)% A | (1.02)% | (.97)% | (.75)% | (.30)% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 104 | $ 71 | $ 47 | $ 41 | $ 37 | $ 30 |
Portfolio turnover rate G | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 42.94 | $ 36.63 | $ 33.33 | $ 27.11 | $ 19.43 | $ 42.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .01 | .05 | .10 | .17 | .12 |
Net realized and unrealized gain (loss) | 7.24 | 6.30 | 3.25 | 6.33 | 7.51 | (23.39) |
Total from investment operations | 7.29 | 6.31 | 3.30 | 6.43 | 7.68 | (23.27) |
Distributions from net investment income | - | - | - | (.19) | - | - |
Distributions from net realized gain | - | - | - | (.02) | - | - |
Total distributions | - | - | - | (.21) | - | - |
Net asset value, end of period | $ 50.23 | $ 42.94 | $ 36.63 | $ 33.33 | $ 27.11 | $ 19.43 |
Total Return B, C | 16.98% | 17.23% | 9.90% | 23.86% | 39.53% | (54.50)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .93% A | .97% | .72% | .57% | .46% | .70% |
Expenses net of fee waivers, if any | .93% A | .97% | .72% | .57% | .46% | .70% |
Expenses net of all reductions | .93% A | .97% | .72% | .56% | .46% | .70% |
Net investment income (loss) | .24% A | .04% | .13% | .33% | .79% | .33% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 623 | $ 475 | $ 215 | $ 118 | $ 26 | $ 31 |
Portfolio turnover rate F | 19% A | 34% | 31% | 35% | 114% | 126% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Growth Opportunities Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. 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 income taxes is required.
The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 846,106 |
Gross unrealized depreciation | (110,388) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 735,718 |
|
|
Tax cost | $ 1,833,103 |
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.
Fiscal year of expiration |
|
2017 | $ (413,255) |
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $256,389 and $216,787, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .69% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 491 | $ 5 |
Class T | .25% | .25% | 3,085 | 1 |
Class B | .75% | .25% | 63 | 48 |
Class C | .75% | .25% | 420 | 134 |
|
|
| $ 4,059 | $ 188 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 76 |
Class T | 24 |
Class B* | 4 |
Class C* | 5 |
| $ 109 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 517 | .26 |
Class T | 1,269 | .21 |
Class B | 19 | .30 |
Class C | 104 | .25 |
Institutional Class | 546 | .20 |
| $ 2,455 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $6 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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 $3,779. 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 $507, including $70 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $77 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, | Year ended | Six months ended May 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,418 | 3,450 | $ 63,269 | $ 139,006 |
Shares redeemed | (953) | (2,315) | (41,939) | (91,797) |
Net increase (decrease) | 465 | 1,135 | $ 21,330 | $ 47,209 |
Class T |
|
|
|
|
Shares sold | 1,346 | 3,463 | $ 59,658 | $ 139,248 |
Shares redeemed | (2,885) | (5,834) | (127,716) | (232,825) |
Net increase (decrease) | (1,539) | (2,371) | $ (68,058) | $ (93,577) |
Class B |
|
|
|
|
Shares sold | 8 | 58 | $ 318 | $ 2,241 |
Shares redeemed | (73) | (126) | (2,982) | (4,712) |
Net increase (decrease) | (65) | (68) | $ (2,664) | $ (2,471) |
Class C |
|
|
|
|
Shares sold | 659 | 834 | $ 27,483 | $ 31,589 |
Shares redeemed | (178) | (408) | (7,388) | (15,301) |
Net increase (decrease) | 481 | 426 | $ 20,095 | $ 16,288 |
Institutional Class |
|
|
|
|
Shares sold | 2,547 | 8,961 | $ 115,530 | $ 367,678 |
Shares redeemed | (1,199) | (3,778) | (55,338) | (152,130) |
Net increase (decrease) | 1,348 | 5,183 | $ 60,192 | $ 215,548 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
GO-USAN-0713 1.786793.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Large Cap
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,205.70 | $ 6.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.95 | $ 6.04 |
Class T | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,204.10 | $ 7.97 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.70 | $ 7.29 |
Class B | 1.99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.10 | $ 10.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.01 | $ 10.00 |
Class C | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.00 | $ 10.70 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.21 | $ 9.80 |
Institutional Class | .89% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,207.60 | $ 4.90 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.49 | $ 4.48 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 3.8 | 3.9 |
Apple, Inc. | 3.4 | 4.5 |
Wells Fargo & Co. | 2.7 | 3.3 |
General Electric Co. | 2.6 | 2.4 |
Chevron Corp. | 2.4 | 2.7 |
Google, Inc. Class A | 2.3 | 2.4 |
Microsoft Corp. | 2.2 | 1.7 |
Citigroup, Inc. | 2.1 | 1.6 |
Occidental Petroleum Corp. | 1.9 | 0.9 |
Target Corp. | 1.8 | 1.5 |
| 25.2 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 22.0 | 18.8 |
Information Technology | 19.6 | 20.4 |
Health Care | 15.8 | 15.0 |
Energy | 12.8 | 12.1 |
Industrials | 10.2 | 10.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 99.7% |
| Stocks 99.1% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 8.8% |
| ** Foreign investments | 8.0% |
|
† Amount represents less than 0.1% |
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 9.8% | |||
Auto Components - 0.2% | |||
Gentex Corp. | 106,676 | $ 2,439,680 | |
Automobiles - 0.7% | |||
Ford Motor Co. | 455,740 | 7,146,003 | |
Distributors - 0.3% | |||
Li & Fung Ltd. | 668,000 | 927,065 | |
LKQ Corp. (a) | 76,700 | 1,877,616 | |
| 2,804,681 | ||
Diversified Consumer Services - 0.1% | |||
H&R Block, Inc. | 37,452 | 1,096,220 | |
Hotels, Restaurants & Leisure - 0.5% | |||
Wyndham Worldwide Corp. | 32,100 | 1,865,652 | |
Yum! Brands, Inc. | 44,500 | 3,014,875 | |
| 4,880,527 | ||
Household Durables - 0.3% | |||
KB Home | 159,614 | 3,537,046 | |
Media - 3.4% | |||
Comcast Corp. Class A (special) (non-vtg.) | 455,387 | 17,669,016 | |
Discovery Communications, Inc. (a) | 18,277 | 1,441,324 | |
Time Warner, Inc. | 223,659 | 13,054,976 | |
Viacom, Inc. Class B (non-vtg.) | 52,291 | 3,445,454 | |
| 35,610,770 | ||
Multiline Retail - 1.9% | |||
Kohl's Corp. | 25,400 | 1,305,814 | |
Target Corp. | 277,952 | 19,317,664 | |
| 20,623,478 | ||
Specialty Retail - 2.3% | |||
Bed Bath & Beyond, Inc. (a) | 26,200 | 1,788,150 | |
Citi Trends, Inc. (a) | 99,333 | 1,315,169 | |
Lowe's Companies, Inc. | 375,079 | 15,794,577 | |
Select Comfort Corp. (a) | 104,506 | 2,318,988 | |
Staples, Inc. | 246,609 | 3,699,135 | |
| 24,916,019 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Coach, Inc. | 19,000 | 1,106,940 | |
TOTAL CONSUMER DISCRETIONARY | 104,161,364 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 7.6% | |||
Beverages - 1.6% | |||
Monster Beverage Corp. (a) | 24,060 | $ 1,313,435 | |
PepsiCo, Inc. | 116,640 | 9,421,013 | |
The Coca-Cola Co. | 165,465 | 6,616,945 | |
| 17,351,393 | ||
Food & Staples Retailing - 1.8% | |||
CVS Caremark Corp. | 95,511 | 5,499,523 | |
Walgreen Co. | 286,280 | 13,672,733 | |
| 19,172,256 | ||
Food Products - 0.6% | |||
Danone SA | 37,103 | 2,736,265 | |
Kellogg Co. | 63,076 | 3,913,866 | |
| 6,650,131 | ||
Household Products - 2.3% | |||
Kimberly-Clark Corp. | 54,735 | 5,299,990 | |
Procter & Gamble Co. | 240,052 | 18,426,392 | |
Svenska Cellulosa AB (SCA) (B Shares) | 19,900 | 497,248 | |
| 24,223,630 | ||
Tobacco - 1.3% | |||
British American Tobacco PLC sponsored ADR | 63,294 | 6,947,782 | |
Lorillard, Inc. | 160,133 | 6,796,045 | |
| 13,743,827 | ||
TOTAL CONSUMER STAPLES | 81,141,237 | ||
ENERGY - 12.7% | |||
Energy Equipment & Services - 2.6% | |||
Baker Hughes, Inc. | 15,752 | 716,401 | |
Cameron International Corp. (a) | 54,745 | 3,332,328 | |
Dresser-Rand Group, Inc. (a) | 42,102 | 2,551,381 | |
Ensco PLC Class A | 37,550 | 2,259,384 | |
Halliburton Co. | 234,767 | 9,824,999 | |
Helmerich & Payne, Inc. | 37,130 | 2,292,406 | |
National Oilwell Varco, Inc. | 36,082 | 2,536,565 | |
Schlumberger Ltd. | 51,492 | 3,760,461 | |
| 27,273,925 | ||
Oil, Gas & Consumable Fuels - 10.1% | |||
Amyris, Inc. (a)(d) | 865,694 | 2,588,425 | |
Apache Corp. | 136,796 | 11,235,055 | |
BG Group PLC | 86,100 | 1,586,851 | |
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
BP PLC sponsored ADR | 96,576 | $ 4,144,076 | |
Canadian Natural Resources Ltd. | 322,100 | 9,600,087 | |
Chevron Corp. | 210,355 | 25,821,076 | |
ENI SpA | 42,900 | 975,611 | |
Exxon Mobil Corp. | 99,748 | 9,024,202 | |
Occidental Petroleum Corp. | 217,618 | 20,036,089 | |
Peabody Energy Corp. | 55,178 | 1,085,351 | |
Royal Dutch Shell PLC Class A (United Kingdom) | 188,850 | 6,285,097 | |
Suncor Energy, Inc. | 369,200 | 11,199,749 | |
The Williams Companies, Inc. | 123,575 | 4,347,369 | |
| 107,929,038 | ||
TOTAL ENERGY | 135,202,963 | ||
FINANCIALS - 22.0% | |||
Capital Markets - 3.4% | |||
Charles Schwab Corp. | 481,424 | 9,561,081 | |
KKR & Co. LP | 96,442 | 1,878,690 | |
Morgan Stanley | 591,103 | 15,309,568 | |
Northern Trust Corp. | 60,088 | 3,494,117 | |
State Street Corp. | 91,863 | 6,079,493 | |
UBS AG | 23,713 | 416,068 | |
| 36,739,017 | ||
Commercial Banks - 5.6% | |||
BNP Paribas SA | 11,300 | 665,696 | |
CIT Group, Inc. (a) | 95,105 | 4,382,438 | |
Comerica, Inc. | 102,374 | 4,042,749 | |
PNC Financial Services Group, Inc. | 80,880 | 5,794,243 | |
Standard Chartered PLC (United Kingdom) | 115,893 | 2,706,470 | |
SunTrust Banks, Inc. | 115,308 | 3,700,234 | |
U.S. Bancorp | 273,515 | 9,589,436 | |
Wells Fargo & Co. | 701,219 | 28,434,430 | |
| 59,315,696 | ||
Consumer Finance - 0.1% | |||
SLM Corp. | 43,455 | 1,031,622 | |
Diversified Financial Services - 8.1% | |||
Bank of America Corp. | 1,389,050 | 18,974,423 | |
Citigroup, Inc. | 429,139 | 22,310,937 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
JPMorgan Chase & Co. | 737,166 | $ 40,241,888 | |
KKR Financial Holdings LLC | 427,184 | 4,493,976 | |
| 86,021,224 | ||
Insurance - 3.5% | |||
American International Group, Inc. (a) | 159,357 | 7,085,012 | |
Genworth Financial, Inc. Class A (a) | 453,151 | 4,898,562 | |
Lincoln National Corp. | 164,836 | 5,878,052 | |
MetLife, Inc. | 359,590 | 15,897,474 | |
Prudential Financial, Inc. | 43,366 | 2,990,953 | |
| 36,750,053 | ||
Thrifts & Mortgage Finance - 1.3% | |||
MGIC Investment Corp. (a) | 185,992 | 1,149,431 | |
Radian Group, Inc. (d) | 1,007,768 | 12,969,974 | |
| 14,119,405 | ||
TOTAL FINANCIALS | 233,977,017 | ||
HEALTH CARE - 15.8% | |||
Biotechnology - 2.5% | |||
Achillion Pharmaceuticals, Inc. (a) | 155,900 | 1,300,206 | |
Amgen, Inc. | 94,697 | 9,519,889 | |
ARIAD Pharmaceuticals, Inc. (a) | 32,695 | 599,626 | |
Clovis Oncology, Inc. (a) | 38,100 | 1,393,698 | |
Discovery Laboratories, Inc. (a) | 193,600 | 346,544 | |
Dynavax Technologies Corp. (a) | 174,138 | 454,500 | |
Elan Corp. PLC sponsored ADR (a) | 234,721 | 2,971,568 | |
Gentium SpA sponsored ADR (a)(d) | 185,750 | 1,558,443 | |
Infinity Pharmaceuticals, Inc. (a) | 68,053 | 1,834,028 | |
Insmed, Inc. (a) | 16,364 | 219,605 | |
Intercept Pharmaceuticals, Inc. | 19,331 | 646,429 | |
MEI Pharma, Inc. (a) | 231,600 | 1,945,440 | |
Merrimack Pharmaceuticals, Inc. (a) | 82,601 | 457,610 | |
Neurocrine Biosciences, Inc. (a) | 13,658 | 176,598 | |
Synageva BioPharma Corp. (a) | 43,214 | 1,781,281 | |
Theravance, Inc. (a) | 22,600 | 791,904 | |
| 25,997,369 | ||
Health Care Equipment & Supplies - 3.6% | |||
Abbott Laboratories | 64,025 | 2,347,797 | |
Alere, Inc. (a) | 589,431 | 15,077,645 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Align Technology, Inc. (a) | 141,005 | $ 5,040,929 | |
Boston Scientific Corp. (a) | 693,354 | 6,406,591 | |
CareFusion Corp. (a) | 56,567 | 2,078,837 | |
Hologic, Inc. (a) | 23,800 | 493,850 | |
MAKO Surgical Corp. (a) | 17,529 | 216,658 | |
NxStage Medical, Inc. (a) | 88,598 | 1,235,942 | |
St. Jude Medical, Inc. | 96,600 | 4,176,018 | |
Stryker Corp. | 11,800 | 783,402 | |
Volcano Corp. (a) | 41,344 | 789,670 | |
| 38,647,339 | ||
Health Care Providers & Services - 4.3% | |||
Aetna, Inc. | 122,834 | 7,416,717 | |
Express Scripts Holding Co. (a) | 52,005 | 3,230,551 | |
Health Management Associates, Inc. Class A (a) | 126,206 | 1,740,381 | |
Humana, Inc. | 14,300 | 1,155,154 | |
McKesson Corp. | 84,631 | 9,636,086 | |
Quest Diagnostics, Inc. | 62,455 | 3,862,217 | |
UnitedHealth Group, Inc. | 168,578 | 10,558,040 | |
WellPoint, Inc. | 108,245 | 8,331,618 | |
| 45,930,764 | ||
Health Care Technology - 0.1% | |||
HMS Holdings Corp. (a) | 23,100 | 575,190 | |
Life Sciences Tools & Services - 0.6% | |||
Illumina, Inc. (a)(d) | 44,973 | 3,162,501 | |
QIAGEN NV (a) | 130,395 | 2,435,779 | |
Thermo Fisher Scientific, Inc. | 11,500 | 1,015,450 | |
| 6,613,730 | ||
Pharmaceuticals - 4.7% | |||
AbbVie, Inc. | 132,225 | 5,644,685 | |
Actavis, Inc. (a) | 15,191 | 1,872,898 | |
Cardiome Pharma Corp. (a) | 60,867 | 123,290 | |
Endo Health Solutions, Inc. (a) | 63,940 | 2,321,022 | |
GlaxoSmithKline PLC sponsored ADR | 120,589 | 6,242,893 | |
Jazz Pharmaceuticals PLC (a) | 24,107 | 1,638,553 | |
Johnson & Johnson | 95,013 | 7,998,194 | |
Merck & Co., Inc. | 375,611 | 17,541,034 | |
Optimer Pharmaceuticals, Inc. (a) | 38,200 | 568,416 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 25,100 | 958,820 | |
ViroPharma, Inc. (a) | 128,100 | 3,522,750 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Warner Chilcott PLC | 47,000 | $ 902,400 | |
XenoPort, Inc. (a) | 72,087 | 396,479 | |
| 49,731,434 | ||
TOTAL HEALTH CARE | 167,495,826 | ||
INDUSTRIALS - 10.2% | |||
Aerospace & Defense - 2.2% | |||
Esterline Technologies Corp. (a) | 26,996 | 1,981,236 | |
Honeywell International, Inc. | 54,480 | 4,274,501 | |
KEYW Holding Corp. (a) | 135,382 | 1,996,885 | |
Rockwell Collins, Inc. | 59,115 | 3,827,696 | |
The Boeing Co. | 94,263 | 9,333,922 | |
United Technologies Corp. | 18,722 | 1,776,718 | |
| 23,190,958 | ||
Air Freight & Logistics - 1.2% | |||
C.H. Robinson Worldwide, Inc. | 42,858 | 2,429,620 | |
United Parcel Service, Inc. Class B | 121,425 | 10,430,408 | |
| 12,860,028 | ||
Electrical Equipment - 0.6% | |||
AMETEK, Inc. | 68,230 | 2,944,125 | |
Hubbell, Inc. Class B | 5,200 | 522,236 | |
Roper Industries, Inc. | 23,335 | 2,898,674 | |
| 6,365,035 | ||
Industrial Conglomerates - 2.6% | |||
General Electric Co. | 1,188,992 | 27,727,293 | |
Machinery - 1.1% | |||
Illinois Tool Works, Inc. | 32,021 | 2,245,633 | |
Ingersoll-Rand PLC | 159,322 | 9,165,795 | |
| 11,411,428 | ||
Professional Services - 0.9% | |||
Acacia Research Corp. | 255,782 | 6,394,550 | |
Michael Page International PLC | 342,378 | 2,001,765 | |
Verisk Analytics, Inc. (a) | 20,100 | 1,182,282 | |
| 9,578,597 | ||
Road & Rail - 1.6% | |||
Con-way, Inc. | 63,294 | 2,406,438 | |
CSX Corp. | 324,414 | 8,178,477 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
Hertz Global Holdings, Inc. (a) | 97,200 | $ 2,510,676 | |
Norfolk Southern Corp. | 58,658 | 4,492,616 | |
| 17,588,207 | ||
TOTAL INDUSTRIALS | 108,721,546 | ||
INFORMATION TECHNOLOGY - 19.6% | |||
Communications Equipment - 2.5% | |||
Brocade Communications Systems, Inc. (a) | 185,295 | 1,006,152 | |
Cisco Systems, Inc. | 760,839 | 18,321,003 | |
QUALCOMM, Inc. | 108,750 | 6,903,450 | |
| 26,230,605 | ||
Computers & Peripherals - 3.9% | |||
Apple, Inc. | 80,065 | 36,003,629 | |
EMC Corp. | 160,386 | 3,971,157 | |
Stratasys Ltd. (a) | 13,500 | 1,134,675 | |
| 41,109,461 | ||
Internet Software & Services - 2.4% | |||
Demandware, Inc. (a) | 48,074 | 1,471,545 | |
Google, Inc. Class A (a) | 27,776 | 24,176,508 | |
| 25,648,053 | ||
IT Services - 5.5% | |||
Cognizant Technology Solutions Corp. Class A (a) | 95,492 | 6,173,558 | |
Fidelity National Information Services, Inc. | 89,724 | 4,028,608 | |
Gartner, Inc. Class A (a) | 29,133 | 1,649,219 | |
IBM Corp. | 22,331 | 4,645,295 | |
MasterCard, Inc. Class A | 22,200 | 12,659,550 | |
Paychex, Inc. | 302,393 | 11,258,091 | |
The Western Union Co. | 253,662 | 4,154,984 | |
Unisys Corp. (a) | 129,262 | 2,669,260 | |
Visa, Inc. Class A | 62,430 | 11,121,280 | |
| 58,359,845 | ||
Semiconductors & Semiconductor Equipment - 1.2% | |||
Applied Materials, Inc. | 371,461 | 5,646,207 | |
Broadcom Corp. Class A | 39,934 | 1,434,030 | |
Lam Research Corp. (a) | 84,634 | 3,959,179 | |
NXP Semiconductors NV (a) | 58,627 | 1,808,643 | |
| 12,848,059 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Software - 4.1% | |||
Adobe Systems, Inc. (a) | 76,510 | $ 3,283,044 | |
Autodesk, Inc. (a) | 39,800 | 1,501,654 | |
Citrix Systems, Inc. (a) | 37,196 | 2,393,563 | |
Concur Technologies, Inc. (a) | 34,224 | 2,762,904 | |
Electronic Arts, Inc. (a) | 102,209 | 2,349,785 | |
Microsoft Corp. | 664,745 | 23,186,306 | |
Oracle Corp. | 122,099 | 4,122,062 | |
salesforce.com, Inc. (a) | 42,600 | 1,803,258 | |
VMware, Inc. Class A (a) | 26,105 | 1,856,588 | |
Workday, Inc. Class A | 4,100 | 263,343 | |
| 43,522,507 | ||
TOTAL INFORMATION TECHNOLOGY | 207,718,530 | ||
MATERIALS - 0.7% | |||
Chemicals - 0.7% | |||
Airgas, Inc. | 30,548 | 3,143,084 | |
E.I. du Pont de Nemours & Co. | 45,488 | 2,537,776 | |
Syngenta AG (Switzerland) | 1,744 | 680,329 | |
W.R. Grace & Co. (a) | 15,897 | 1,343,455 | |
| 7,704,644 | ||
TELECOMMUNICATION SERVICES - 1.3% | |||
Diversified Telecommunication Services - 1.0% | |||
Verizon Communications, Inc. | 219,597 | 10,646,063 | |
Wireless Telecommunication Services - 0.3% | |||
Vodafone Group PLC sponsored ADR | 121,259 | 3,510,448 | |
TOTAL TELECOMMUNICATION SERVICES | 14,156,511 | ||
TOTAL COMMON STOCKS (Cost $838,775,413) |
|
Convertible Bonds - 0.1% | ||||
| Principal Amount | Value | ||
ENERGY - 0.1% | ||||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 | $ 605,000 | $ 429,889 |
Money Market Funds - 1.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 3,938,829 | 3,938,829 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 16,556,066 | 16,556,066 | |
TOTAL MONEY MARKET FUNDS (Cost $20,494,895) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $859,875,308) | 1,081,204,422 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (17,685,149) | ||
NET ASSETS - 100% | $ 1,063,519,273 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 3,017 |
Fidelity Securities Lending Cash Central Fund | 111,550 |
Total | $ 114,567 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 104,161,364 | $ 103,234,299 | $ 927,065 | $ - |
Consumer Staples | 81,141,237 | 81,141,237 | - | - |
Energy | 135,202,963 | 127,942,255 | 7,260,708 | - |
Financials | 233,977,017 | 233,560,949 | 416,068 | - |
Health Care | 167,495,826 | 167,495,826 | - | - |
Industrials | 108,721,546 | 108,721,546 | - | - |
Information Technology | 207,718,530 | 207,718,530 | - | - |
Materials | 7,704,644 | 7,024,315 | 680,329 | - |
Telecommunication Services | 14,156,511 | 14,156,511 | - | - |
Corporate Bonds | 429,889 | - | 429,889 | - |
Money Market Funds | 20,494,895 | 20,494,895 | - | - |
Total Investments in Securities: | $ 1,081,204,422 | $ 1,071,490,363 | $ 9,714,059 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $15,726,398) - See accompanying schedule: Unaffiliated issuers (cost $839,380,413) | $ 1,060,709,527 |
|
Fidelity Central Funds (cost $20,494,895) | 20,494,895 |
|
Total Investments (cost $859,875,308) |
| $ 1,081,204,422 |
Receivable for investments sold | 6,609,035 | |
Receivable for fund shares sold | 882,440 | |
Dividends receivable | 1,937,243 | |
Interest receivable | 4,739 | |
Distributions receivable from Fidelity Central Funds | 24,870 | |
Prepaid expenses | 573 | |
Other receivables | 13,968 | |
Total assets | 1,090,677,290 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,222,495 | |
Payable for fund shares redeemed | 2,395,369 | |
Accrued management fee | 619,822 | |
Distribution and service plan fees payable | 114,387 | |
Other affiliated payables | 208,792 | |
Other payables and accrued expenses | 41,086 | |
Collateral on securities loaned, at value | 16,556,066 | |
Total liabilities | 27,158,017 | |
|
|
|
Net Assets | $ 1,063,519,273 | |
Net Assets consist of: |
| |
Paid in capital | $ 712,238,745 | |
Undistributed net investment income | 4,199,945 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 125,751,232 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 221,329,351 | |
Net Assets | $ 1,063,519,273 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 24.53 | |
|
|
|
Maximum offering price per share (100/94.25 of $24.53) | $ 26.03 | |
Class T: | $ 24.48 | |
|
|
|
Maximum offering price per share (100/96.50 of $24.48) | $ 25.37 | |
Class B: | $ 22.99 | |
|
|
|
Class C: | $ 22.83 | |
|
|
|
Institutional Class: | $ 25.29 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 9,870,438 |
Interest |
| 9,075 |
Income from Fidelity Central Funds |
| 114,567 |
Total income |
| 9,994,080 |
|
|
|
Expenses | ||
Management fee | $ 2,787,739 | |
Performance adjustment | 409,945 | |
Transfer agent fees | 1,055,020 | |
Distribution and service plan fees | 601,840 | |
Accounting and security lending fees | 168,001 | |
Custodian fees and expenses | 38,410 | |
Independent trustees' compensation | 3,250 | |
Registration fees | 56,680 | |
Audit | 32,553 | |
Legal | 1,775 | |
Interest | 674 | |
Miscellaneous | 6,785 | |
Total expenses before reductions | 5,162,672 | |
Expense reductions | (136,116) | 5,026,556 |
Net investment income (loss) | 4,967,524 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 45,163,958 | |
Redemption in-kind with affiliated entities | 91,575,604 | |
Foreign currency transactions | (15,607) | |
Total net realized gain (loss) |
| 136,723,955 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 45,155,094 | |
Assets and liabilities in foreign currencies | (2,108) | |
Total change in net unrealized appreciation (depreciation) |
| 45,152,986 |
Net gain (loss) | 181,876,941 | |
Net increase (decrease) in net assets resulting from operations | $ 186,844,465 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 4,967,524 | $ 12,844,939 |
Net realized gain (loss) | 136,723,955 | 43,445,666 |
Change in net unrealized appreciation (depreciation) | 45,152,986 | 175,969,722 |
Net increase (decrease) in net assets resulting | 186,844,465 | 232,260,327 |
Distributions to shareholders from net investment income | (767,567) | (17,554,132) |
Distributions to shareholders from net realized gain | (3,062,648) | (24,770,255) |
Total distributions | (3,830,215) | (42,324,387) |
Share transactions - net increase (decrease) | (429,830,261) | (103,985,044) |
Total increase (decrease) in net assets | (246,816,011) | 85,950,896 |
|
|
|
Net Assets | ||
Beginning of period | 1,310,335,284 | 1,224,384,388 |
End of period (including undistributed net investment income of $4,199,945 and distributions in excess of net investment income of $12, respectively) | $ 1,063,519,273 | $ 1,310,335,284 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.43 | $ 17.57 | $ 16.69 | $ 15.19 | $ 10.13 | $ 20.95 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .09 | .15 | .09 | .05 | .06 | .11 |
Net realized and unrealized gain (loss) | 4.10 | 3.30 | .87 | 1.52 | 5.08 | (9.79) |
Total from investment operations | 4.19 | 3.45 | .96 | 1.57 | 5.14 | (9.68) |
Distributions from net investment income | (.02) | (.18) | (.06) | (.07) | (.08) | (.06) |
Distributions from net realized gain | (.07) | (.41) | (.02) | - | - | (1.08) |
Total distributions | (.09) | (.59) | (.08) | (.07) | (.08) | (1.14) |
Net asset value, end of period | $ 24.53 | $ 20.43 | $ 17.57 | $ 16.69 | $ 15.19 | $ 10.13 |
Total Return B, C, D | 20.57% | 19.69% | 5.73% | 10.36% | 51.10% | (48.83)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.20% A | 1.25% | 1.29% | 1.22% | 1.16% | 1.12% |
Expenses net of fee waivers, if any | 1.20% A | 1.25% | 1.29% | 1.22% | 1.16% | 1.12% |
Expenses net of all reductions | 1.18% A | 1.24% | 1.28% | 1.21% | 1.15% | 1.11% |
Net investment income (loss) | .81% A | .76% | .49% | .31% | .49% | .65% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 148,290 | $ 123,303 | $ 103,670 | $ 116,837 | $ 112,450 | $ 85,997 |
Portfolio turnover rate G | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.41 | $ 17.51 | $ 16.63 | $ 15.14 | $ 10.07 | $ 20.80 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .10 | .04 | .01 | .03 | .07 |
Net realized and unrealized gain (loss) | 4.09 | 3.29 | .87 | 1.52 | 5.06 | (9.74) |
Total from investment operations | 4.15 | 3.39 | .91 | 1.53 | 5.09 | (9.67) |
Distributions from net investment income | (.01) | (.10) | - I | (.04) | (.02) | - |
Distributions from net realized gain | (.07) | (.39) | (.02) | - | - | (1.06) |
Total distributions | (.08) | (.49) | (.03) J | (.04) | (.02) | (1.06) |
Net asset value, end of period | $ 24.48 | $ 20.41 | $ 17.51 | $ 16.63 | $ 15.14 | $ 10.07 |
Total Return B, C, D | 20.41% | 19.39% | 5.44% | 10.09% | 50.71% | (48.96)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.45% A | 1.49% | 1.54% | 1.47% | 1.42% | 1.38% |
Expenses net of fee waivers, if any | 1.45% A | 1.49% | 1.54% | 1.47% | 1.42% | 1.38% |
Expenses net of all reductions | 1.43% A | 1.49% | 1.53% | 1.47% | 1.41% | 1.37% |
Net investment income (loss) | .56% A | .52% | .24% | .06% | .23% | .40% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 92,653 | $ 76,151 | $ 69,678 | $ 76,373 | $ 87,009 | $ 67,701 |
Portfolio turnover rate G | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 represents less than $.01 per share.
J Total distributions of $.03 per share is comprised of distributions from net investment income of $.004 and distributions from net realized gain of $.021 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.21 | $ 16.49 | $ 15.72 | $ 14.35 | $ 9.57 | $ 19.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | - I | (.05) | (.07) | (.03) | (.02) |
Net realized and unrealized gain (loss) | 3.85 | 3.10 | .82 | 1.44 | 4.81 | (9.26) |
Total from investment operations | 3.85 | 3.10 | .77 | 1.37 | 4.78 | (9.28) |
Distributions from net realized gain | (.07) | (.38) | - | - | - | (.92) |
Net asset value, end of period | $ 22.99 | $ 19.21 | $ 16.49 | $ 15.72 | $ 14.35 | $ 9.57 |
Total Return B, C, D | 20.11% | 18.77% | 4.90% | 9.55% | 49.95% | (49.20)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.99% A | 2.02% | 2.04% | 1.98% | 1.91% | 1.88% |
Expenses net of fee waivers, if any | 1.99% A | 2.02% | 2.04% | 1.98% | 1.91% | 1.88% |
Expenses net of all reductions | 1.97% A | 2.01% | 2.04% | 1.97% | 1.90% | 1.87% |
Net investment income (loss) | .02% A | (.01)% | (.26)% | (.45)% | (.26)% | (.10)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,540 | $ 10,535 | $ 12,839 | $ 17,535 | $ 21,907 | $ 19,561 |
Portfolio turnover rate G | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.08 | $ 16.41 | $ 15.65 | $ 14.28 | $ 9.53 | $ 19.73 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | - I | (.04) | (.07) | (.03) | (.02) |
Net realized and unrealized gain (loss) | 3.81 | 3.09 | .80 | 1.44 | 4.78 | (9.21) |
Total from investment operations | 3.82 | 3.09 | .76 | 1.37 | 4.75 | (9.23) |
Distributions from net investment income | - I | (.03) | - | - | - | - |
Distributions from net realized gain | (.07) | (.39) | - | - | - | (.97) |
Total distributions | (.07) | (.42) | - | - | - | (.97) |
Net asset value, end of period | $ 22.83 | $ 19.08 | $ 16.41 | $ 15.65 | $ 14.28 | $ 9.53 |
Total Return B, C, D | 20.10% | 18.83% | 4.86% | 9.59% | 49.84% | (49.17)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.95% A | 2.00% | 2.03% | 1.97% | 1.91% | 1.87% |
Expenses net of fee waivers, if any | 1.95% A | 2.00% | 2.03% | 1.97% | 1.91% | 1.87% |
Expenses net of all reductions | 1.92% A | 1.99% | 2.03% | 1.96% | 1.90% | 1.86% |
Net investment income (loss) | .07% A | .01% | (.25)% | (.44)% | (.26)% | (.10)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 45,134 | $ 28,856 | $ 24,197 | $ 25,162 | $ 24,650 | $ 25,421 |
Portfolio turnover rate G | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 21.03 | $ 18.13 | $ 17.22 | $ 15.65 | $ 10.48 | $ 21.62 |
Income from InvestmentOperations |
|
|
|
|
| |
Net investment income (loss) D | .13 | .22 | .15 | .11 | .10 | .16 |
Net realized and unrealized gain (loss) | 4.22 | 3.40 | .89 | 1.57 | 5.22 | (10.10) |
Total from investment operations | 4.35 | 3.62 | 1.04 | 1.68 | 5.32 | (9.94) |
Distributions from net investment income | (.02) | (.31) | (.11) | (.11) | (.15) | (.12) |
Distributions from net realized gain | (.07) | (.41) | (.02) | - | - | (1.08) |
Total distributions | (.09) | (.72) | (.13) | (.11) | (.15) | (1.20) |
Net asset value, end of period | $ 25.29 | $ 21.03 | $ 18.13 | $ 17.22 | $ 15.65 | $ 10.48 |
Total Return B, C | 20.76% | 20.10% | 6.03% | 10.78% | 51.54% | (48.66)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .89% A | .91% | .95% | .88% | .84% | .80% |
Expenses net of fee waivers, if any | .89% A | .91% | .95% | .88% | .84% | .80% |
Expenses net of all reductions | .86% A | .91% | .94% | .87% | .83% | .79% |
Net investment income (loss) | 1.13% A | 1.10% | .83% | .65% | .82% | .98% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 766,903 | $ 1,071,491 | $ 1,013,999 | $ 876,299 | $ 924,675 | $ 637,400 |
Portfolio turnover rate F | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
1. Organization.
Fidelity Advisor® Large Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 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. In accordance with valuation policies and procedures
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 239,937,141 |
Gross unrealized depreciation | (23,600,011) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 216,337,130 |
|
|
Tax cost | $ 864,867,292 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $304,737,196 and $723,623,057, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 170,821 | $ 1,037 |
Class T | .25% | .25% | 207,976 | 371 |
Class B | .75% | .25% | 52,011 | 39,374 |
Class C | .75% | .25% | 171,032 | 24,850 |
|
|
| $ 601,840 | $ 65,632 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 29,036 |
Class T | 7,402 |
Class B* | 5,048 |
Class C* | 3,000 |
| $ 44,486 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 175,413 | .26 |
Class T | 106,993 | .26 |
Class B | 15,414 | .30 |
Class C | 43,585 | .25 |
Institutional Class | 713,615 | .19 |
| $ 1,055,020 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $16,988 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 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 | Weighted Average | Interest |
Borrower | $ 6,041,250 | .33% | $ 674 |
Redemptions In-Kind. During the period, 20,043,896 shares of the Fund held by affiliated entities were redeemed for cash and securities with a value of $422,926,209. The net realized gain of $91,575,604 on securities delivered through in-kind redemptions
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Redemptions In-Kind - continued
is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. 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 FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,427 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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 $111,550, including $2,044 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
certain expenses on behalf of the Fund totaling $136,090 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $26.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 97,380 | $ 1,078,226 |
Class T | 40,120 | 375,579 |
Class C | 2,988 | 48,918 |
Institutional Class | 627,079 | 16,051,409 |
Total | $ 767,567 | $ 17,554,132 |
From net realized gain |
|
|
Class A | $ 432,999 | $ 2,386,881 |
Class T | 258,270 | 1,426,914 |
Class B | 37,356 | 202,398 |
Class C | 107,120 | 573,674 |
Institutional Class | 2,226,903 | 20,180,388 |
Total | $ 3,062,648 | $ 24,770,255 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, 2013 | Year ended | Six months ended May 31, 2013 | Year ended | |
Class A |
|
|
|
|
Shares sold | 929,491 | 1,413,103 | $ 20,768,215 | $ 27,688,034 |
Reinvestment of distributions | 23,308 | 159,026 | 490,518 | 3,196,230 |
Shares redeemed | (943,504) | (1,437,321) | (21,264,164) | (28,289,639) |
Net increase (decrease) | 9,295 | 134,808 | $ (5,431) | $ 2,594,625 |
Class T |
|
|
|
|
Shares sold | 494,521 | 701,433 | $ 11,055,194 | $ 13,951,718 |
Reinvestment of distributions | 13,925 | 86,842 | 292,962 | 1,767,817 |
Shares redeemed | (455,162) | (1,036,832) | (9,919,645) | (20,267,280) |
Net increase (decrease) | 53,284 | (248,557) | $ 1,428,511 | $ (4,547,745) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended May 31, 2013 | Year ended | Six months ended May 31, 2013 | Year ended | |
Class B |
|
|
|
|
Shares sold | 17,683 | 12,858 | $ 395,129 | $ 235,820 |
Reinvestment of distributions | 1,700 | 9,445 | 33,725 | 181,350 |
Shares redeemed | (109,351) | (252,591) | (2,280,270) | (4,660,207) |
Net increase (decrease) | (89,968) | (230,288) | $ (1,851,416) | $ (4,243,037) |
Class C |
|
|
|
|
Shares sold | 619,698 | 342,265 | $ 13,128,886 | $ 6,287,339 |
Reinvestment of distributions | 5,033 | 29,148 | 99,148 | 555,861 |
Shares redeemed | (160,621) | (333,164) | (3,333,522) | (6,136,206) |
Net increase (decrease) | 464,110 | 38,249 | $ 9,894,512 | $ 706,994 |
Institutional Class |
|
|
|
|
Shares sold | 2,876,868 | 8,141,510 | $ 65,116,596 | $ 164,428,797 |
Reinvestment of distributions | 130,311 | 1,775,271 | 2,822,578 | 36,037,728 |
Shares redeemed | (23,635,711)A | (14,893,473) | (507,235,611)A | (298,962,406) |
Net increase (decrease) | (20,628,532) | (4,976,692) | $ (439,296,437) | $ (98,495,881) |
A Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind)
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, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 54% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
LCI-USAN-0713 1.786796.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Large Cap
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,205.70 | $ 6.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.95 | $ 6.04 |
Class T | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,204.10 | $ 7.97 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.70 | $ 7.29 |
Class B | 1.99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.10 | $ 10.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.01 | $ 10.00 |
Class C | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.00 | $ 10.70 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.21 | $ 9.80 |
Institutional Class | .89% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,207.60 | $ 4.90 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.49 | $ 4.48 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 3.8 | 3.9 |
Apple, Inc. | 3.4 | 4.5 |
Wells Fargo & Co. | 2.7 | 3.3 |
General Electric Co. | 2.6 | 2.4 |
Chevron Corp. | 2.4 | 2.7 |
Google, Inc. Class A | 2.3 | 2.4 |
Microsoft Corp. | 2.2 | 1.7 |
Citigroup, Inc. | 2.1 | 1.6 |
Occidental Petroleum Corp. | 1.9 | 0.9 |
Target Corp. | 1.8 | 1.5 |
| 25.2 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 22.0 | 18.8 |
Information Technology | 19.6 | 20.4 |
Health Care | 15.8 | 15.0 |
Energy | 12.8 | 12.1 |
Industrials | 10.2 | 10.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 99.7% |
| Stocks 99.1% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 8.8% |
| ** Foreign investments | 8.0% |
|
† Amount represents less than 0.1% |
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 9.8% | |||
Auto Components - 0.2% | |||
Gentex Corp. | 106,676 | $ 2,439,680 | |
Automobiles - 0.7% | |||
Ford Motor Co. | 455,740 | 7,146,003 | |
Distributors - 0.3% | |||
Li & Fung Ltd. | 668,000 | 927,065 | |
LKQ Corp. (a) | 76,700 | 1,877,616 | |
| 2,804,681 | ||
Diversified Consumer Services - 0.1% | |||
H&R Block, Inc. | 37,452 | 1,096,220 | |
Hotels, Restaurants & Leisure - 0.5% | |||
Wyndham Worldwide Corp. | 32,100 | 1,865,652 | |
Yum! Brands, Inc. | 44,500 | 3,014,875 | |
| 4,880,527 | ||
Household Durables - 0.3% | |||
KB Home | 159,614 | 3,537,046 | |
Media - 3.4% | |||
Comcast Corp. Class A (special) (non-vtg.) | 455,387 | 17,669,016 | |
Discovery Communications, Inc. (a) | 18,277 | 1,441,324 | |
Time Warner, Inc. | 223,659 | 13,054,976 | |
Viacom, Inc. Class B (non-vtg.) | 52,291 | 3,445,454 | |
| 35,610,770 | ||
Multiline Retail - 1.9% | |||
Kohl's Corp. | 25,400 | 1,305,814 | |
Target Corp. | 277,952 | 19,317,664 | |
| 20,623,478 | ||
Specialty Retail - 2.3% | |||
Bed Bath & Beyond, Inc. (a) | 26,200 | 1,788,150 | |
Citi Trends, Inc. (a) | 99,333 | 1,315,169 | |
Lowe's Companies, Inc. | 375,079 | 15,794,577 | |
Select Comfort Corp. (a) | 104,506 | 2,318,988 | |
Staples, Inc. | 246,609 | 3,699,135 | |
| 24,916,019 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Coach, Inc. | 19,000 | 1,106,940 | |
TOTAL CONSUMER DISCRETIONARY | 104,161,364 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 7.6% | |||
Beverages - 1.6% | |||
Monster Beverage Corp. (a) | 24,060 | $ 1,313,435 | |
PepsiCo, Inc. | 116,640 | 9,421,013 | |
The Coca-Cola Co. | 165,465 | 6,616,945 | |
| 17,351,393 | ||
Food & Staples Retailing - 1.8% | |||
CVS Caremark Corp. | 95,511 | 5,499,523 | |
Walgreen Co. | 286,280 | 13,672,733 | |
| 19,172,256 | ||
Food Products - 0.6% | |||
Danone SA | 37,103 | 2,736,265 | |
Kellogg Co. | 63,076 | 3,913,866 | |
| 6,650,131 | ||
Household Products - 2.3% | |||
Kimberly-Clark Corp. | 54,735 | 5,299,990 | |
Procter & Gamble Co. | 240,052 | 18,426,392 | |
Svenska Cellulosa AB (SCA) (B Shares) | 19,900 | 497,248 | |
| 24,223,630 | ||
Tobacco - 1.3% | |||
British American Tobacco PLC sponsored ADR | 63,294 | 6,947,782 | |
Lorillard, Inc. | 160,133 | 6,796,045 | |
| 13,743,827 | ||
TOTAL CONSUMER STAPLES | 81,141,237 | ||
ENERGY - 12.7% | |||
Energy Equipment & Services - 2.6% | |||
Baker Hughes, Inc. | 15,752 | 716,401 | |
Cameron International Corp. (a) | 54,745 | 3,332,328 | |
Dresser-Rand Group, Inc. (a) | 42,102 | 2,551,381 | |
Ensco PLC Class A | 37,550 | 2,259,384 | |
Halliburton Co. | 234,767 | 9,824,999 | |
Helmerich & Payne, Inc. | 37,130 | 2,292,406 | |
National Oilwell Varco, Inc. | 36,082 | 2,536,565 | |
Schlumberger Ltd. | 51,492 | 3,760,461 | |
| 27,273,925 | ||
Oil, Gas & Consumable Fuels - 10.1% | |||
Amyris, Inc. (a)(d) | 865,694 | 2,588,425 | |
Apache Corp. | 136,796 | 11,235,055 | |
BG Group PLC | 86,100 | 1,586,851 | |
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
BP PLC sponsored ADR | 96,576 | $ 4,144,076 | |
Canadian Natural Resources Ltd. | 322,100 | 9,600,087 | |
Chevron Corp. | 210,355 | 25,821,076 | |
ENI SpA | 42,900 | 975,611 | |
Exxon Mobil Corp. | 99,748 | 9,024,202 | |
Occidental Petroleum Corp. | 217,618 | 20,036,089 | |
Peabody Energy Corp. | 55,178 | 1,085,351 | |
Royal Dutch Shell PLC Class A (United Kingdom) | 188,850 | 6,285,097 | |
Suncor Energy, Inc. | 369,200 | 11,199,749 | |
The Williams Companies, Inc. | 123,575 | 4,347,369 | |
| 107,929,038 | ||
TOTAL ENERGY | 135,202,963 | ||
FINANCIALS - 22.0% | |||
Capital Markets - 3.4% | |||
Charles Schwab Corp. | 481,424 | 9,561,081 | |
KKR & Co. LP | 96,442 | 1,878,690 | |
Morgan Stanley | 591,103 | 15,309,568 | |
Northern Trust Corp. | 60,088 | 3,494,117 | |
State Street Corp. | 91,863 | 6,079,493 | |
UBS AG | 23,713 | 416,068 | |
| 36,739,017 | ||
Commercial Banks - 5.6% | |||
BNP Paribas SA | 11,300 | 665,696 | |
CIT Group, Inc. (a) | 95,105 | 4,382,438 | |
Comerica, Inc. | 102,374 | 4,042,749 | |
PNC Financial Services Group, Inc. | 80,880 | 5,794,243 | |
Standard Chartered PLC (United Kingdom) | 115,893 | 2,706,470 | |
SunTrust Banks, Inc. | 115,308 | 3,700,234 | |
U.S. Bancorp | 273,515 | 9,589,436 | |
Wells Fargo & Co. | 701,219 | 28,434,430 | |
| 59,315,696 | ||
Consumer Finance - 0.1% | |||
SLM Corp. | 43,455 | 1,031,622 | |
Diversified Financial Services - 8.1% | |||
Bank of America Corp. | 1,389,050 | 18,974,423 | |
Citigroup, Inc. | 429,139 | 22,310,937 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
JPMorgan Chase & Co. | 737,166 | $ 40,241,888 | |
KKR Financial Holdings LLC | 427,184 | 4,493,976 | |
| 86,021,224 | ||
Insurance - 3.5% | |||
American International Group, Inc. (a) | 159,357 | 7,085,012 | |
Genworth Financial, Inc. Class A (a) | 453,151 | 4,898,562 | |
Lincoln National Corp. | 164,836 | 5,878,052 | |
MetLife, Inc. | 359,590 | 15,897,474 | |
Prudential Financial, Inc. | 43,366 | 2,990,953 | |
| 36,750,053 | ||
Thrifts & Mortgage Finance - 1.3% | |||
MGIC Investment Corp. (a) | 185,992 | 1,149,431 | |
Radian Group, Inc. (d) | 1,007,768 | 12,969,974 | |
| 14,119,405 | ||
TOTAL FINANCIALS | 233,977,017 | ||
HEALTH CARE - 15.8% | |||
Biotechnology - 2.5% | |||
Achillion Pharmaceuticals, Inc. (a) | 155,900 | 1,300,206 | |
Amgen, Inc. | 94,697 | 9,519,889 | |
ARIAD Pharmaceuticals, Inc. (a) | 32,695 | 599,626 | |
Clovis Oncology, Inc. (a) | 38,100 | 1,393,698 | |
Discovery Laboratories, Inc. (a) | 193,600 | 346,544 | |
Dynavax Technologies Corp. (a) | 174,138 | 454,500 | |
Elan Corp. PLC sponsored ADR (a) | 234,721 | 2,971,568 | |
Gentium SpA sponsored ADR (a)(d) | 185,750 | 1,558,443 | |
Infinity Pharmaceuticals, Inc. (a) | 68,053 | 1,834,028 | |
Insmed, Inc. (a) | 16,364 | 219,605 | |
Intercept Pharmaceuticals, Inc. | 19,331 | 646,429 | |
MEI Pharma, Inc. (a) | 231,600 | 1,945,440 | |
Merrimack Pharmaceuticals, Inc. (a) | 82,601 | 457,610 | |
Neurocrine Biosciences, Inc. (a) | 13,658 | 176,598 | |
Synageva BioPharma Corp. (a) | 43,214 | 1,781,281 | |
Theravance, Inc. (a) | 22,600 | 791,904 | |
| 25,997,369 | ||
Health Care Equipment & Supplies - 3.6% | |||
Abbott Laboratories | 64,025 | 2,347,797 | |
Alere, Inc. (a) | 589,431 | 15,077,645 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Align Technology, Inc. (a) | 141,005 | $ 5,040,929 | |
Boston Scientific Corp. (a) | 693,354 | 6,406,591 | |
CareFusion Corp. (a) | 56,567 | 2,078,837 | |
Hologic, Inc. (a) | 23,800 | 493,850 | |
MAKO Surgical Corp. (a) | 17,529 | 216,658 | |
NxStage Medical, Inc. (a) | 88,598 | 1,235,942 | |
St. Jude Medical, Inc. | 96,600 | 4,176,018 | |
Stryker Corp. | 11,800 | 783,402 | |
Volcano Corp. (a) | 41,344 | 789,670 | |
| 38,647,339 | ||
Health Care Providers & Services - 4.3% | |||
Aetna, Inc. | 122,834 | 7,416,717 | |
Express Scripts Holding Co. (a) | 52,005 | 3,230,551 | |
Health Management Associates, Inc. Class A (a) | 126,206 | 1,740,381 | |
Humana, Inc. | 14,300 | 1,155,154 | |
McKesson Corp. | 84,631 | 9,636,086 | |
Quest Diagnostics, Inc. | 62,455 | 3,862,217 | |
UnitedHealth Group, Inc. | 168,578 | 10,558,040 | |
WellPoint, Inc. | 108,245 | 8,331,618 | |
| 45,930,764 | ||
Health Care Technology - 0.1% | |||
HMS Holdings Corp. (a) | 23,100 | 575,190 | |
Life Sciences Tools & Services - 0.6% | |||
Illumina, Inc. (a)(d) | 44,973 | 3,162,501 | |
QIAGEN NV (a) | 130,395 | 2,435,779 | |
Thermo Fisher Scientific, Inc. | 11,500 | 1,015,450 | |
| 6,613,730 | ||
Pharmaceuticals - 4.7% | |||
AbbVie, Inc. | 132,225 | 5,644,685 | |
Actavis, Inc. (a) | 15,191 | 1,872,898 | |
Cardiome Pharma Corp. (a) | 60,867 | 123,290 | |
Endo Health Solutions, Inc. (a) | 63,940 | 2,321,022 | |
GlaxoSmithKline PLC sponsored ADR | 120,589 | 6,242,893 | |
Jazz Pharmaceuticals PLC (a) | 24,107 | 1,638,553 | |
Johnson & Johnson | 95,013 | 7,998,194 | |
Merck & Co., Inc. | 375,611 | 17,541,034 | |
Optimer Pharmaceuticals, Inc. (a) | 38,200 | 568,416 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 25,100 | 958,820 | |
ViroPharma, Inc. (a) | 128,100 | 3,522,750 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Warner Chilcott PLC | 47,000 | $ 902,400 | |
XenoPort, Inc. (a) | 72,087 | 396,479 | |
| 49,731,434 | ||
TOTAL HEALTH CARE | 167,495,826 | ||
INDUSTRIALS - 10.2% | |||
Aerospace & Defense - 2.2% | |||
Esterline Technologies Corp. (a) | 26,996 | 1,981,236 | |
Honeywell International, Inc. | 54,480 | 4,274,501 | |
KEYW Holding Corp. (a) | 135,382 | 1,996,885 | |
Rockwell Collins, Inc. | 59,115 | 3,827,696 | |
The Boeing Co. | 94,263 | 9,333,922 | |
United Technologies Corp. | 18,722 | 1,776,718 | |
| 23,190,958 | ||
Air Freight & Logistics - 1.2% | |||
C.H. Robinson Worldwide, Inc. | 42,858 | 2,429,620 | |
United Parcel Service, Inc. Class B | 121,425 | 10,430,408 | |
| 12,860,028 | ||
Electrical Equipment - 0.6% | |||
AMETEK, Inc. | 68,230 | 2,944,125 | |
Hubbell, Inc. Class B | 5,200 | 522,236 | |
Roper Industries, Inc. | 23,335 | 2,898,674 | |
| 6,365,035 | ||
Industrial Conglomerates - 2.6% | |||
General Electric Co. | 1,188,992 | 27,727,293 | |
Machinery - 1.1% | |||
Illinois Tool Works, Inc. | 32,021 | 2,245,633 | |
Ingersoll-Rand PLC | 159,322 | 9,165,795 | |
| 11,411,428 | ||
Professional Services - 0.9% | |||
Acacia Research Corp. | 255,782 | 6,394,550 | |
Michael Page International PLC | 342,378 | 2,001,765 | |
Verisk Analytics, Inc. (a) | 20,100 | 1,182,282 | |
| 9,578,597 | ||
Road & Rail - 1.6% | |||
Con-way, Inc. | 63,294 | 2,406,438 | |
CSX Corp. | 324,414 | 8,178,477 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
Hertz Global Holdings, Inc. (a) | 97,200 | $ 2,510,676 | |
Norfolk Southern Corp. | 58,658 | 4,492,616 | |
| 17,588,207 | ||
TOTAL INDUSTRIALS | 108,721,546 | ||
INFORMATION TECHNOLOGY - 19.6% | |||
Communications Equipment - 2.5% | |||
Brocade Communications Systems, Inc. (a) | 185,295 | 1,006,152 | |
Cisco Systems, Inc. | 760,839 | 18,321,003 | |
QUALCOMM, Inc. | 108,750 | 6,903,450 | |
| 26,230,605 | ||
Computers & Peripherals - 3.9% | |||
Apple, Inc. | 80,065 | 36,003,629 | |
EMC Corp. | 160,386 | 3,971,157 | |
Stratasys Ltd. (a) | 13,500 | 1,134,675 | |
| 41,109,461 | ||
Internet Software & Services - 2.4% | |||
Demandware, Inc. (a) | 48,074 | 1,471,545 | |
Google, Inc. Class A (a) | 27,776 | 24,176,508 | |
| 25,648,053 | ||
IT Services - 5.5% | |||
Cognizant Technology Solutions Corp. Class A (a) | 95,492 | 6,173,558 | |
Fidelity National Information Services, Inc. | 89,724 | 4,028,608 | |
Gartner, Inc. Class A (a) | 29,133 | 1,649,219 | |
IBM Corp. | 22,331 | 4,645,295 | |
MasterCard, Inc. Class A | 22,200 | 12,659,550 | |
Paychex, Inc. | 302,393 | 11,258,091 | |
The Western Union Co. | 253,662 | 4,154,984 | |
Unisys Corp. (a) | 129,262 | 2,669,260 | |
Visa, Inc. Class A | 62,430 | 11,121,280 | |
| 58,359,845 | ||
Semiconductors & Semiconductor Equipment - 1.2% | |||
Applied Materials, Inc. | 371,461 | 5,646,207 | |
Broadcom Corp. Class A | 39,934 | 1,434,030 | |
Lam Research Corp. (a) | 84,634 | 3,959,179 | |
NXP Semiconductors NV (a) | 58,627 | 1,808,643 | |
| 12,848,059 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Software - 4.1% | |||
Adobe Systems, Inc. (a) | 76,510 | $ 3,283,044 | |
Autodesk, Inc. (a) | 39,800 | 1,501,654 | |
Citrix Systems, Inc. (a) | 37,196 | 2,393,563 | |
Concur Technologies, Inc. (a) | 34,224 | 2,762,904 | |
Electronic Arts, Inc. (a) | 102,209 | 2,349,785 | |
Microsoft Corp. | 664,745 | 23,186,306 | |
Oracle Corp. | 122,099 | 4,122,062 | |
salesforce.com, Inc. (a) | 42,600 | 1,803,258 | |
VMware, Inc. Class A (a) | 26,105 | 1,856,588 | |
Workday, Inc. Class A | 4,100 | 263,343 | |
| 43,522,507 | ||
TOTAL INFORMATION TECHNOLOGY | 207,718,530 | ||
MATERIALS - 0.7% | |||
Chemicals - 0.7% | |||
Airgas, Inc. | 30,548 | 3,143,084 | |
E.I. du Pont de Nemours & Co. | 45,488 | 2,537,776 | |
Syngenta AG (Switzerland) | 1,744 | 680,329 | |
W.R. Grace & Co. (a) | 15,897 | 1,343,455 | |
| 7,704,644 | ||
TELECOMMUNICATION SERVICES - 1.3% | |||
Diversified Telecommunication Services - 1.0% | |||
Verizon Communications, Inc. | 219,597 | 10,646,063 | |
Wireless Telecommunication Services - 0.3% | |||
Vodafone Group PLC sponsored ADR | 121,259 | 3,510,448 | |
TOTAL TELECOMMUNICATION SERVICES | 14,156,511 | ||
TOTAL COMMON STOCKS (Cost $838,775,413) |
|
Convertible Bonds - 0.1% | ||||
| Principal Amount | Value | ||
ENERGY - 0.1% | ||||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 | $ 605,000 | $ 429,889 |
Money Market Funds - 1.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 3,938,829 | 3,938,829 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 16,556,066 | 16,556,066 | |
TOTAL MONEY MARKET FUNDS (Cost $20,494,895) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $859,875,308) | 1,081,204,422 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (17,685,149) | ||
NET ASSETS - 100% | $ 1,063,519,273 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 3,017 |
Fidelity Securities Lending Cash Central Fund | 111,550 |
Total | $ 114,567 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 104,161,364 | $ 103,234,299 | $ 927,065 | $ - |
Consumer Staples | 81,141,237 | 81,141,237 | - | - |
Energy | 135,202,963 | 127,942,255 | 7,260,708 | - |
Financials | 233,977,017 | 233,560,949 | 416,068 | - |
Health Care | 167,495,826 | 167,495,826 | - | - |
Industrials | 108,721,546 | 108,721,546 | - | - |
Information Technology | 207,718,530 | 207,718,530 | - | - |
Materials | 7,704,644 | 7,024,315 | 680,329 | - |
Telecommunication Services | 14,156,511 | 14,156,511 | - | - |
Corporate Bonds | 429,889 | - | 429,889 | - |
Money Market Funds | 20,494,895 | 20,494,895 | - | - |
Total Investments in Securities: | $ 1,081,204,422 | $ 1,071,490,363 | $ 9,714,059 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $15,726,398) - See accompanying schedule: Unaffiliated issuers (cost $839,380,413) | $ 1,060,709,527 |
|
Fidelity Central Funds (cost $20,494,895) | 20,494,895 |
|
Total Investments (cost $859,875,308) |
| $ 1,081,204,422 |
Receivable for investments sold | 6,609,035 | |
Receivable for fund shares sold | 882,440 | |
Dividends receivable | 1,937,243 | |
Interest receivable | 4,739 | |
Distributions receivable from Fidelity Central Funds | 24,870 | |
Prepaid expenses | 573 | |
Other receivables | 13,968 | |
Total assets | 1,090,677,290 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,222,495 | |
Payable for fund shares redeemed | 2,395,369 | |
Accrued management fee | 619,822 | |
Distribution and service plan fees payable | 114,387 | |
Other affiliated payables | 208,792 | |
Other payables and accrued expenses | 41,086 | |
Collateral on securities loaned, at value | 16,556,066 | |
Total liabilities | 27,158,017 | |
|
|
|
Net Assets | $ 1,063,519,273 | |
Net Assets consist of: |
| |
Paid in capital | $ 712,238,745 | |
Undistributed net investment income | 4,199,945 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 125,751,232 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 221,329,351 | |
Net Assets | $ 1,063,519,273 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 24.53 | |
|
|
|
Maximum offering price per share (100/94.25 of $24.53) | $ 26.03 | |
Class T: | $ 24.48 | |
|
|
|
Maximum offering price per share (100/96.50 of $24.48) | $ 25.37 | |
Class B: | $ 22.99 | |
|
|
|
Class C: | $ 22.83 | |
|
|
|
Institutional Class: | $ 25.29 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 9,870,438 |
Interest |
| 9,075 |
Income from Fidelity Central Funds |
| 114,567 |
Total income |
| 9,994,080 |
|
|
|
Expenses | ||
Management fee | $ 2,787,739 | |
Performance adjustment | 409,945 | |
Transfer agent fees | 1,055,020 | |
Distribution and service plan fees | 601,840 | |
Accounting and security lending fees | 168,001 | |
Custodian fees and expenses | 38,410 | |
Independent trustees' compensation | 3,250 | |
Registration fees | 56,680 | |
Audit | 32,553 | |
Legal | 1,775 | |
Interest | 674 | |
Miscellaneous | 6,785 | |
Total expenses before reductions | 5,162,672 | |
Expense reductions | (136,116) | 5,026,556 |
Net investment income (loss) | 4,967,524 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 45,163,958 | |
Redemption in-kind with affiliated entities | 91,575,604 | |
Foreign currency transactions | (15,607) | |
Total net realized gain (loss) |
| 136,723,955 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 45,155,094 | |
Assets and liabilities in foreign currencies | (2,108) | |
Total change in net unrealized appreciation (depreciation) |
| 45,152,986 |
Net gain (loss) | 181,876,941 | |
Net increase (decrease) in net assets resulting from operations | $ 186,844,465 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 4,967,524 | $ 12,844,939 |
Net realized gain (loss) | 136,723,955 | 43,445,666 |
Change in net unrealized appreciation (depreciation) | 45,152,986 | 175,969,722 |
Net increase (decrease) in net assets resulting | 186,844,465 | 232,260,327 |
Distributions to shareholders from net investment income | (767,567) | (17,554,132) |
Distributions to shareholders from net realized gain | (3,062,648) | (24,770,255) |
Total distributions | (3,830,215) | (42,324,387) |
Share transactions - net increase (decrease) | (429,830,261) | (103,985,044) |
Total increase (decrease) in net assets | (246,816,011) | 85,950,896 |
|
|
|
Net Assets | ||
Beginning of period | 1,310,335,284 | 1,224,384,388 |
End of period (including undistributed net investment income of $4,199,945 and distributions in excess of net investment income of $12, respectively) | $ 1,063,519,273 | $ 1,310,335,284 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.43 | $ 17.57 | $ 16.69 | $ 15.19 | $ 10.13 | $ 20.95 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .09 | .15 | .09 | .05 | .06 | .11 |
Net realized and unrealized gain (loss) | 4.10 | 3.30 | .87 | 1.52 | 5.08 | (9.79) |
Total from investment operations | 4.19 | 3.45 | .96 | 1.57 | 5.14 | (9.68) |
Distributions from net investment income | (.02) | (.18) | (.06) | (.07) | (.08) | (.06) |
Distributions from net realized gain | (.07) | (.41) | (.02) | - | - | (1.08) |
Total distributions | (.09) | (.59) | (.08) | (.07) | (.08) | (1.14) |
Net asset value, end of period | $ 24.53 | $ 20.43 | $ 17.57 | $ 16.69 | $ 15.19 | $ 10.13 |
Total Return B, C, D | 20.57% | 19.69% | 5.73% | 10.36% | 51.10% | (48.83)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.20% A | 1.25% | 1.29% | 1.22% | 1.16% | 1.12% |
Expenses net of fee waivers, if any | 1.20% A | 1.25% | 1.29% | 1.22% | 1.16% | 1.12% |
Expenses net of all reductions | 1.18% A | 1.24% | 1.28% | 1.21% | 1.15% | 1.11% |
Net investment income (loss) | .81% A | .76% | .49% | .31% | .49% | .65% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 148,290 | $ 123,303 | $ 103,670 | $ 116,837 | $ 112,450 | $ 85,997 |
Portfolio turnover rate G | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.41 | $ 17.51 | $ 16.63 | $ 15.14 | $ 10.07 | $ 20.80 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .10 | .04 | .01 | .03 | .07 |
Net realized and unrealized gain (loss) | 4.09 | 3.29 | .87 | 1.52 | 5.06 | (9.74) |
Total from investment operations | 4.15 | 3.39 | .91 | 1.53 | 5.09 | (9.67) |
Distributions from net investment income | (.01) | (.10) | - I | (.04) | (.02) | - |
Distributions from net realized gain | (.07) | (.39) | (.02) | - | - | (1.06) |
Total distributions | (.08) | (.49) | (.03) J | (.04) | (.02) | (1.06) |
Net asset value, end of period | $ 24.48 | $ 20.41 | $ 17.51 | $ 16.63 | $ 15.14 | $ 10.07 |
Total Return B, C, D | 20.41% | 19.39% | 5.44% | 10.09% | 50.71% | (48.96)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.45% A | 1.49% | 1.54% | 1.47% | 1.42% | 1.38% |
Expenses net of fee waivers, if any | 1.45% A | 1.49% | 1.54% | 1.47% | 1.42% | 1.38% |
Expenses net of all reductions | 1.43% A | 1.49% | 1.53% | 1.47% | 1.41% | 1.37% |
Net investment income (loss) | .56% A | .52% | .24% | .06% | .23% | .40% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 92,653 | $ 76,151 | $ 69,678 | $ 76,373 | $ 87,009 | $ 67,701 |
Portfolio turnover rate G | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 represents less than $.01 per share.
J Total distributions of $.03 per share is comprised of distributions from net investment income of $.004 and distributions from net realized gain of $.021 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.21 | $ 16.49 | $ 15.72 | $ 14.35 | $ 9.57 | $ 19.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | - I | (.05) | (.07) | (.03) | (.02) |
Net realized and unrealized gain (loss) | 3.85 | 3.10 | .82 | 1.44 | 4.81 | (9.26) |
Total from investment operations | 3.85 | 3.10 | .77 | 1.37 | 4.78 | (9.28) |
Distributions from net realized gain | (.07) | (.38) | - | - | - | (.92) |
Net asset value, end of period | $ 22.99 | $ 19.21 | $ 16.49 | $ 15.72 | $ 14.35 | $ 9.57 |
Total Return B, C, D | 20.11% | 18.77% | 4.90% | 9.55% | 49.95% | (49.20)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.99% A | 2.02% | 2.04% | 1.98% | 1.91% | 1.88% |
Expenses net of fee waivers, if any | 1.99% A | 2.02% | 2.04% | 1.98% | 1.91% | 1.88% |
Expenses net of all reductions | 1.97% A | 2.01% | 2.04% | 1.97% | 1.90% | 1.87% |
Net investment income (loss) | .02% A | (.01)% | (.26)% | (.45)% | (.26)% | (.10)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,540 | $ 10,535 | $ 12,839 | $ 17,535 | $ 21,907 | $ 19,561 |
Portfolio turnover rate G | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.08 | $ 16.41 | $ 15.65 | $ 14.28 | $ 9.53 | $ 19.73 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | - I | (.04) | (.07) | (.03) | (.02) |
Net realized and unrealized gain (loss) | 3.81 | 3.09 | .80 | 1.44 | 4.78 | (9.21) |
Total from investment operations | 3.82 | 3.09 | .76 | 1.37 | 4.75 | (9.23) |
Distributions from net investment income | - I | (.03) | - | - | - | - |
Distributions from net realized gain | (.07) | (.39) | - | - | - | (.97) |
Total distributions | (.07) | (.42) | - | - | - | (.97) |
Net asset value, end of period | $ 22.83 | $ 19.08 | $ 16.41 | $ 15.65 | $ 14.28 | $ 9.53 |
Total Return B, C, D | 20.10% | 18.83% | 4.86% | 9.59% | 49.84% | (49.17)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.95% A | 2.00% | 2.03% | 1.97% | 1.91% | 1.87% |
Expenses net of fee waivers, if any | 1.95% A | 2.00% | 2.03% | 1.97% | 1.91% | 1.87% |
Expenses net of all reductions | 1.92% A | 1.99% | 2.03% | 1.96% | 1.90% | 1.86% |
Net investment income (loss) | .07% A | .01% | (.25)% | (.44)% | (.26)% | (.10)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 45,134 | $ 28,856 | $ 24,197 | $ 25,162 | $ 24,650 | $ 25,421 |
Portfolio turnover rate G | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 21.03 | $ 18.13 | $ 17.22 | $ 15.65 | $ 10.48 | $ 21.62 |
Income from InvestmentOperations |
|
|
|
|
| |
Net investment income (loss) D | .13 | .22 | .15 | .11 | .10 | .16 |
Net realized and unrealized gain (loss) | 4.22 | 3.40 | .89 | 1.57 | 5.22 | (10.10) |
Total from investment operations | 4.35 | 3.62 | 1.04 | 1.68 | 5.32 | (9.94) |
Distributions from net investment income | (.02) | (.31) | (.11) | (.11) | (.15) | (.12) |
Distributions from net realized gain | (.07) | (.41) | (.02) | - | - | (1.08) |
Total distributions | (.09) | (.72) | (.13) | (.11) | (.15) | (1.20) |
Net asset value, end of period | $ 25.29 | $ 21.03 | $ 18.13 | $ 17.22 | $ 15.65 | $ 10.48 |
Total Return B, C | 20.76% | 20.10% | 6.03% | 10.78% | 51.54% | (48.66)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .89% A | .91% | .95% | .88% | .84% | .80% |
Expenses net of fee waivers, if any | .89% A | .91% | .95% | .88% | .84% | .80% |
Expenses net of all reductions | .86% A | .91% | .94% | .87% | .83% | .79% |
Net investment income (loss) | 1.13% A | 1.10% | .83% | .65% | .82% | .98% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 766,903 | $ 1,071,491 | $ 1,013,999 | $ 876,299 | $ 924,675 | $ 637,400 |
Portfolio turnover rate F | 59% A | 59% | 83% | 146% | 185% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
1. Organization.
Fidelity Advisor® Large Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 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. In accordance with valuation policies and procedures
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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.
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, 2013, 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 239,937,141 |
Gross unrealized depreciation | (23,600,011) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 216,337,130 |
|
|
Tax cost | $ 864,867,292 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $304,737,196 and $723,623,057, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 170,821 | $ 1,037 |
Class T | .25% | .25% | 207,976 | 371 |
Class B | .75% | .25% | 52,011 | 39,374 |
Class C | .75% | .25% | 171,032 | 24,850 |
|
|
| $ 601,840 | $ 65,632 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 29,036 |
Class T | 7,402 |
Class B* | 5,048 |
Class C* | 3,000 |
| $ 44,486 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 175,413 | .26 |
Class T | 106,993 | .26 |
Class B | 15,414 | .30 |
Class C | 43,585 | .25 |
Institutional Class | 713,615 | .19 |
| $ 1,055,020 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $16,988 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 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 | Weighted Average | Interest |
Borrower | $ 6,041,250 | .33% | $ 674 |
Redemptions In-Kind. During the period, 20,043,896 shares of the Fund held by affiliated entities were redeemed for cash and securities with a value of $422,926,209. The net realized gain of $91,575,604 on securities delivered through in-kind redemptions
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Redemptions In-Kind - continued
is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. 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 FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,427 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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 $111,550, including $2,044 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
certain expenses on behalf of the Fund totaling $136,090 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $26.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 97,380 | $ 1,078,226 |
Class T | 40,120 | 375,579 |
Class C | 2,988 | 48,918 |
Institutional Class | 627,079 | 16,051,409 |
Total | $ 767,567 | $ 17,554,132 |
From net realized gain |
|
|
Class A | $ 432,999 | $ 2,386,881 |
Class T | 258,270 | 1,426,914 |
Class B | 37,356 | 202,398 |
Class C | 107,120 | 573,674 |
Institutional Class | 2,226,903 | 20,180,388 |
Total | $ 3,062,648 | $ 24,770,255 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended May 31, 2013 | Year ended | Six months ended May 31, 2013 | Year ended | |
Class A |
|
|
|
|
Shares sold | 929,491 | 1,413,103 | $ 20,768,215 | $ 27,688,034 |
Reinvestment of distributions | 23,308 | 159,026 | 490,518 | 3,196,230 |
Shares redeemed | (943,504) | (1,437,321) | (21,264,164) | (28,289,639) |
Net increase (decrease) | 9,295 | 134,808 | $ (5,431) | $ 2,594,625 |
Class T |
|
|
|
|
Shares sold | 494,521 | 701,433 | $ 11,055,194 | $ 13,951,718 |
Reinvestment of distributions | 13,925 | 86,842 | 292,962 | 1,767,817 |
Shares redeemed | (455,162) | (1,036,832) | (9,919,645) | (20,267,280) |
Net increase (decrease) | 53,284 | (248,557) | $ 1,428,511 | $ (4,547,745) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended May 31, 2013 | Year ended | Six months ended May 31, 2013 | Year ended | |
Class B |
|
|
|
|
Shares sold | 17,683 | 12,858 | $ 395,129 | $ 235,820 |
Reinvestment of distributions | 1,700 | 9,445 | 33,725 | 181,350 |
Shares redeemed | (109,351) | (252,591) | (2,280,270) | (4,660,207) |
Net increase (decrease) | (89,968) | (230,288) | $ (1,851,416) | $ (4,243,037) |
Class C |
|
|
|
|
Shares sold | 619,698 | 342,265 | $ 13,128,886 | $ 6,287,339 |
Reinvestment of distributions | 5,033 | 29,148 | 99,148 | 555,861 |
Shares redeemed | (160,621) | (333,164) | (3,333,522) | (6,136,206) |
Net increase (decrease) | 464,110 | 38,249 | $ 9,894,512 | $ 706,994 |
Institutional Class |
|
|
|
|
Shares sold | 2,876,868 | 8,141,510 | $ 65,116,596 | $ 164,428,797 |
Reinvestment of distributions | 130,311 | 1,775,271 | 2,822,578 | 36,037,728 |
Shares redeemed | (23,635,711)A | (14,893,473) | (507,235,611)A | (298,962,406) |
Net increase (decrease) | (20,628,532) | (4,976,692) | $ (439,296,437) | $ (98,495,881) |
A Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind)
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, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 54% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
LC-USAN-0713 1.786795.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,184.20 | $ 5.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.85 | $ 5.14 |
Class T | 1.22% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,183.40 | $ 6.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.85 | $ 6.14 |
Class B | 1.81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,179.60 | $ 9.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.91 | $ 9.10 |
Class C | 1.77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,180.00 | $ 9.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.11 | $ 8.90 |
Institutional Class | .72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,186.50 | $ 3.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.34 | $ 3.63 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Prestige Brands Holdings, Inc. | 1.9 | 1.6 |
PolyOne Corp. | 1.7 | 1.3 |
Ascena Retail Group, Inc. | 1.7 | 1.8 |
Primerica, Inc. | 1.6 | 1.4 |
Dorman Products, Inc. | 1.5 | 1.2 |
Teledyne Technologies, Inc. | 1.5 | 1.2 |
Stamps.com, Inc. | 1.4 | 1.0 |
WESCO International, Inc. | 1.4 | 1.2 |
Actuant Corp. Class A | 1.4 | 1.2 |
The Ensign Group, Inc. | 1.3 | 1.0 |
| 15.4 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 22.2 | 18.0 |
Consumer Discretionary | 18.6 | 20.4 |
Information Technology | 14.7 | 14.1 |
Industrials | 13.7 | 15.4 |
Health Care | 9.7 | 12.2 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks and |
| Stocks 99.1% |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 17.9% |
| ** Foreign investments | 18.8% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 18.6% | |||
Auto Components - 1.5% | |||
Dorman Products, Inc. | 1,250,000 | $ 55,663 | |
Diversified Consumer Services - 2.4% | |||
Best Bridal, Inc. (e) | 15,908 | 27,800 | |
Grand Canyon Education, Inc. (a) | 1,250,000 | 40,150 | |
Meiko Network Japan Co. Ltd. (e) | 1,800,000 | 22,521 | |
| 90,471 | ||
Hotels, Restaurants & Leisure - 2.1% | |||
AFC Enterprises, Inc. (a) | 500,000 | 18,230 | |
Life Time Fitness, Inc. (a) | 550,000 | 27,412 | |
Texas Roadhouse, Inc. Class A | 1,400,000 | 33,110 | |
| 78,752 | ||
Household Durables - 1.7% | |||
Hajime Construction Co. Ltd. (d) | 400,000 | 22,231 | |
Tupperware Brands Corp. | 500,000 | 40,490 | |
| 62,721 | ||
Specialty Retail - 7.5% | |||
Aarons, Inc. Class A | 1,200,000 | 33,708 | |
Aeropostale, Inc. (a) | 3,256,300 | 47,575 | |
Ascena Retail Group, Inc. (a) | 3,150,000 | 64,040 | |
Genesco, Inc. (a) | 500,000 | 33,790 | |
Jumbo SA | 1,550,000 | 15,593 | |
Office Depot, Inc. (a)(d) | 7,000,000 | 30,870 | |
OfficeMax, Inc. (d) | 2,000,000 | 26,060 | |
Penske Automotive Group, Inc. | 900,000 | 28,899 | |
| 280,535 | ||
Textiles, Apparel & Luxury Goods - 3.4% | |||
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 2,100,000 | 47,250 | |
Steven Madden Ltd. (a) | 800,000 | 38,800 | |
Wolverine World Wide, Inc. | 800,000 | 41,880 | |
| 127,930 | ||
TOTAL CONSUMER DISCRETIONARY | 696,072 | ||
CONSUMER STAPLES - 5.1% | |||
Food & Staples Retailing - 1.5% | |||
Ain Pharmaciez, Inc. | 130,000 | 5,070 | |
Sundrug Co. Ltd. | 690,000 | 26,298 | |
Tsuruha Holdings, Inc. | 300,000 | 24,154 | |
| 55,522 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - 0.9% | |||
Darling International, Inc. (a) | 1,600,000 | $ 31,376 | |
Personal Products - 2.7% | |||
Atrium Innovations, Inc. (a)(e) | 2,300,000 | 31,591 | |
Prestige Brands Holdings, Inc. (a) | 2,400,000 | 70,532 | |
| 102,123 | ||
TOTAL CONSUMER STAPLES | 189,021 | ||
ENERGY - 7.3% | |||
Energy Equipment & Services - 3.8% | |||
Cathedral Energy Services Ltd. (e) | 2,900,000 | 12,867 | |
Key Energy Services, Inc. (a) | 4,391,830 | 28,459 | |
Oil States International, Inc. (a) | 350,000 | 34,475 | |
Pason Systems, Inc. (d) | 2,100,000 | 35,852 | |
Unit Corp. (a) | 150,000 | 6,776 | |
Western Energy Services Corp. (a)(f) | 1,080,720 | 7,380 | |
Western Energy Services Corp. | 2,600,000 | 17,755 | |
| 143,564 | ||
Oil, Gas & Consumable Fuels - 3.5% | |||
BP Prudhoe Bay Royalty Trust | 80,811 | 7,198 | |
Hargreaves Services PLC | 1,200,000 | 16,337 | |
Sunoco Logistics Partners LP | 600,000 | 36,324 | |
Ultra Petroleum Corp. (a)(d) | 900,000 | 20,502 | |
World Fuel Services Corp. | 1,200,000 | 48,876 | |
| 129,237 | ||
TOTAL ENERGY | 272,801 | ||
FINANCIALS - 22.2% | |||
Capital Markets - 1.1% | |||
Virtus Investment Partners, Inc. (a) | 185,000 | 42,894 | |
Commercial Banks - 6.5% | |||
Bank of the Ozarks, Inc. | 850,000 | 37,103 | |
City National Corp. | 250,000 | 15,690 | |
Commerce Bancshares, Inc. | 400,000 | 17,408 | |
East West Bancorp, Inc. | 1,300,000 | 34,242 | |
First Financial Bankshares, Inc. (d) | 650,000 | 35,750 | |
Prosperity Bancshares, Inc. | 700,000 | 35,063 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Sterling Financial Corp. | 1,300,000 | $ 29,406 | |
SVB Financial Group (a) | 500,000 | 38,695 | |
| 243,357 | ||
Consumer Finance - 1.0% | |||
EZCORP, Inc. (non-vtg.) Class A (a) | 2,014,200 | 38,532 | |
Insurance - 6.3% | |||
CNO Financial Group, Inc. | 2,600,000 | 32,084 | |
Enstar Group Ltd. (a) | 200,000 | 25,254 | |
HCC Insurance Holdings, Inc. | 1,100,000 | 47,135 | |
Primerica, Inc. | 1,700,000 | 59,874 | |
ProAssurance Corp. | 700,000 | 35,140 | |
Reinsurance Group of America, Inc. | 540,000 | 35,581 | |
| 235,068 | ||
Real Estate Investment Trusts - 6.0% | |||
Aviv REIT, Inc. | 1,300,000 | 33,696 | |
EPR Properties | 600,000 | 31,452 | |
Equity Lifestyle Properties, Inc. | 400,000 | 30,868 | |
First Industrial Realty Trust, Inc. | 2,000,000 | 33,780 | |
National Health Investors, Inc. | 500,000 | 31,135 | |
Rouse Properties, Inc. (d) | 1,600,000 | 32,176 | |
Sovran Self Storage, Inc. | 500,000 | 32,435 | |
| 225,542 | ||
Real Estate Management & Development - 0.5% | |||
Relo Holdings Corp. | 380,000 | 16,796 | |
Thrifts & Mortgage Finance - 0.8% | |||
EverBank Financial Corp. | 1,900,000 | 29,830 | |
TOTAL FINANCIALS | 832,019 | ||
HEALTH CARE - 9.7% | |||
Biotechnology - 0.9% | |||
United Therapeutics Corp. (a) | 500,000 | 33,235 | |
Health Care Equipment & Supplies - 1.7% | |||
DENTSPLY International, Inc. | 600,000 | 25,056 | |
The Cooper Companies, Inc. | 350,000 | 39,554 | |
| 64,610 | ||
Health Care Providers & Services - 6.2% | |||
AmSurg Corp. (a) | 1,300,000 | 46,189 | |
Centene Corp. (a) | 400,000 | 19,800 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Community Health Systems, Inc. | 900,000 | $ 43,353 | |
Healthways, Inc. (a) | 900,000 | 12,105 | |
Henry Schein, Inc. (a) | 300,000 | 28,887 | |
MEDNAX, Inc. (a) | 350,000 | 32,491 | |
The Ensign Group, Inc. (e) | 1,400,000 | 50,498 | |
| 233,323 | ||
Pharmaceuticals - 0.9% | |||
Jazz Pharmaceuticals PLC (a) | 500,000 | 33,985 | |
TOTAL HEALTH CARE | 365,153 | ||
INDUSTRIALS - 13.7% | |||
Aerospace & Defense - 3.2% | |||
Moog, Inc. Class A (a) | 1,000,000 | 50,070 | |
QinetiQ Group PLC | 5,000,000 | 14,077 | |
Teledyne Technologies, Inc. (a) | 700,000 | 54,054 | |
| 118,201 | ||
Commercial Services & Supplies - 3.1% | |||
ACCO Brands Corp. | 2,568,946 | 18,368 | |
Mitie Group PLC | 6,500,000 | 25,668 | |
UniFirst Corp. | 450,000 | 42,705 | |
West Corp. | 1,250,000 | 28,625 | |
| 115,366 | ||
Construction & Engineering - 1.9% | |||
AECOM Technology Corp. (a) | 700,000 | 21,553 | |
Badger Daylighting Ltd. (d)(e) | 860,000 | 41,053 | |
Imtech NV (a)(d) | 700,000 | 8,445 | |
| 71,051 | ||
Machinery - 1.6% | |||
Actuant Corp. Class A | 1,500,000 | 51,000 | |
Hy-Lok Corp. | 400,000 | 8,410 | |
Standex International Corp. | 31,682 | 1,653 | |
| 61,063 | ||
Marine - 0.2% | |||
SITC International Holdings Co. Ltd. | 21,000,000 | 8,050 | |
Professional Services - 0.8% | |||
Benefit One, Inc. | 10,500 | 14,778 | |
Stantec, Inc. | 400,000 | 16,972 | |
| 31,750 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Trading Companies & Distributors - 2.9% | |||
Applied Industrial Technologies, Inc. | 55,169 | $ 2,652 | |
DXP Enterprises, Inc. (a) | 400,000 | 23,628 | |
Textainer Group Holdings Ltd. | 800,000 | 29,992 | |
WESCO International, Inc. (a) | 700,000 | 51,982 | |
| 108,254 | ||
TOTAL INDUSTRIALS | 513,735 | ||
INFORMATION TECHNOLOGY - 14.7% | |||
Communications Equipment - 0.9% | |||
NETGEAR, Inc. (a) | 1,050,000 | 34,944 | |
Electronic Equipment & Components - 1.9% | |||
Insight Enterprises, Inc. (a)(e) | 2,250,000 | 43,313 | |
ScanSource, Inc. (a) | 861,081 | 27,494 | |
| 70,807 | ||
Internet Software & Services - 3.3% | |||
Perficient, Inc. (a)(e) | 2,800,000 | 35,280 | |
Stamps.com, Inc. (a)(e) | 1,400,000 | 53,368 | |
ValueClick, Inc. (a) | 1,400,000 | 36,876 | |
| 125,524 | ||
IT Services - 6.2% | |||
Acxiom Corp. (a) | 1,100,000 | 24,189 | |
EPAM Systems, Inc. (a) | 2,100,000 | 48,636 | |
ExlService Holdings, Inc. (a) | 1,000,000 | 29,330 | |
Genpact Ltd. | 1,700,000 | 32,895 | |
Global Payments, Inc. | 700,000 | 33,572 | |
iGate Corp. (a) | 2,600,000 | 37,726 | |
WEX, Inc. (a) | 350,000 | 25,855 | |
| 232,203 | ||
Semiconductors & Semiconductor Equipment - 0.9% | |||
Omnivision Technologies, Inc. (a)(d) | 1,800,000 | 33,246 | |
Software - 1.5% | |||
NIIT Technologies Ltd. (e) | 3,800,000 | 17,788 | |
Simplex Holdings, Inc. (d)(e) | 33,000 | 12,192 | |
SWORD Group (e) | 673,226 | 10,238 | |
Zensar Technologies Ltd. (a)(e) | 3,499,999 | 15,332 | |
| 55,550 | ||
TOTAL INFORMATION TECHNOLOGY | 552,274 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 5.8% | |||
Chemicals - 3.1% | |||
Axiall Corp. | 600,000 | $ 25,890 | |
FUCHS PETROLUB AG | 350,000 | 25,921 | |
PolyOne Corp. | 2,500,000 | 64,225 | |
| 116,036 | ||
Metals & Mining - 2.7% | |||
Aurubis AG | 450,000 | 27,191 | |
Maharashtra Seamless Ltd. (a) | 700,000 | 2,849 | |
Reliance Steel & Aluminum Co. | 400,000 | 26,308 | |
SunCoke Energy, Inc. (a) | 2,900,000 | 44,950 | |
| 101,298 | ||
TOTAL MATERIALS | 217,334 | ||
UTILITIES - 0.4% | |||
Gas Utilities - 0.4% | |||
New Jersey Resources Corp. | 300,000 | 13,614 | |
TOTAL COMMON STOCKS (Cost $2,911,077) |
|
U.S. Treasury Obligations - 0.2% | ||||
| Principal Amount (000s) |
| ||
U.S. Treasury Bills, yield at date of purchase 0.03% to 0.06% 7/5/13 to 7/25/13 (g) | $ 8,370 |
|
Money Market Funds - 6.0% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.12% (b) | 135,087,957 | $ 135,088 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 90,267,870 | 90,268 | |
TOTAL MONEY MARKET FUNDS (Cost $225,356) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $3,144,803) | 3,885,749 | ||
NET OTHER ASSETS (LIABILITIES) - (3.7)% | (137,328) | ||
NET ASSETS - 100% | $ 3,748,421 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
876 Russell 2000 Mini Index Contracts | June 2013 | $ 86,120 | $ 5,082 |
The face value of futures purchased as a percentage of net assets is 2.3% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $7,380,000 or 0.2% of net assets. |
(g) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $4,810,000. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 51 |
Fidelity Securities Lending Cash Central Fund | 913 |
Total | $ 964 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Aeropostale, Inc. | $ 56,018 | $ - | $ 11,199 | $ - | $ - |
AFC Enterprises, Inc. | 32,238 | - | 21,215 | - | - |
Atrium Innovations, Inc. | 26,627 | - | - | - | 31,591 |
Badger Daylighting Ltd. | 26,674 | - | - | 388 | 41,053 |
Benefit One, Inc. | 13,959 | - | 3,343 | 430 | - |
Best Bridal, Inc. | 16,354 | - | - | 174 | 27,800 |
Cathedral Energy Services Ltd. | 15,502 | - | - | 367 | 12,867 |
CBIZ, Inc. | 29,631 | - | 31,193 | - | - |
Healthways, Inc. | 24,886 | - | 16,895 | - | - |
iGate Corp. | 64,457 | - | 29,081 | - | - |
Insight Enterprises, Inc. | 59,290 | - | 24,727 | - | 43,313 |
Meiko Network Japan Co. Ltd. | 25,756 | - | 8,843 | 291 | 22,521 |
NIIT Technologies Ltd. | 19,569 | - | - | - | 17,788 |
Perficient, Inc. | 30,492 | - | - | - | 35,280 |
Prestige Brands Holdings, Inc. | 58,320 | - | 8,139 | - | - |
Simplex Holdings, Inc. | 10,454 | - | 2,062 | 194 | 12,192 |
Stamps.com, Inc. | 35,518 | - | - | - | 53,368 |
SWORD Group | 13,117 | - | 2,323 | 561 | 10,238 |
The Ensign Group, Inc. | 36,106 | - | - | 182 | 50,498 |
Zensar Technologies Ltd. | 15,637 | 1,208 | - | 230 | 15,332 |
Total | $ 610,605 | $ 1,208 | $ 159,020 | $ 2,817 | $ 373,841 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables 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 | $ 696,072 | $ 623,520 | $ 72,552 | $ - |
Consumer Staples | 189,021 | 133,499 | 55,522 | - |
Energy | 272,801 | 272,801 | - | - |
Financials | 832,019 | 815,223 | 16,796 | - |
Health Care | 365,153 | 365,153 | - | - |
Industrials | 513,735 | 482,497 | 31,238 | - |
Information Technology | 552,274 | 506,962 | 45,312 | - |
Materials | 217,334 | 214,485 | 2,849 | - |
Utilities | 13,614 | 13,614 | - | - |
U.S. Government and Government Agency Obligations | 8,370 | - | 8,370 | - |
Money Market Funds | 225,356 | 225,356 | - | - |
Total Investments in Securities: | $ 3,885,749 | $ 3,653,110 | $ 232,639 | $ - |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $ 5,082 | $ 5,082 | $ - | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended May 31, 2013. 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 | $ 53,074 |
Level 2 to Level 1 | $ 0 |
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, 2013. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ 5,082 | $ - |
Total Value of Derivatives | $ 5,082 | $ - |
(a) Reflects cumulative appreciation/depreciation on futures contracts as disclosed in the Schedule of Investments. Only the period end variation margin is separately disclosed in the Statement of Assets and Liabilities and is included in the receivable/payable for daily variation margin on derivative instruments line-items. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 82.1% |
Canada | 4.8% |
Japan | 4.6% |
Bermuda | 2.4% |
United Kingdom | 1.5% |
Germany | 1.4% |
India | 1.0% |
Others (Individually Less Than 1%) | 2.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $87,278) - See accompanying schedule: Unaffiliated issuers (cost $2,628,911) | $ 3,286,552 |
|
Fidelity Central Funds (cost $225,356) | 225,356 |
|
Other affiliated issuers (cost $290,536) | 373,841 |
|
Total Investments (cost $3,144,803) |
| $ 3,885,749 |
Cash |
| 1,313 |
Receivable for investments sold | 2,084 | |
Receivable for fund shares sold | 2,768 | |
Dividends receivable | 2,572 | |
Distributions receivable from Fidelity Central Funds | 104 | |
Prepaid expenses | 2 | |
Other receivables | 34 | |
Total assets | 3,894,626 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 41,481 | |
Payable for fund shares redeemed | 10,226 | |
Accrued management fee | 1,489 | |
Distribution and service plan fees payable | 988 | |
Payable for daily variation margin on futures contracts | 911 | |
Other affiliated payables | 782 | |
Other payables and accrued expenses | 60 | |
Collateral on securities loaned, at value | 90,268 | |
Total liabilities | 146,205 | |
|
|
|
Net Assets | $ 3,748,421 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,776,956 | |
Undistributed net investment income | 331 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 225,170 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 745,964 | |
Net Assets | $ 3,748,421 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Net Asset Value and redemption price per share ($1,228,934 ÷ 46,357.8 shares) | $ 26.51 | |
|
|
|
Maximum offering price per share (100/94.25 of $26.51) | $ 28.13 | |
Class T: | $ 25.44 | |
|
|
|
Maximum offering price per share (100/96.50 of $25.44) | $ 26.36 | |
Class B: | $ 22.73 | |
|
|
|
Class C: | $ 23.01 | |
|
|
|
|
|
|
Institutional Class: | $ 27.98 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $2,817 earned from other affiliated issuers) |
| $ 32,372 |
Interest |
| 2 |
Income from Fidelity Central Funds |
| 964 |
Total income |
| 33,338 |
|
|
|
Expenses | ||
Management fee | $ 13,223 | |
Performance adjustment | (4,358) | |
Transfer agent fees | 4,256 | |
Distribution and service plan fees | 5,834 | |
Accounting and security lending fees | 523 | |
Custodian fees and expenses | 76 | |
Independent trustees' compensation | 12 | |
Registration fees | 72 | |
Audit | 41 | |
Legal | 5 | |
Miscellaneous | 20 | |
Total expenses before reductions | 19,704 | |
Expense reductions | (342) | 19,362 |
Net investment income (loss) | 13,976 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 249,719 | |
Other affiliated issuers | 11,833 |
|
Foreign currency transactions | (111) | |
Futures contracts | 6,617 | |
Total net realized gain (loss) |
| 268,058 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 347,234 | |
Assets and liabilities in foreign currencies | (39) | |
Futures contracts | 5,082 | |
Total change in net unrealized appreciation (depreciation) |
| 352,277 |
Net gain (loss) | 620,335 | |
Net increase (decrease) in net assets resulting from operations | $ 634,311 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 13,976 | $ (6,474) |
Net realized gain (loss) | 268,058 | (41,068) |
Change in net unrealized appreciation (depreciation) | 352,277 | 195,754 |
Net increase (decrease) in net assets resulting | 634,311 | 148,212 |
Distributions to shareholders from net investment income | (9,250) | - |
Distributions to shareholders from net realized gain | (2,080) | (357,601) |
Total distributions | (11,330) | (357,601) |
Share transactions - net increase (decrease) | (606,065) | (461,339) |
Total increase (decrease) in net assets | 16,916 | (670,728) |
|
|
|
Net Assets | ||
Beginning of period | 3,731,505 | 4,402,233 |
End of period (including undistributed net investment income of $331 and accumulated net investment loss of $4,395, respectively) | $ 3,748,421 | $ 3,731,505 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 22.45 | $ 23.60 | $ 24.35 | $ 21.00 | $ 17.69 | $ 25.12 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .10 | (.03) | (.09) H | (.13) | (.03) | .06 |
Net realized and unrealized gain (loss) | 4.02 | .79 | .67 | 3.48 | 4.09 | (6.54) |
Total from investment operations | 4.12 | .76 | .58 | 3.35 | 4.06 | (6.48) |
Distributions from net investment income | (.05) | - | - | - | (.03) | - |
Distributions from net realized gain | (.01) | (1.91) | (1.33) | - | (.72) | (.95) |
Total distributions | (.06) | (1.91) | (1.33) | - | (.75) | (.95) |
Net asset value, end of period | $ 26.51 | $ 22.45 | $ 23.60 | $ 24.35 | $ 21.00 | $ 17.69 |
Total Return B, C, D | 18.42% | 3.87% | 2.17% | 15.95% | 24.04% | (26.81)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.02% A | 1.06% | 1.31% | 1.44% | 1.53% | 1.35% |
Expenses net of fee waivers, if any | 1.02% A | 1.06% | 1.31% | 1.40% | 1.40% | 1.35% |
Expenses net of all reductions | 1.00% A | 1.06% | 1.31% | 1.40% | 1.40% | 1.34% |
Net investment income (loss) | .78% A | (.13)% | (.35)% H | (.58)% | (.16)% | .27% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,229 | $ 1,212 | $ 1,461 | $ 1,501 | $ 1,223 | $ 802 |
Portfolio turnover rate G | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Net asset value, beginning of period | $ 21.52 | $ 22.75 | $ 23.57 | $ 20.37 | $ 17.20 | $ 24.49 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .07 | (.07) | (.13) H | (.18) | (.07) | .02 |
Net realized and unrealized gain (loss) | 3.87 | .75 | .64 | 3.38 | 3.96 | (6.36) |
Total from investment operations | 3.94 | .68 | .51 | 3.20 | 3.89 | (6.34) |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | (.01) | (1.91) | (1.33) | - | (.72) | (.95) |
Total distributions | (.02) | (1.91) | (1.33) | - | (.72) | (.95) |
Net asset value, end of period | $ 25.44 | $ 21.52 | $ 22.75 | $ 23.57 | $ 20.37 | $ 17.20 |
Total Return B, C, D | 18.34% | 3.64% | 1.94% | 15.71% | 23.69% | (26.93)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.22% A | 1.26% | 1.51% | 1.63% | 1.74% | 1.54% |
Expenses net of fee waivers, if any | 1.22% A | 1.26% | 1.51% | 1.63% | 1.65% | 1.54% |
Expenses net of all reductions | 1.20% A | 1.25% | 1.51% | 1.63% | 1.65% | 1.53% |
Net investment income (loss) | .58% A | (.33)% | (.55)% H | (.81)% | (.41)% | .08% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,057 | $ 1,054 | $ 1,244 | $ 1,356 | $ 1,277 | $ 1,020 |
Portfolio turnover rate G | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.70)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.27 | $ 20.69 | $ 21.66 | $ 18.82 | $ 16.02 | $ 23.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | (.18) | (.25) H | (.27) | (.15) | (.10) |
Net realized and unrealized gain (loss) | 3.46 | .67 | .61 | 3.11 | 3.67 | (5.94) |
Total from investment operations | 3.46 | .49 | .36 | 2.84 | 3.52 | (6.04) |
Distributions from net realized gain | - | (1.91) | (1.33) | - | (.72) | (.95) |
Net asset value, end of period | $ 22.73 | $ 19.27 | $ 20.69 | $ 21.66 | $ 18.82 | $ 16.02 |
Total Return B, C, D | 17.96% | 3.03% | 1.39% | 15.09% | 23.10% | (27.38)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.81% A | 1.85% | 2.10% | 2.22% | 2.31% | 2.11% |
Expenses net of fee waivers, if any | 1.81% A | 1.85% | 2.10% | 2.15% | 2.15% | 2.11% |
Expenses net of all reductions | 1.79% A | 1.84% | 2.10% | 2.14% | 2.15% | 2.10% |
Net investment income (loss) | (.02)% A | (.92)% | (1.14)% H | (1.33)% | (.91)% | (.50)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 39 | $ 40 | $ 55 | $ 76 | $ 89 | $ 87 |
Portfolio turnover rate G | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.29)%.
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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.50 | $ 20.90 | $ 21.87 | $ 19.00 | $ 16.16 | $ 23.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | (.17) | (.24) H | (.27) | (.15) | (.10) |
Net realized and unrealized gain (loss) | 3.51 | .68 | .60 | 3.14 | 3.71 | (5.99) |
Total from investment operations | 3.51 | .51 | .36 | 2.87 | 3.56 | (6.09) |
Distributions from net realized gain | - | (1.91) | (1.33) | - | (.72) | (.95) |
Net asset value, end of period | $ 23.01 | $ 19.50 | $ 20.90 | $ 21.87 | $ 19.00 | $ 16.16 |
Total Return B, C, D | 18.00% | 3.10% | 1.37% | 15.11% | 23.15% | (27.37)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.77% A | 1.81% | 2.06% | 2.18% | 2.28% | 2.10% |
Expenses net of fee waivers, if any | 1.77% A | 1.81% | 2.06% | 2.15% | 2.15% | 2.10% |
Expenses net of all reductions | 1.75% A | 1.80% | 2.05% | 2.14% | 2.15% | 2.09% |
Net investment income (loss) | .03% A | (.88)% | (1.10)% H | (1.33)% | (.91)% | (.48)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 308 | $ 284 | $ 328 | $ 336 | $ 299 | $ 214 |
Portfolio turnover rate G | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.25)%.
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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 23.73 | $ 24.77 | $ 25.42 | $ 21.86 | $ 18.42 | $ 26.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .14 | .04 | (.01) G | (.07) | .02 | .14 |
Net realized and unrealized gain (loss) | 4.26 | .83 | .69 | 3.63 | 4.24 | (6.80) |
Total from investment operations | 4.40 | .87 | .68 | 3.56 | 4.26 | (6.66) |
Distributions from net investment income | (.13) | - | - | - | (.10) | - |
Distributions from net realized gain | (.01) | (1.91) | (1.33) | - | (.72) | (.95) |
Total distributions | (.15) I | (1.91) | (1.33) | - | (.82) | (.95) |
Net asset value, end of period | $ 27.98 | $ 23.73 | $ 24.77 | $ 25.42 | $ 21.86 | $ 18.42 |
Total Return B, C | 18.65% | 4.15% | 2.49% | 16.29% | 24.31% | (26.56)% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .72% A | .75% | 1.01% | 1.12% | 1.21% | 1.03% |
Expenses net of fee waivers, if any | .72% A | .75% | 1.01% | 1.12% | 1.15% | 1.03% |
Expenses net of all reductions | .70% A | .74% | 1.00% | 1.12% | 1.15% | 1.01% |
Net investment income (loss) | 1.08% A | .18% | (.05)% G | (.30)% | .09% | .59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,116 | $ 1,141 | $ 1,314 | $ 1,165 | $ 977 | $ 555 |
Portfolio turnover rate F | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.19)%.
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 Total distributions of $.15 per share is comprised of distributions from net investment income of $.133 and distributions from net realized gain of $.014 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Small Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as 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, 2013, including information on transfers between Levels 1 and 2, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 853,896 |
Gross unrealized depreciation | (112,950) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 740,946 |
|
|
Tax cost | $ 3,144,803 |
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 | $ (40,976) |
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.
New Accounting Pronouncement. The Financial Accounting Standards Board issued in December 2011, Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities, and in January 2013, Accounting Standards Update No. 2013-1 Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.. These updates create new disclosure requirements requiring entities to disclose both gross and
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is 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.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
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 activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. Cash deposited to meet initial margin requirements is presented as segregated cash in the Statement of Assets and Liabilities.
During the period the Fund recognized net realized gain (loss) of $6,617 and a change in net unrealized appreciation (depreciation) of $5,082 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, aggregated $614,853 and $1,266,725, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 1,513 | $ 13 |
Class T | .25% | .25% | 2,656 | 9 |
Class B | .75% | .25% | 198 | 149 |
Class C | .75% | .25% | 1,467 | 92 |
|
|
| $ 5,834 | $ 263 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 72 |
Class T | 16 |
Class B* | 26 |
Class C* | 6 |
| $ 120 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 1,562 | .26 |
Class T | 1,106 | .21 |
Class B | 59 | .30 |
Class C | 373 | .25 |
Institutional Class | 1,156 | .20 |
| $ 4,256 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $14 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending - continued
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. 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 $913, including $7 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $342 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 2,598 | $ - |
Class T | 386 | - |
Institutional Class | 6,266 | - |
Total | $ 9,250 | $ - |
From net realized gain |
|
|
Class A | $ 743 | $ 117,808 |
Class T | 678 | 103,545 |
Class B | - | 5,032 |
Class C | - | 29,813 |
Institutional Class | 659 | 101,403 |
Total | $ 2,080 | $ 357,601 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 4,090 | 12,312 | $ 100,376 | $ 276,482 |
Reinvestment of distributions | 140 | 5,215 | 3,122 | 108,709 |
Shares redeemed | (11,849) | (25,473) | (287,327) | (571,082) |
Net increase (decrease) |
(7,619) |
(7,946) |
$ (183,829) |
$ (185,891) |
Class T |
|
|
|
|
Shares sold | 3,881 | 9,256 | $ 91,573 | $ 199,877 |
Reinvestment of distributions | 47 | 4,916 | 1,017 | 98,476 |
Shares redeemed | (11,363) | (19,846) | (267,206) | (425,632) |
Net increase (decrease) |
(7,435) |
(5,674) |
$ (174,616) |
$ (127,279) |
Class B |
|
|
|
|
Shares sold | 5 | 50 | $ 126 | $ 930 |
Reinvestment of distributions | - | 259 | - | 4,675 |
Shares redeemed | (382) | (898) | (8,019) | (17,325) |
Net increase (decrease) |
(377) |
(589) |
$ (7,893) |
$ (11,720) |
Class C |
|
|
|
|
Shares sold | 893 | 1,952 | $ 19,158 | $ 38,194 |
Reinvestment of distributions | - | 1,471 | - | 26,825 |
Shares redeemed | (2,102) | (4,534) | (44,271) | (88,156) |
Net increase (decrease) |
(1,209) |
(1,111) |
$ (25,113) |
$ (23,137) |
Institutional Class |
|
|
|
|
Shares sold | 6,133 | 15,032 | $ 154,221 | $ 356,876 |
Reinvestment of distributions | 264 | 3,988 | 6,205 | 87,654 |
Shares redeemed | (14,591) | (23,976) | (375,040) | (557,842) |
Net increase (decrease) |
(8,194) |
(4,956) |
$ (214,614) |
$ (113,312) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
ASCFI-USAN-0713 1.786802.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,184.20 | $ 5.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.85 | $ 5.14 |
Class T | 1.22% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,183.40 | $ 6.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.85 | $ 6.14 |
Class B | 1.81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,179.60 | $ 9.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.91 | $ 9.10 |
Class C | 1.77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,180.00 | $ 9.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.11 | $ 8.90 |
Institutional Class | .72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,186.50 | $ 3.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.34 | $ 3.63 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Prestige Brands Holdings, Inc. | 1.9 | 1.6 |
PolyOne Corp. | 1.7 | 1.3 |
Ascena Retail Group, Inc. | 1.7 | 1.8 |
Primerica, Inc. | 1.6 | 1.4 |
Dorman Products, Inc. | 1.5 | 1.2 |
Teledyne Technologies, Inc. | 1.5 | 1.2 |
Stamps.com, Inc. | 1.4 | 1.0 |
WESCO International, Inc. | 1.4 | 1.2 |
Actuant Corp. Class A | 1.4 | 1.2 |
The Ensign Group, Inc. | 1.3 | 1.0 |
| 15.4 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 22.2 | 18.0 |
Consumer Discretionary | 18.6 | 20.4 |
Information Technology | 14.7 | 14.1 |
Industrials | 13.7 | 15.4 |
Health Care | 9.7 | 12.2 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks and |
| Stocks 99.1% |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 17.9% |
| ** Foreign investments | 18.8% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 18.6% | |||
Auto Components - 1.5% | |||
Dorman Products, Inc. | 1,250,000 | $ 55,663 | |
Diversified Consumer Services - 2.4% | |||
Best Bridal, Inc. (e) | 15,908 | 27,800 | |
Grand Canyon Education, Inc. (a) | 1,250,000 | 40,150 | |
Meiko Network Japan Co. Ltd. (e) | 1,800,000 | 22,521 | |
| 90,471 | ||
Hotels, Restaurants & Leisure - 2.1% | |||
AFC Enterprises, Inc. (a) | 500,000 | 18,230 | |
Life Time Fitness, Inc. (a) | 550,000 | 27,412 | |
Texas Roadhouse, Inc. Class A | 1,400,000 | 33,110 | |
| 78,752 | ||
Household Durables - 1.7% | |||
Hajime Construction Co. Ltd. (d) | 400,000 | 22,231 | |
Tupperware Brands Corp. | 500,000 | 40,490 | |
| 62,721 | ||
Specialty Retail - 7.5% | |||
Aarons, Inc. Class A | 1,200,000 | 33,708 | |
Aeropostale, Inc. (a) | 3,256,300 | 47,575 | |
Ascena Retail Group, Inc. (a) | 3,150,000 | 64,040 | |
Genesco, Inc. (a) | 500,000 | 33,790 | |
Jumbo SA | 1,550,000 | 15,593 | |
Office Depot, Inc. (a)(d) | 7,000,000 | 30,870 | |
OfficeMax, Inc. (d) | 2,000,000 | 26,060 | |
Penske Automotive Group, Inc. | 900,000 | 28,899 | |
| 280,535 | ||
Textiles, Apparel & Luxury Goods - 3.4% | |||
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 2,100,000 | 47,250 | |
Steven Madden Ltd. (a) | 800,000 | 38,800 | |
Wolverine World Wide, Inc. | 800,000 | 41,880 | |
| 127,930 | ||
TOTAL CONSUMER DISCRETIONARY | 696,072 | ||
CONSUMER STAPLES - 5.1% | |||
Food & Staples Retailing - 1.5% | |||
Ain Pharmaciez, Inc. | 130,000 | 5,070 | |
Sundrug Co. Ltd. | 690,000 | 26,298 | |
Tsuruha Holdings, Inc. | 300,000 | 24,154 | |
| 55,522 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - 0.9% | |||
Darling International, Inc. (a) | 1,600,000 | $ 31,376 | |
Personal Products - 2.7% | |||
Atrium Innovations, Inc. (a)(e) | 2,300,000 | 31,591 | |
Prestige Brands Holdings, Inc. (a) | 2,400,000 | 70,532 | |
| 102,123 | ||
TOTAL CONSUMER STAPLES | 189,021 | ||
ENERGY - 7.3% | |||
Energy Equipment & Services - 3.8% | |||
Cathedral Energy Services Ltd. (e) | 2,900,000 | 12,867 | |
Key Energy Services, Inc. (a) | 4,391,830 | 28,459 | |
Oil States International, Inc. (a) | 350,000 | 34,475 | |
Pason Systems, Inc. (d) | 2,100,000 | 35,852 | |
Unit Corp. (a) | 150,000 | 6,776 | |
Western Energy Services Corp. (a)(f) | 1,080,720 | 7,380 | |
Western Energy Services Corp. | 2,600,000 | 17,755 | |
| 143,564 | ||
Oil, Gas & Consumable Fuels - 3.5% | |||
BP Prudhoe Bay Royalty Trust | 80,811 | 7,198 | |
Hargreaves Services PLC | 1,200,000 | 16,337 | |
Sunoco Logistics Partners LP | 600,000 | 36,324 | |
Ultra Petroleum Corp. (a)(d) | 900,000 | 20,502 | |
World Fuel Services Corp. | 1,200,000 | 48,876 | |
| 129,237 | ||
TOTAL ENERGY | 272,801 | ||
FINANCIALS - 22.2% | |||
Capital Markets - 1.1% | |||
Virtus Investment Partners, Inc. (a) | 185,000 | 42,894 | |
Commercial Banks - 6.5% | |||
Bank of the Ozarks, Inc. | 850,000 | 37,103 | |
City National Corp. | 250,000 | 15,690 | |
Commerce Bancshares, Inc. | 400,000 | 17,408 | |
East West Bancorp, Inc. | 1,300,000 | 34,242 | |
First Financial Bankshares, Inc. (d) | 650,000 | 35,750 | |
Prosperity Bancshares, Inc. | 700,000 | 35,063 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Sterling Financial Corp. | 1,300,000 | $ 29,406 | |
SVB Financial Group (a) | 500,000 | 38,695 | |
| 243,357 | ||
Consumer Finance - 1.0% | |||
EZCORP, Inc. (non-vtg.) Class A (a) | 2,014,200 | 38,532 | |
Insurance - 6.3% | |||
CNO Financial Group, Inc. | 2,600,000 | 32,084 | |
Enstar Group Ltd. (a) | 200,000 | 25,254 | |
HCC Insurance Holdings, Inc. | 1,100,000 | 47,135 | |
Primerica, Inc. | 1,700,000 | 59,874 | |
ProAssurance Corp. | 700,000 | 35,140 | |
Reinsurance Group of America, Inc. | 540,000 | 35,581 | |
| 235,068 | ||
Real Estate Investment Trusts - 6.0% | |||
Aviv REIT, Inc. | 1,300,000 | 33,696 | |
EPR Properties | 600,000 | 31,452 | |
Equity Lifestyle Properties, Inc. | 400,000 | 30,868 | |
First Industrial Realty Trust, Inc. | 2,000,000 | 33,780 | |
National Health Investors, Inc. | 500,000 | 31,135 | |
Rouse Properties, Inc. (d) | 1,600,000 | 32,176 | |
Sovran Self Storage, Inc. | 500,000 | 32,435 | |
| 225,542 | ||
Real Estate Management & Development - 0.5% | |||
Relo Holdings Corp. | 380,000 | 16,796 | |
Thrifts & Mortgage Finance - 0.8% | |||
EverBank Financial Corp. | 1,900,000 | 29,830 | |
TOTAL FINANCIALS | 832,019 | ||
HEALTH CARE - 9.7% | |||
Biotechnology - 0.9% | |||
United Therapeutics Corp. (a) | 500,000 | 33,235 | |
Health Care Equipment & Supplies - 1.7% | |||
DENTSPLY International, Inc. | 600,000 | 25,056 | |
The Cooper Companies, Inc. | 350,000 | 39,554 | |
| 64,610 | ||
Health Care Providers & Services - 6.2% | |||
AmSurg Corp. (a) | 1,300,000 | 46,189 | |
Centene Corp. (a) | 400,000 | 19,800 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Community Health Systems, Inc. | 900,000 | $ 43,353 | |
Healthways, Inc. (a) | 900,000 | 12,105 | |
Henry Schein, Inc. (a) | 300,000 | 28,887 | |
MEDNAX, Inc. (a) | 350,000 | 32,491 | |
The Ensign Group, Inc. (e) | 1,400,000 | 50,498 | |
| 233,323 | ||
Pharmaceuticals - 0.9% | |||
Jazz Pharmaceuticals PLC (a) | 500,000 | 33,985 | |
TOTAL HEALTH CARE | 365,153 | ||
INDUSTRIALS - 13.7% | |||
Aerospace & Defense - 3.2% | |||
Moog, Inc. Class A (a) | 1,000,000 | 50,070 | |
QinetiQ Group PLC | 5,000,000 | 14,077 | |
Teledyne Technologies, Inc. (a) | 700,000 | 54,054 | |
| 118,201 | ||
Commercial Services & Supplies - 3.1% | |||
ACCO Brands Corp. | 2,568,946 | 18,368 | |
Mitie Group PLC | 6,500,000 | 25,668 | |
UniFirst Corp. | 450,000 | 42,705 | |
West Corp. | 1,250,000 | 28,625 | |
| 115,366 | ||
Construction & Engineering - 1.9% | |||
AECOM Technology Corp. (a) | 700,000 | 21,553 | |
Badger Daylighting Ltd. (d)(e) | 860,000 | 41,053 | |
Imtech NV (a)(d) | 700,000 | 8,445 | |
| 71,051 | ||
Machinery - 1.6% | |||
Actuant Corp. Class A | 1,500,000 | 51,000 | |
Hy-Lok Corp. | 400,000 | 8,410 | |
Standex International Corp. | 31,682 | 1,653 | |
| 61,063 | ||
Marine - 0.2% | |||
SITC International Holdings Co. Ltd. | 21,000,000 | 8,050 | |
Professional Services - 0.8% | |||
Benefit One, Inc. | 10,500 | 14,778 | |
Stantec, Inc. | 400,000 | 16,972 | |
| 31,750 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Trading Companies & Distributors - 2.9% | |||
Applied Industrial Technologies, Inc. | 55,169 | $ 2,652 | |
DXP Enterprises, Inc. (a) | 400,000 | 23,628 | |
Textainer Group Holdings Ltd. | 800,000 | 29,992 | |
WESCO International, Inc. (a) | 700,000 | 51,982 | |
| 108,254 | ||
TOTAL INDUSTRIALS | 513,735 | ||
INFORMATION TECHNOLOGY - 14.7% | |||
Communications Equipment - 0.9% | |||
NETGEAR, Inc. (a) | 1,050,000 | 34,944 | |
Electronic Equipment & Components - 1.9% | |||
Insight Enterprises, Inc. (a)(e) | 2,250,000 | 43,313 | |
ScanSource, Inc. (a) | 861,081 | 27,494 | |
| 70,807 | ||
Internet Software & Services - 3.3% | |||
Perficient, Inc. (a)(e) | 2,800,000 | 35,280 | |
Stamps.com, Inc. (a)(e) | 1,400,000 | 53,368 | |
ValueClick, Inc. (a) | 1,400,000 | 36,876 | |
| 125,524 | ||
IT Services - 6.2% | |||
Acxiom Corp. (a) | 1,100,000 | 24,189 | |
EPAM Systems, Inc. (a) | 2,100,000 | 48,636 | |
ExlService Holdings, Inc. (a) | 1,000,000 | 29,330 | |
Genpact Ltd. | 1,700,000 | 32,895 | |
Global Payments, Inc. | 700,000 | 33,572 | |
iGate Corp. (a) | 2,600,000 | 37,726 | |
WEX, Inc. (a) | 350,000 | 25,855 | |
| 232,203 | ||
Semiconductors & Semiconductor Equipment - 0.9% | |||
Omnivision Technologies, Inc. (a)(d) | 1,800,000 | 33,246 | |
Software - 1.5% | |||
NIIT Technologies Ltd. (e) | 3,800,000 | 17,788 | |
Simplex Holdings, Inc. (d)(e) | 33,000 | 12,192 | |
SWORD Group (e) | 673,226 | 10,238 | |
Zensar Technologies Ltd. (a)(e) | 3,499,999 | 15,332 | |
| 55,550 | ||
TOTAL INFORMATION TECHNOLOGY | 552,274 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 5.8% | |||
Chemicals - 3.1% | |||
Axiall Corp. | 600,000 | $ 25,890 | |
FUCHS PETROLUB AG | 350,000 | 25,921 | |
PolyOne Corp. | 2,500,000 | 64,225 | |
| 116,036 | ||
Metals & Mining - 2.7% | |||
Aurubis AG | 450,000 | 27,191 | |
Maharashtra Seamless Ltd. (a) | 700,000 | 2,849 | |
Reliance Steel & Aluminum Co. | 400,000 | 26,308 | |
SunCoke Energy, Inc. (a) | 2,900,000 | 44,950 | |
| 101,298 | ||
TOTAL MATERIALS | 217,334 | ||
UTILITIES - 0.4% | |||
Gas Utilities - 0.4% | |||
New Jersey Resources Corp. | 300,000 | 13,614 | |
TOTAL COMMON STOCKS (Cost $2,911,077) |
|
U.S. Treasury Obligations - 0.2% | ||||
| Principal Amount (000s) |
| ||
U.S. Treasury Bills, yield at date of purchase 0.03% to 0.06% 7/5/13 to 7/25/13 (g) | $ 8,370 |
|
Money Market Funds - 6.0% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.12% (b) | 135,087,957 | $ 135,088 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 90,267,870 | 90,268 | |
TOTAL MONEY MARKET FUNDS (Cost $225,356) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $3,144,803) | 3,885,749 | ||
NET OTHER ASSETS (LIABILITIES) - (3.7)% | (137,328) | ||
NET ASSETS - 100% | $ 3,748,421 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
876 Russell 2000 Mini Index Contracts | June 2013 | $ 86,120 | $ 5,082 |
The face value of futures purchased as a percentage of net assets is 2.3% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $7,380,000 or 0.2% of net assets. |
(g) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $4,810,000. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 51 |
Fidelity Securities Lending Cash Central Fund | 913 |
Total | $ 964 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Aeropostale, Inc. | $ 56,018 | $ - | $ 11,199 | $ - | $ - |
AFC Enterprises, Inc. | 32,238 | - | 21,215 | - | - |
Atrium Innovations, Inc. | 26,627 | - | - | - | 31,591 |
Badger Daylighting Ltd. | 26,674 | - | - | 388 | 41,053 |
Benefit One, Inc. | 13,959 | - | 3,343 | 430 | - |
Best Bridal, Inc. | 16,354 | - | - | 174 | 27,800 |
Cathedral Energy Services Ltd. | 15,502 | - | - | 367 | 12,867 |
CBIZ, Inc. | 29,631 | - | 31,193 | - | - |
Healthways, Inc. | 24,886 | - | 16,895 | - | - |
iGate Corp. | 64,457 | - | 29,081 | - | - |
Insight Enterprises, Inc. | 59,290 | - | 24,727 | - | 43,313 |
Meiko Network Japan Co. Ltd. | 25,756 | - | 8,843 | 291 | 22,521 |
NIIT Technologies Ltd. | 19,569 | - | - | - | 17,788 |
Perficient, Inc. | 30,492 | - | - | - | 35,280 |
Prestige Brands Holdings, Inc. | 58,320 | - | 8,139 | - | - |
Simplex Holdings, Inc. | 10,454 | - | 2,062 | 194 | 12,192 |
Stamps.com, Inc. | 35,518 | - | - | - | 53,368 |
SWORD Group | 13,117 | - | 2,323 | 561 | 10,238 |
The Ensign Group, Inc. | 36,106 | - | - | 182 | 50,498 |
Zensar Technologies Ltd. | 15,637 | 1,208 | - | 230 | 15,332 |
Total | $ 610,605 | $ 1,208 | $ 159,020 | $ 2,817 | $ 373,841 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables 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 | $ 696,072 | $ 623,520 | $ 72,552 | $ - |
Consumer Staples | 189,021 | 133,499 | 55,522 | - |
Energy | 272,801 | 272,801 | - | - |
Financials | 832,019 | 815,223 | 16,796 | - |
Health Care | 365,153 | 365,153 | - | - |
Industrials | 513,735 | 482,497 | 31,238 | - |
Information Technology | 552,274 | 506,962 | 45,312 | - |
Materials | 217,334 | 214,485 | 2,849 | - |
Utilities | 13,614 | 13,614 | - | - |
U.S. Government and Government Agency Obligations | 8,370 | - | 8,370 | - |
Money Market Funds | 225,356 | 225,356 | - | - |
Total Investments in Securities: | $ 3,885,749 | $ 3,653,110 | $ 232,639 | $ - |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $ 5,082 | $ 5,082 | $ - | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended May 31, 2013. 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 | $ 53,074 |
Level 2 to Level 1 | $ 0 |
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, 2013. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ 5,082 | $ - |
Total Value of Derivatives | $ 5,082 | $ - |
(a) Reflects cumulative appreciation/depreciation on futures contracts as disclosed in the Schedule of Investments. Only the period end variation margin is separately disclosed in the Statement of Assets and Liabilities and is included in the receivable/payable for daily variation margin on derivative instruments line-items. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 82.1% |
Canada | 4.8% |
Japan | 4.6% |
Bermuda | 2.4% |
United Kingdom | 1.5% |
Germany | 1.4% |
India | 1.0% |
Others (Individually Less Than 1%) | 2.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $87,278) - See accompanying schedule: Unaffiliated issuers (cost $2,628,911) | $ 3,286,552 |
|
Fidelity Central Funds (cost $225,356) | 225,356 |
|
Other affiliated issuers (cost $290,536) | 373,841 |
|
Total Investments (cost $3,144,803) |
| $ 3,885,749 |
Cash |
| 1,313 |
Receivable for investments sold | 2,084 | |
Receivable for fund shares sold | 2,768 | |
Dividends receivable | 2,572 | |
Distributions receivable from Fidelity Central Funds | 104 | |
Prepaid expenses | 2 | |
Other receivables | 34 | |
Total assets | 3,894,626 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 41,481 | |
Payable for fund shares redeemed | 10,226 | |
Accrued management fee | 1,489 | |
Distribution and service plan fees payable | 988 | |
Payable for daily variation margin on futures contracts | 911 | |
Other affiliated payables | 782 | |
Other payables and accrued expenses | 60 | |
Collateral on securities loaned, at value | 90,268 | |
Total liabilities | 146,205 | |
|
|
|
Net Assets | $ 3,748,421 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,776,956 | |
Undistributed net investment income | 331 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 225,170 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 745,964 | |
Net Assets | $ 3,748,421 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Net Asset Value and redemption price per share ($1,228,934 ÷ 46,357.8 shares) | $ 26.51 | |
|
|
|
Maximum offering price per share (100/94.25 of $26.51) | $ 28.13 | |
Class T: | $ 25.44 | |
|
|
|
Maximum offering price per share (100/96.50 of $25.44) | $ 26.36 | |
Class B: | $ 22.73 | |
|
|
|
Class C: | $ 23.01 | |
|
|
|
|
|
|
Institutional Class: | $ 27.98 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $2,817 earned from other affiliated issuers) |
| $ 32,372 |
Interest |
| 2 |
Income from Fidelity Central Funds |
| 964 |
Total income |
| 33,338 |
|
|
|
Expenses | ||
Management fee | $ 13,223 | |
Performance adjustment | (4,358) | |
Transfer agent fees | 4,256 | |
Distribution and service plan fees | 5,834 | |
Accounting and security lending fees | 523 | |
Custodian fees and expenses | 76 | |
Independent trustees' compensation | 12 | |
Registration fees | 72 | |
Audit | 41 | |
Legal | 5 | |
Miscellaneous | 20 | |
Total expenses before reductions | 19,704 | |
Expense reductions | (342) | 19,362 |
Net investment income (loss) | 13,976 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 249,719 | |
Other affiliated issuers | 11,833 |
|
Foreign currency transactions | (111) | |
Futures contracts | 6,617 | |
Total net realized gain (loss) |
| 268,058 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 347,234 | |
Assets and liabilities in foreign currencies | (39) | |
Futures contracts | 5,082 | |
Total change in net unrealized appreciation (depreciation) |
| 352,277 |
Net gain (loss) | 620,335 | |
Net increase (decrease) in net assets resulting from operations | $ 634,311 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 13,976 | $ (6,474) |
Net realized gain (loss) | 268,058 | (41,068) |
Change in net unrealized appreciation (depreciation) | 352,277 | 195,754 |
Net increase (decrease) in net assets resulting | 634,311 | 148,212 |
Distributions to shareholders from net investment income | (9,250) | - |
Distributions to shareholders from net realized gain | (2,080) | (357,601) |
Total distributions | (11,330) | (357,601) |
Share transactions - net increase (decrease) | (606,065) | (461,339) |
Total increase (decrease) in net assets | 16,916 | (670,728) |
|
|
|
Net Assets | ||
Beginning of period | 3,731,505 | 4,402,233 |
End of period (including undistributed net investment income of $331 and accumulated net investment loss of $4,395, respectively) | $ 3,748,421 | $ 3,731,505 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 22.45 | $ 23.60 | $ 24.35 | $ 21.00 | $ 17.69 | $ 25.12 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .10 | (.03) | (.09) H | (.13) | (.03) | .06 |
Net realized and unrealized gain (loss) | 4.02 | .79 | .67 | 3.48 | 4.09 | (6.54) |
Total from investment operations | 4.12 | .76 | .58 | 3.35 | 4.06 | (6.48) |
Distributions from net investment income | (.05) | - | - | - | (.03) | - |
Distributions from net realized gain | (.01) | (1.91) | (1.33) | - | (.72) | (.95) |
Total distributions | (.06) | (1.91) | (1.33) | - | (.75) | (.95) |
Net asset value, end of period | $ 26.51 | $ 22.45 | $ 23.60 | $ 24.35 | $ 21.00 | $ 17.69 |
Total Return B, C, D | 18.42% | 3.87% | 2.17% | 15.95% | 24.04% | (26.81)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.02% A | 1.06% | 1.31% | 1.44% | 1.53% | 1.35% |
Expenses net of fee waivers, if any | 1.02% A | 1.06% | 1.31% | 1.40% | 1.40% | 1.35% |
Expenses net of all reductions | 1.00% A | 1.06% | 1.31% | 1.40% | 1.40% | 1.34% |
Net investment income (loss) | .78% A | (.13)% | (.35)% H | (.58)% | (.16)% | .27% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,229 | $ 1,212 | $ 1,461 | $ 1,501 | $ 1,223 | $ 802 |
Portfolio turnover rate G | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Net asset value, beginning of period | $ 21.52 | $ 22.75 | $ 23.57 | $ 20.37 | $ 17.20 | $ 24.49 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .07 | (.07) | (.13) H | (.18) | (.07) | .02 |
Net realized and unrealized gain (loss) | 3.87 | .75 | .64 | 3.38 | 3.96 | (6.36) |
Total from investment operations | 3.94 | .68 | .51 | 3.20 | 3.89 | (6.34) |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | (.01) | (1.91) | (1.33) | - | (.72) | (.95) |
Total distributions | (.02) | (1.91) | (1.33) | - | (.72) | (.95) |
Net asset value, end of period | $ 25.44 | $ 21.52 | $ 22.75 | $ 23.57 | $ 20.37 | $ 17.20 |
Total Return B, C, D | 18.34% | 3.64% | 1.94% | 15.71% | 23.69% | (26.93)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.22% A | 1.26% | 1.51% | 1.63% | 1.74% | 1.54% |
Expenses net of fee waivers, if any | 1.22% A | 1.26% | 1.51% | 1.63% | 1.65% | 1.54% |
Expenses net of all reductions | 1.20% A | 1.25% | 1.51% | 1.63% | 1.65% | 1.53% |
Net investment income (loss) | .58% A | (.33)% | (.55)% H | (.81)% | (.41)% | .08% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,057 | $ 1,054 | $ 1,244 | $ 1,356 | $ 1,277 | $ 1,020 |
Portfolio turnover rate G | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.70)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.27 | $ 20.69 | $ 21.66 | $ 18.82 | $ 16.02 | $ 23.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | (.18) | (.25) H | (.27) | (.15) | (.10) |
Net realized and unrealized gain (loss) | 3.46 | .67 | .61 | 3.11 | 3.67 | (5.94) |
Total from investment operations | 3.46 | .49 | .36 | 2.84 | 3.52 | (6.04) |
Distributions from net realized gain | - | (1.91) | (1.33) | - | (.72) | (.95) |
Net asset value, end of period | $ 22.73 | $ 19.27 | $ 20.69 | $ 21.66 | $ 18.82 | $ 16.02 |
Total Return B, C, D | 17.96% | 3.03% | 1.39% | 15.09% | 23.10% | (27.38)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.81% A | 1.85% | 2.10% | 2.22% | 2.31% | 2.11% |
Expenses net of fee waivers, if any | 1.81% A | 1.85% | 2.10% | 2.15% | 2.15% | 2.11% |
Expenses net of all reductions | 1.79% A | 1.84% | 2.10% | 2.14% | 2.15% | 2.10% |
Net investment income (loss) | (.02)% A | (.92)% | (1.14)% H | (1.33)% | (.91)% | (.50)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 39 | $ 40 | $ 55 | $ 76 | $ 89 | $ 87 |
Portfolio turnover rate G | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.29)%.
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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.50 | $ 20.90 | $ 21.87 | $ 19.00 | $ 16.16 | $ 23.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | (.17) | (.24) H | (.27) | (.15) | (.10) |
Net realized and unrealized gain (loss) | 3.51 | .68 | .60 | 3.14 | 3.71 | (5.99) |
Total from investment operations | 3.51 | .51 | .36 | 2.87 | 3.56 | (6.09) |
Distributions from net realized gain | - | (1.91) | (1.33) | - | (.72) | (.95) |
Net asset value, end of period | $ 23.01 | $ 19.50 | $ 20.90 | $ 21.87 | $ 19.00 | $ 16.16 |
Total Return B, C, D | 18.00% | 3.10% | 1.37% | 15.11% | 23.15% | (27.37)% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.77% A | 1.81% | 2.06% | 2.18% | 2.28% | 2.10% |
Expenses net of fee waivers, if any | 1.77% A | 1.81% | 2.06% | 2.15% | 2.15% | 2.10% |
Expenses net of all reductions | 1.75% A | 1.80% | 2.05% | 2.14% | 2.15% | 2.09% |
Net investment income (loss) | .03% A | (.88)% | (1.10)% H | (1.33)% | (.91)% | (.48)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 308 | $ 284 | $ 328 | $ 336 | $ 299 | $ 214 |
Portfolio turnover rate G | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.25)%.
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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 23.73 | $ 24.77 | $ 25.42 | $ 21.86 | $ 18.42 | $ 26.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .14 | .04 | (.01) G | (.07) | .02 | .14 |
Net realized and unrealized gain (loss) | 4.26 | .83 | .69 | 3.63 | 4.24 | (6.80) |
Total from investment operations | 4.40 | .87 | .68 | 3.56 | 4.26 | (6.66) |
Distributions from net investment income | (.13) | - | - | - | (.10) | - |
Distributions from net realized gain | (.01) | (1.91) | (1.33) | - | (.72) | (.95) |
Total distributions | (.15) I | (1.91) | (1.33) | - | (.82) | (.95) |
Net asset value, end of period | $ 27.98 | $ 23.73 | $ 24.77 | $ 25.42 | $ 21.86 | $ 18.42 |
Total Return B, C | 18.65% | 4.15% | 2.49% | 16.29% | 24.31% | (26.56)% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .72% A | .75% | 1.01% | 1.12% | 1.21% | 1.03% |
Expenses net of fee waivers, if any | .72% A | .75% | 1.01% | 1.12% | 1.15% | 1.03% |
Expenses net of all reductions | .70% A | .74% | 1.00% | 1.12% | 1.15% | 1.01% |
Net investment income (loss) | 1.08% A | .18% | (.05)% G | (.30)% | .09% | .59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,116 | $ 1,141 | $ 1,314 | $ 1,165 | $ 977 | $ 555 |
Portfolio turnover rate F | 34% A | 69% | 38% | 43% | 46% | 98% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.19)%.
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 Total distributions of $.15 per share is comprised of distributions from net investment income of $.133 and distributions from net realized gain of $.014 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Small Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as 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, 2013, including information on transfers between Levels 1 and 2, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 853,896 |
Gross unrealized depreciation | (112,950) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 740,946 |
|
|
Tax cost | $ 3,144,803 |
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 | $ (40,976) |
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.
New Accounting Pronouncement. The Financial Accounting Standards Board issued in December 2011, Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities, and in January 2013, Accounting Standards Update No. 2013-1 Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.. These updates create new disclosure requirements requiring entities to disclose both gross and
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is 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.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
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 activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. Cash deposited to meet initial margin requirements is presented as segregated cash in the Statement of Assets and Liabilities.
During the period the Fund recognized net realized gain (loss) of $6,617 and a change in net unrealized appreciation (depreciation) of $5,082 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, aggregated $614,853 and $1,266,725, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 1,513 | $ 13 |
Class T | .25% | .25% | 2,656 | 9 |
Class B | .75% | .25% | 198 | 149 |
Class C | .75% | .25% | 1,467 | 92 |
|
|
| $ 5,834 | $ 263 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 72 |
Class T | 16 |
Class B* | 26 |
Class C* | 6 |
| $ 120 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 1,562 | .26 |
Class T | 1,106 | .21 |
Class B | 59 | .30 |
Class C | 373 | .25 |
Institutional Class | 1,156 | .20 |
| $ 4,256 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $14 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending - continued
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. 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 $913, including $7 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $342 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 2,598 | $ - |
Class T | 386 | - |
Institutional Class | 6,266 | - |
Total | $ 9,250 | $ - |
From net realized gain |
|
|
Class A | $ 743 | $ 117,808 |
Class T | 678 | 103,545 |
Class B | - | 5,032 |
Class C | - | 29,813 |
Institutional Class | 659 | 101,403 |
Total | $ 2,080 | $ 357,601 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 4,090 | 12,312 | $ 100,376 | $ 276,482 |
Reinvestment of distributions | 140 | 5,215 | 3,122 | 108,709 |
Shares redeemed | (11,849) | (25,473) | (287,327) | (571,082) |
Net increase (decrease) |
(7,619) |
(7,946) |
$ (183,829) |
$ (185,891) |
Class T |
|
|
|
|
Shares sold | 3,881 | 9,256 | $ 91,573 | $ 199,877 |
Reinvestment of distributions | 47 | 4,916 | 1,017 | 98,476 |
Shares redeemed | (11,363) | (19,846) | (267,206) | (425,632) |
Net increase (decrease) |
(7,435) |
(5,674) |
$ (174,616) |
$ (127,279) |
Class B |
|
|
|
|
Shares sold | 5 | 50 | $ 126 | $ 930 |
Reinvestment of distributions | - | 259 | - | 4,675 |
Shares redeemed | (382) | (898) | (8,019) | (17,325) |
Net increase (decrease) |
(377) |
(589) |
$ (7,893) |
$ (11,720) |
Class C |
|
|
|
|
Shares sold | 893 | 1,952 | $ 19,158 | $ 38,194 |
Reinvestment of distributions | - | 1,471 | - | 26,825 |
Shares redeemed | (2,102) | (4,534) | (44,271) | (88,156) |
Net increase (decrease) |
(1,209) |
(1,111) |
$ (25,113) |
$ (23,137) |
Institutional Class |
|
|
|
|
Shares sold | 6,133 | 15,032 | $ 154,221 | $ 356,876 |
Reinvestment of distributions | 264 | 3,988 | 6,205 | 87,654 |
Shares redeemed | (14,591) | (23,976) | (375,040) | (557,842) |
Net increase (decrease) |
(8,194) |
(4,956) |
$ (214,614) |
$ (113,312) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
ASCF-USAN-0713 1.786801.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor ® Stock Selector
Mid Cap
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,164.20 | $ 5.18 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.14 | $ 4.84 |
Class T | 1.17% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,162.90 | $ 6.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.10 | $ 5.89 |
Class B | 1.77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.30 | $ 9.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.11 | $ 8.90 |
Class C | 1.71% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.70 | $ 9.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.40 | $ 8.60 |
Fidelity Stock Selector Mid Cap Fund | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,165.30 | $ 3.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.29 | $ 3.68 |
Institutional Class | .68% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,166.00 | $ 3.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.54 | $ 3.43 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
AMETEK, Inc. | 2.0 | 1.8 |
Capital One Financial Corp. | 1.6 | 1.2 |
Hubbell, Inc. Class B | 1.4 | 1.4 |
Roper Industries, Inc. | 1.2 | 0.9 |
J.B. Hunt Transport Services, Inc. | 1.2 | 1.3 |
Alliance Data Systems Corp. | 1.0 | 0.8 |
MSC Industrial Direct Co., Inc. Class A | 1.0 | 0.0 |
SLM Corp. | 1.0 | 0.8 |
OGE Energy Corp. | 1.0 | 0.8 |
Airgas, Inc. | 1.0 | 0.8 |
| 12.4 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 22.3 | 21.4 |
Industrials | 17.7 | 16.9 |
Information Technology | 15.1 | 14.4 |
Consumer Discretionary | 12.6 | 13.6 |
Health Care | 9.0 | 9.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks and |
| Stocks and |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 8.5% |
| ** Foreign investments | 10.9% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Distributors - 0.8% | |||
LKQ Corp. (a) | 667,280 | $ 16,335 | |
Hotels, Restaurants & Leisure - 1.2% | |||
Buffalo Wild Wings, Inc. (a) | 44,040 | 4,226 | |
Domino's Pizza, Inc. | 92,440 | 5,479 | |
Panera Bread Co. Class A (a) | 73,600 | 14,119 | |
| 23,824 | ||
Household Durables - 2.0% | |||
Jarden Corp. (a) | 350,115 | 16,308 | |
NVR, Inc. (a) | 12,357 | 12,151 | |
Tupperware Brands Corp. | 153,580 | 12,437 | |
| 40,896 | ||
Internet & Catalog Retail - 0.4% | |||
Liberty Media Corp. Interactive Series A (a) | 348,310 | 7,820 | |
Leisure Equipment & Products - 0.4% | |||
Brunswick Corp. | 237,700 | 7,980 | |
Multiline Retail - 0.7% | |||
Dollar General Corp. (a) | 173,940 | 9,184 | |
Dollar Tree, Inc. (a) | 132,678 | 6,374 | |
| 15,558 | ||
Specialty Retail - 6.6% | |||
Abercrombie & Fitch Co. Class A | 69,382 | 3,475 | |
American Eagle Outfitters, Inc. | 754,900 | 14,939 | |
Cabela's, Inc. Class A (a) | 224,000 | 15,021 | |
CarMax, Inc. (a) | 119,380 | 5,583 | |
Dick's Sporting Goods, Inc. | 308,280 | 16,135 | |
DSW, Inc. Class A | 117,600 | 8,701 | |
L Brands, Inc. | 130,315 | 6,517 | |
O'Reilly Automotive, Inc. (a) | 83,210 | 9,062 | |
PetSmart, Inc. | 150,260 | 10,143 | |
Ross Stores, Inc. | 57,210 | 3,679 | |
Sally Beauty Holdings, Inc. (a) | 269,420 | 8,247 | |
Tractor Supply Co. | 170,868 | 19,134 | |
Williams-Sonoma, Inc. | 285,660 | 15,414 | |
| 136,050 | ||
Textiles, Apparel & Luxury Goods - 0.5% | |||
Hanesbrands, Inc. | 217,110 | 10,825 | |
TOTAL CONSUMER DISCRETIONARY | 259,288 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 3.7% | |||
Beverages - 0.7% | |||
Beam, Inc. | 101,800 | $ 6,601 | |
Dr. Pepper Snapple Group, Inc. | 135,300 | 6,221 | |
Monster Beverage Corp. (a) | 25,584 | 1,397 | |
| 14,219 | ||
Food & Staples Retailing - 0.8% | |||
United Natural Foods, Inc. (a) | 164,345 | 8,697 | |
Whole Foods Market, Inc. | 131,842 | 6,837 | |
| 15,534 | ||
Food Products - 1.6% | |||
ConAgra Foods, Inc. | 133,000 | 4,481 | |
Green Mountain Coffee Roasters, Inc. (a) | 177,663 | 12,992 | |
Mead Johnson Nutrition Co. Class A | 67,300 | 5,456 | |
The J.M. Smucker Co. | 45,080 | 4,551 | |
TreeHouse Foods, Inc. (a) | 85,280 | 5,584 | |
| 33,064 | ||
Household Products - 0.6% | |||
Church & Dwight Co., Inc. | 212,550 | 12,925 | |
TOTAL CONSUMER STAPLES | 75,742 | ||
ENERGY - 6.3% | |||
Energy Equipment & Services - 2.0% | |||
Dril-Quip, Inc. (a) | 98,000 | 8,864 | |
Ensco PLC Class A | 128,340 | 7,722 | |
Helmerich & Payne, Inc. | 154,180 | 9,519 | |
Oil States International, Inc. (a) | 55,600 | 5,477 | |
Rowan Companies PLC (a) | 311,810 | 10,365 | |
| 41,947 | ||
Oil, Gas & Consumable Fuels - 4.3% | |||
Atlas Pipeline Partners LP | 278,820 | 10,375 | |
Cheniere Energy, Inc. (a) | 170,200 | 4,995 | |
Cimarex Energy Co. | 219,700 | 15,410 | |
Energen Corp. | 205,800 | 11,152 | |
HollyFrontier Corp. | 148,770 | 7,364 | |
SM Energy Co. | 242,346 | 14,696 | |
Targa Resources Corp. | 87,000 | 5,605 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Whiting Petroleum Corp. (a) | 169,900 | $ 7,827 | |
WPX Energy, Inc. (a) | 542,380 | 10,446 | |
| 87,870 | ||
TOTAL ENERGY | 129,817 | ||
FINANCIALS - 22.3% | |||
Capital Markets - 2.2% | |||
Ashmore Global Opportunities Ltd. (United Kingdom) | 496,422 | 4,073 | |
AURELIUS AG | 403,500 | 10,017 | |
KKR & Co. LP | 252,564 | 4,920 | |
Monex Group, Inc. (d) | 5,755 | 2,126 | |
Oaktree Capital Group LLC | 112,900 | 5,888 | |
Raymond James Financial, Inc. | 250,400 | 11,010 | |
TD Ameritrade Holding Corp. | 306,634 | 7,188 | |
| 45,222 | ||
Commercial Banks - 3.2% | |||
Boston Private Financial Holdings, Inc. | 251,400 | 2,476 | |
CIT Group, Inc. (a) | 340,498 | 15,690 | |
City National Corp. | 212,910 | 13,362 | |
Erste Group Bank AG | 293,900 | 9,573 | |
Huntington Bancshares, Inc. | 2,209,578 | 17,124 | |
Synovus Financial Corp. | 2,647,289 | 7,254 | |
| 65,479 | ||
Consumer Finance - 2.9% | |||
ACOM Co. Ltd. (a) | 36,280 | 1,278 | |
Capital One Financial Corp. | 550,800 | 33,560 | |
Cash America International, Inc. | 82,600 | 3,941 | |
SLM Corp. | 861,416 | 20,450 | |
| 59,229 | ||
Diversified Financial Services - 0.8% | |||
Interactive Brokers Group, Inc. | 1,085,767 | 17,123 | |
Insurance - 1.8% | |||
Direct Line Insurance Group PLC | 2,886,600 | 9,298 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 44,800 | 18,091 | |
ProAssurance Corp. | 72,900 | 3,660 | |
Validus Holdings Ltd. | 165,089 | 5,961 | |
| 37,010 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 9.6% | |||
Acadia Realty Trust (SBI) | 242,680 | $ 6,290 | |
Alexandria Real Estate Equities, Inc. | 244,975 | 16,781 | |
Camden Property Trust (SBI) | 240,422 | 16,649 | |
Chesapeake Lodging Trust | 260,391 | 5,872 | |
Corrections Corp. of America | 11,600 | 408 | |
Equity One, Inc. | 466,933 | 10,894 | |
Essex Property Trust, Inc. | 105,664 | 16,604 | |
Glimcher Realty Trust | 773,464 | 9,034 | |
Highwoods Properties, Inc. (SBI) | 262,606 | 9,564 | |
Home Properties, Inc. | 170,123 | 10,338 | |
National Retail Properties, Inc. | 459,969 | 16,499 | |
Pennsylvania Real Estate Investment Trust (SBI) | 28,000 | 557 | |
Piedmont Office Realty Trust, Inc. Class A | 300,678 | 5,710 | |
Redwood Trust, Inc. | 315,000 | 6,035 | |
Retail Properties America, Inc. | 552,898 | 8,437 | |
SL Green Realty Corp. | 218,765 | 19,028 | |
Sovran Self Storage, Inc. | 93,839 | 6,087 | |
Terreno Realty Corp. | 349,710 | 6,655 | |
Ventas, Inc. | 167,896 | 11,983 | |
Weyerhaeuser Co. | 422,214 | 12,590 | |
| 196,015 | ||
Real Estate Management & Development - 1.2% | |||
Altisource Asset Management Corp. (a) | 7,593 | 2,126 | |
Altisource Portfolio Solutions SA | 108,310 | 10,210 | |
CBRE Group, Inc. (a) | 525,032 | 12,170 | |
| 24,506 | ||
Thrifts & Mortgage Finance - 0.6% | |||
Ocwen Financial Corp. (a) | 295,663 | 12,648 | |
TOTAL FINANCIALS | 457,232 | ||
HEALTH CARE - 9.0% | |||
Biotechnology - 2.5% | |||
Alexion Pharmaceuticals, Inc. (a) | 80,000 | 7,803 | |
BioMarin Pharmaceutical, Inc. (a) | 80,040 | 5,019 | |
Grifols SA ADR | 230,000 | 6,270 | |
Medivation, Inc. (a) | 100,000 | 4,856 | |
Onyx Pharmaceuticals, Inc. (a) | 80,000 | 7,636 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Regeneron Pharmaceuticals, Inc. (a) | 33,000 | $ 7,982 | |
Vertex Pharmaceuticals, Inc. (a) | 153,000 | 12,287 | |
| 51,853 | ||
Health Care Equipment & Supplies - 1.5% | |||
Boston Scientific Corp. (a) | 1,650,000 | 15,246 | |
The Cooper Companies, Inc. | 145,000 | 16,386 | |
| 31,632 | ||
Health Care Providers & Services - 2.6% | |||
BioScrip, Inc. (a) | 500,000 | 6,990 | |
Catamaran Corp. (a) | 110,000 | 5,396 | |
HCA Holdings, Inc. | 200,000 | 7,812 | |
Humana, Inc. | 90,000 | 7,270 | |
MEDNAX, Inc. (a) | 160,000 | 14,853 | |
Quest Diagnostics, Inc. | 120,000 | 7,421 | |
Universal Health Services, Inc. Class B | 50,000 | 3,457 | |
| 53,199 | ||
Health Care Technology - 0.8% | |||
athenahealth, Inc. (a) | 70,000 | 5,919 | |
Cerner Corp. (a) | 100,000 | 9,828 | |
| 15,747 | ||
Life Sciences Tools & Services - 0.4% | |||
Illumina, Inc. (a) | 110,000 | 7,735 | |
Pharmaceuticals - 1.2% | |||
Actavis, Inc. (a) | 109,000 | 13,439 | |
Endo Health Solutions, Inc. (a) | 275,000 | 9,983 | |
| 23,422 | ||
TOTAL HEALTH CARE | 183,588 | ||
INDUSTRIALS - 17.7% | |||
Aerospace & Defense - 1.5% | |||
Precision Castparts Corp. | 67,240 | 14,384 | |
TransDigm Group, Inc. | 108,010 | 15,780 | |
| 30,164 | ||
Building Products - 0.8% | |||
Armstrong World Industries, Inc. (a) | 333,760 | 17,346 | |
Commercial Services & Supplies - 0.9% | |||
Covanta Holding Corp. | 156,561 | 3,202 | |
Interface, Inc. | 178,040 | 2,991 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
Republic Services, Inc. | 310,400 | $ 10,585 | |
West Corp. | 86,500 | 1,981 | |
| 18,759 | ||
Electrical Equipment - 6.5% | |||
AMETEK, Inc. | 950,490 | 41,017 | |
Eaton Corp. PLC | 258,400 | 17,070 | |
Hubbell, Inc. Class B | 288,140 | 28,938 | |
Regal-Beloit Corp. | 190,600 | 12,867 | |
Rockwell Automation, Inc. | 95,400 | 8,397 | |
Roper Industries, Inc. | 200,520 | 24,909 | |
| 133,198 | ||
Machinery - 2.7% | |||
Cummins, Inc. | 151,800 | 18,160 | |
Ingersoll-Rand PLC | 317,507 | 18,266 | |
Manitowoc Co., Inc. | 538,200 | 11,308 | |
WABCO Holdings, Inc. (a) | 102,118 | 7,702 | |
| 55,436 | ||
Professional Services - 0.9% | |||
Verisk Analytics, Inc. (a) | 309,600 | 18,211 | |
Road & Rail - 1.2% | |||
J.B. Hunt Transport Services, Inc. | 334,240 | 24,620 | |
Trading Companies & Distributors - 3.2% | |||
Beacon Roofing Supply, Inc. (a) | 294,493 | 12,139 | |
MSC Industrial Direct Co., Inc. Class A | 253,808 | 20,982 | |
W.W. Grainger, Inc. | 54,500 | 14,030 | |
Watsco, Inc. | 219,600 | 19,160 | |
| 66,311 | ||
TOTAL INDUSTRIALS | 364,045 | ||
INFORMATION TECHNOLOGY - 15.1% | |||
Communications Equipment - 1.7% | |||
F5 Networks, Inc. (a) | 93,600 | 7,788 | |
Juniper Networks, Inc. (a) | 463,400 | 8,216 | |
Polycom, Inc. (a) | 843,577 | 9,558 | |
Riverbed Technology, Inc. (a) | 542,050 | 8,380 | |
| 33,942 | ||
Computers & Peripherals - 0.6% | |||
NCR Corp. (a) | 393,700 | 13,150 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 1.3% | |||
Arrow Electronics, Inc. (a) | 309,610 | $ 12,310 | |
Fabrinet (a) | 427,275 | 6,208 | |
Jabil Circuit, Inc. | 395,700 | 7,938 | |
| 26,456 | ||
Internet Software & Services - 1.1% | |||
Bankrate, Inc. (a) | 659,542 | 9,438 | |
Rackspace Hosting, Inc. (a) | 290,100 | 10,887 | |
Velti PLC (a)(d) | 1,433,766 | 2,523 | |
Velti PLC (f) | 215,084 | 341 | |
| 23,189 | ||
IT Services - 2.8% | |||
Alliance Data Systems Corp. (a) | 120,820 | 21,396 | |
Amdocs Ltd. | 217,570 | 7,767 | |
Global Payments, Inc. | 298,300 | 14,306 | |
Sapient Corp. (a) | 508,200 | 6,546 | |
Total System Services, Inc. | 329,400 | 7,744 | |
| 57,759 | ||
Semiconductors & Semiconductor Equipment - 1.3% | |||
Broadcom Corp. Class A | 123,400 | 4,431 | |
RF Micro Devices, Inc. (a) | 705,800 | 3,896 | |
Skyworks Solutions, Inc. (a) | 766,650 | 18,292 | |
| 26,619 | ||
Software - 6.3% | |||
Autodesk, Inc. (a) | 125,400 | 4,731 | |
Check Point Software Technologies Ltd. (a) | 273,700 | 13,707 | |
Citrix Systems, Inc. (a) | 130,695 | 8,410 | |
Informatica Corp. (a) | 245,200 | 8,915 | |
MICROS Systems, Inc. (a)(d) | 349,000 | 14,728 | |
Nuance Communications, Inc. (a) | 629,434 | 11,959 | |
Parametric Technology Corp. (a) | 606,000 | 15,217 | |
salesforce.com, Inc. (a) | 110,000 | 4,656 | |
SolarWinds, Inc. (a) | 197,780 | 8,336 | |
Solera Holdings, Inc. | 160,220 | 8,775 | |
Synopsys, Inc. (a) | 356,800 | 13,005 | |
TIBCO Software, Inc. (a) | 454,600 | 9,697 | |
Verint Systems, Inc. (a) | 207,200 | 6,956 | |
| 129,092 | ||
TOTAL INFORMATION TECHNOLOGY | 310,207 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 7.1% | |||
Chemicals - 4.5% | |||
Airgas, Inc. | 192,704 | $ 19,827 | |
Albemarle Corp. | 226,582 | 15,163 | |
Ashland, Inc. | 110,200 | 9,799 | |
Eastman Chemical Co. | 96,070 | 6,890 | |
FMC Corp. | 149,440 | 9,371 | |
Sherwin-Williams Co. | 40,431 | 7,622 | |
Valspar Corp. | 185,930 | 13,326 | |
W.R. Grace & Co. (a) | 108,297 | 9,152 | |
| 91,150 | ||
Containers & Packaging - 1.5% | |||
Aptargroup, Inc. | 218,156 | 12,374 | |
Ball Corp. | 156,489 | 6,754 | |
Rock-Tenn Co. Class A | 123,300 | 12,180 | |
| 31,308 | ||
Metals & Mining - 1.1% | |||
Carpenter Technology Corp. | 185,300 | 8,924 | |
Reliance Steel & Aluminum Co. | 218,885 | 14,396 | |
| 23,320 | ||
TOTAL MATERIALS | 145,778 | ||
TELECOMMUNICATION SERVICES - 0.3% | |||
Diversified Telecommunication Services - 0.2% | |||
TW telecom, Inc. (a) | 163,511 | 4,665 | |
Wireless Telecommunication Services - 0.1% | |||
SBA Communications Corp. Class A (a) | 29,210 | 2,199 | |
TOTAL TELECOMMUNICATION SERVICES | 6,864 | ||
UTILITIES - 4.3% | |||
Electric Utilities - 1.8% | |||
Great Plains Energy, Inc. | 405,400 | 9,150 | |
OGE Energy Corp. | 297,900 | 20,218 | |
PNM Resources, Inc. | 277,338 | 6,218 | |
| 35,586 | ||
Gas Utilities - 1.0% | |||
National Fuel Gas Co. | 163,851 | 10,028 | |
Questar Corp. | 393,064 | 9,555 | |
| 19,583 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Independent Power Producers & Energy Traders - 0.4% | |||
Black Hills Corp. | 185,300 | $ 8,796 | |
Multi-Utilities - 0.7% | |||
Alliant Energy Corp. | 235,200 | 11,586 | |
MDU Resources Group, Inc. | 126,400 | 3,269 | |
| 14,855 | ||
Water Utilities - 0.4% | |||
American Water Works Co., Inc. | 160,420 | 6,407 | |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) sponsored ADR | 184,000 | 2,340 | |
| 8,747 | ||
TOTAL UTILITIES | 87,567 | ||
TOTAL COMMON STOCKS (Cost $1,795,863) |
|
U.S. Treasury Obligations - 0.0% | ||||
| Principal Amount (000s) |
| ||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.05% 7/5/13 to 7/25/13 (e) | $ 860 |
|
Money Market Funds - 2.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 39,072,769 | 39,073 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 5,635,567 | 5,636 | |
TOTAL MONEY MARKET FUNDS (Cost $44,709) |
| ||
Cash Equivalents - 0.3% | |||
Maturity Amount (000s) | Value (000s) | ||
Investments in repurchase agreements in a joint trading account at 0.06%, dated 5/31/13 due 6/3/13 (Collateralized by U.S. Treasury Obligations) # | $ 6,010 | $ 6,010 | |
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $1,847,442) | 2,071,707 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (18,354) | ||
NET ASSETS - 100% | $ 2,053,353 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
123 CME E-mini S&P Midcap 400 Index Contracts | June 2013 | $ 14,556 | $ (306) |
The face value of futures purchased as a percentage of net assets is 0.7% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $670,000. |
(f) 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 $341,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Velti PLC | 4/19/13 | $ 323 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$6,010,000 due 6/03/13 at 0.06% | |
Barclays Capital, Inc. | $ 1,681 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,168 |
UBS Securities LLC | 3,161 |
| $ 6,010 |
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 | $ 39 |
Fidelity Securities Lending Cash Central Fund | 208 |
Total | $ 247 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 259,288 | $ 259,288 | $ - | $ - |
Consumer Staples | 75,742 | 75,742 | - | - |
Energy | 129,817 | 129,817 | - | - |
Financials | 457,232 | 453,828 | 3,404 | - |
Health Care | 183,588 | 183,588 | - | - |
Industrials | 364,045 | 364,045 | - | - |
Information Technology | 310,207 | 309,866 | 341 | - |
Materials | 145,778 | 145,778 | - | - |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Telecommunication Services | $ 6,864 | $ 6,864 | $ - | $ - |
Utilities | 87,567 | 87,567 | - | - |
U.S. Government and Government Agency Obligations | 860 | - | 860 | - |
Money Market Funds | 44,709 | 44,709 | - | - |
Cash Equivalents | 6,010 | - | 6,010 | - |
Total Investments in Securities: | $ 2,071,707 | $ 2,061,092 | $ 10,615 | $ - |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (306) | $ (306) | $ - | $ - |
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, 2013. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (306) |
Total Value of Derivatives | $ - | $ (306) |
(a) Reflects cumulative appreciation/depreciation on futures contracts as disclosed in the Schedule of Investments. Only the period end variation margin is separately disclosed in the Statement of Assets and Liabilities and is included in the receivable/payable for daily variation margin on derivative instruments line-items. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,370 and repurchase agreements of $6,010) - See accompanying schedule: Unaffiliated issuers (cost $1,802,733) | $ 2,026,998 |
|
Fidelity Central Funds (cost $44,709) | 44,709 |
|
Total Investments (cost $1,847,442) |
| $ 2,071,707 |
Receivable for investments sold | 22,682 | |
Receivable for fund shares sold | 623 | |
Dividends receivable | 2,395 | |
Distributions receivable from Fidelity Central Funds | 28 | |
Prepaid expenses | 1 | |
Receivable from investment adviser for expense reductions | 1 | |
Other receivables | 18 | |
Total assets | 2,097,455 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 232 | |
Payable for investments purchased | 32,789 | |
Payable for fund shares redeemed | 3,364 | |
Accrued management fee | 829 | |
Distribution and service plan fees payable | 631 | |
Payable for daily variation margin on futures contracts | 130 | |
Other affiliated payables | 434 | |
Other payables and accrued expenses | 57 | |
Collateral on securities loaned, at value | 5,636 | |
Total liabilities | 44,102 | |
|
|
|
Net Assets | $ 2,053,353 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,485,213 | |
Undistributed net investment income | 528 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (656,263) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 223,875 | |
Net Assets | $ 2,053,353 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 25.59 | |
|
|
|
Maximum offering price per share (100/94.25 of $25.59) | $ 27.15 | |
Class T: | $ 25.85 | |
|
|
|
Maximum offering price per share (100/96.50 of $25.85) | $ 26.79 | |
Class B: | $ 24.01 | |
|
|
|
Class C: | $ 24.01 | |
|
|
|
Fidelity Stock Selector Mid Cap Fund: | $ 26.63 | |
|
|
|
Institutional Class: | $ 26.70 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 15,142 |
Interest |
| 1 |
Income from Fidelity Central Funds |
| 247 |
Total income |
| 15,390 |
|
|
|
Expenses | ||
Management fee | $ 5,400 | |
Performance adjustment | (1,452) | |
Transfer agent fees | 2,205 | |
Distribution and service plan fees | 3,647 | |
Accounting and security lending fees | 298 | |
Custodian fees and expenses | 29 | |
Independent trustees' compensation | 6 | |
Registration fees | 102 | |
Audit | 55 | |
Legal | 17 | |
Miscellaneous | 101 | |
Total expenses before reductions | 10,408 | |
Expense reductions | (501) | 9,907 |
Net investment income (loss) | 5,483 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 154,171 | |
Foreign currency transactions | (749) | |
Futures contracts | 1,504 | |
Total net realized gain (loss) |
| 154,926 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 128,207 | |
Assets and liabilities in foreign currencies | (17) | |
Futures contracts | (303) | |
Total change in net unrealized appreciation (depreciation) |
| 127,887 |
Net gain (loss) | 282,813 | |
Net increase (decrease) in net assets resulting from operations | $ 288,296 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 5,483 | $ 5,143 |
Net realized gain (loss) | 154,926 | 131,666 |
Change in net unrealized appreciation (depreciation) | 127,887 | 136,150 |
Net increase (decrease) in net assets resulting | 288,296 | 272,959 |
Distributions to shareholders from net investment income | (8,172) | (7,037) |
Distributions to shareholders from net realized gain | (2,873) | - |
Total distributions | (11,045) | (7,037) |
Share transactions - net increase (decrease) | 92,681 | (510,527) |
Redemption fees | 2 | - |
Total increase (decrease) in net assets | 369,934 | (244,605) |
|
|
|
Net Assets | ||
Beginning of period | 1,683,419 | 1,928,024 |
End of period (including undistributed net investment income of $528 and undistributed net investment income of $3,217, respectively) | $ 2,053,353 | $ 1,683,419 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 22.16 | $ 19.15 | $ 19.22 | $ 15.75 | $ 10.52 | $ 26.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .08 | .09 | .08 H | (.02) | .03 | - L |
Net realized and unrealized gain (loss) | 3.53 | 3.02 | (.15) | 3.55 | 5.20 | (12.94) |
Total from investment operations | 3.61 | 3.11 | (.07) | 3.53 | 5.23 | (12.94) |
Distributions from net investment income | (.14) | (.10) | - | (.03) I | - | - |
Distributions from net realized gain | (.04) | - | - | (.03) I | - | (3.47) |
Total distributions | (.18) | (.10) | - | (.06) | - | (3.47) |
Redemption fees added to paid in capital E | - L | - | - | - | - | - |
Net asset value, end of period | $ 25.59 | $ 22.16 | $ 19.15 | $ 19.22 | $ 15.75 | $ 10.52 |
Total Return B,C,D | 16.42% | 16.32% | (.36)% | 22.48% | 49.71% | (55.09)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | .96% A | .94% | .92% | .86% | .83% | 1.10% |
Expenses net of fee waivers, if any | .96% A | .94% | .92% | .86% | .83% | 1.10% |
Expenses net of all reductions | .91% A | .94% | .91% | .84% | .81% | 1.08% |
Net investment income (loss) | .67% A | .41% | .39% H | (.12)% | .25% | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 655 | $ 593 | $ 644 | $ 945 | $ 906 | $ 712 |
Portfolio turnover rate G | 90% A, K | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 .12%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J 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.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 22.36 | $ 19.30 | $ 19.41 | $ 15.89 | $ 10.64 | $ 27.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .05 | .04 H | (.05) | .01 | (.03) |
Net realized and unrealized gain (loss) | 3.56 | 3.05 | (.15) | 3.59 | 5.24 | (13.08) |
Total from investment operations | 3.62 | 3.10 | (.11) | 3.54 | 5.25 | (13.11) |
Distributions from net investment income | (.09) | (.04) | - | - | - | - |
Distributions from net realized gain | (.04) | - | - | (.02) I | - | (3.41) |
Total distributions | (.13) | (.04) | - | (.02) | - | (3.41) |
Redemption fees added to paid in capital E | - L | - | - | - | - | - |
Net asset value, end of period | $ 25.85 | $ 22.36 | $ 19.30 | $ 19.41 | $ 15.89 | $ 10.64 |
Total Return B,C,D | 16.29% | 16.12% | (.57)% | 22.31% | 49.34% | (55.14)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.17% A | 1.14% | 1.11% | 1.03% | 1.02% | 1.28% |
Expenses net of fee waivers, if any | 1.17% A | 1.14% | 1.11% | 1.03% | 1.02% | 1.28% |
Expenses net of all reductions | 1.12% A | 1.13% | 1.10% | 1.01% | .99% | 1.27% |
Net investment income (loss) | .46% A | .22% | .20% H | (.30)% | .07% | (.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 802 | $ 755 | $ 871 | $ 1,282 | $ 1,520 | $ 1,368 |
Portfolio turnover rate G | 90% A,K | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.07)%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J 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.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.71 | $ 17.94 | $ 18.15 | $ 14.93 | $ 10.05 | $ 25.80 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.07) | (.07) H | (.15) | (.06) | (.15) |
Net realized and unrealized gain (loss) | 3.32 | 2.84 | (.14) | 3.37 | 4.94 | (12.38) |
Total from investment operations | 3.30 | 2.77 | (.21) | 3.22 | 4.88 | (12.53) |
Distributions from net realized gain | - | - | - | - | - | (3.22) |
Total distributions | - | - | - | - | - | (3.22) |
Redemption fees added to paid in capital E | - K | - | - | - | - | - |
Net asset value, end of period | $ 24.01 | $ 20.71 | $ 17.94 | $ 18.15 | $ 14.93 | $ 10.05 |
Total Return B,C,D | 15.93% | 15.44% | (1.16)% | 21.57% | 48.56% | (55.43)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.77% A | 1.73% | 1.71% | 1.63% | 1.59% | 1.89% |
Expenses net of fee waivers, if any | 1.77% A | 1.73% | 1.71% | 1.63% | 1.59% | 1.89% |
Expenses net of all reductions | 1.72% A | 1.73% | 1.70% | 1.61% | 1.57% | 1.88% |
Net investment income (loss) | (.14)% A | (.38)% | (.40)% H | (.90)% | (.51)% | (.78)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 22 | $ 22 | $ 28 | $ 75 | $ 131 | $ 162 |
Portfolio turnover rate G | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.67)%.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.73 | $ 17.95 | $ 18.15 | $ 14.93 | $ 10.05 | $ 25.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | (.06) | (.07) H | (.14) | (.06) | (.14) |
Net realized and unrealized gain (loss) | 3.32 | 2.84 | (.13) | 3.36 | 4.94 | (12.37) |
Total from investment operations | 3.31 | 2.78 | (.20) | 3.22 | 4.88 | (12.51) |
Distributions from net investment income | (.02) | - | - | - | - | - |
Distributions from net realized gain | (.01) | - | - | - | - | (3.26) |
Total distributions | (.03) | - | - | - | - | (3.26) |
Redemption fees added to paid in capital E | - K | - | - | - | - | - |
Net asset value, end of period | $ 24.01 | $ 20.73 | $ 17.95 | $ 18.15 | $ 14.93 | $ 10.05 |
Total Return B,C,D | 15.97% | 15.49% | (1.10)% | 21.57% | 48.56% | (55.39)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.71% A | 1.68% | 1.66% | 1.60% | 1.58% | 1.85% |
Expenses net of fee waivers, if any | 1.71% A | 1.68% | 1.66% | 1.60% | 1.58% | 1.85% |
Expenses net of all reductions | 1.65% A | 1.68% | 1.65% | 1.58% | 1.55% | 1.84% |
Net investment income (loss) | (.07)% A | (.33)% | (.35)% H | (.86)% | (.50)% | (.74)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 162 | $ 141 | $ 150 | $ 189 | $ 186 | $ 161 |
Portfolio turnover rate G | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.62)%.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Stock Selector Mid Cap Fund
| Six months ended May 31, 2013 | Years ended November 30, |
| (Unaudited) | 2012 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 23.14 | $ 21.20 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .11 | .09 |
Net realized and unrealized gain (loss) | 3.67 | 1.85 |
Total from investment operations | 3.78 | 1.94 |
Distributions from net investment income | (.25) | - |
Distributions from net realized gain | (.04) | - |
Total distributions | (.29) | - |
Redemption fees added to paid in capital D | - J | - |
Net asset value, end of period | $ 26.63 | $ 23.14 |
Total Return B,C | 16.53% | 9.15% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .73% A | .59% A |
Expenses net of fee waivers, if any | .73% A | .59% A |
Expenses net of all reductions | .68% A | .58% A |
Net investment income (loss) | .90% A | .86% A |
Supplemental Data |
|
|
Net assets, end of period (in millions) | $ 211 | $ 1 |
Portfolio turnover rate F | 90% A, I | 72% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 6, 2012 (commencement of sale of shares) to November 30, 2012.
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. 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.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 23.14 | $ 20.01 | $ 20.02 | $ 16.40 | $ 10.92 | $ 27.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .12 | .15 | .14 G | .04 | .08 | .07 |
Net realized and unrealized gain (loss) | 3.68 | 3.15 | (.15) | 3.69 | 5.40 | (13.41) |
Total from investment operations | 3.80 | 3.30 | (.01) | 3.73 | 5.48 | (13.34) |
Distributions from net investment income | (.20) | (.17) | - | (.08) H | - | - |
Distributions from net realized gain | (.04) | - | - | (.03) H | - | (3.55) |
Total distributions | (.24) | (.17) | - | (.11) | - | (3.55) |
Redemption fees added to paid in capital D | - K | - | - | - | - | - |
Net asset value, end of period | $ 26.70 | $ 23.14 | $ 20.01 | $ 20.02 | $ 16.40 | $ 10.92 |
Total Return B,C | 16.60% | 16.66% | (.05)% | 22.86% | 50.18% | (54.92)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .68% A | .65% | .62% | .54% | .50% | .79% |
Expenses net of fee waivers, if any | .68% A | .65% | .62% | .54% | .50% | .79% |
Expenses net of all reductions | .63% A | .64% | .61% | .52% | .47% | .77% |
Net investment income (loss) | .95% A | .71% | .69% G | .20% | .59% | .32% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 201 | $ 172 | $ 234 | $ 354 | $ 319 | $ 267 |
Portfolio turnover rate F | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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%.
H The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Stock Selector Mid Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Stock Selector Mid Cap Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2013, 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 292,218 |
Gross unrealized depreciation | (71,627) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 220,591 |
|
|
Tax cost | $ 1,851,116 |
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 period end and is subject to adjustment.
Fiscal year of expiration |
|
$ (2,405) | |
2016 | (654,641) |
2017 | (161,063) |
Total with expiration | $ (818,109) |
No expiration |
|
Short-term | (292) |
Total capital loss carryforward | $ (818,401) |
The Fund acquired $12,892 of capital loss carryforwards from Fidelity Mid Cap Growth Fund and $3,960 of capital loss carryforwards from Fidelity Advisor Growth Strategies Fund when they merged into the Fund in January 2013. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $6,594 and $935, respectively, per year. As a result, at least $1,012 of the losses acquired from Fidelity Advisor Growth Strategies Fund will expire unused and is not included in the table above.
Semiannual Report
3. Significant Accounting Policies - continued
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. The Financial Accounting Standards Board issued in December 2011, Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities, and in January 2013, Accounting Standards Update No. 2013-1 Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. These updates create new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is mitigated by the protection provided by the exchange's clearinghouse.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
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 activity for 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 $1,504 and a change in net unrealized appreciation (depreciation) of $(303) 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, aggregated $831,548 and $988,725, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 790 | $ 53 |
Class T | .25% | .25% | 1,970 | - |
Class B | .75% | .25% | 112 | 84 |
Class C | .75% | .25% | 775 | 16 |
|
|
| $ 3,647 | $ 153 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 22 |
Class T | 11 |
Class B* | 8 |
Class C* | 2 |
| $ 43 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 777 | .25 |
Class T | 798 | .20 |
Class B | 34 | .30 |
Class C | 185 | .24 |
Fidelity Stock Selector Mid Cap Fund | 210 | .26 |
Institutional Class | 201 | .21 |
| $ 2,205 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $20 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending - continued
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. 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 $208. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $500 for the period.
In addition, FMR reimbursed a portion of the Fund's operating expenses during the period in the amount of $1.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 3,606 | $ 3,191 |
Class T | 2,972 | 1,890 |
Class C | 121 | - |
Fidelity Stock Selector Mid Cap Fund A | 16 | - |
Institutional Class | 1,457 | 1,956 |
Total | $ 8,172 | $ 7,037 |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ 1,106 | $ - |
Class T | 1,403 | - |
Class C | 54 | - |
Fidelity Stock Selector Mid Cap Fund A | 3 | - |
Institutional Class | 307 | - |
Total | $ 2,873 | $ - |
A Distributions for Fidelity Stock Selector Mid Cap Fund are for the period June 6, 2012 (commencement of sale of shares) to May 31, 2013.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Class A |
|
|
|
|
Shares sold | 818 | 2,534 | $ 19,562 | $ 52,691 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 483 | - | 11,196 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 410 | - | 9,497 | - |
Reinvestment of distributions | 196 | 158 | 4,309 | 2,914 |
Shares redeemed | (3,047) | (9,598) | (72,334) | (199,005) |
Net increase (decrease) | (1,140) | (6,906) | $ (27,770) | $ (143,400) |
Class T |
|
|
|
|
Shares sold | 1,715 | 3,511 | $ 41,421 | $ 74,253 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 643 | - | 15,054 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 182 | - | 4,267 | - |
Reinvestment of distributions | 188 | 96 | 4,170 | 1,803 |
Shares redeemed | (5,445) | (14,999) | (130,875) | (312,249) |
Net increase (decrease) | (2,717) | (11,392) | $ (65,963) | $ (236,193) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Class B |
|
|
|
|
Shares sold | 3 | 3 | $ 42 | $ 54 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 75 | - | 1,640 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 28 | - | 614 | - |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (241) | (540) | (5,399) | (10,540) |
Net increase (decrease) | (135) | (537) | $ (3,103) | $ (10,486) |
Class C |
|
| ||
Shares sold | 130 | 225 | $ 2,946 | $ 4,440 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | - | - | ||
Issued in exchange for shares of Fidelity Mid Cap Growth | 219 | - | 4,769 | - |
Reinvestment of distributions | 7 | - | 152 | - |
Shares redeemed | (620) | (1,754) | (13,854) | (34,462) |
Net increase (decrease) | (55) | (1,529) | $ (1,434) | $ (30,022) |
Fidelity Stock Selector Mid Cap |
|
| ||
Shares sold | 657 | 69 | $ 16,588 | $ 1,562 |
Issued in exchange for shares of Fidelity Mid Cap Growth | - | - | ||
Reinvestment of distributions | 1 | - | 16 | - |
Shares redeemed | (1,629) | (4) | (40,636) | (89) |
Net increase (decrease) | 7,839 | 65 | $ 188,107 | $ 1,473 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Institutional Class |
|
| ||
Shares sold | 1,655 | $ 35,850 | ||
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 20 | - | 479 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | - | - | ||
Reinvestment of distributions | 68 | 93 | 1,564 | 1,794 |
Shares redeemed | (712) | (6,043) | (17,685) | (129,543) |
Net increase (decrease) | 120 | (4,295) | $ 2,844 | $ (91,899) |
A Share transactions for Fidelity Stock Selector Mid Cap Fund are for the period June 6, 2012 (commencement of sale of shares) to May 31, 2013
12. Merger Information.
On January 11, 2013, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Advisor Growth Strategies Fund and Fidelity Mid Cap Growth Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on June 12, 2012. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $32,922, including securities of $32,974 and unrealized appreciation of $2,113 for Fidelity Advisor Growth Strategies Fund; and net assets of $232,174, including securities of $233,755 and unrealized appreciation of $14,520 for Fidelity Mid Cap Growth Fund were combined with the Fund's net assets of $1,716,041 for total net assets after the acquisition of $1,981,137.
Pro forma results of operations of the combined entity for the entire period ended May 31, 2013, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
Net investment income (loss) | $ 5,799 |
Total net realized gain (loss) | 155,808 |
Total change in net unrealized appreciation (depreciation) | 138,023 |
Net increase (decrease) in net assets resulting from operations | $ 299,630 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
13. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
MCI-USAN-0713 1.786800.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor® Stock Selector
Mid Cap
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,164.20 | $ 5.18 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.14 | $ 4.84 |
Class T | 1.17% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,162.90 | $ 6.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.10 | $ 5.89 |
Class B | 1.77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.30 | $ 9.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.11 | $ 8.90 |
Class C | 1.71% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.70 | $ 9.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.40 | $ 8.60 |
Fidelity Stock Selector Mid Cap Fund | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,165.30 | $ 3.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.29 | $ 3.68 |
Institutional Class | .68% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,166.00 | $ 3.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.54 | $ 3.43 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
AMETEK, Inc. | 2.0 | 1.8 |
Capital One Financial Corp. | 1.6 | 1.2 |
Hubbell, Inc. Class B | 1.4 | 1.4 |
Roper Industries, Inc. | 1.2 | 0.9 |
J.B. Hunt Transport Services, Inc. | 1.2 | 1.3 |
Alliance Data Systems Corp. | 1.0 | 0.8 |
MSC Industrial Direct Co., Inc. Class A | 1.0 | 0.0 |
SLM Corp. | 1.0 | 0.8 |
OGE Energy Corp. | 1.0 | 0.8 |
Airgas, Inc. | 1.0 | 0.8 |
| 12.4 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 22.3 | 21.4 |
Industrials | 17.7 | 16.9 |
Information Technology | 15.1 | 14.4 |
Consumer Discretionary | 12.6 | 13.6 |
Health Care | 9.0 | 9.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks and |
| Stocks and |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 8.5% |
| ** Foreign investments | 10.9% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Distributors - 0.8% | |||
LKQ Corp. (a) | 667,280 | $ 16,335 | |
Hotels, Restaurants & Leisure - 1.2% | |||
Buffalo Wild Wings, Inc. (a) | 44,040 | 4,226 | |
Domino's Pizza, Inc. | 92,440 | 5,479 | |
Panera Bread Co. Class A (a) | 73,600 | 14,119 | |
| 23,824 | ||
Household Durables - 2.0% | |||
Jarden Corp. (a) | 350,115 | 16,308 | |
NVR, Inc. (a) | 12,357 | 12,151 | |
Tupperware Brands Corp. | 153,580 | 12,437 | |
| 40,896 | ||
Internet & Catalog Retail - 0.4% | |||
Liberty Media Corp. Interactive Series A (a) | 348,310 | 7,820 | |
Leisure Equipment & Products - 0.4% | |||
Brunswick Corp. | 237,700 | 7,980 | |
Multiline Retail - 0.7% | |||
Dollar General Corp. (a) | 173,940 | 9,184 | |
Dollar Tree, Inc. (a) | 132,678 | 6,374 | |
| 15,558 | ||
Specialty Retail - 6.6% | |||
Abercrombie & Fitch Co. Class A | 69,382 | 3,475 | |
American Eagle Outfitters, Inc. | 754,900 | 14,939 | |
Cabela's, Inc. Class A (a) | 224,000 | 15,021 | |
CarMax, Inc. (a) | 119,380 | 5,583 | |
Dick's Sporting Goods, Inc. | 308,280 | 16,135 | |
DSW, Inc. Class A | 117,600 | 8,701 | |
L Brands, Inc. | 130,315 | 6,517 | |
O'Reilly Automotive, Inc. (a) | 83,210 | 9,062 | |
PetSmart, Inc. | 150,260 | 10,143 | |
Ross Stores, Inc. | 57,210 | 3,679 | |
Sally Beauty Holdings, Inc. (a) | 269,420 | 8,247 | |
Tractor Supply Co. | 170,868 | 19,134 | |
Williams-Sonoma, Inc. | 285,660 | 15,414 | |
| 136,050 | ||
Textiles, Apparel & Luxury Goods - 0.5% | |||
Hanesbrands, Inc. | 217,110 | 10,825 | |
TOTAL CONSUMER DISCRETIONARY | 259,288 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 3.7% | |||
Beverages - 0.7% | |||
Beam, Inc. | 101,800 | $ 6,601 | |
Dr. Pepper Snapple Group, Inc. | 135,300 | 6,221 | |
Monster Beverage Corp. (a) | 25,584 | 1,397 | |
| 14,219 | ||
Food & Staples Retailing - 0.8% | |||
United Natural Foods, Inc. (a) | 164,345 | 8,697 | |
Whole Foods Market, Inc. | 131,842 | 6,837 | |
| 15,534 | ||
Food Products - 1.6% | |||
ConAgra Foods, Inc. | 133,000 | 4,481 | |
Green Mountain Coffee Roasters, Inc. (a) | 177,663 | 12,992 | |
Mead Johnson Nutrition Co. Class A | 67,300 | 5,456 | |
The J.M. Smucker Co. | 45,080 | 4,551 | |
TreeHouse Foods, Inc. (a) | 85,280 | 5,584 | |
| 33,064 | ||
Household Products - 0.6% | |||
Church & Dwight Co., Inc. | 212,550 | 12,925 | |
TOTAL CONSUMER STAPLES | 75,742 | ||
ENERGY - 6.3% | |||
Energy Equipment & Services - 2.0% | |||
Dril-Quip, Inc. (a) | 98,000 | 8,864 | |
Ensco PLC Class A | 128,340 | 7,722 | |
Helmerich & Payne, Inc. | 154,180 | 9,519 | |
Oil States International, Inc. (a) | 55,600 | 5,477 | |
Rowan Companies PLC (a) | 311,810 | 10,365 | |
| 41,947 | ||
Oil, Gas & Consumable Fuels - 4.3% | |||
Atlas Pipeline Partners LP | 278,820 | 10,375 | |
Cheniere Energy, Inc. (a) | 170,200 | 4,995 | |
Cimarex Energy Co. | 219,700 | 15,410 | |
Energen Corp. | 205,800 | 11,152 | |
HollyFrontier Corp. | 148,770 | 7,364 | |
SM Energy Co. | 242,346 | 14,696 | |
Targa Resources Corp. | 87,000 | 5,605 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Whiting Petroleum Corp. (a) | 169,900 | $ 7,827 | |
WPX Energy, Inc. (a) | 542,380 | 10,446 | |
| 87,870 | ||
TOTAL ENERGY | 129,817 | ||
FINANCIALS - 22.3% | |||
Capital Markets - 2.2% | |||
Ashmore Global Opportunities Ltd. (United Kingdom) | 496,422 | 4,073 | |
AURELIUS AG | 403,500 | 10,017 | |
KKR & Co. LP | 252,564 | 4,920 | |
Monex Group, Inc. (d) | 5,755 | 2,126 | |
Oaktree Capital Group LLC | 112,900 | 5,888 | |
Raymond James Financial, Inc. | 250,400 | 11,010 | |
TD Ameritrade Holding Corp. | 306,634 | 7,188 | |
| 45,222 | ||
Commercial Banks - 3.2% | |||
Boston Private Financial Holdings, Inc. | 251,400 | 2,476 | |
CIT Group, Inc. (a) | 340,498 | 15,690 | |
City National Corp. | 212,910 | 13,362 | |
Erste Group Bank AG | 293,900 | 9,573 | |
Huntington Bancshares, Inc. | 2,209,578 | 17,124 | |
Synovus Financial Corp. | 2,647,289 | 7,254 | |
| 65,479 | ||
Consumer Finance - 2.9% | |||
ACOM Co. Ltd. (a) | 36,280 | 1,278 | |
Capital One Financial Corp. | 550,800 | 33,560 | |
Cash America International, Inc. | 82,600 | 3,941 | |
SLM Corp. | 861,416 | 20,450 | |
| 59,229 | ||
Diversified Financial Services - 0.8% | |||
Interactive Brokers Group, Inc. | 1,085,767 | 17,123 | |
Insurance - 1.8% | |||
Direct Line Insurance Group PLC | 2,886,600 | 9,298 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 44,800 | 18,091 | |
ProAssurance Corp. | 72,900 | 3,660 | |
Validus Holdings Ltd. | 165,089 | 5,961 | |
| 37,010 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 9.6% | |||
Acadia Realty Trust (SBI) | 242,680 | $ 6,290 | |
Alexandria Real Estate Equities, Inc. | 244,975 | 16,781 | |
Camden Property Trust (SBI) | 240,422 | 16,649 | |
Chesapeake Lodging Trust | 260,391 | 5,872 | |
Corrections Corp. of America | 11,600 | 408 | |
Equity One, Inc. | 466,933 | 10,894 | |
Essex Property Trust, Inc. | 105,664 | 16,604 | |
Glimcher Realty Trust | 773,464 | 9,034 | |
Highwoods Properties, Inc. (SBI) | 262,606 | 9,564 | |
Home Properties, Inc. | 170,123 | 10,338 | |
National Retail Properties, Inc. | 459,969 | 16,499 | |
Pennsylvania Real Estate Investment Trust (SBI) | 28,000 | 557 | |
Piedmont Office Realty Trust, Inc. Class A | 300,678 | 5,710 | |
Redwood Trust, Inc. | 315,000 | 6,035 | |
Retail Properties America, Inc. | 552,898 | 8,437 | |
SL Green Realty Corp. | 218,765 | 19,028 | |
Sovran Self Storage, Inc. | 93,839 | 6,087 | |
Terreno Realty Corp. | 349,710 | 6,655 | |
Ventas, Inc. | 167,896 | 11,983 | |
Weyerhaeuser Co. | 422,214 | 12,590 | |
| 196,015 | ||
Real Estate Management & Development - 1.2% | |||
Altisource Asset Management Corp. (a) | 7,593 | 2,126 | |
Altisource Portfolio Solutions SA | 108,310 | 10,210 | |
CBRE Group, Inc. (a) | 525,032 | 12,170 | |
| 24,506 | ||
Thrifts & Mortgage Finance - 0.6% | |||
Ocwen Financial Corp. (a) | 295,663 | 12,648 | |
TOTAL FINANCIALS | 457,232 | ||
HEALTH CARE - 9.0% | |||
Biotechnology - 2.5% | |||
Alexion Pharmaceuticals, Inc. (a) | 80,000 | 7,803 | |
BioMarin Pharmaceutical, Inc. (a) | 80,040 | 5,019 | |
Grifols SA ADR | 230,000 | 6,270 | |
Medivation, Inc. (a) | 100,000 | 4,856 | |
Onyx Pharmaceuticals, Inc. (a) | 80,000 | 7,636 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Regeneron Pharmaceuticals, Inc. (a) | 33,000 | $ 7,982 | |
Vertex Pharmaceuticals, Inc. (a) | 153,000 | 12,287 | |
| 51,853 | ||
Health Care Equipment & Supplies - 1.5% | |||
Boston Scientific Corp. (a) | 1,650,000 | 15,246 | |
The Cooper Companies, Inc. | 145,000 | 16,386 | |
| 31,632 | ||
Health Care Providers & Services - 2.6% | |||
BioScrip, Inc. (a) | 500,000 | 6,990 | |
Catamaran Corp. (a) | 110,000 | 5,396 | |
HCA Holdings, Inc. | 200,000 | 7,812 | |
Humana, Inc. | 90,000 | 7,270 | |
MEDNAX, Inc. (a) | 160,000 | 14,853 | |
Quest Diagnostics, Inc. | 120,000 | 7,421 | |
Universal Health Services, Inc. Class B | 50,000 | 3,457 | |
| 53,199 | ||
Health Care Technology - 0.8% | |||
athenahealth, Inc. (a) | 70,000 | 5,919 | |
Cerner Corp. (a) | 100,000 | 9,828 | |
| 15,747 | ||
Life Sciences Tools & Services - 0.4% | |||
Illumina, Inc. (a) | 110,000 | 7,735 | |
Pharmaceuticals - 1.2% | |||
Actavis, Inc. (a) | 109,000 | 13,439 | |
Endo Health Solutions, Inc. (a) | 275,000 | 9,983 | |
| 23,422 | ||
TOTAL HEALTH CARE | 183,588 | ||
INDUSTRIALS - 17.7% | |||
Aerospace & Defense - 1.5% | |||
Precision Castparts Corp. | 67,240 | 14,384 | |
TransDigm Group, Inc. | 108,010 | 15,780 | |
| 30,164 | ||
Building Products - 0.8% | |||
Armstrong World Industries, Inc. (a) | 333,760 | 17,346 | |
Commercial Services & Supplies - 0.9% | |||
Covanta Holding Corp. | 156,561 | 3,202 | |
Interface, Inc. | 178,040 | 2,991 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
Republic Services, Inc. | 310,400 | $ 10,585 | |
West Corp. | 86,500 | 1,981 | |
| 18,759 | ||
Electrical Equipment - 6.5% | |||
AMETEK, Inc. | 950,490 | 41,017 | |
Eaton Corp. PLC | 258,400 | 17,070 | |
Hubbell, Inc. Class B | 288,140 | 28,938 | |
Regal-Beloit Corp. | 190,600 | 12,867 | |
Rockwell Automation, Inc. | 95,400 | 8,397 | |
Roper Industries, Inc. | 200,520 | 24,909 | |
| 133,198 | ||
Machinery - 2.7% | |||
Cummins, Inc. | 151,800 | 18,160 | |
Ingersoll-Rand PLC | 317,507 | 18,266 | |
Manitowoc Co., Inc. | 538,200 | 11,308 | |
WABCO Holdings, Inc. (a) | 102,118 | 7,702 | |
| 55,436 | ||
Professional Services - 0.9% | |||
Verisk Analytics, Inc. (a) | 309,600 | 18,211 | |
Road & Rail - 1.2% | |||
J.B. Hunt Transport Services, Inc. | 334,240 | 24,620 | |
Trading Companies & Distributors - 3.2% | |||
Beacon Roofing Supply, Inc. (a) | 294,493 | 12,139 | |
MSC Industrial Direct Co., Inc. Class A | 253,808 | 20,982 | |
W.W. Grainger, Inc. | 54,500 | 14,030 | |
Watsco, Inc. | 219,600 | 19,160 | |
| 66,311 | ||
TOTAL INDUSTRIALS | 364,045 | ||
INFORMATION TECHNOLOGY - 15.1% | |||
Communications Equipment - 1.7% | |||
F5 Networks, Inc. (a) | 93,600 | 7,788 | |
Juniper Networks, Inc. (a) | 463,400 | 8,216 | |
Polycom, Inc. (a) | 843,577 | 9,558 | |
Riverbed Technology, Inc. (a) | 542,050 | 8,380 | |
| 33,942 | ||
Computers & Peripherals - 0.6% | |||
NCR Corp. (a) | 393,700 | 13,150 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 1.3% | |||
Arrow Electronics, Inc. (a) | 309,610 | $ 12,310 | |
Fabrinet (a) | 427,275 | 6,208 | |
Jabil Circuit, Inc. | 395,700 | 7,938 | |
| 26,456 | ||
Internet Software & Services - 1.1% | |||
Bankrate, Inc. (a) | 659,542 | 9,438 | |
Rackspace Hosting, Inc. (a) | 290,100 | 10,887 | |
Velti PLC (a)(d) | 1,433,766 | 2,523 | |
Velti PLC (f) | 215,084 | 341 | |
| 23,189 | ||
IT Services - 2.8% | |||
Alliance Data Systems Corp. (a) | 120,820 | 21,396 | |
Amdocs Ltd. | 217,570 | 7,767 | |
Global Payments, Inc. | 298,300 | 14,306 | |
Sapient Corp. (a) | 508,200 | 6,546 | |
Total System Services, Inc. | 329,400 | 7,744 | |
| 57,759 | ||
Semiconductors & Semiconductor Equipment - 1.3% | |||
Broadcom Corp. Class A | 123,400 | 4,431 | |
RF Micro Devices, Inc. (a) | 705,800 | 3,896 | |
Skyworks Solutions, Inc. (a) | 766,650 | 18,292 | |
| 26,619 | ||
Software - 6.3% | |||
Autodesk, Inc. (a) | 125,400 | 4,731 | |
Check Point Software Technologies Ltd. (a) | 273,700 | 13,707 | |
Citrix Systems, Inc. (a) | 130,695 | 8,410 | |
Informatica Corp. (a) | 245,200 | 8,915 | |
MICROS Systems, Inc. (a)(d) | 349,000 | 14,728 | |
Nuance Communications, Inc. (a) | 629,434 | 11,959 | |
Parametric Technology Corp. (a) | 606,000 | 15,217 | |
salesforce.com, Inc. (a) | 110,000 | 4,656 | |
SolarWinds, Inc. (a) | 197,780 | 8,336 | |
Solera Holdings, Inc. | 160,220 | 8,775 | |
Synopsys, Inc. (a) | 356,800 | 13,005 | |
TIBCO Software, Inc. (a) | 454,600 | 9,697 | |
Verint Systems, Inc. (a) | 207,200 | 6,956 | |
| 129,092 | ||
TOTAL INFORMATION TECHNOLOGY | 310,207 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 7.1% | |||
Chemicals - 4.5% | |||
Airgas, Inc. | 192,704 | $ 19,827 | |
Albemarle Corp. | 226,582 | 15,163 | |
Ashland, Inc. | 110,200 | 9,799 | |
Eastman Chemical Co. | 96,070 | 6,890 | |
FMC Corp. | 149,440 | 9,371 | |
Sherwin-Williams Co. | 40,431 | 7,622 | |
Valspar Corp. | 185,930 | 13,326 | |
W.R. Grace & Co. (a) | 108,297 | 9,152 | |
| 91,150 | ||
Containers & Packaging - 1.5% | |||
Aptargroup, Inc. | 218,156 | 12,374 | |
Ball Corp. | 156,489 | 6,754 | |
Rock-Tenn Co. Class A | 123,300 | 12,180 | |
| 31,308 | ||
Metals & Mining - 1.1% | |||
Carpenter Technology Corp. | 185,300 | 8,924 | |
Reliance Steel & Aluminum Co. | 218,885 | 14,396 | |
| 23,320 | ||
TOTAL MATERIALS | 145,778 | ||
TELECOMMUNICATION SERVICES - 0.3% | |||
Diversified Telecommunication Services - 0.2% | |||
TW telecom, Inc. (a) | 163,511 | 4,665 | |
Wireless Telecommunication Services - 0.1% | |||
SBA Communications Corp. Class A (a) | 29,210 | 2,199 | |
TOTAL TELECOMMUNICATION SERVICES | 6,864 | ||
UTILITIES - 4.3% | |||
Electric Utilities - 1.8% | |||
Great Plains Energy, Inc. | 405,400 | 9,150 | |
OGE Energy Corp. | 297,900 | 20,218 | |
PNM Resources, Inc. | 277,338 | 6,218 | |
| 35,586 | ||
Gas Utilities - 1.0% | |||
National Fuel Gas Co. | 163,851 | 10,028 | |
Questar Corp. | 393,064 | 9,555 | |
| 19,583 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Independent Power Producers & Energy Traders - 0.4% | |||
Black Hills Corp. | 185,300 | $ 8,796 | |
Multi-Utilities - 0.7% | |||
Alliant Energy Corp. | 235,200 | 11,586 | |
MDU Resources Group, Inc. | 126,400 | 3,269 | |
| 14,855 | ||
Water Utilities - 0.4% | |||
American Water Works Co., Inc. | 160,420 | 6,407 | |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) sponsored ADR | 184,000 | 2,340 | |
| 8,747 | ||
TOTAL UTILITIES | 87,567 | ||
TOTAL COMMON STOCKS (Cost $1,795,863) |
|
U.S. Treasury Obligations - 0.0% | ||||
| Principal Amount (000s) |
| ||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.05% 7/5/13 to 7/25/13 (e) | $ 860 |
|
Money Market Funds - 2.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 39,072,769 | 39,073 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 5,635,567 | 5,636 | |
TOTAL MONEY MARKET FUNDS (Cost $44,709) |
| ||
Cash Equivalents - 0.3% | |||
Maturity Amount (000s) | Value (000s) | ||
Investments in repurchase agreements in a joint trading account at 0.06%, dated 5/31/13 due 6/3/13 (Collateralized by U.S. Treasury Obligations) # | $ 6,010 | $ 6,010 | |
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $1,847,442) | 2,071,707 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (18,354) | ||
NET ASSETS - 100% | $ 2,053,353 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
123 CME E-mini S&P Midcap 400 Index Contracts | June 2013 | $ 14,556 | $ (306) |
The face value of futures purchased as a percentage of net assets is 0.7% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $670,000. |
(f) 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 $341,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Velti PLC | 4/19/13 | $ 323 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$6,010,000 due 6/03/13 at 0.06% | |
Barclays Capital, Inc. | $ 1,681 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,168 |
UBS Securities LLC | 3,161 |
| $ 6,010 |
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 | $ 39 |
Fidelity Securities Lending Cash Central Fund | 208 |
Total | $ 247 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 259,288 | $ 259,288 | $ - | $ - |
Consumer Staples | 75,742 | 75,742 | - | - |
Energy | 129,817 | 129,817 | - | - |
Financials | 457,232 | 453,828 | 3,404 | - |
Health Care | 183,588 | 183,588 | - | - |
Industrials | 364,045 | 364,045 | - | - |
Information Technology | 310,207 | 309,866 | 341 | - |
Materials | 145,778 | 145,778 | - | - |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Telecommunication Services | $ 6,864 | $ 6,864 | $ - | $ - |
Utilities | 87,567 | 87,567 | - | - |
U.S. Government and Government Agency Obligations | 860 | - | 860 | - |
Money Market Funds | 44,709 | 44,709 | - | - |
Cash Equivalents | 6,010 | - | 6,010 | - |
Total Investments in Securities: | $ 2,071,707 | $ 2,061,092 | $ 10,615 | $ - |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (306) | $ (306) | $ - | $ - |
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, 2013. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (306) |
Total Value of Derivatives | $ - | $ (306) |
(a) Reflects cumulative appreciation/depreciation on futures contracts as disclosed in the Schedule of Investments. Only the period end variation margin is separately disclosed in the Statement of Assets and Liabilities and is included in the receivable/payable for daily variation margin on derivative instruments line-items. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,370 and repurchase agreements of $6,010) - See accompanying schedule: Unaffiliated issuers (cost $1,802,733) | $ 2,026,998 |
|
Fidelity Central Funds (cost $44,709) | 44,709 |
|
Total Investments (cost $1,847,442) |
| $ 2,071,707 |
Receivable for investments sold | 22,682 | |
Receivable for fund shares sold | 623 | |
Dividends receivable | 2,395 | |
Distributions receivable from Fidelity Central Funds | 28 | |
Prepaid expenses | 1 | |
Receivable from investment adviser for expense reductions | 1 | |
Other receivables | 18 | |
Total assets | 2,097,455 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 232 | |
Payable for investments purchased | 32,789 | |
Payable for fund shares redeemed | 3,364 | |
Accrued management fee | 829 | |
Distribution and service plan fees payable | 631 | |
Payable for daily variation margin on futures contracts | 130 | |
Other affiliated payables | 434 | |
Other payables and accrued expenses | 57 | |
Collateral on securities loaned, at value | 5,636 | |
Total liabilities | 44,102 | |
|
|
|
Net Assets | $ 2,053,353 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,485,213 | |
Undistributed net investment income | 528 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (656,263) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 223,875 | |
Net Assets | $ 2,053,353 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 25.59 | |
|
|
|
Maximum offering price per share (100/94.25 of $25.59) | $ 27.15 | |
Class T: | $ 25.85 | |
|
|
|
Maximum offering price per share (100/96.50 of $25.85) | $ 26.79 | |
Class B: | $ 24.01 | |
|
|
|
Class C: | $ 24.01 | |
|
|
|
Fidelity Stock Selector Mid Cap Fund: | $ 26.63 | |
|
|
|
Institutional Class: | $ 26.70 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 15,142 |
Interest |
| 1 |
Income from Fidelity Central Funds |
| 247 |
Total income |
| 15,390 |
|
|
|
Expenses | ||
Management fee | $ 5,400 | |
Performance adjustment | (1,452) | |
Transfer agent fees | 2,205 | |
Distribution and service plan fees | 3,647 | |
Accounting and security lending fees | 298 | |
Custodian fees and expenses | 29 | |
Independent trustees' compensation | 6 | |
Registration fees | 102 | |
Audit | 55 | |
Legal | 17 | |
Miscellaneous | 101 | |
Total expenses before reductions | 10,408 | |
Expense reductions | (501) | 9,907 |
Net investment income (loss) | 5,483 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 154,171 | |
Foreign currency transactions | (749) | |
Futures contracts | 1,504 | |
Total net realized gain (loss) |
| 154,926 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 128,207 | |
Assets and liabilities in foreign currencies | (17) | |
Futures contracts | (303) | |
Total change in net unrealized appreciation (depreciation) |
| 127,887 |
Net gain (loss) | 282,813 | |
Net increase (decrease) in net assets resulting from operations | $ 288,296 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 5,483 | $ 5,143 |
Net realized gain (loss) | 154,926 | 131,666 |
Change in net unrealized appreciation (depreciation) | 127,887 | 136,150 |
Net increase (decrease) in net assets resulting | 288,296 | 272,959 |
Distributions to shareholders from net investment income | (8,172) | (7,037) |
Distributions to shareholders from net realized gain | (2,873) | - |
Total distributions | (11,045) | (7,037) |
Share transactions - net increase (decrease) | 92,681 | (510,527) |
Redemption fees | 2 | - |
Total increase (decrease) in net assets | 369,934 | (244,605) |
|
|
|
Net Assets | ||
Beginning of period | 1,683,419 | 1,928,024 |
End of period (including undistributed net investment income of $528 and undistributed net investment income of $3,217, respectively) | $ 2,053,353 | $ 1,683,419 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 22.16 | $ 19.15 | $ 19.22 | $ 15.75 | $ 10.52 | $ 26.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .08 | .09 | .08 H | (.02) | .03 | - L |
Net realized and unrealized gain (loss) | 3.53 | 3.02 | (.15) | 3.55 | 5.20 | (12.94) |
Total from investment operations | 3.61 | 3.11 | (.07) | 3.53 | 5.23 | (12.94) |
Distributions from net investment income | (.14) | (.10) | - | (.03) I | - | - |
Distributions from net realized gain | (.04) | - | - | (.03) I | - | (3.47) |
Total distributions | (.18) | (.10) | - | (.06) | - | (3.47) |
Redemption fees added to paid in capital E | - L | - | - | - | - | - |
Net asset value, end of period | $ 25.59 | $ 22.16 | $ 19.15 | $ 19.22 | $ 15.75 | $ 10.52 |
Total Return B,C,D | 16.42% | 16.32% | (.36)% | 22.48% | 49.71% | (55.09)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | .96% A | .94% | .92% | .86% | .83% | 1.10% |
Expenses net of fee waivers, if any | .96% A | .94% | .92% | .86% | .83% | 1.10% |
Expenses net of all reductions | .91% A | .94% | .91% | .84% | .81% | 1.08% |
Net investment income (loss) | .67% A | .41% | .39% H | (.12)% | .25% | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 655 | $ 593 | $ 644 | $ 945 | $ 906 | $ 712 |
Portfolio turnover rate G | 90% A, K | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 .12%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J 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.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 22.36 | $ 19.30 | $ 19.41 | $ 15.89 | $ 10.64 | $ 27.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .05 | .04 H | (.05) | .01 | (.03) |
Net realized and unrealized gain (loss) | 3.56 | 3.05 | (.15) | 3.59 | 5.24 | (13.08) |
Total from investment operations | 3.62 | 3.10 | (.11) | 3.54 | 5.25 | (13.11) |
Distributions from net investment income | (.09) | (.04) | - | - | - | - |
Distributions from net realized gain | (.04) | - | - | (.02) I | - | (3.41) |
Total distributions | (.13) | (.04) | - | (.02) | - | (3.41) |
Redemption fees added to paid in capital E | - L | - | - | - | - | - |
Net asset value, end of period | $ 25.85 | $ 22.36 | $ 19.30 | $ 19.41 | $ 15.89 | $ 10.64 |
Total Return B,C,D | 16.29% | 16.12% | (.57)% | 22.31% | 49.34% | (55.14)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.17% A | 1.14% | 1.11% | 1.03% | 1.02% | 1.28% |
Expenses net of fee waivers, if any | 1.17% A | 1.14% | 1.11% | 1.03% | 1.02% | 1.28% |
Expenses net of all reductions | 1.12% A | 1.13% | 1.10% | 1.01% | .99% | 1.27% |
Net investment income (loss) | .46% A | .22% | .20% H | (.30)% | .07% | (.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 802 | $ 755 | $ 871 | $ 1,282 | $ 1,520 | $ 1,368 |
Portfolio turnover rate G | 90% A,K | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.07)%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J 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.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.71 | $ 17.94 | $ 18.15 | $ 14.93 | $ 10.05 | $ 25.80 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.07) | (.07) H | (.15) | (.06) | (.15) |
Net realized and unrealized gain (loss) | 3.32 | 2.84 | (.14) | 3.37 | 4.94 | (12.38) |
Total from investment operations | 3.30 | 2.77 | (.21) | 3.22 | 4.88 | (12.53) |
Distributions from net realized gain | - | - | - | - | - | (3.22) |
Total distributions | - | - | - | - | - | (3.22) |
Redemption fees added to paid in capital E | - K | - | - | - | - | - |
Net asset value, end of period | $ 24.01 | $ 20.71 | $ 17.94 | $ 18.15 | $ 14.93 | $ 10.05 |
Total Return B,C,D | 15.93% | 15.44% | (1.16)% | 21.57% | 48.56% | (55.43)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.77% A | 1.73% | 1.71% | 1.63% | 1.59% | 1.89% |
Expenses net of fee waivers, if any | 1.77% A | 1.73% | 1.71% | 1.63% | 1.59% | 1.89% |
Expenses net of all reductions | 1.72% A | 1.73% | 1.70% | 1.61% | 1.57% | 1.88% |
Net investment income (loss) | (.14)% A | (.38)% | (.40)% H | (.90)% | (.51)% | (.78)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 22 | $ 22 | $ 28 | $ 75 | $ 131 | $ 162 |
Portfolio turnover rate G | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.67)%.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.73 | $ 17.95 | $ 18.15 | $ 14.93 | $ 10.05 | $ 25.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | (.06) | (.07) H | (.14) | (.06) | (.14) |
Net realized and unrealized gain (loss) | 3.32 | 2.84 | (.13) | 3.36 | 4.94 | (12.37) |
Total from investment operations | 3.31 | 2.78 | (.20) | 3.22 | 4.88 | (12.51) |
Distributions from net investment income | (.02) | - | - | - | - | - |
Distributions from net realized gain | (.01) | - | - | - | - | (3.26) |
Total distributions | (.03) | - | - | - | - | (3.26) |
Redemption fees added to paid in capital E | - K | - | - | - | - | - |
Net asset value, end of period | $ 24.01 | $ 20.73 | $ 17.95 | $ 18.15 | $ 14.93 | $ 10.05 |
Total Return B,C,D | 15.97% | 15.49% | (1.10)% | 21.57% | 48.56% | (55.39)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.71% A | 1.68% | 1.66% | 1.60% | 1.58% | 1.85% |
Expenses net of fee waivers, if any | 1.71% A | 1.68% | 1.66% | 1.60% | 1.58% | 1.85% |
Expenses net of all reductions | 1.65% A | 1.68% | 1.65% | 1.58% | 1.55% | 1.84% |
Net investment income (loss) | (.07)% A | (.33)% | (.35)% H | (.86)% | (.50)% | (.74)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 162 | $ 141 | $ 150 | $ 189 | $ 186 | $ 161 |
Portfolio turnover rate G | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.62)%.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Stock Selector Mid Cap Fund
| Six months ended May 31, 2013 | Years ended November 30, |
| (Unaudited) | 2012 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 23.14 | $ 21.20 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .11 | .09 |
Net realized and unrealized gain (loss) | 3.67 | 1.85 |
Total from investment operations | 3.78 | 1.94 |
Distributions from net investment income | (.25) | - |
Distributions from net realized gain | (.04) | - |
Total distributions | (.29) | - |
Redemption fees added to paid in capital D | - J | - |
Net asset value, end of period | $ 26.63 | $ 23.14 |
Total Return B,C | 16.53% | 9.15% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .73% A | .59% A |
Expenses net of fee waivers, if any | .73% A | .59% A |
Expenses net of all reductions | .68% A | .58% A |
Net investment income (loss) | .90% A | .86% A |
Supplemental Data |
|
|
Net assets, end of period (in millions) | $ 211 | $ 1 |
Portfolio turnover rate F | 90% A, I | 72% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 6, 2012 (commencement of sale of shares) to November 30, 2012.
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. 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.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 23.14 | $ 20.01 | $ 20.02 | $ 16.40 | $ 10.92 | $ 27.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .12 | .15 | .14 G | .04 | .08 | .07 |
Net realized and unrealized gain (loss) | 3.68 | 3.15 | (.15) | 3.69 | 5.40 | (13.41) |
Total from investment operations | 3.80 | 3.30 | (.01) | 3.73 | 5.48 | (13.34) |
Distributions from net investment income | (.20) | (.17) | - | (.08) H | - | - |
Distributions from net realized gain | (.04) | - | - | (.03) H | - | (3.55) |
Total distributions | (.24) | (.17) | - | (.11) | - | (3.55) |
Redemption fees added to paid in capital D | - K | - | - | - | - | - |
Net asset value, end of period | $ 26.70 | $ 23.14 | $ 20.01 | $ 20.02 | $ 16.40 | $ 10.92 |
Total Return B,C | 16.60% | 16.66% | (.05)% | 22.86% | 50.18% | (54.92)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .68% A | .65% | .62% | .54% | .50% | .79% |
Expenses net of fee waivers, if any | .68% A | .65% | .62% | .54% | .50% | .79% |
Expenses net of all reductions | .63% A | .64% | .61% | .52% | .47% | .77% |
Net investment income (loss) | .95% A | .71% | .69% G | .20% | .59% | .32% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 201 | $ 172 | $ 234 | $ 354 | $ 319 | $ 267 |
Portfolio turnover rate F | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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%.
H The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Stock Selector Mid Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Stock Selector Mid Cap Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2013, 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 292,218 |
Gross unrealized depreciation | (71,627) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 220,591 |
|
|
Tax cost | $ 1,851,116 |
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 period end and is subject to adjustment.
Fiscal year of expiration |
|
$ (2,405) | |
2016 | (654,641) |
2017 | (161,063) |
Total with expiration | $ (818,109) |
No expiration |
|
Short-term | (292) |
Total capital loss carryforward | $ (818,401) |
The Fund acquired $12,892 of capital loss carryforwards from Fidelity Mid Cap Growth Fund and $3,960 of capital loss carryforwards from Fidelity Advisor Growth Strategies Fund when they merged into the Fund in January 2013. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $6,594 and $935, respectively, per year. As a result, at least $1,012 of the losses acquired from Fidelity Advisor Growth Strategies Fund will expire unused and is not included in the table above.
Semiannual Report
3. Significant Accounting Policies - continued
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. The Financial Accounting Standards Board issued in December 2011, Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities, and in January 2013, Accounting Standards Update No. 2013-1 Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. These updates create new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is mitigated by the protection provided by the exchange's clearinghouse.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
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 activity for 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 $1,504 and a change in net unrealized appreciation (depreciation) of $(303) 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, aggregated $831,548 and $988,725, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 790 | $ 53 |
Class T | .25% | .25% | 1,970 | - |
Class B | .75% | .25% | 112 | 84 |
Class C | .75% | .25% | 775 | 16 |
|
|
| $ 3,647 | $ 153 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 22 |
Class T | 11 |
Class B* | 8 |
Class C* | 2 |
| $ 43 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 777 | .25 |
Class T | 798 | .20 |
Class B | 34 | .30 |
Class C | 185 | .24 |
Fidelity Stock Selector Mid Cap Fund | 210 | .26 |
Institutional Class | 201 | .21 |
| $ 2,205 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $20 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending - continued
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. 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 $208. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $500 for the period.
In addition, FMR reimbursed a portion of the Fund's operating expenses during the period in the amount of $1.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 3,606 | $ 3,191 |
Class T | 2,972 | 1,890 |
Class C | 121 | - |
Fidelity Stock Selector Mid Cap Fund A | 16 | - |
Institutional Class | 1,457 | 1,956 |
Total | $ 8,172 | $ 7,037 |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ 1,106 | $ - |
Class T | 1,403 | - |
Class C | 54 | - |
Fidelity Stock Selector Mid Cap Fund A | 3 | - |
Institutional Class | 307 | - |
Total | $ 2,873 | $ - |
A Distributions for Fidelity Stock Selector Mid Cap Fund are for the period June 6, 2012 (commencement of sale of shares) to May 31, 2013.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Class A |
|
|
|
|
Shares sold | 818 | 2,534 | $ 19,562 | $ 52,691 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 483 | - | 11,196 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 410 | - | 9,497 | - |
Reinvestment of distributions | 196 | 158 | 4,309 | 2,914 |
Shares redeemed | (3,047) | (9,598) | (72,334) | (199,005) |
Net increase (decrease) | (1,140) | (6,906) | $ (27,770) | $ (143,400) |
Class T |
|
|
|
|
Shares sold | 1,715 | 3,511 | $ 41,421 | $ 74,253 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 643 | - | 15,054 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 182 | - | 4,267 | - |
Reinvestment of distributions | 188 | 96 | 4,170 | 1,803 |
Shares redeemed | (5,445) | (14,999) | (130,875) | (312,249) |
Net increase (decrease) | (2,717) | (11,392) | $ (65,963) | $ (236,193) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Class B |
|
|
|
|
Shares sold | 3 | 3 | $ 42 | $ 54 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 75 | - | 1,640 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 28 | - | 614 | - |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (241) | (540) | (5,399) | (10,540) |
Net increase (decrease) | (135) | (537) | $ (3,103) | $ (10,486) |
Class C |
|
| ||
Shares sold | 130 | 225 | $ 2,946 | $ 4,440 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | - | - | ||
Issued in exchange for shares of Fidelity Mid Cap Growth | 219 | - | 4,769 | - |
Reinvestment of distributions | 7 | - | 152 | - |
Shares redeemed | (620) | (1,754) | (13,854) | (34,462) |
Net increase (decrease) | (55) | (1,529) | $ (1,434) | $ (30,022) |
Fidelity Stock Selector Mid Cap |
|
| ||
Shares sold | 657 | 69 | $ 16,588 | $ 1,562 |
Issued in exchange for shares of Fidelity Mid Cap Growth | - | - | ||
Reinvestment of distributions | 1 | - | 16 | - |
Shares redeemed | (1,629) | (4) | (40,636) | (89) |
Net increase (decrease) | 7,839 | 65 | $ 188,107 | $ 1,473 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Institutional Class |
|
| ||
Shares sold | 1,655 | $ 35,850 | ||
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 20 | - | 479 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | - | - | ||
Reinvestment of distributions | 68 | 93 | 1,564 | 1,794 |
Shares redeemed | (712) | (6,043) | (17,685) | (129,543) |
Net increase (decrease) | 120 | (4,295) | $ 2,844 | $ (91,899) |
A Share transactions for Fidelity Stock Selector Mid Cap Fund are for the period June 6, 2012 (commencement of sale of shares) to May 31, 2013
12. Merger Information.
On January 11, 2013, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Advisor Growth Strategies Fund and Fidelity Mid Cap Growth Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on June 12, 2012. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $32,922, including securities of $32,974 and unrealized appreciation of $2,113 for Fidelity Advisor Growth Strategies Fund; and net assets of $232,174, including securities of $233,755 and unrealized appreciation of $14,520 for Fidelity Mid Cap Growth Fund were combined with the Fund's net assets of $1,716,041 for total net assets after the acquisition of $1,981,137.
Pro forma results of operations of the combined entity for the entire period ended May 31, 2013, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
Net investment income (loss) | $ 5,799 |
Total net realized gain (loss) | 155,808 |
Total change in net unrealized appreciation (depreciation) | 138,023 |
Net increase (decrease) in net assets resulting from operations | $ 299,630 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
13. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
MC-USAN-0713 1.786799.110
Semiannual Report
(Fidelity Investment logo)(registered trademark)
Fidelity® Stock Selector
Mid Cap
Fund
(A class of Fidelity Advisor® Stock Selector Mid Cap Fund)
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,164.20 | $ 5.18 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.14 | $ 4.84 |
Class T | 1.17% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,162.90 | $ 6.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.10 | $ 5.89 |
Class B | 1.77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.30 | $ 9.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.11 | $ 8.90 |
Class C | 1.71% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,159.70 | $ 9.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.40 | $ 8.60 |
Fidelity Stock Selector Mid Cap Fund | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,165.30 | $ 3.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.29 | $ 3.68 |
Institutional Class | .68% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,166.00 | $ 3.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.54 | $ 3.43 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
AMETEK, Inc. | 2.0 | 1.8 |
Capital One Financial Corp. | 1.6 | 1.2 |
Hubbell, Inc. Class B | 1.4 | 1.4 |
Roper Industries, Inc. | 1.2 | 0.9 |
J.B. Hunt Transport Services, Inc. | 1.2 | 1.3 |
Alliance Data Systems Corp. | 1.0 | 0.8 |
MSC Industrial Direct Co., Inc. Class A | 1.0 | 0.0 |
SLM Corp. | 1.0 | 0.8 |
OGE Energy Corp. | 1.0 | 0.8 |
Airgas, Inc. | 1.0 | 0.8 |
| 12.4 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 22.3 | 21.4 |
Industrials | 17.7 | 16.9 |
Information Technology | 15.1 | 14.4 |
Consumer Discretionary | 12.6 | 13.6 |
Health Care | 9.0 | 9.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks and |
| Stocks and |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 8.5% |
| ** Foreign investments | 10.9% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Distributors - 0.8% | |||
LKQ Corp. (a) | 667,280 | $ 16,335 | |
Hotels, Restaurants & Leisure - 1.2% | |||
Buffalo Wild Wings, Inc. (a) | 44,040 | 4,226 | |
Domino's Pizza, Inc. | 92,440 | 5,479 | |
Panera Bread Co. Class A (a) | 73,600 | 14,119 | |
| 23,824 | ||
Household Durables - 2.0% | |||
Jarden Corp. (a) | 350,115 | 16,308 | |
NVR, Inc. (a) | 12,357 | 12,151 | |
Tupperware Brands Corp. | 153,580 | 12,437 | |
| 40,896 | ||
Internet & Catalog Retail - 0.4% | |||
Liberty Media Corp. Interactive Series A (a) | 348,310 | 7,820 | |
Leisure Equipment & Products - 0.4% | |||
Brunswick Corp. | 237,700 | 7,980 | |
Multiline Retail - 0.7% | |||
Dollar General Corp. (a) | 173,940 | 9,184 | |
Dollar Tree, Inc. (a) | 132,678 | 6,374 | |
| 15,558 | ||
Specialty Retail - 6.6% | |||
Abercrombie & Fitch Co. Class A | 69,382 | 3,475 | |
American Eagle Outfitters, Inc. | 754,900 | 14,939 | |
Cabela's, Inc. Class A (a) | 224,000 | 15,021 | |
CarMax, Inc. (a) | 119,380 | 5,583 | |
Dick's Sporting Goods, Inc. | 308,280 | 16,135 | |
DSW, Inc. Class A | 117,600 | 8,701 | |
L Brands, Inc. | 130,315 | 6,517 | |
O'Reilly Automotive, Inc. (a) | 83,210 | 9,062 | |
PetSmart, Inc. | 150,260 | 10,143 | |
Ross Stores, Inc. | 57,210 | 3,679 | |
Sally Beauty Holdings, Inc. (a) | 269,420 | 8,247 | |
Tractor Supply Co. | 170,868 | 19,134 | |
Williams-Sonoma, Inc. | 285,660 | 15,414 | |
| 136,050 | ||
Textiles, Apparel & Luxury Goods - 0.5% | |||
Hanesbrands, Inc. | 217,110 | 10,825 | |
TOTAL CONSUMER DISCRETIONARY | 259,288 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 3.7% | |||
Beverages - 0.7% | |||
Beam, Inc. | 101,800 | $ 6,601 | |
Dr. Pepper Snapple Group, Inc. | 135,300 | 6,221 | |
Monster Beverage Corp. (a) | 25,584 | 1,397 | |
| 14,219 | ||
Food & Staples Retailing - 0.8% | |||
United Natural Foods, Inc. (a) | 164,345 | 8,697 | |
Whole Foods Market, Inc. | 131,842 | 6,837 | |
| 15,534 | ||
Food Products - 1.6% | |||
ConAgra Foods, Inc. | 133,000 | 4,481 | |
Green Mountain Coffee Roasters, Inc. (a) | 177,663 | 12,992 | |
Mead Johnson Nutrition Co. Class A | 67,300 | 5,456 | |
The J.M. Smucker Co. | 45,080 | 4,551 | |
TreeHouse Foods, Inc. (a) | 85,280 | 5,584 | |
| 33,064 | ||
Household Products - 0.6% | |||
Church & Dwight Co., Inc. | 212,550 | 12,925 | |
TOTAL CONSUMER STAPLES | 75,742 | ||
ENERGY - 6.3% | |||
Energy Equipment & Services - 2.0% | |||
Dril-Quip, Inc. (a) | 98,000 | 8,864 | |
Ensco PLC Class A | 128,340 | 7,722 | |
Helmerich & Payne, Inc. | 154,180 | 9,519 | |
Oil States International, Inc. (a) | 55,600 | 5,477 | |
Rowan Companies PLC (a) | 311,810 | 10,365 | |
| 41,947 | ||
Oil, Gas & Consumable Fuels - 4.3% | |||
Atlas Pipeline Partners LP | 278,820 | 10,375 | |
Cheniere Energy, Inc. (a) | 170,200 | 4,995 | |
Cimarex Energy Co. | 219,700 | 15,410 | |
Energen Corp. | 205,800 | 11,152 | |
HollyFrontier Corp. | 148,770 | 7,364 | |
SM Energy Co. | 242,346 | 14,696 | |
Targa Resources Corp. | 87,000 | 5,605 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Whiting Petroleum Corp. (a) | 169,900 | $ 7,827 | |
WPX Energy, Inc. (a) | 542,380 | 10,446 | |
| 87,870 | ||
TOTAL ENERGY | 129,817 | ||
FINANCIALS - 22.3% | |||
Capital Markets - 2.2% | |||
Ashmore Global Opportunities Ltd. (United Kingdom) | 496,422 | 4,073 | |
AURELIUS AG | 403,500 | 10,017 | |
KKR & Co. LP | 252,564 | 4,920 | |
Monex Group, Inc. (d) | 5,755 | 2,126 | |
Oaktree Capital Group LLC | 112,900 | 5,888 | |
Raymond James Financial, Inc. | 250,400 | 11,010 | |
TD Ameritrade Holding Corp. | 306,634 | 7,188 | |
| 45,222 | ||
Commercial Banks - 3.2% | |||
Boston Private Financial Holdings, Inc. | 251,400 | 2,476 | |
CIT Group, Inc. (a) | 340,498 | 15,690 | |
City National Corp. | 212,910 | 13,362 | |
Erste Group Bank AG | 293,900 | 9,573 | |
Huntington Bancshares, Inc. | 2,209,578 | 17,124 | |
Synovus Financial Corp. | 2,647,289 | 7,254 | |
| 65,479 | ||
Consumer Finance - 2.9% | |||
ACOM Co. Ltd. (a) | 36,280 | 1,278 | |
Capital One Financial Corp. | 550,800 | 33,560 | |
Cash America International, Inc. | 82,600 | 3,941 | |
SLM Corp. | 861,416 | 20,450 | |
| 59,229 | ||
Diversified Financial Services - 0.8% | |||
Interactive Brokers Group, Inc. | 1,085,767 | 17,123 | |
Insurance - 1.8% | |||
Direct Line Insurance Group PLC | 2,886,600 | 9,298 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 44,800 | 18,091 | |
ProAssurance Corp. | 72,900 | 3,660 | |
Validus Holdings Ltd. | 165,089 | 5,961 | |
| 37,010 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 9.6% | |||
Acadia Realty Trust (SBI) | 242,680 | $ 6,290 | |
Alexandria Real Estate Equities, Inc. | 244,975 | 16,781 | |
Camden Property Trust (SBI) | 240,422 | 16,649 | |
Chesapeake Lodging Trust | 260,391 | 5,872 | |
Corrections Corp. of America | 11,600 | 408 | |
Equity One, Inc. | 466,933 | 10,894 | |
Essex Property Trust, Inc. | 105,664 | 16,604 | |
Glimcher Realty Trust | 773,464 | 9,034 | |
Highwoods Properties, Inc. (SBI) | 262,606 | 9,564 | |
Home Properties, Inc. | 170,123 | 10,338 | |
National Retail Properties, Inc. | 459,969 | 16,499 | |
Pennsylvania Real Estate Investment Trust (SBI) | 28,000 | 557 | |
Piedmont Office Realty Trust, Inc. Class A | 300,678 | 5,710 | |
Redwood Trust, Inc. | 315,000 | 6,035 | |
Retail Properties America, Inc. | 552,898 | 8,437 | |
SL Green Realty Corp. | 218,765 | 19,028 | |
Sovran Self Storage, Inc. | 93,839 | 6,087 | |
Terreno Realty Corp. | 349,710 | 6,655 | |
Ventas, Inc. | 167,896 | 11,983 | |
Weyerhaeuser Co. | 422,214 | 12,590 | |
| 196,015 | ||
Real Estate Management & Development - 1.2% | |||
Altisource Asset Management Corp. (a) | 7,593 | 2,126 | |
Altisource Portfolio Solutions SA | 108,310 | 10,210 | |
CBRE Group, Inc. (a) | 525,032 | 12,170 | |
| 24,506 | ||
Thrifts & Mortgage Finance - 0.6% | |||
Ocwen Financial Corp. (a) | 295,663 | 12,648 | |
TOTAL FINANCIALS | 457,232 | ||
HEALTH CARE - 9.0% | |||
Biotechnology - 2.5% | |||
Alexion Pharmaceuticals, Inc. (a) | 80,000 | 7,803 | |
BioMarin Pharmaceutical, Inc. (a) | 80,040 | 5,019 | |
Grifols SA ADR | 230,000 | 6,270 | |
Medivation, Inc. (a) | 100,000 | 4,856 | |
Onyx Pharmaceuticals, Inc. (a) | 80,000 | 7,636 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Regeneron Pharmaceuticals, Inc. (a) | 33,000 | $ 7,982 | |
Vertex Pharmaceuticals, Inc. (a) | 153,000 | 12,287 | |
| 51,853 | ||
Health Care Equipment & Supplies - 1.5% | |||
Boston Scientific Corp. (a) | 1,650,000 | 15,246 | |
The Cooper Companies, Inc. | 145,000 | 16,386 | |
| 31,632 | ||
Health Care Providers & Services - 2.6% | |||
BioScrip, Inc. (a) | 500,000 | 6,990 | |
Catamaran Corp. (a) | 110,000 | 5,396 | |
HCA Holdings, Inc. | 200,000 | 7,812 | |
Humana, Inc. | 90,000 | 7,270 | |
MEDNAX, Inc. (a) | 160,000 | 14,853 | |
Quest Diagnostics, Inc. | 120,000 | 7,421 | |
Universal Health Services, Inc. Class B | 50,000 | 3,457 | |
| 53,199 | ||
Health Care Technology - 0.8% | |||
athenahealth, Inc. (a) | 70,000 | 5,919 | |
Cerner Corp. (a) | 100,000 | 9,828 | |
| 15,747 | ||
Life Sciences Tools & Services - 0.4% | |||
Illumina, Inc. (a) | 110,000 | 7,735 | |
Pharmaceuticals - 1.2% | |||
Actavis, Inc. (a) | 109,000 | 13,439 | |
Endo Health Solutions, Inc. (a) | 275,000 | 9,983 | |
| 23,422 | ||
TOTAL HEALTH CARE | 183,588 | ||
INDUSTRIALS - 17.7% | |||
Aerospace & Defense - 1.5% | |||
Precision Castparts Corp. | 67,240 | 14,384 | |
TransDigm Group, Inc. | 108,010 | 15,780 | |
| 30,164 | ||
Building Products - 0.8% | |||
Armstrong World Industries, Inc. (a) | 333,760 | 17,346 | |
Commercial Services & Supplies - 0.9% | |||
Covanta Holding Corp. | 156,561 | 3,202 | |
Interface, Inc. | 178,040 | 2,991 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
Republic Services, Inc. | 310,400 | $ 10,585 | |
West Corp. | 86,500 | 1,981 | |
| 18,759 | ||
Electrical Equipment - 6.5% | |||
AMETEK, Inc. | 950,490 | 41,017 | |
Eaton Corp. PLC | 258,400 | 17,070 | |
Hubbell, Inc. Class B | 288,140 | 28,938 | |
Regal-Beloit Corp. | 190,600 | 12,867 | |
Rockwell Automation, Inc. | 95,400 | 8,397 | |
Roper Industries, Inc. | 200,520 | 24,909 | |
| 133,198 | ||
Machinery - 2.7% | |||
Cummins, Inc. | 151,800 | 18,160 | |
Ingersoll-Rand PLC | 317,507 | 18,266 | |
Manitowoc Co., Inc. | 538,200 | 11,308 | |
WABCO Holdings, Inc. (a) | 102,118 | 7,702 | |
| 55,436 | ||
Professional Services - 0.9% | |||
Verisk Analytics, Inc. (a) | 309,600 | 18,211 | |
Road & Rail - 1.2% | |||
J.B. Hunt Transport Services, Inc. | 334,240 | 24,620 | |
Trading Companies & Distributors - 3.2% | |||
Beacon Roofing Supply, Inc. (a) | 294,493 | 12,139 | |
MSC Industrial Direct Co., Inc. Class A | 253,808 | 20,982 | |
W.W. Grainger, Inc. | 54,500 | 14,030 | |
Watsco, Inc. | 219,600 | 19,160 | |
| 66,311 | ||
TOTAL INDUSTRIALS | 364,045 | ||
INFORMATION TECHNOLOGY - 15.1% | |||
Communications Equipment - 1.7% | |||
F5 Networks, Inc. (a) | 93,600 | 7,788 | |
Juniper Networks, Inc. (a) | 463,400 | 8,216 | |
Polycom, Inc. (a) | 843,577 | 9,558 | |
Riverbed Technology, Inc. (a) | 542,050 | 8,380 | |
| 33,942 | ||
Computers & Peripherals - 0.6% | |||
NCR Corp. (a) | 393,700 | 13,150 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 1.3% | |||
Arrow Electronics, Inc. (a) | 309,610 | $ 12,310 | |
Fabrinet (a) | 427,275 | 6,208 | |
Jabil Circuit, Inc. | 395,700 | 7,938 | |
| 26,456 | ||
Internet Software & Services - 1.1% | |||
Bankrate, Inc. (a) | 659,542 | 9,438 | |
Rackspace Hosting, Inc. (a) | 290,100 | 10,887 | |
Velti PLC (a)(d) | 1,433,766 | 2,523 | |
Velti PLC (f) | 215,084 | 341 | |
| 23,189 | ||
IT Services - 2.8% | |||
Alliance Data Systems Corp. (a) | 120,820 | 21,396 | |
Amdocs Ltd. | 217,570 | 7,767 | |
Global Payments, Inc. | 298,300 | 14,306 | |
Sapient Corp. (a) | 508,200 | 6,546 | |
Total System Services, Inc. | 329,400 | 7,744 | |
| 57,759 | ||
Semiconductors & Semiconductor Equipment - 1.3% | |||
Broadcom Corp. Class A | 123,400 | 4,431 | |
RF Micro Devices, Inc. (a) | 705,800 | 3,896 | |
Skyworks Solutions, Inc. (a) | 766,650 | 18,292 | |
| 26,619 | ||
Software - 6.3% | |||
Autodesk, Inc. (a) | 125,400 | 4,731 | |
Check Point Software Technologies Ltd. (a) | 273,700 | 13,707 | |
Citrix Systems, Inc. (a) | 130,695 | 8,410 | |
Informatica Corp. (a) | 245,200 | 8,915 | |
MICROS Systems, Inc. (a)(d) | 349,000 | 14,728 | |
Nuance Communications, Inc. (a) | 629,434 | 11,959 | |
Parametric Technology Corp. (a) | 606,000 | 15,217 | |
salesforce.com, Inc. (a) | 110,000 | 4,656 | |
SolarWinds, Inc. (a) | 197,780 | 8,336 | |
Solera Holdings, Inc. | 160,220 | 8,775 | |
Synopsys, Inc. (a) | 356,800 | 13,005 | |
TIBCO Software, Inc. (a) | 454,600 | 9,697 | |
Verint Systems, Inc. (a) | 207,200 | 6,956 | |
| 129,092 | ||
TOTAL INFORMATION TECHNOLOGY | 310,207 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 7.1% | |||
Chemicals - 4.5% | |||
Airgas, Inc. | 192,704 | $ 19,827 | |
Albemarle Corp. | 226,582 | 15,163 | |
Ashland, Inc. | 110,200 | 9,799 | |
Eastman Chemical Co. | 96,070 | 6,890 | |
FMC Corp. | 149,440 | 9,371 | |
Sherwin-Williams Co. | 40,431 | 7,622 | |
Valspar Corp. | 185,930 | 13,326 | |
W.R. Grace & Co. (a) | 108,297 | 9,152 | |
| 91,150 | ||
Containers & Packaging - 1.5% | |||
Aptargroup, Inc. | 218,156 | 12,374 | |
Ball Corp. | 156,489 | 6,754 | |
Rock-Tenn Co. Class A | 123,300 | 12,180 | |
| 31,308 | ||
Metals & Mining - 1.1% | |||
Carpenter Technology Corp. | 185,300 | 8,924 | |
Reliance Steel & Aluminum Co. | 218,885 | 14,396 | |
| 23,320 | ||
TOTAL MATERIALS | 145,778 | ||
TELECOMMUNICATION SERVICES - 0.3% | |||
Diversified Telecommunication Services - 0.2% | |||
TW telecom, Inc. (a) | 163,511 | 4,665 | |
Wireless Telecommunication Services - 0.1% | |||
SBA Communications Corp. Class A (a) | 29,210 | 2,199 | |
TOTAL TELECOMMUNICATION SERVICES | 6,864 | ||
UTILITIES - 4.3% | |||
Electric Utilities - 1.8% | |||
Great Plains Energy, Inc. | 405,400 | 9,150 | |
OGE Energy Corp. | 297,900 | 20,218 | |
PNM Resources, Inc. | 277,338 | 6,218 | |
| 35,586 | ||
Gas Utilities - 1.0% | |||
National Fuel Gas Co. | 163,851 | 10,028 | |
Questar Corp. | 393,064 | 9,555 | |
| 19,583 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Independent Power Producers & Energy Traders - 0.4% | |||
Black Hills Corp. | 185,300 | $ 8,796 | |
Multi-Utilities - 0.7% | |||
Alliant Energy Corp. | 235,200 | 11,586 | |
MDU Resources Group, Inc. | 126,400 | 3,269 | |
| 14,855 | ||
Water Utilities - 0.4% | |||
American Water Works Co., Inc. | 160,420 | 6,407 | |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) sponsored ADR | 184,000 | 2,340 | |
| 8,747 | ||
TOTAL UTILITIES | 87,567 | ||
TOTAL COMMON STOCKS (Cost $1,795,863) |
|
U.S. Treasury Obligations - 0.0% | ||||
| Principal Amount (000s) |
| ||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.05% 7/5/13 to 7/25/13 (e) | $ 860 |
|
Money Market Funds - 2.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 39,072,769 | 39,073 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 5,635,567 | 5,636 | |
TOTAL MONEY MARKET FUNDS (Cost $44,709) |
| ||
Cash Equivalents - 0.3% | |||
Maturity Amount (000s) | Value (000s) | ||
Investments in repurchase agreements in a joint trading account at 0.06%, dated 5/31/13 due 6/3/13 (Collateralized by U.S. Treasury Obligations) # | $ 6,010 | $ 6,010 | |
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $1,847,442) | 2,071,707 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (18,354) | ||
NET ASSETS - 100% | $ 2,053,353 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
123 CME E-mini S&P Midcap 400 Index Contracts | June 2013 | $ 14,556 | $ (306) |
The face value of futures purchased as a percentage of net assets is 0.7% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $670,000. |
(f) 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 $341,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Velti PLC | 4/19/13 | $ 323 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$6,010,000 due 6/03/13 at 0.06% | |
Barclays Capital, Inc. | $ 1,681 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,168 |
UBS Securities LLC | 3,161 |
| $ 6,010 |
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 | $ 39 |
Fidelity Securities Lending Cash Central Fund | 208 |
Total | $ 247 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 259,288 | $ 259,288 | $ - | $ - |
Consumer Staples | 75,742 | 75,742 | - | - |
Energy | 129,817 | 129,817 | - | - |
Financials | 457,232 | 453,828 | 3,404 | - |
Health Care | 183,588 | 183,588 | - | - |
Industrials | 364,045 | 364,045 | - | - |
Information Technology | 310,207 | 309,866 | 341 | - |
Materials | 145,778 | 145,778 | - | - |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Telecommunication Services | $ 6,864 | $ 6,864 | $ - | $ - |
Utilities | 87,567 | 87,567 | - | - |
U.S. Government and Government Agency Obligations | 860 | - | 860 | - |
Money Market Funds | 44,709 | 44,709 | - | - |
Cash Equivalents | 6,010 | - | 6,010 | - |
Total Investments in Securities: | $ 2,071,707 | $ 2,061,092 | $ 10,615 | $ - |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (306) | $ (306) | $ - | $ - |
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, 2013. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (306) |
Total Value of Derivatives | $ - | $ (306) |
(a) Reflects cumulative appreciation/depreciation on futures contracts as disclosed in the Schedule of Investments. Only the period end variation margin is separately disclosed in the Statement of Assets and Liabilities and is included in the receivable/payable for daily variation margin on derivative instruments line-items. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,370 and repurchase agreements of $6,010) - See accompanying schedule: Unaffiliated issuers (cost $1,802,733) | $ 2,026,998 |
|
Fidelity Central Funds (cost $44,709) | 44,709 |
|
Total Investments (cost $1,847,442) |
| $ 2,071,707 |
Receivable for investments sold | 22,682 | |
Receivable for fund shares sold | 623 | |
Dividends receivable | 2,395 | |
Distributions receivable from Fidelity Central Funds | 28 | |
Prepaid expenses | 1 | |
Receivable from investment adviser for expense reductions | 1 | |
Other receivables | 18 | |
Total assets | 2,097,455 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 232 | |
Payable for investments purchased | 32,789 | |
Payable for fund shares redeemed | 3,364 | |
Accrued management fee | 829 | |
Distribution and service plan fees payable | 631 | |
Payable for daily variation margin on futures contracts | 130 | |
Other affiliated payables | 434 | |
Other payables and accrued expenses | 57 | |
Collateral on securities loaned, at value | 5,636 | |
Total liabilities | 44,102 | |
|
|
|
Net Assets | $ 2,053,353 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,485,213 | |
Undistributed net investment income | 528 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (656,263) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 223,875 | |
Net Assets | $ 2,053,353 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 25.59 | |
|
|
|
Maximum offering price per share (100/94.25 of $25.59) | $ 27.15 | |
Class T: | $ 25.85 | |
|
|
|
Maximum offering price per share (100/96.50 of $25.85) | $ 26.79 | |
Class B: | $ 24.01 | |
|
|
|
Class C: | $ 24.01 | |
|
|
|
Fidelity Stock Selector Mid Cap Fund: | $ 26.63 | |
|
|
|
Institutional Class: | $ 26.70 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 15,142 |
Interest |
| 1 |
Income from Fidelity Central Funds |
| 247 |
Total income |
| 15,390 |
|
|
|
Expenses | ||
Management fee | $ 5,400 | |
Performance adjustment | (1,452) | |
Transfer agent fees | 2,205 | |
Distribution and service plan fees | 3,647 | |
Accounting and security lending fees | 298 | |
Custodian fees and expenses | 29 | |
Independent trustees' compensation | 6 | |
Registration fees | 102 | |
Audit | 55 | |
Legal | 17 | |
Miscellaneous | 101 | |
Total expenses before reductions | 10,408 | |
Expense reductions | (501) | 9,907 |
Net investment income (loss) | 5,483 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 154,171 | |
Foreign currency transactions | (749) | |
Futures contracts | 1,504 | |
Total net realized gain (loss) |
| 154,926 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 128,207 | |
Assets and liabilities in foreign currencies | (17) | |
Futures contracts | (303) | |
Total change in net unrealized appreciation (depreciation) |
| 127,887 |
Net gain (loss) | 282,813 | |
Net increase (decrease) in net assets resulting from operations | $ 288,296 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2013 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 5,483 | $ 5,143 |
Net realized gain (loss) | 154,926 | 131,666 |
Change in net unrealized appreciation (depreciation) | 127,887 | 136,150 |
Net increase (decrease) in net assets resulting | 288,296 | 272,959 |
Distributions to shareholders from net investment income | (8,172) | (7,037) |
Distributions to shareholders from net realized gain | (2,873) | - |
Total distributions | (11,045) | (7,037) |
Share transactions - net increase (decrease) | 92,681 | (510,527) |
Redemption fees | 2 | - |
Total increase (decrease) in net assets | 369,934 | (244,605) |
|
|
|
Net Assets | ||
Beginning of period | 1,683,419 | 1,928,024 |
End of period (including undistributed net investment income of $528 and undistributed net investment income of $3,217, respectively) | $ 2,053,353 | $ 1,683,419 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 22.16 | $ 19.15 | $ 19.22 | $ 15.75 | $ 10.52 | $ 26.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .08 | .09 | .08 H | (.02) | .03 | - L |
Net realized and unrealized gain (loss) | 3.53 | 3.02 | (.15) | 3.55 | 5.20 | (12.94) |
Total from investment operations | 3.61 | 3.11 | (.07) | 3.53 | 5.23 | (12.94) |
Distributions from net investment income | (.14) | (.10) | - | (.03) I | - | - |
Distributions from net realized gain | (.04) | - | - | (.03) I | - | (3.47) |
Total distributions | (.18) | (.10) | - | (.06) | - | (3.47) |
Redemption fees added to paid in capital E | - L | - | - | - | - | - |
Net asset value, end of period | $ 25.59 | $ 22.16 | $ 19.15 | $ 19.22 | $ 15.75 | $ 10.52 |
Total Return B,C,D | 16.42% | 16.32% | (.36)% | 22.48% | 49.71% | (55.09)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | .96% A | .94% | .92% | .86% | .83% | 1.10% |
Expenses net of fee waivers, if any | .96% A | .94% | .92% | .86% | .83% | 1.10% |
Expenses net of all reductions | .91% A | .94% | .91% | .84% | .81% | 1.08% |
Net investment income (loss) | .67% A | .41% | .39% H | (.12)% | .25% | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 655 | $ 593 | $ 644 | $ 945 | $ 906 | $ 712 |
Portfolio turnover rate G | 90% A, K | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 .12%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J 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.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 22.36 | $ 19.30 | $ 19.41 | $ 15.89 | $ 10.64 | $ 27.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .05 | .04 H | (.05) | .01 | (.03) |
Net realized and unrealized gain (loss) | 3.56 | 3.05 | (.15) | 3.59 | 5.24 | (13.08) |
Total from investment operations | 3.62 | 3.10 | (.11) | 3.54 | 5.25 | (13.11) |
Distributions from net investment income | (.09) | (.04) | - | - | - | - |
Distributions from net realized gain | (.04) | - | - | (.02) I | - | (3.41) |
Total distributions | (.13) | (.04) | - | (.02) | - | (3.41) |
Redemption fees added to paid in capital E | - L | - | - | - | - | - |
Net asset value, end of period | $ 25.85 | $ 22.36 | $ 19.30 | $ 19.41 | $ 15.89 | $ 10.64 |
Total Return B,C,D | 16.29% | 16.12% | (.57)% | 22.31% | 49.34% | (55.14)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.17% A | 1.14% | 1.11% | 1.03% | 1.02% | 1.28% |
Expenses net of fee waivers, if any | 1.17% A | 1.14% | 1.11% | 1.03% | 1.02% | 1.28% |
Expenses net of all reductions | 1.12% A | 1.13% | 1.10% | 1.01% | .99% | 1.27% |
Net investment income (loss) | .46% A | .22% | .20% H | (.30)% | .07% | (.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 802 | $ 755 | $ 871 | $ 1,282 | $ 1,520 | $ 1,368 |
Portfolio turnover rate G | 90% A,K | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.07)%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J 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.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.71 | $ 17.94 | $ 18.15 | $ 14.93 | $ 10.05 | $ 25.80 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.07) | (.07) H | (.15) | (.06) | (.15) |
Net realized and unrealized gain (loss) | 3.32 | 2.84 | (.14) | 3.37 | 4.94 | (12.38) |
Total from investment operations | 3.30 | 2.77 | (.21) | 3.22 | 4.88 | (12.53) |
Distributions from net realized gain | - | - | - | - | - | (3.22) |
Total distributions | - | - | - | - | - | (3.22) |
Redemption fees added to paid in capital E | - K | - | - | - | - | - |
Net asset value, end of period | $ 24.01 | $ 20.71 | $ 17.94 | $ 18.15 | $ 14.93 | $ 10.05 |
Total Return B,C,D | 15.93% | 15.44% | (1.16)% | 21.57% | 48.56% | (55.43)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.77% A | 1.73% | 1.71% | 1.63% | 1.59% | 1.89% |
Expenses net of fee waivers, if any | 1.77% A | 1.73% | 1.71% | 1.63% | 1.59% | 1.89% |
Expenses net of all reductions | 1.72% A | 1.73% | 1.70% | 1.61% | 1.57% | 1.88% |
Net investment income (loss) | (.14)% A | (.38)% | (.40)% H | (.90)% | (.51)% | (.78)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 22 | $ 22 | $ 28 | $ 75 | $ 131 | $ 162 |
Portfolio turnover rate G | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.67)%.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.73 | $ 17.95 | $ 18.15 | $ 14.93 | $ 10.05 | $ 25.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | (.06) | (.07) H | (.14) | (.06) | (.14) |
Net realized and unrealized gain (loss) | 3.32 | 2.84 | (.13) | 3.36 | 4.94 | (12.37) |
Total from investment operations | 3.31 | 2.78 | (.20) | 3.22 | 4.88 | (12.51) |
Distributions from net investment income | (.02) | - | - | - | - | - |
Distributions from net realized gain | (.01) | - | - | - | - | (3.26) |
Total distributions | (.03) | - | - | - | - | (3.26) |
Redemption fees added to paid in capital E | - K | - | - | - | - | - |
Net asset value, end of period | $ 24.01 | $ 20.73 | $ 17.95 | $ 18.15 | $ 14.93 | $ 10.05 |
Total Return B,C,D | 15.97% | 15.49% | (1.10)% | 21.57% | 48.56% | (55.39)% |
Ratios to Average Net Assets F,I |
|
|
|
|
| |
Expenses before reductions | 1.71% A | 1.68% | 1.66% | 1.60% | 1.58% | 1.85% |
Expenses net of fee waivers, if any | 1.71% A | 1.68% | 1.66% | 1.60% | 1.58% | 1.85% |
Expenses net of all reductions | 1.65% A | 1.68% | 1.65% | 1.58% | 1.55% | 1.84% |
Net investment income (loss) | (.07)% A | (.33)% | (.35)% H | (.86)% | (.50)% | (.74)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 162 | $ 141 | $ 150 | $ 189 | $ 186 | $ 161 |
Portfolio turnover rate G | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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 (.62)%.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Stock Selector Mid Cap Fund
| Six months ended May 31, 2013 | Years ended November 30, |
| (Unaudited) | 2012 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 23.14 | $ 21.20 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .11 | .09 |
Net realized and unrealized gain (loss) | 3.67 | 1.85 |
Total from investment operations | 3.78 | 1.94 |
Distributions from net investment income | (.25) | - |
Distributions from net realized gain | (.04) | - |
Total distributions | (.29) | - |
Redemption fees added to paid in capital D | - J | - |
Net asset value, end of period | $ 26.63 | $ 23.14 |
Total Return B,C | 16.53% | 9.15% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .73% A | .59% A |
Expenses net of fee waivers, if any | .73% A | .59% A |
Expenses net of all reductions | .68% A | .58% A |
Net investment income (loss) | .90% A | .86% A |
Supplemental Data |
|
|
Net assets, end of period (in millions) | $ 211 | $ 1 |
Portfolio turnover rate F | 90% A, I | 72% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 6, 2012 (commencement of sale of shares) to November 30, 2012.
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. 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.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2013 | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 23.14 | $ 20.01 | $ 20.02 | $ 16.40 | $ 10.92 | $ 27.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .12 | .15 | .14 G | .04 | .08 | .07 |
Net realized and unrealized gain (loss) | 3.68 | 3.15 | (.15) | 3.69 | 5.40 | (13.41) |
Total from investment operations | 3.80 | 3.30 | (.01) | 3.73 | 5.48 | (13.34) |
Distributions from net investment income | (.20) | (.17) | - | (.08) H | - | - |
Distributions from net realized gain | (.04) | - | - | (.03) H | - | (3.55) |
Total distributions | (.24) | (.17) | - | (.11) | - | (3.55) |
Redemption fees added to paid in capital D | - K | - | - | - | - | - |
Net asset value, end of period | $ 26.70 | $ 23.14 | $ 20.01 | $ 20.02 | $ 16.40 | $ 10.92 |
Total Return B,C | 16.60% | 16.66% | (.05)% | 22.86% | 50.18% | (54.92)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .68% A | .65% | .62% | .54% | .50% | .79% |
Expenses net of fee waivers, if any | .68% A | .65% | .62% | .54% | .50% | .79% |
Expenses net of all reductions | .63% A | .64% | .61% | .52% | .47% | .77% |
Net investment income (loss) | .95% A | .71% | .69% G | .20% | .59% | .32% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 201 | $ 172 | $ 234 | $ 354 | $ 319 | $ 267 |
Portfolio turnover rate F | 90% A, J | 72% | 198% | 141% | 244% | 199% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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%.
H The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 The portfolio turnover rate does not include the assets acquired in the merger.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Stock Selector Mid Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Stock Selector Mid Cap Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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 restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. 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. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2013, 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 292,218 |
Gross unrealized depreciation | (71,627) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 220,591 |
|
|
Tax cost | $ 1,851,116 |
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 period end and is subject to adjustment.
Fiscal year of expiration |
|
$ (2,405) | |
2016 | (654,641) |
2017 | (161,063) |
Total with expiration | $ (818,109) |
No expiration |
|
Short-term | (292) |
Total capital loss carryforward | $ (818,401) |
The Fund acquired $12,892 of capital loss carryforwards from Fidelity Mid Cap Growth Fund and $3,960 of capital loss carryforwards from Fidelity Advisor Growth Strategies Fund when they merged into the Fund in January 2013. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $6,594 and $935, respectively, per year. As a result, at least $1,012 of the losses acquired from Fidelity Advisor Growth Strategies Fund will expire unused and is not included in the table above.
Semiannual Report
3. Significant Accounting Policies - continued
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. The Financial Accounting Standards Board issued in December 2011, Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities, and in January 2013, Accounting Standards Update No. 2013-1 Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. These updates create new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is mitigated by the protection provided by the exchange's clearinghouse.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
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 activity for 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 $1,504 and a change in net unrealized appreciation (depreciation) of $(303) 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, aggregated $831,548 and $988,725, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 790 | $ 53 |
Class T | .25% | .25% | 1,970 | - |
Class B | .75% | .25% | 112 | 84 |
Class C | .75% | .25% | 775 | 16 |
|
|
| $ 3,647 | $ 153 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 22 |
Class T | 11 |
Class B* | 8 |
Class C* | 2 |
| $ 43 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 777 | .25 |
Class T | 798 | .20 |
Class B | 34 | .30 |
Class C | 185 | .24 |
Fidelity Stock Selector Mid Cap Fund | 210 | .26 |
Institutional Class | 201 | .21 |
| $ 2,205 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $20 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending - continued
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. 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 $208. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $500 for the period.
In addition, FMR reimbursed a portion of the Fund's operating expenses during the period in the amount of $1.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 3,606 | $ 3,191 |
Class T | 2,972 | 1,890 |
Class C | 121 | - |
Fidelity Stock Selector Mid Cap Fund A | 16 | - |
Institutional Class | 1,457 | 1,956 |
Total | $ 8,172 | $ 7,037 |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ 1,106 | $ - |
Class T | 1,403 | - |
Class C | 54 | - |
Fidelity Stock Selector Mid Cap Fund A | 3 | - |
Institutional Class | 307 | - |
Total | $ 2,873 | $ - |
A Distributions for Fidelity Stock Selector Mid Cap Fund are for the period June 6, 2012 (commencement of sale of shares) to May 31, 2013.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Class A |
|
|
|
|
Shares sold | 818 | 2,534 | $ 19,562 | $ 52,691 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 483 | - | 11,196 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 410 | - | 9,497 | - |
Reinvestment of distributions | 196 | 158 | 4,309 | 2,914 |
Shares redeemed | (3,047) | (9,598) | (72,334) | (199,005) |
Net increase (decrease) | (1,140) | (6,906) | $ (27,770) | $ (143,400) |
Class T |
|
|
|
|
Shares sold | 1,715 | 3,511 | $ 41,421 | $ 74,253 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 643 | - | 15,054 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 182 | - | 4,267 | - |
Reinvestment of distributions | 188 | 96 | 4,170 | 1,803 |
Shares redeemed | (5,445) | (14,999) | (130,875) | (312,249) |
Net increase (decrease) | (2,717) | (11,392) | $ (65,963) | $ (236,193) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Class B |
|
|
|
|
Shares sold | 3 | 3 | $ 42 | $ 54 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 75 | - | 1,640 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | 28 | - | 614 | - |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (241) | (540) | (5,399) | (10,540) |
Net increase (decrease) | (135) | (537) | $ (3,103) | $ (10,486) |
Class C |
|
| ||
Shares sold | 130 | 225 | $ 2,946 | $ 4,440 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies | - | - | ||
Issued in exchange for shares of Fidelity Mid Cap Growth | 219 | - | 4,769 | - |
Reinvestment of distributions | 7 | - | 152 | - |
Shares redeemed | (620) | (1,754) | (13,854) | (34,462) |
Net increase (decrease) | (55) | (1,529) | $ (1,434) | $ (30,022) |
Fidelity Stock Selector Mid Cap |
|
| ||
Shares sold | 657 | 69 | $ 16,588 | $ 1,562 |
Issued in exchange for shares of Fidelity Mid Cap Growth | - | - | ||
Reinvestment of distributions | 1 | - | 16 | - |
Shares redeemed | (1,629) | (4) | (40,636) | (89) |
Net increase (decrease) | 7,839 | 65 | $ 188,107 | $ 1,473 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended May 31, | Year ended | Six months ended May 31, | Year ended |
Institutional Class |
|
| ||
Shares sold | 1,655 | $ 35,850 | ||
Issued in exchange for shares of Fidelity Advisor Growth Strategies | 20 | - | 479 | - |
Issued in exchange for shares of Fidelity Mid Cap Growth | - | - | ||
Reinvestment of distributions | 68 | 93 | 1,564 | 1,794 |
Shares redeemed | (712) | (6,043) | (17,685) | (129,543) |
Net increase (decrease) | 120 | (4,295) | $ 2,844 | $ (91,899) |
A Share transactions for Fidelity Stock Selector Mid Cap Fund are for the period June 6, 2012 (commencement of sale of shares) to May 31, 2013
12. Merger Information.
On January 11, 2013, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Advisor Growth Strategies Fund and Fidelity Mid Cap Growth Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on June 12, 2012. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $32,922, including securities of $32,974 and unrealized appreciation of $2,113 for Fidelity Advisor Growth Strategies Fund; and net assets of $232,174, including securities of $233,755 and unrealized appreciation of $14,520 for Fidelity Mid Cap Growth Fund were combined with the Fund's net assets of $1,716,041 for total net assets after the acquisition of $1,981,137.
Pro forma results of operations of the combined entity for the entire period ended May 31, 2013, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
Net investment income (loss) | $ 5,799 |
Total net realized gain (loss) | 155,808 |
Total change in net unrealized appreciation (depreciation) | 138,023 |
Net increase (decrease) in net assets resulting from operations | $ 299,630 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
13. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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(8 a.m. - 9 p.m.)
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for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
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Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
SKD-USAN-0713 1.940901.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Strategic Growth
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Proxy Voting Results |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,119.10 | $ 6.60 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.70 | $ 6.29 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,117.20 | $ 7.92 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.45 | $ 7.54 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,114.90 | $ 10.55 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.96 | $ 10.05 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,114.50 | $ 10.54 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.96 | $ 10.05 |
Institutional Class | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.80 | $ 5.29 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.95 | $ 5.04 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 5.1 | 8.1 |
Google, Inc. Class A | 4.7 | 3.0 |
The Coca-Cola Co. | 2.6 | 1.6 |
Gilead Sciences, Inc. | 2.5 | 1.6 |
Oracle Corp. | 2.4 | 2.2 |
Home Depot, Inc. | 2.2 | 2.1 |
Amgen, Inc. | 2.0 | 2.5 |
Microsoft Corp. | 1.8 | 1.7 |
Visa, Inc. Class A | 1.6 | 1.9 |
QUALCOMM, Inc. | 1.6 | 1.9 |
| 26.5 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 27.5 | 30.7 |
Consumer Discretionary | 18.4 | 17.6 |
Health Care | 16.9 | 12.7 |
Consumer Staples | 11.6 | 11.0 |
Industrials | 10.5 | 10.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 99.6% |
| Stocks 96.9% |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 10.3% |
| ** Foreign investments | 7.8% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 18.4% | |||
Automobiles - 0.3% | |||
Nissan Motor Co. Ltd. | 11,200 | $ 120,948 | |
Tesla Motors, Inc. (a) | 400 | 39,104 | |
| 160,052 | ||
Distributors - 0.8% | |||
LKQ Corp. (a) | 16,629 | 407,078 | |
Diversified Consumer Services - 1.2% | |||
H&R Block, Inc. | 19,672 | 575,799 | |
Hotels, Restaurants & Leisure - 2.6% | |||
Las Vegas Sands Corp. | 1,863 | 107,868 | |
McDonald's Corp. | 3,184 | 307,479 | |
Starbucks Corp. | 8,039 | 507,020 | |
Wyndham Worldwide Corp. | 3,089 | 179,533 | |
Yum! Brands, Inc. | 2,300 | 155,825 | |
| 1,257,725 | ||
Household Durables - 1.3% | |||
Toll Brothers, Inc. (a) | 11,180 | 382,021 | |
Whirlpool Corp. | 2,010 | 256,798 | |
| 638,819 | ||
Internet & Catalog Retail - 2.4% | |||
Amazon.com, Inc. (a) | 2,317 | 623,343 | |
priceline.com, Inc. (a) | 640 | 514,515 | |
| 1,137,858 | ||
Leisure Equipment & Products - 0.4% | |||
Mattel, Inc. | 4,345 | 194,439 | |
Media - 2.0% | |||
CBS Corp. Class B | 6,462 | 319,869 | |
Comcast Corp. Class A | 16,696 | 670,344 | |
| 990,213 | ||
Multiline Retail - 0.5% | |||
Dollar General Corp. (a) | 4,661 | 246,101 | |
Specialty Retail - 4.8% | |||
American Eagle Outfitters, Inc. | 17,246 | 341,298 | |
Dick's Sporting Goods, Inc. | 5,066 | 265,154 | |
Home Depot, Inc. | 13,798 | 1,085,351 | |
Lowe's Companies, Inc. | 3,884 | 163,555 | |
Ross Stores, Inc. | 4,920 | 316,356 | |
Tractor Supply Co. | 1,219 | 136,504 | |
| 2,308,218 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - 2.1% | |||
lululemon athletica, Inc. (a) | 3,682 | $ 286,496 | |
Michael Kors Holdings Ltd. (a) | 3,510 | 220,498 | |
NIKE, Inc. Class B | 5,215 | 321,557 | |
PVH Corp. | 1,500 | 172,785 | |
| 1,001,336 | ||
TOTAL CONSUMER DISCRETIONARY | 8,917,638 | ||
CONSUMER STAPLES - 11.6% | |||
Beverages - 4.1% | |||
Beam, Inc. | 2,217 | 143,750 | |
Monster Beverage Corp. (a) | 4,100 | 223,819 | |
PepsiCo, Inc. | 3,489 | 281,807 | |
Remy Cointreau SA | 800 | 92,729 | |
The Coca-Cola Co. | 31,322 | 1,252,567 | |
| 1,994,672 | ||
Food & Staples Retailing - 2.8% | |||
CVS Caremark Corp. | 10,588 | 609,657 | |
Safeway, Inc. | 7,400 | 170,274 | |
Wal-Mart Stores, Inc. | 4,620 | 345,761 | |
Walgreen Co. | 4,396 | 209,953 | |
| 1,335,645 | ||
Food Products - 1.1% | |||
Bunge Ltd. | 4,153 | 289,049 | |
Mead Johnson Nutrition Co. Class A | 2,763 | 223,996 | |
| 513,045 | ||
Household Products - 0.9% | |||
Procter & Gamble Co. | 5,400 | 414,504 | |
Tobacco - 2.7% | |||
Altria Group, Inc. | 11,585 | 418,219 | |
British American Tobacco PLC (United Kingdom) | 4,411 | 242,379 | |
Japan Tobacco, Inc. | 11,400 | 387,976 | |
Lorillard, Inc. | 6,577 | 279,128 | |
| 1,327,702 | ||
TOTAL CONSUMER STAPLES | 5,585,568 | ||
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - 3.4% | |||
Energy Equipment & Services - 2.4% | |||
Cameron International Corp. (a) | 4,200 | $ 255,654 | |
Ensco PLC Class A | 5,430 | 326,723 | |
Halliburton Co. | 5,800 | 242,730 | |
National Oilwell Varco, Inc. | 1,520 | 106,856 | |
Schlumberger Ltd. | 3,180 | 232,235 | |
| 1,164,198 | ||
Oil, Gas & Consumable Fuels - 1.0% | |||
Noble Energy, Inc. | 3,200 | 184,480 | |
The Williams Companies, Inc. | 8,960 | 315,213 | |
| 499,693 | ||
TOTAL ENERGY | 1,663,891 | ||
FINANCIALS - 7.2% | |||
Capital Markets - 1.1% | |||
The Blackstone Group LP | 17,589 | 385,023 | |
UBS AG (NY Shares) | 7,500 | 131,475 | |
| 516,498 | ||
Commercial Banks - 0.9% | |||
Wells Fargo & Co. | 10,686 | 433,317 | |
Consumer Finance - 1.4% | |||
Capital One Financial Corp. | 4,800 | 292,464 | |
SLM Corp. | 16,989 | 403,319 | |
| 695,783 | ||
Diversified Financial Services - 2.4% | |||
Bank of America Corp. | 36,400 | 497,224 | |
Citigroup, Inc. | 8,641 | 449,246 | |
McGraw-Hill Companies, Inc. | 3,963 | 216,182 | |
| 1,162,652 | ||
Real Estate Investment Trusts - 0.8% | |||
American Tower Corp. | 5,140 | 400,098 | |
Real Estate Management & Development - 0.4% | |||
Hongkong Land Holdings Ltd. | 14,000 | 96,788 | |
The St. Joe Co. (a) | 4,100 | 83,722 | |
| 180,510 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.2% | |||
Nationstar Mortgage Holdings, Inc. (a) | 2,300 | $ 93,633 | |
TOTAL FINANCIALS | 3,482,491 | ||
HEALTH CARE - 16.9% | |||
Biotechnology - 8.0% | |||
Alexion Pharmaceuticals, Inc. (a) | 2,870 | 279,940 | |
Amgen, Inc. | 9,445 | 949,506 | |
Biogen Idec, Inc. (a) | 1,837 | 436,269 | |
BioMarin Pharmaceutical, Inc. (a) | 2,600 | 163,020 | |
Celgene Corp. (a) | 4,255 | 526,131 | |
Gilead Sciences, Inc. (a) | 21,821 | 1,188,808 | |
Regeneron Pharmaceuticals, Inc. (a) | 300 | 72,561 | |
Theravance, Inc. (a) | 7,535 | 264,026 | |
| 3,880,261 | ||
Health Care Equipment & Supplies - 1.7% | |||
Ansell Ltd. | 12,528 | 206,420 | |
Boston Scientific Corp. (a) | 40,995 | 378,794 | |
The Cooper Companies, Inc. | 1,950 | 220,370 | |
| 805,584 | ||
Health Care Providers & Services - 2.2% | |||
Brookdale Senior Living, Inc. (a) | 9,673 | 274,230 | |
Catamaran Corp. (a) | 2,880 | 141,285 | |
Express Scripts Holding Co. (a) | 10,411 | 646,731 | |
| 1,062,246 | ||
Health Care Technology - 0.5% | |||
Cerner Corp. (a) | 2,400 | 235,872 | |
Life Sciences Tools & Services - 0.5% | |||
Illumina, Inc. (a) | 3,566 | 250,761 | |
Pharmaceuticals - 4.0% | |||
AbbVie, Inc. | 11,542 | 492,728 | |
Actavis, Inc. (a) | 2,542 | 313,403 | |
Allergan, Inc. | 2,300 | 228,827 | |
Johnson & Johnson | 2,605 | 219,289 | |
Merck & Co., Inc. | 5,256 | 245,455 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 2,800 | $ 257,624 | |
Warner Chilcott PLC | 9,800 | 188,160 | |
| 1,945,486 | ||
TOTAL HEALTH CARE | 8,180,210 | ||
INDUSTRIALS - 10.5% | |||
Aerospace & Defense - 2.0% | |||
The Boeing Co. | 1,200 | 118,824 | |
TransDigm Group, Inc. | 874 | 127,691 | |
United Technologies Corp. | 7,513 | 712,984 | |
| 959,499 | ||
Air Freight & Logistics - 1.3% | |||
United Parcel Service, Inc. Class B | 7,239 | 621,830 | |
Airlines - 0.4% | |||
Delta Air Lines, Inc. (a) | 9,800 | 176,498 | |
Electrical Equipment - 2.7% | |||
Eaton Corp. PLC | 8,088 | 534,293 | |
Emerson Electric Co. | 6,834 | 392,682 | |
Generac Holdings, Inc. | 9,100 | 368,550 | |
| 1,295,525 | ||
Industrial Conglomerates - 0.4% | |||
General Electric Co. | 8,177 | 190,688 | |
Machinery - 2.0% | |||
Cummins, Inc. | 2,850 | 340,946 | |
Ingersoll-Rand PLC | 6,307 | 362,842 | |
Manitowoc Co., Inc. | 13,278 | 278,971 | |
| 982,759 | ||
Road & Rail - 1.7% | |||
CSX Corp. | 15,836 | 399,226 | |
Hertz Global Holdings, Inc. (a) | 7,964 | 205,710 | |
Union Pacific Corp. | 1,444 | 223,271 | |
| 828,207 | ||
TOTAL INDUSTRIALS | 5,055,006 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 27.5% | |||
Communications Equipment - 2.1% | |||
Cisco Systems, Inc. | 10,600 | $ 255,248 | |
QUALCOMM, Inc. | 12,315 | 781,756 | |
| 1,037,004 | ||
Computers & Peripherals - 6.1% | |||
Apple, Inc. | 5,434 | 2,443,559 | |
EMC Corp. | 19,453 | 481,656 | |
| 2,925,215 | ||
Internet Software & Services - 5.9% | |||
eBay, Inc. (a) | 2,930 | 158,513 | |
Facebook, Inc. Class A | 10,571 | 257,404 | |
Google, Inc. Class A (a) | 2,611 | 2,272,641 | |
LinkedIn Corp. (a) | 900 | 150,777 | |
Trulia, Inc. | 200 | 6,148 | |
| 2,845,483 | ||
IT Services - 5.0% | |||
Accenture PLC Class A | 5,870 | 481,986 | |
Amdocs Ltd. | 6,720 | 239,904 | |
IBM Corp. | 1,747 | 363,411 | |
MasterCard, Inc. Class A | 960 | 547,440 | |
Visa, Inc. Class A | 4,434 | 789,873 | |
| 2,422,614 | ||
Semiconductors & Semiconductor Equipment - 1.3% | |||
Broadcom Corp. Class A | 14,858 | 533,551 | |
NXP Semiconductors NV (a) | 3,500 | 107,975 | |
| 641,526 | ||
Software - 7.1% | |||
Check Point Software Technologies Ltd. (a) | 4,105 | 205,578 | |
Concur Technologies, Inc. (a) | 1,800 | 145,314 | |
Guidewire Software, Inc. (a) | 5,840 | 239,206 | |
Microsoft Corp. | 25,110 | 875,837 | |
Oracle Corp. | 33,484 | 1,130,420 | |
salesforce.com, Inc. (a) | 8,276 | 350,323 | |
Splunk, Inc. (a) | 3,212 | 150,193 | |
Workday, Inc. Class A | 5,113 | 328,408 | |
| 3,425,279 | ||
TOTAL INFORMATION TECHNOLOGY | 13,297,121 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - 3.3% | |||
Chemicals - 2.5% | |||
Eastman Chemical Co. | 4,460 | $ 319,871 | |
FMC Corp. | 2,819 | 176,779 | |
Monsanto Co. | 7,046 | 709,109 | |
| 1,205,759 | ||
Construction Materials - 0.8% | |||
Vulcan Materials Co. | 6,873 | 368,255 | |
TOTAL MATERIALS | 1,574,014 | ||
TELECOMMUNICATION SERVICES - 0.8% | |||
Wireless Telecommunication Services - 0.8% | |||
Vodafone Group PLC sponsored ADR | 13,056 | 377,971 | |
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $41,169,849) | 48,133,910 | ||
NET OTHER ASSETS (LIABILITIES) - 0.4% | 213,866 | ||
NET ASSETS - 100% | $ 48,347,776 |
Legend |
(a) Non-income producing |
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 | $ 656 |
Fidelity Securities Lending Cash Central Fund | 912 |
Total | $ 1,568 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 8,917,638 | $ 8,796,690 | $ 120,948 | $ - |
Consumer Staples | 5,585,568 | 4,955,213 | 630,355 | - |
Energy | 1,663,891 | 1,663,891 | - | - |
Financials | 3,482,491 | 3,385,703 | 96,788 | - |
Health Care | 8,180,210 | 7,973,790 | 206,420 | - |
Industrials | 5,055,006 | 5,055,006 | - | - |
Information Technology | 13,297,121 | 13,297,121 | - | - |
Materials | 1,574,014 | 1,574,014 | - | - |
Telecommunication Services | 377,971 | 377,971 | - | - |
Total Investments in Securities: | $ 48,133,910 | $ 47,079,399 | $ 1,054,511 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 89.7% |
Ireland | 3.2% |
United Kingdom | 2.0% |
Japan | 1.0% |
Others (Individually Less Than 1%) | 4.1% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $41,169,849) |
| $ 48,133,910 |
Receivable for investments sold | 776,362 | |
Receivable for fund shares sold | 23,140 | |
Dividends receivable | 54,717 | |
Distributions receivable from Fidelity Central Funds | 34 | |
Prepaid expenses | 26 | |
Receivable from investment adviser for expense reductions | 3,237 | |
Other receivables | 790 | |
Total assets | 48,992,216 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 18,540 | |
Payable for investments purchased | 506,539 | |
Payable for fund shares redeemed | 21,697 | |
Accrued management fee | 22,583 | |
Distribution and service plan fees payable | 18,562 | |
Other affiliated payables | 12,761 | |
Other payables and accrued expenses | 43,758 | |
Total liabilities | 644,440 | |
|
|
|
Net Assets | $ 48,347,776 | |
Net Assets consist of: |
| |
Paid in capital | $ 39,591,998 | |
Distributions in excess of net investment income | (63,717) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,855,543 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 6,963,952 | |
Net Assets | $ 48,347,776 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 14.87 | |
|
|
|
Maximum offering price per share (100/94.25 of $14.87) | $ 15.78 | |
Class T: | $ 14.36 | |
|
|
|
Maximum offering price per share (100/96.50 of $14.36) | $ 14.88 | |
Class B: | $ 13.39 | |
|
|
|
Class C: | $ 13.33 | |
|
|
|
Institutional Class: | $ 15.32 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 364,796 |
Income from Fidelity Central Funds |
| 1,568 |
Total income |
| 366,364 |
|
|
|
Expenses | ||
Management fee | $ 132,061 | |
Performance adjustment | 6,613 | |
Transfer agent fees | 68,622 | |
Distribution and service plan fees | 109,319 | |
Accounting and security lending fees | 9,268 | |
Custodian fees and expenses | 19,178 | |
Independent trustees' compensation | 145 | |
Registration fees | 37,069 | |
Audit | 26,453 | |
Legal | 7,017 | |
Miscellaneous | 14,826 | |
Total expenses before reductions | 430,571 | |
Expense reductions | (87,935) | 342,636 |
Net investment income (loss) | 23,728 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 2,446,998 | |
Foreign currency transactions | 709 | |
Total net realized gain (loss) |
| 2,447,707 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,854,661 | |
Assets and liabilities in foreign currencies | (99) | |
Total change in net unrealized appreciation (depreciation) |
| 2,854,562 |
Net gain (loss) | 5,302,269 | |
Net increase (decrease) in net assets resulting from operations | $ 5,325,997 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 23,728 | $ (12,352) |
Net realized gain (loss) | 2,447,707 | 3,037,247 |
Change in net unrealized appreciation (depreciation) | 2,854,562 | 2,297,156 |
Net increase (decrease) in net assets resulting | 5,325,997 | 5,322,051 |
Distributions to shareholders from net investment income | (87,712) | - |
Share transactions - net increase (decrease) | (3,591,304) | 12,719,897 |
Total increase (decrease) in net assets | 1,646,981 | 18,041,948 |
|
|
|
Net Assets | ||
Beginning of period | 46,700,795 | 28,658,847 |
End of period (including distributions in excess of net investment income of $63,717 and undistributed net investment income of $267, respectively) | $ 48,347,776 | $ 46,700,795 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 13.33 | $ 11.46 | $ 10.73 | $ 9.11 | $ 6.33 | $ 11.54 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .02 | .03 | (.05) | (.03) | .01 | (.02) |
Net realized and unrealized gain (loss) | 1.56 | 1.84 | .78 | 1.65 | 2.77 | (5.19) |
Total from investment operations | 1.58 | 1.87 | .73 | 1.62 | 2.78 | (5.21) |
Distributions from net investment income | (.04) | - | - | - | - | - |
Net asset value, end of period | $ 14.87 | $ 13.33 | $ 11.46 | $ 10.73 | $ 9.11 | $ 6.33 |
Total Return B,C,D | 11.91% | 16.32% | 6.80% | 17.78% | 43.92% | (45.15)% |
Ratios to Average Net Assets F,H | ||||||
Expenses before reductions | 1.61% A | 1.58% | 1.77% | 1.85% | 2.04% | 1.86% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.23% A | 1.24% | 1.24% | 1.25% | 1.24% | 1.25% |
Net investment income (loss) | .31% A | .20% | (.41)% | (.34)% | .08% | (.20)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 25,506 | $ 23,183 | $ 11,109 | $ 7,055 | $ 6,991 | $ 4,113 |
Portfolio turnover rate G | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.86 | $ 11.08 | $ 10.40 | $ 8.85 | $ 6.17 | $ 11.27 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | - I | (.01) | (.07) | (.06) | (.01) | (.04) |
Net realized and unrealized gain (loss) | 1.51 | 1.79 | .75 | 1.61 | 2.69 | (5.06) |
Total from investment operations | 1.51 | 1.78 | .68 | 1.55 | 2.68 | (5.10) |
Distributions from net investment income | (.01) | - | - | - | - | - |
Net asset value, end of period | $ 14.36 | $ 12.86 | $ 11.08 | $ 10.40 | $ 8.85 | $ 6.17 |
Total Return B,C,D | 11.72% | 16.06% | 6.54% | 17.51% | 43.44% | (45.25)% |
Ratios to Average Net Assets F,H | ||||||
Expenses before reductions | 1.88% A | 1.88% | 2.06% | 2.14% | 2.34% | 2.15% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.48% A | 1.49% | 1.49% | 1.50% | 1.49% | 1.50% |
Net investment income (loss) | .06% A | (.05)% | (.66)% | (.59)% | (.17)% | (.45)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 11,806 | $ 11,757 | $ 9,019 | $ 7,501 | $ 6,651 | $ 4,755 |
Portfolio turnover rate G | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.01 | $ 10.40 | $ 9.82 | $ 8.40 | $ 5.88 | $ 10.80 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.03) | (.06) | (.12) | (.10) | (.05) | (.09) |
Net realized and unrealized gain (loss) | 1.41 | 1.67 | .70 | 1.52 | 2.57 | (4.83) |
Total from investment operations | 1.38 | 1.61 | .58 | 1.42 | 2.52 | (4.92) |
Net asset value, end of period | $ 13.39 | $ 12.01 | $ 10.40 | $ 9.82 | $ 8.40 | $ 5.88 |
Total Return B,C,D | 11.49% | 15.48% | 5.91% | 16.90% | 42.86% | (45.56)% |
Ratios to Average Net Assets F,H | ||||||
Expenses before reductions | 2.36% A | 2.38% | 2.54% | 2.60% | 2.79% | 2.62% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.98% A | 2.00% | 2.00% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | (.44)% A | (.55)% | (1.16)% | (1.09)% | (.67)% | (.95)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 1,300 | $ 1,408 | $ 1,653 | $ 2,099 | $ 2,314 | $ 1,785 |
Portfolio turnover rate G | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 11.96 | $ 10.35 | $ 9.77 | $ 8.35 | $ 5.85 | $ 10.75 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.03) | (.06) | (.12) | (.10) | (.05) | (.09) |
Net realized and unrealized gain (loss) | 1.40 | 1.67 | .70 | 1.52 | 2.55 | (4.81) |
Total from investment operations | 1.37 | 1.61 | .58 | 1.42 | 2.50 | (4.90) |
Net asset value, end of period | $ 13.33 | $ 11.96 | $ 10.35 | $ 9.77 | $ 8.35 | $ 5.85 |
Total Return B,C,D | 11.45% | 15.56% | 5.94% | 17.01% | 42.74% | (45.58)% |
Ratios to Average Net Assets F,H | ||||||
Expenses before reductions | 2.29% A | 2.30% | 2.51% | 2.64% | 2.79% | 2.62% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.98% A | 1.99% | 1.99% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | (.44)% A | (.55)% | (1.16)% | (1.09)% | (.67)% | (.95)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 8,029 | $ 8,565 | $ 6,422 | $ 2,628 | $ 2,065 | $ 1,492 |
Portfolio turnover rate G | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 13.74 | $ 11.78 | $ 11.01 | $ 9.32 | $ 6.47 | $ 11.75 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .04 | .06 | (.02) | (.01) | .02 | .01 |
Net realized and unrealized gain (loss) | 1.61 | 1.90 | .79 | 1.70 | 2.83 | (5.29) |
Total from investment operations | 1.65 | 1.96 | .77 | 1.69 | 2.85 | (5.28) |
Distributions from net investment income | (.07) | - | - | - | - | - |
Net asset value, end of period | $ 15.32 | $ 13.74 | $ 11.78 | $ 11.01 | $ 9.32 | $ 6.47 |
Total Return B,C | 12.08% | 16.64% | 6.99% | 18.13% | 44.05% | (44.94)% |
Ratios to Average Net Assets E,G | ||||||
Expenses before reductions | 1.31% A | 1.22% | 1.39% | 1.49% | 1.83% | 1.54% |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | .98% A | .99% | .99% | .99% | 1.00% | 1.00% |
Net investment income (loss) | .56% A | .45% | (.16)% | (.09)% | .33% | .05% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 1,706 | $ 1,787 | $ 456 | $ 342 | $ 97 | $ 99 |
Portfolio turnover rate F | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
1. Organization.
Fidelity Advisor® Strategic Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Effective after the close of business on December 14, 2012, the Fund's other share classes were closed to new accounts with certain exceptions. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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, 2013, is included at the end of the Fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. 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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. 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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 7,269,312 |
Gross unrealized depreciation | (517,801) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 6,751,511 |
|
|
Tax cost | $ 41,382,399 |
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.
Fiscal year of expiration |
|
2017 | $ (473,695) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $36,546,739 and $38,973,418, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .58% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 30,276 | $ 531 |
Class T | .25% | .25% | 29,058 | 140 |
Class B | .75% | .25% | 6,812 | 5,116 |
Class C | .75% | .25% | 43,173 | 6,196 |
|
|
| $ 109,319 | $ 11,983 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 2,184 |
Class T | 1,635 |
Class B* | 485 |
Class C* | 982 |
| $ 5,286 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 35,959 | .30 |
Class T | 18,674 | .32 |
Class B | 2,053 | .30 |
Class C | 9,801 | .23 |
Institutional Class | 2,135 | .25 |
| $ 68,622 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $1,394 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $61 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. 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 $912. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.25% | $ 43,264 |
Class T | 1.50% | 22,193 |
Class B | 2.00% | 2,497 |
Class C | 2.00% | 12,637 |
Institutional Class | 1.00% | 2,674 |
|
| $ 83,265 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $4,664 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 72,893 | $ - |
Class T | 5,419 | - |
Institutional Class | 9,400 | - |
Total | $ 87,712 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 160,386 | 1,164,609 | $ 2,239,779 | $ 14,826,119 |
Reinvestment of distributions | 5,252 | - | 69,069 | - |
Shares redeemed | (189,226) | (394,891) | (2,646,595) | (4,983,157) |
Net increase (decrease) | (23,588) | 769,718 | $ (337,747) | $ 9,842,962 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class T |
|
|
|
|
Shares sold | 59,283 | 251,774 | $ 796,076 | $ 2,982,650 |
Reinvestment of distributions | 418 | - | 5,313 | - |
Shares redeemed | (152,035) | (151,423) | (2,038,898) | (1,839,691) |
Net increase (decrease) | (92,334) | 100,351 | $ (1,237,509) | $ 1,142,959 |
Class B |
|
|
|
|
Shares sold | 1,863 | 5,207 | $ 22,784 | $ 58,908 |
Shares redeemed | (21,973) | (46,873) | (276,765) | (536,274) |
Net increase (decrease) | (20,110) | (41,666) | $ (253,981) | $ (477,366) |
Class C |
|
|
|
|
Shares sold | 47,091 | 390,637 | $ 590,390 | $ 4,316,746 |
Shares redeemed | (161,063) | (294,484) | (2,084,575) | (3,287,049) |
Net increase (decrease) | (113,972) | 96,153 | $ (1,494,185) | $ 1,029,697 |
Institutional Class |
|
|
|
|
Shares sold | 20,282 | 131,744 | $ 291,175 | $ 1,692,793 |
Reinvestment of distributions | 483 | - | 6,529 | - |
Shares redeemed | (39,378) | (40,422) | (565,586) | (511,148) |
Net increase (decrease) | (18,613) | 91,322 | $ (267,882) | $ 1,181,645 |
11. Reorganization.
The Board of Trustees of the Fund approved an Agreement and Plan of Reorganization (the Agreement) between the Fund and Fidelity Stock Selector All Cap Fund. The Agreement provides for the transfer of all the assets and the assumption of all the liabilities of the Fund in exchange for corresponding shares of Fidelity Stock Selector All Cap Fund equal in value to the net assets of the Fund on the day the reorganization is effective.
The Fund's shareholders approved the reorganization that became effective on June 21, 2013. The reorganization qualified as a tax-free transaction with no gain or loss recognized by the Funds or their shareholders.
Semiannual Report
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on May 14, 2013. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 2 | ||
To approve an Agreement and Plan of Reorganization providing for the transfer of all of the assets of Fidelity Advisor Strategic Growth Fund to Fidelity Stock Selector All Cap Fund in exchange solely for shares of beneficial interest of Fidelity Stock Selector All Cap Fund and the assumption by Fidelity Stock Selector All Cap Fund of Fidelity Advisor Strategic Growth Fund's liabilities, in complete liquidation of Fidelity Advisor Strategic Growth Fund. | ||
| # of | % of |
Affirmative | 19,661,771.15 | 73.412 |
Against | 488,941.02 | 1.826 |
Abstain | 1,807,671.07 | 6.749 |
Broker Non-Votes | 4,824,335.67 | 18.013 |
TOTAL | 26,782,718.91 | 100.000 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
ATQGI-USAN-0713 1.786804.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Strategic Growth
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Proxy Voting Results |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,119.10 | $ 6.60 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.70 | $ 6.29 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,117.20 | $ 7.92 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.45 | $ 7.54 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,114.90 | $ 10.55 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.96 | $ 10.05 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,114.50 | $ 10.54 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.96 | $ 10.05 |
Institutional Class | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.80 | $ 5.29 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.95 | $ 5.04 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 5.1 | 8.1 |
Google, Inc. Class A | 4.7 | 3.0 |
The Coca-Cola Co. | 2.6 | 1.6 |
Gilead Sciences, Inc. | 2.5 | 1.6 |
Oracle Corp. | 2.4 | 2.2 |
Home Depot, Inc. | 2.2 | 2.1 |
Amgen, Inc. | 2.0 | 2.5 |
Microsoft Corp. | 1.8 | 1.7 |
Visa, Inc. Class A | 1.6 | 1.9 |
QUALCOMM, Inc. | 1.6 | 1.9 |
| 26.5 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 27.5 | 30.7 |
Consumer Discretionary | 18.4 | 17.6 |
Health Care | 16.9 | 12.7 |
Consumer Staples | 11.6 | 11.0 |
Industrials | 10.5 | 10.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 99.6% |
| Stocks 96.9% |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 10.3% |
| ** Foreign investments | 7.8% |
|
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 18.4% | |||
Automobiles - 0.3% | |||
Nissan Motor Co. Ltd. | 11,200 | $ 120,948 | |
Tesla Motors, Inc. (a) | 400 | 39,104 | |
| 160,052 | ||
Distributors - 0.8% | |||
LKQ Corp. (a) | 16,629 | 407,078 | |
Diversified Consumer Services - 1.2% | |||
H&R Block, Inc. | 19,672 | 575,799 | |
Hotels, Restaurants & Leisure - 2.6% | |||
Las Vegas Sands Corp. | 1,863 | 107,868 | |
McDonald's Corp. | 3,184 | 307,479 | |
Starbucks Corp. | 8,039 | 507,020 | |
Wyndham Worldwide Corp. | 3,089 | 179,533 | |
Yum! Brands, Inc. | 2,300 | 155,825 | |
| 1,257,725 | ||
Household Durables - 1.3% | |||
Toll Brothers, Inc. (a) | 11,180 | 382,021 | |
Whirlpool Corp. | 2,010 | 256,798 | |
| 638,819 | ||
Internet & Catalog Retail - 2.4% | |||
Amazon.com, Inc. (a) | 2,317 | 623,343 | |
priceline.com, Inc. (a) | 640 | 514,515 | |
| 1,137,858 | ||
Leisure Equipment & Products - 0.4% | |||
Mattel, Inc. | 4,345 | 194,439 | |
Media - 2.0% | |||
CBS Corp. Class B | 6,462 | 319,869 | |
Comcast Corp. Class A | 16,696 | 670,344 | |
| 990,213 | ||
Multiline Retail - 0.5% | |||
Dollar General Corp. (a) | 4,661 | 246,101 | |
Specialty Retail - 4.8% | |||
American Eagle Outfitters, Inc. | 17,246 | 341,298 | |
Dick's Sporting Goods, Inc. | 5,066 | 265,154 | |
Home Depot, Inc. | 13,798 | 1,085,351 | |
Lowe's Companies, Inc. | 3,884 | 163,555 | |
Ross Stores, Inc. | 4,920 | 316,356 | |
Tractor Supply Co. | 1,219 | 136,504 | |
| 2,308,218 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - 2.1% | |||
lululemon athletica, Inc. (a) | 3,682 | $ 286,496 | |
Michael Kors Holdings Ltd. (a) | 3,510 | 220,498 | |
NIKE, Inc. Class B | 5,215 | 321,557 | |
PVH Corp. | 1,500 | 172,785 | |
| 1,001,336 | ||
TOTAL CONSUMER DISCRETIONARY | 8,917,638 | ||
CONSUMER STAPLES - 11.6% | |||
Beverages - 4.1% | |||
Beam, Inc. | 2,217 | 143,750 | |
Monster Beverage Corp. (a) | 4,100 | 223,819 | |
PepsiCo, Inc. | 3,489 | 281,807 | |
Remy Cointreau SA | 800 | 92,729 | |
The Coca-Cola Co. | 31,322 | 1,252,567 | |
| 1,994,672 | ||
Food & Staples Retailing - 2.8% | |||
CVS Caremark Corp. | 10,588 | 609,657 | |
Safeway, Inc. | 7,400 | 170,274 | |
Wal-Mart Stores, Inc. | 4,620 | 345,761 | |
Walgreen Co. | 4,396 | 209,953 | |
| 1,335,645 | ||
Food Products - 1.1% | |||
Bunge Ltd. | 4,153 | 289,049 | |
Mead Johnson Nutrition Co. Class A | 2,763 | 223,996 | |
| 513,045 | ||
Household Products - 0.9% | |||
Procter & Gamble Co. | 5,400 | 414,504 | |
Tobacco - 2.7% | |||
Altria Group, Inc. | 11,585 | 418,219 | |
British American Tobacco PLC (United Kingdom) | 4,411 | 242,379 | |
Japan Tobacco, Inc. | 11,400 | 387,976 | |
Lorillard, Inc. | 6,577 | 279,128 | |
| 1,327,702 | ||
TOTAL CONSUMER STAPLES | 5,585,568 | ||
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - 3.4% | |||
Energy Equipment & Services - 2.4% | |||
Cameron International Corp. (a) | 4,200 | $ 255,654 | |
Ensco PLC Class A | 5,430 | 326,723 | |
Halliburton Co. | 5,800 | 242,730 | |
National Oilwell Varco, Inc. | 1,520 | 106,856 | |
Schlumberger Ltd. | 3,180 | 232,235 | |
| 1,164,198 | ||
Oil, Gas & Consumable Fuels - 1.0% | |||
Noble Energy, Inc. | 3,200 | 184,480 | |
The Williams Companies, Inc. | 8,960 | 315,213 | |
| 499,693 | ||
TOTAL ENERGY | 1,663,891 | ||
FINANCIALS - 7.2% | |||
Capital Markets - 1.1% | |||
The Blackstone Group LP | 17,589 | 385,023 | |
UBS AG (NY Shares) | 7,500 | 131,475 | |
| 516,498 | ||
Commercial Banks - 0.9% | |||
Wells Fargo & Co. | 10,686 | 433,317 | |
Consumer Finance - 1.4% | |||
Capital One Financial Corp. | 4,800 | 292,464 | |
SLM Corp. | 16,989 | 403,319 | |
| 695,783 | ||
Diversified Financial Services - 2.4% | |||
Bank of America Corp. | 36,400 | 497,224 | |
Citigroup, Inc. | 8,641 | 449,246 | |
McGraw-Hill Companies, Inc. | 3,963 | 216,182 | |
| 1,162,652 | ||
Real Estate Investment Trusts - 0.8% | |||
American Tower Corp. | 5,140 | 400,098 | |
Real Estate Management & Development - 0.4% | |||
Hongkong Land Holdings Ltd. | 14,000 | 96,788 | |
The St. Joe Co. (a) | 4,100 | 83,722 | |
| 180,510 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.2% | |||
Nationstar Mortgage Holdings, Inc. (a) | 2,300 | $ 93,633 | |
TOTAL FINANCIALS | 3,482,491 | ||
HEALTH CARE - 16.9% | |||
Biotechnology - 8.0% | |||
Alexion Pharmaceuticals, Inc. (a) | 2,870 | 279,940 | |
Amgen, Inc. | 9,445 | 949,506 | |
Biogen Idec, Inc. (a) | 1,837 | 436,269 | |
BioMarin Pharmaceutical, Inc. (a) | 2,600 | 163,020 | |
Celgene Corp. (a) | 4,255 | 526,131 | |
Gilead Sciences, Inc. (a) | 21,821 | 1,188,808 | |
Regeneron Pharmaceuticals, Inc. (a) | 300 | 72,561 | |
Theravance, Inc. (a) | 7,535 | 264,026 | |
| 3,880,261 | ||
Health Care Equipment & Supplies - 1.7% | |||
Ansell Ltd. | 12,528 | 206,420 | |
Boston Scientific Corp. (a) | 40,995 | 378,794 | |
The Cooper Companies, Inc. | 1,950 | 220,370 | |
| 805,584 | ||
Health Care Providers & Services - 2.2% | |||
Brookdale Senior Living, Inc. (a) | 9,673 | 274,230 | |
Catamaran Corp. (a) | 2,880 | 141,285 | |
Express Scripts Holding Co. (a) | 10,411 | 646,731 | |
| 1,062,246 | ||
Health Care Technology - 0.5% | |||
Cerner Corp. (a) | 2,400 | 235,872 | |
Life Sciences Tools & Services - 0.5% | |||
Illumina, Inc. (a) | 3,566 | 250,761 | |
Pharmaceuticals - 4.0% | |||
AbbVie, Inc. | 11,542 | 492,728 | |
Actavis, Inc. (a) | 2,542 | 313,403 | |
Allergan, Inc. | 2,300 | 228,827 | |
Johnson & Johnson | 2,605 | 219,289 | |
Merck & Co., Inc. | 5,256 | 245,455 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 2,800 | $ 257,624 | |
Warner Chilcott PLC | 9,800 | 188,160 | |
| 1,945,486 | ||
TOTAL HEALTH CARE | 8,180,210 | ||
INDUSTRIALS - 10.5% | |||
Aerospace & Defense - 2.0% | |||
The Boeing Co. | 1,200 | 118,824 | |
TransDigm Group, Inc. | 874 | 127,691 | |
United Technologies Corp. | 7,513 | 712,984 | |
| 959,499 | ||
Air Freight & Logistics - 1.3% | |||
United Parcel Service, Inc. Class B | 7,239 | 621,830 | |
Airlines - 0.4% | |||
Delta Air Lines, Inc. (a) | 9,800 | 176,498 | |
Electrical Equipment - 2.7% | |||
Eaton Corp. PLC | 8,088 | 534,293 | |
Emerson Electric Co. | 6,834 | 392,682 | |
Generac Holdings, Inc. | 9,100 | 368,550 | |
| 1,295,525 | ||
Industrial Conglomerates - 0.4% | |||
General Electric Co. | 8,177 | 190,688 | |
Machinery - 2.0% | |||
Cummins, Inc. | 2,850 | 340,946 | |
Ingersoll-Rand PLC | 6,307 | 362,842 | |
Manitowoc Co., Inc. | 13,278 | 278,971 | |
| 982,759 | ||
Road & Rail - 1.7% | |||
CSX Corp. | 15,836 | 399,226 | |
Hertz Global Holdings, Inc. (a) | 7,964 | 205,710 | |
Union Pacific Corp. | 1,444 | 223,271 | |
| 828,207 | ||
TOTAL INDUSTRIALS | 5,055,006 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 27.5% | |||
Communications Equipment - 2.1% | |||
Cisco Systems, Inc. | 10,600 | $ 255,248 | |
QUALCOMM, Inc. | 12,315 | 781,756 | |
| 1,037,004 | ||
Computers & Peripherals - 6.1% | |||
Apple, Inc. | 5,434 | 2,443,559 | |
EMC Corp. | 19,453 | 481,656 | |
| 2,925,215 | ||
Internet Software & Services - 5.9% | |||
eBay, Inc. (a) | 2,930 | 158,513 | |
Facebook, Inc. Class A | 10,571 | 257,404 | |
Google, Inc. Class A (a) | 2,611 | 2,272,641 | |
LinkedIn Corp. (a) | 900 | 150,777 | |
Trulia, Inc. | 200 | 6,148 | |
| 2,845,483 | ||
IT Services - 5.0% | |||
Accenture PLC Class A | 5,870 | 481,986 | |
Amdocs Ltd. | 6,720 | 239,904 | |
IBM Corp. | 1,747 | 363,411 | |
MasterCard, Inc. Class A | 960 | 547,440 | |
Visa, Inc. Class A | 4,434 | 789,873 | |
| 2,422,614 | ||
Semiconductors & Semiconductor Equipment - 1.3% | |||
Broadcom Corp. Class A | 14,858 | 533,551 | |
NXP Semiconductors NV (a) | 3,500 | 107,975 | |
| 641,526 | ||
Software - 7.1% | |||
Check Point Software Technologies Ltd. (a) | 4,105 | 205,578 | |
Concur Technologies, Inc. (a) | 1,800 | 145,314 | |
Guidewire Software, Inc. (a) | 5,840 | 239,206 | |
Microsoft Corp. | 25,110 | 875,837 | |
Oracle Corp. | 33,484 | 1,130,420 | |
salesforce.com, Inc. (a) | 8,276 | 350,323 | |
Splunk, Inc. (a) | 3,212 | 150,193 | |
Workday, Inc. Class A | 5,113 | 328,408 | |
| 3,425,279 | ||
TOTAL INFORMATION TECHNOLOGY | 13,297,121 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - 3.3% | |||
Chemicals - 2.5% | |||
Eastman Chemical Co. | 4,460 | $ 319,871 | |
FMC Corp. | 2,819 | 176,779 | |
Monsanto Co. | 7,046 | 709,109 | |
| 1,205,759 | ||
Construction Materials - 0.8% | |||
Vulcan Materials Co. | 6,873 | 368,255 | |
TOTAL MATERIALS | 1,574,014 | ||
TELECOMMUNICATION SERVICES - 0.8% | |||
Wireless Telecommunication Services - 0.8% | |||
Vodafone Group PLC sponsored ADR | 13,056 | 377,971 | |
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $41,169,849) | 48,133,910 | ||
NET OTHER ASSETS (LIABILITIES) - 0.4% | 213,866 | ||
NET ASSETS - 100% | $ 48,347,776 |
Legend |
(a) Non-income producing |
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 | $ 656 |
Fidelity Securities Lending Cash Central Fund | 912 |
Total | $ 1,568 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the 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 | $ 8,917,638 | $ 8,796,690 | $ 120,948 | $ - |
Consumer Staples | 5,585,568 | 4,955,213 | 630,355 | - |
Energy | 1,663,891 | 1,663,891 | - | - |
Financials | 3,482,491 | 3,385,703 | 96,788 | - |
Health Care | 8,180,210 | 7,973,790 | 206,420 | - |
Industrials | 5,055,006 | 5,055,006 | - | - |
Information Technology | 13,297,121 | 13,297,121 | - | - |
Materials | 1,574,014 | 1,574,014 | - | - |
Telecommunication Services | 377,971 | 377,971 | - | - |
Total Investments in Securities: | $ 48,133,910 | $ 47,079,399 | $ 1,054,511 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 89.7% |
Ireland | 3.2% |
United Kingdom | 2.0% |
Japan | 1.0% |
Others (Individually Less Than 1%) | 4.1% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $41,169,849) |
| $ 48,133,910 |
Receivable for investments sold | 776,362 | |
Receivable for fund shares sold | 23,140 | |
Dividends receivable | 54,717 | |
Distributions receivable from Fidelity Central Funds | 34 | |
Prepaid expenses | 26 | |
Receivable from investment adviser for expense reductions | 3,237 | |
Other receivables | 790 | |
Total assets | 48,992,216 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 18,540 | |
Payable for investments purchased | 506,539 | |
Payable for fund shares redeemed | 21,697 | |
Accrued management fee | 22,583 | |
Distribution and service plan fees payable | 18,562 | |
Other affiliated payables | 12,761 | |
Other payables and accrued expenses | 43,758 | |
Total liabilities | 644,440 | |
|
|
|
Net Assets | $ 48,347,776 | |
Net Assets consist of: |
| |
Paid in capital | $ 39,591,998 | |
Distributions in excess of net investment income | (63,717) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,855,543 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 6,963,952 | |
Net Assets | $ 48,347,776 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 14.87 | |
|
|
|
Maximum offering price per share (100/94.25 of $14.87) | $ 15.78 | |
Class T: | $ 14.36 | |
|
|
|
Maximum offering price per share (100/96.50 of $14.36) | $ 14.88 | |
Class B: | $ 13.39 | |
|
|
|
Class C: | $ 13.33 | |
|
|
|
Institutional Class: | $ 15.32 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended May 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 364,796 |
Income from Fidelity Central Funds |
| 1,568 |
Total income |
| 366,364 |
|
|
|
Expenses | ||
Management fee | $ 132,061 | |
Performance adjustment | 6,613 | |
Transfer agent fees | 68,622 | |
Distribution and service plan fees | 109,319 | |
Accounting and security lending fees | 9,268 | |
Custodian fees and expenses | 19,178 | |
Independent trustees' compensation | 145 | |
Registration fees | 37,069 | |
Audit | 26,453 | |
Legal | 7,017 | |
Miscellaneous | 14,826 | |
Total expenses before reductions | 430,571 | |
Expense reductions | (87,935) | 342,636 |
Net investment income (loss) | 23,728 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 2,446,998 | |
Foreign currency transactions | 709 | |
Total net realized gain (loss) |
| 2,447,707 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,854,661 | |
Assets and liabilities in foreign currencies | (99) | |
Total change in net unrealized appreciation (depreciation) |
| 2,854,562 |
Net gain (loss) | 5,302,269 | |
Net increase (decrease) in net assets resulting from operations | $ 5,325,997 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 23,728 | $ (12,352) |
Net realized gain (loss) | 2,447,707 | 3,037,247 |
Change in net unrealized appreciation (depreciation) | 2,854,562 | 2,297,156 |
Net increase (decrease) in net assets resulting | 5,325,997 | 5,322,051 |
Distributions to shareholders from net investment income | (87,712) | - |
Share transactions - net increase (decrease) | (3,591,304) | 12,719,897 |
Total increase (decrease) in net assets | 1,646,981 | 18,041,948 |
|
|
|
Net Assets | ||
Beginning of period | 46,700,795 | 28,658,847 |
End of period (including distributions in excess of net investment income of $63,717 and undistributed net investment income of $267, respectively) | $ 48,347,776 | $ 46,700,795 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 13.33 | $ 11.46 | $ 10.73 | $ 9.11 | $ 6.33 | $ 11.54 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .02 | .03 | (.05) | (.03) | .01 | (.02) |
Net realized and unrealized gain (loss) | 1.56 | 1.84 | .78 | 1.65 | 2.77 | (5.19) |
Total from investment operations | 1.58 | 1.87 | .73 | 1.62 | 2.78 | (5.21) |
Distributions from net investment income | (.04) | - | - | - | - | - |
Net asset value, end of period | $ 14.87 | $ 13.33 | $ 11.46 | $ 10.73 | $ 9.11 | $ 6.33 |
Total Return B,C,D | 11.91% | 16.32% | 6.80% | 17.78% | 43.92% | (45.15)% |
Ratios to Average Net Assets F,H | ||||||
Expenses before reductions | 1.61% A | 1.58% | 1.77% | 1.85% | 2.04% | 1.86% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.23% A | 1.24% | 1.24% | 1.25% | 1.24% | 1.25% |
Net investment income (loss) | .31% A | .20% | (.41)% | (.34)% | .08% | (.20)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 25,506 | $ 23,183 | $ 11,109 | $ 7,055 | $ 6,991 | $ 4,113 |
Portfolio turnover rate G | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.86 | $ 11.08 | $ 10.40 | $ 8.85 | $ 6.17 | $ 11.27 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | - I | (.01) | (.07) | (.06) | (.01) | (.04) |
Net realized and unrealized gain (loss) | 1.51 | 1.79 | .75 | 1.61 | 2.69 | (5.06) |
Total from investment operations | 1.51 | 1.78 | .68 | 1.55 | 2.68 | (5.10) |
Distributions from net investment income | (.01) | - | - | - | - | - |
Net asset value, end of period | $ 14.36 | $ 12.86 | $ 11.08 | $ 10.40 | $ 8.85 | $ 6.17 |
Total Return B,C,D | 11.72% | 16.06% | 6.54% | 17.51% | 43.44% | (45.25)% |
Ratios to Average Net Assets F,H | ||||||
Expenses before reductions | 1.88% A | 1.88% | 2.06% | 2.14% | 2.34% | 2.15% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.48% A | 1.49% | 1.49% | 1.50% | 1.49% | 1.50% |
Net investment income (loss) | .06% A | (.05)% | (.66)% | (.59)% | (.17)% | (.45)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 11,806 | $ 11,757 | $ 9,019 | $ 7,501 | $ 6,651 | $ 4,755 |
Portfolio turnover rate G | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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 represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.01 | $ 10.40 | $ 9.82 | $ 8.40 | $ 5.88 | $ 10.80 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.03) | (.06) | (.12) | (.10) | (.05) | (.09) |
Net realized and unrealized gain (loss) | 1.41 | 1.67 | .70 | 1.52 | 2.57 | (4.83) |
Total from investment operations | 1.38 | 1.61 | .58 | 1.42 | 2.52 | (4.92) |
Net asset value, end of period | $ 13.39 | $ 12.01 | $ 10.40 | $ 9.82 | $ 8.40 | $ 5.88 |
Total Return B,C,D | 11.49% | 15.48% | 5.91% | 16.90% | 42.86% | (45.56)% |
Ratios to Average Net Assets F,H | ||||||
Expenses before reductions | 2.36% A | 2.38% | 2.54% | 2.60% | 2.79% | 2.62% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.98% A | 2.00% | 2.00% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | (.44)% A | (.55)% | (1.16)% | (1.09)% | (.67)% | (.95)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 1,300 | $ 1,408 | $ 1,653 | $ 2,099 | $ 2,314 | $ 1,785 |
Portfolio turnover rate G | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 11.96 | $ 10.35 | $ 9.77 | $ 8.35 | $ 5.85 | $ 10.75 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.03) | (.06) | (.12) | (.10) | (.05) | (.09) |
Net realized and unrealized gain (loss) | 1.40 | 1.67 | .70 | 1.52 | 2.55 | (4.81) |
Total from investment operations | 1.37 | 1.61 | .58 | 1.42 | 2.50 | (4.90) |
Net asset value, end of period | $ 13.33 | $ 11.96 | $ 10.35 | $ 9.77 | $ 8.35 | $ 5.85 |
Total Return B,C,D | 11.45% | 15.56% | 5.94% | 17.01% | 42.74% | (45.58)% |
Ratios to Average Net Assets F,H | ||||||
Expenses before reductions | 2.29% A | 2.30% | 2.51% | 2.64% | 2.79% | 2.62% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.98% A | 1.99% | 1.99% | 1.99% | 1.99% | 2.00% |
Net investment income (loss) | (.44)% A | (.55)% | (1.16)% | (1.09)% | (.67)% | (.95)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 8,029 | $ 8,565 | $ 6,422 | $ 2,628 | $ 2,065 | $ 1,492 |
Portfolio turnover rate G | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 13.74 | $ 11.78 | $ 11.01 | $ 9.32 | $ 6.47 | $ 11.75 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .04 | .06 | (.02) | (.01) | .02 | .01 |
Net realized and unrealized gain (loss) | 1.61 | 1.90 | .79 | 1.70 | 2.83 | (5.29) |
Total from investment operations | 1.65 | 1.96 | .77 | 1.69 | 2.85 | (5.28) |
Distributions from net investment income | (.07) | - | - | - | - | - |
Net asset value, end of period | $ 15.32 | $ 13.74 | $ 11.78 | $ 11.01 | $ 9.32 | $ 6.47 |
Total Return B,C | 12.08% | 16.64% | 6.99% | 18.13% | 44.05% | (44.94)% |
Ratios to Average Net Assets E,G | ||||||
Expenses before reductions | 1.31% A | 1.22% | 1.39% | 1.49% | 1.83% | 1.54% |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | .98% A | .99% | .99% | .99% | 1.00% | 1.00% |
Net investment income (loss) | .56% A | .45% | (.16)% | (.09)% | .33% | .05% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 1,706 | $ 1,787 | $ 456 | $ 342 | $ 97 | $ 99 |
Portfolio turnover rate F | 157% A | 174% | 78% | 124% | 147% | 140% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
1. Organization.
Fidelity Advisor® Strategic Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Effective after the close of business on December 14, 2012, the Fund's other share classes were closed to new accounts with certain exceptions. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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, 2013, is included at the end of the Fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. 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 on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. 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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 7,269,312 |
Gross unrealized depreciation | (517,801) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 6,751,511 |
|
|
Tax cost | $ 41,382,399 |
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.
Fiscal year of expiration |
|
2017 | $ (473,695) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $36,546,739 and $38,973,418, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .58% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 30,276 | $ 531 |
Class T | .25% | .25% | 29,058 | 140 |
Class B | .75% | .25% | 6,812 | 5,116 |
Class C | .75% | .25% | 43,173 | 6,196 |
|
|
| $ 109,319 | $ 11,983 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 2,184 |
Class T | 1,635 |
Class B* | 485 |
Class C* | 982 |
| $ 5,286 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. 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 A | $ 35,959 | .30 |
Class T | 18,674 | .32 |
Class B | 2,053 | .30 |
Class C | 9,801 | .23 |
Institutional Class | 2,135 | .25 |
| $ 68,622 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $1,394 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $61 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. 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 $912. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.25% | $ 43,264 |
Class T | 1.50% | 22,193 |
Class B | 2.00% | 2,497 |
Class C | 2.00% | 12,637 |
Institutional Class | 1.00% | 2,674 |
|
| $ 83,265 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $4,664 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 72,893 | $ - |
Class T | 5,419 | - |
Institutional Class | 9,400 | - |
Total | $ 87,712 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 160,386 | 1,164,609 | $ 2,239,779 | $ 14,826,119 |
Reinvestment of distributions | 5,252 | - | 69,069 | - |
Shares redeemed | (189,226) | (394,891) | (2,646,595) | (4,983,157) |
Net increase (decrease) | (23,588) | 769,718 | $ (337,747) | $ 9,842,962 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class T |
|
|
|
|
Shares sold | 59,283 | 251,774 | $ 796,076 | $ 2,982,650 |
Reinvestment of distributions | 418 | - | 5,313 | - |
Shares redeemed | (152,035) | (151,423) | (2,038,898) | (1,839,691) |
Net increase (decrease) | (92,334) | 100,351 | $ (1,237,509) | $ 1,142,959 |
Class B |
|
|
|
|
Shares sold | 1,863 | 5,207 | $ 22,784 | $ 58,908 |
Shares redeemed | (21,973) | (46,873) | (276,765) | (536,274) |
Net increase (decrease) | (20,110) | (41,666) | $ (253,981) | $ (477,366) |
Class C |
|
|
|
|
Shares sold | 47,091 | 390,637 | $ 590,390 | $ 4,316,746 |
Shares redeemed | (161,063) | (294,484) | (2,084,575) | (3,287,049) |
Net increase (decrease) | (113,972) | 96,153 | $ (1,494,185) | $ 1,029,697 |
Institutional Class |
|
|
|
|
Shares sold | 20,282 | 131,744 | $ 291,175 | $ 1,692,793 |
Reinvestment of distributions | 483 | - | 6,529 | - |
Shares redeemed | (39,378) | (40,422) | (565,586) | (511,148) |
Net increase (decrease) | (18,613) | 91,322 | $ (267,882) | $ 1,181,645 |
11. Reorganization.
The Board of Trustees of the Fund approved an Agreement and Plan of Reorganization (the Agreement) between the Fund and Fidelity Stock Selector All Cap Fund. The Agreement provides for the transfer of all the assets and the assumption of all the liabilities of the Fund in exchange for corresponding shares of Fidelity Stock Selector All Cap Fund equal in value to the net assets of the Fund on the day the reorganization is effective.
The Fund's shareholders approved the reorganization that became effective on June 21, 2013. The reorganization qualified as a tax-free transaction with no gain or loss recognized by the Funds or their shareholders.
Semiannual Report
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on May 14, 2013. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 2 | ||
To approve an Agreement and Plan of Reorganization providing for the transfer of all of the assets of Fidelity Advisor Strategic Growth Fund to Fidelity Stock Selector All Cap Fund in exchange solely for shares of beneficial interest of Fidelity Stock Selector All Cap Fund and the assumption by Fidelity Stock Selector All Cap Fund of Fidelity Advisor Strategic Growth Fund's liabilities, in complete liquidation of Fidelity Advisor Strategic Growth Fund. | ||
| # of | % of |
Affirmative | 19,661,771.15 | 73.412 |
Against | 488,941.02 | 1.826 |
Abstain | 1,807,671.07 | 6.749 |
Broker Non-Votes | 4,824,335.67 | 18.013 |
TOTAL | 26,782,718.91 | 100.000 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
ATQG-USAN-0713 1.786803.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Strategies
Fund - Institutional Class
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,174.80 | $ 5.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.75 | $ 5.24 |
Class T | 1.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,173.50 | $ 6.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.80 | $ 6.19 |
Class B | 1.83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,169.70 | $ 9.90 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.81 | $ 9.20 |
Class C | 1.79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,170.00 | $ 9.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.01 | $ 9.00 |
Fidelity Value Strategies Fund | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.60 | $ 3.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.29 | $ 3.68 |
Fidelity Value Strategies Fund Class K | .58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,177.40 | $ 3.15 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.04 | $ 2.92 |
Institutional Class | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.50 | $ 4.07 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.19 | $ 3.78 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
LyondellBasell Industries NV Class A | 6.5 | 6.7 |
Sanofi SA sponsored ADR | 4.0 | 2.9 |
Cott Corp. | 3.8 | 5.5 |
General Motors Co. | 3.4 | 0.5 |
Symantec Corp. | 3.3 | 0.0 |
Bank of America Corp. | 3.1 | 0.0 |
Delphi Automotive PLC | 2.6 | 1.5 |
Apple, Inc. | 2.5 | 0.0 |
The Bon-Ton Stores, Inc. | 2.5 | 1.1 |
AFLAC, Inc. | 2.1 | 2.8 |
| 33.8 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 23.3 | 21.8 |
Health Care | 13.3 | 12.4 |
Information Technology | 12.5 | 7.7 |
Materials | 10.5 | 12.0 |
Financials | 10.2 | 9.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 93.3% |
| Stocks 89.9% |
| ||||
Bonds 0.0% |
| Bonds 0.1% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 19.5% |
| ** Foreign investments | 20.9% |
|
† Amount represents less than 0.1% |
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 23.3% | |||
Auto Components - 3.5% | |||
Delphi Automotive PLC | 794,777 | $ 38,793 | |
Tenneco, Inc. (a) | 171,824 | 7,622 | |
TRW Automotive Holdings Corp. (a) | 91,400 | 5,790 | |
| 52,205 | ||
Automobiles - 3.9% | |||
Bayerische Motoren Werke AG (BMW) | 36,387 | 3,485 | |
General Motors Co. (a) | 1,496,836 | 50,728 | |
Volkswagen AG | 18,856 | 4,045 | |
| 58,258 | ||
Diversified Consumer Services - 0.9% | |||
Service Corp. International | 744,250 | 13,382 | |
Hotels, Restaurants & Leisure - 2.2% | |||
Ameristar Casinos, Inc. | 192,820 | 5,052 | |
Cedar Fair LP (depositary unit) | 231,920 | 9,488 | |
DineEquity, Inc. | 86,934 | 6,293 | |
Wyndham Worldwide Corp. | 203,867 | 11,849 | |
| 32,682 | ||
Household Durables - 3.2% | |||
Lennar Corp. Class A | 212,200 | 8,344 | |
PulteGroup, Inc. (a) | 759,504 | 16,398 | |
Ryland Group, Inc. (d) | 151,400 | 6,855 | |
Standard Pacific Corp. (a)(d) | 1,903,450 | 16,846 | |
| 48,443 | ||
Leisure Equipment & Products - 0.8% | |||
Hasbro, Inc. (d) | 272,197 | 12,107 | |
Media - 1.6% | |||
Omnicom Group, Inc. | 125,512 | 7,798 | |
Regal Entertainment Group Class A (d) | 379,300 | 6,714 | |
Valassis Communications, Inc. | 349,089 | 9,073 | |
| 23,585 | ||
Multiline Retail - 4.3% | |||
Target Corp. | 381,409 | 26,508 | |
The Bon-Ton Stores, Inc. (d)(e) | 1,735,217 | 36,943 | |
| 63,451 | ||
Specialty Retail - 2.9% | |||
Asbury Automotive Group, Inc. (a) | 350,441 | 14,438 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
CST Brands, Inc. (a)(d) | 37,100 | $ 1,127 | |
GameStop Corp. Class A (d) | 829,313 | 27,500 | |
| 43,065 | ||
TOTAL CONSUMER DISCRETIONARY | 347,178 | ||
CONSUMER STAPLES - 6.3% | |||
Beverages - 3.8% | |||
Cott Corp. (d)(e) | 6,920,243 | 56,670 | |
Food & Staples Retailing - 0.9% | |||
CVS Caremark Corp. | 241,700 | 13,917 | |
Food Products - 1.6% | |||
Bunge Ltd. | 54,100 | 3,765 | |
Calavo Growers, Inc. | 232,028 | 6,894 | |
ConAgra Foods, Inc. | 142,700 | 4,808 | |
SunOpta, Inc. (a) | 1,029,085 | 8,070 | |
| 23,537 | ||
TOTAL CONSUMER STAPLES | 94,124 | ||
ENERGY - 5.2% | |||
Energy Equipment & Services - 0.5% | |||
Halliburton Co. | 187,200 | 7,834 | |
Oil, Gas & Consumable Fuels - 4.7% | |||
Alpha Natural Resources, Inc. (a) | 1,350,359 | 9,020 | |
Denbury Resources, Inc. (a) | 1,547,080 | 28,389 | |
HollyFrontier Corp. | 159,900 | 7,915 | |
Marathon Oil Corp. | 159,000 | 5,468 | |
The Williams Companies, Inc. | 154,500 | 5,435 | |
Valero Energy Corp. | 333,900 | 13,566 | |
| 69,793 | ||
TOTAL ENERGY | 77,627 | ||
FINANCIALS - 10.2% | |||
Commercial Banks - 3.6% | |||
Regions Financial Corp. | 812,863 | 7,421 | |
U.S. Bancorp | 879,484 | 30,835 | |
Wells Fargo & Co. | 384,870 | 15,606 | |
| 53,862 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - 3.1% | |||
Bank of America Corp. | 3,422,113 | $ 46,746 | |
Insurance - 3.2% | |||
AFLAC, Inc. | 560,886 | 31,236 | |
American International Group, Inc. (a) | 205,698 | 9,145 | |
Unum Group | 245,860 | 7,002 | |
| 47,383 | ||
Real Estate Investment Trusts - 0.3% | |||
Host Hotels & Resorts, Inc. | 210,800 | 3,750 | |
TOTAL FINANCIALS | 151,741 | ||
HEALTH CARE - 13.3% | |||
Health Care Equipment & Supplies - 4.0% | |||
Alere, Inc. (a) | 308,600 | 7,894 | |
Boston Scientific Corp. (a) | 1,820,900 | 16,825 | |
C.R. Bard, Inc. | 76,900 | 7,928 | |
Covidien PLC | 114,575 | 7,287 | |
St. Jude Medical, Inc. | 472,400 | 20,422 | |
| 60,356 | ||
Health Care Providers & Services - 2.0% | |||
DaVita, Inc. (a) | 80,798 | 10,025 | |
Universal Health Services, Inc. Class B | 284,414 | 19,664 | |
| 29,689 | ||
Life Sciences Tools & Services - 1.0% | |||
Agilent Technologies, Inc. | 184,300 | 8,376 | |
PerkinElmer, Inc. | 211,600 | 6,627 | |
| 15,003 | ||
Pharmaceuticals - 6.3% | |||
Johnson & Johnson | 191,600 | 16,129 | |
Merck & Co., Inc. | 398,700 | 18,619 | |
Sanofi SA sponsored ADR | 1,109,944 | 58,927 | |
| 93,675 | ||
TOTAL HEALTH CARE | 198,723 | ||
INDUSTRIALS - 6.3% | |||
Aerospace & Defense - 2.9% | |||
Alliant Techsystems, Inc. | 177,500 | 13,937 | |
Esterline Technologies Corp. (a) | 101,822 | 7,473 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Honeywell International, Inc. | 142,300 | $ 11,165 | |
Textron, Inc. | 223,717 | 6,031 | |
United Technologies Corp. | 49,700 | 4,717 | |
| 43,323 | ||
Building Products - 0.5% | |||
Armstrong World Industries, Inc. (a) | 77,022 | 4,003 | |
Owens Corning (a) | 73,911 | 3,230 | |
| 7,233 | ||
Electrical Equipment - 0.3% | |||
Regal-Beloit Corp. | 63,554 | 4,291 | |
Industrial Conglomerates - 0.5% | |||
Carlisle Companies, Inc. | 100,460 | 6,571 | |
Machinery - 2.1% | |||
Blount International, Inc. (a) | 292,004 | 3,919 | |
Deere & Co. | 112,300 | 9,782 | |
Ingersoll-Rand PLC | 212,400 | 12,219 | |
Stanley Black & Decker, Inc. | 74,137 | 5,873 | |
| 31,793 | ||
TOTAL INDUSTRIALS | 93,211 | ||
INFORMATION TECHNOLOGY - 12.5% | |||
Communications Equipment - 0.3% | |||
Cisco Systems, Inc. | 215,300 | 5,184 | |
Computers & Peripherals - 2.5% | |||
Apple, Inc. | 82,580 | 37,135 | |
IT Services - 0.8% | |||
Fidelity National Information Services, Inc. | 268,430 | 12,053 | |
Semiconductors & Semiconductor Equipment - 4.4% | |||
Fairchild Semiconductor International, Inc. (a) | 320,000 | 4,643 | |
Intersil Corp. Class A | 345,143 | 2,830 | |
KLA-Tencor Corp. | 174,580 | 9,827 | |
MagnaChip Semiconductor Corp. (a) | 998,200 | 18,467 | |
Micron Technology, Inc. (a) | 929,483 | 10,856 | |
ON Semiconductor Corp. (a) | 1,214,770 | 10,398 | |
Spansion, Inc. Class A (a) | 641,043 | 8,782 | |
| 65,803 | ||
Software - 4.5% | |||
Microsoft Corp. | 438,024 | 15,278 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Nuance Communications, Inc. (a) | 152,500 | $ 2,898 | |
Symantec Corp. | 2,158,771 | 48,335 | |
| 66,511 | ||
TOTAL INFORMATION TECHNOLOGY | 186,686 | ||
MATERIALS - 10.5% | |||
Chemicals - 10.2% | |||
Ashland, Inc. | 86,800 | 7,718 | |
Axiall Corp. | 88,226 | 3,807 | |
Innophos Holdings, Inc. | 153,933 | 7,786 | |
LyondellBasell Industries NV Class A | 1,457,392 | 97,136 | |
PPG Industries, Inc. | 153,705 | 23,611 | |
W.R. Grace & Co. (a) | 136,728 | 11,555 | |
| 151,613 | ||
Metals & Mining - 0.3% | |||
Carpenter Technology Corp. | 86,796 | 4,180 | |
Haynes International, Inc. | 18,860 | 923 | |
| 5,103 | ||
TOTAL MATERIALS | 156,716 | ||
TELECOMMUNICATION SERVICES - 0.8% | |||
Diversified Telecommunication Services - 0.8% | |||
Level 3 Communications, Inc. (a) | 569,139 | 12,197 | |
UTILITIES - 4.9% | |||
Electric Utilities - 1.0% | |||
FirstEnergy Corp. | 241,669 | 9,428 | |
NextEra Energy, Inc. | 71,100 | 5,377 | |
| 14,805 | ||
Independent Power Producers & Energy Traders - 2.5% | |||
Calpine Corp. (a) | 839,263 | 17,045 | |
The AES Corp. | 1,721,200 | 20,999 | |
| 38,044 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Multi-Utilities - 1.4% | |||
Alliant Energy Corp. | 114,800 | $ 5,655 | |
Sempra Energy | 183,139 | 14,889 | |
| 20,544 | ||
TOTAL UTILITIES | 73,393 | ||
TOTAL COMMON STOCKS (Cost $1,033,228) |
| ||
Money Market Funds - 12.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 97,795,927 | 97,796 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 81,521,386 | 81,521 | |
TOTAL MONEY MARKET FUNDS (Cost $179,317) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.3% (Cost $1,212,545) | 1,570,913 | ||
NET OTHER ASSETS (LIABILITIES) - (5.3)% | (78,962) | ||
NET ASSETS - 100% | $ 1,491,951 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 117 |
Fidelity Securities Lending Cash Central Fund | 459 |
Total | $ 576 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Cott Corp. | $ 59,355 | $ - | $ - | $ 688 | $ 56,670 |
The Bon-Ton Stores, Inc. | 11,279 | 14,142 | - | 104 | 36,943 |
Total | $ 70,634 | $ 14,142 | $ - | $ 792 | $ 93,613 |
Other Information |
All investments are categorized as level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 80.5% |
Netherlands | 6.5% |
Canada | 4.3% |
France | 4.0% |
Bailiwick of Jersey | 2.6% |
Ireland | 1.3% |
Others (Individually Less Than 1%) | 0.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $78,228) - See accompanying schedule: Unaffiliated issuers (cost $958,340) | $ 1,297,983 |
|
Fidelity Central Funds (cost $179,317) | 179,317 |
|
Other affiliated issuers (cost $74,888) | 93,613 |
|
Total Investments (cost $1,212,545) |
| $ 1,570,913 |
Receivable for fund shares sold | 1,209 | |
Dividends receivable | 4,442 | |
Interest receivable | 39 | |
Distributions receivable from Fidelity Central Funds | 116 | |
Receivable from investment adviser for expense reductions | 2 | |
Other receivables | 11 | |
Total assets | 1,576,732 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | 2,158 | |
Accrued management fee | 558 | |
Distribution and service plan fees payable | 233 | |
Other affiliated payables | 280 | |
Other payables and accrued expenses | 31 | |
Collateral on securities loaned, at value | 81,521 | |
Total liabilities | 84,781 | |
|
|
|
Net Assets | $ 1,491,951 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,450,980 | |
Undistributed net investment income | 5,882 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (323,274) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 358,363 | |
Net Assets | $ 1,491,951 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 32.36 | |
|
|
|
Maximum offering price per share (100/94.25 of $32.36) | $ 34.33 | |
Class T: | $ 33.52 | |
|
|
|
Maximum offering price per share (100/96.50 of $33.52) | $ 34.74 | |
Class B: | $ 29.64 | |
|
|
|
Class C: | $ 29.32 | |
|
|
|
Fidelity Value Strategies Fund: | $ 36.14 | |
|
|
|
Fidelity Value Strategies Fund Class K: | $ 36.11 | |
|
|
|
Institutional Class: | $ 34.51 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $792 earned from other affiliated issuers) |
| $ 12,820 |
Interest |
| 42 |
Income from Fidelity Central Funds |
| 576 |
Total income |
| 13,438 |
|
|
|
Expenses | ||
Management fee | $ 3,729 | |
Performance adjustment | (572) | |
Transfer agent fees | 1,380 | |
Distribution and service plan fees | 1,330 | |
Accounting and security lending fees | 221 | |
Custodian fees and expenses | 8 | |
Independent trustees' compensation | 4 | |
Registration fees | 122 | |
Audit | 37 | |
Legal | 2 | |
Miscellaneous | 5 | |
Total expenses before reductions | 6,266 | |
Expense reductions | (154) | 6,112 |
Net investment income (loss) | 7,326 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 3,136 | |
Foreign currency transactions | (4) | |
Total net realized gain (loss) |
| 3,132 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 199,997 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) |
| 199,996 |
Net gain (loss) | 203,128 | |
Net increase (decrease) in net assets resulting from operations | $ 210,454 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 7,326 | $ 539 |
Net realized gain (loss) | 3,132 | 42,952 |
Change in net unrealized appreciation (depreciation) | 199,996 | 147,048 |
Net increase (decrease) in net assets resulting | 210,454 | 190,539 |
Distributions to shareholders from net investment income | (3,993) | (4,679) |
Share transactions - net increase (decrease) | 212,762 | (16,561) |
Total increase (decrease) in net assets | 419,223 | 169,299 |
|
|
|
Net Assets | ||
Beginning of period | 1,072,728 | 903,429 |
End of period (including undistributed net investment income of $5,882 and undistributed net investment income of $2,549, respectively) | $ 1,491,951 | $ 1,072,728 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 27.62 | $ 22.71 | $ 23.11 | $ 18.77 | $ 11.87 | $ 30.67 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .15 | - H | .13 I | .03 J | .06 | .10 |
Net realized and unrealized gain (loss) | 4.67 | 5.03 | (.49) | 4.32 | 6.96 | (14.37) |
Total from investment operations | 4.82 | 5.03 | (.36) | 4.35 | 7.02 | (14.27) |
Distributions from net investment income | (.08) | (.12) | (.03) K | - | (.12) | - |
Distributions from net realized gain | - | - | (.01) K | (.01) | - | (4.53) |
Total distributions | (.08) | (.12) | (.04) | (.01) | (.12) | (4.53) |
Net asset value, end of period | $ 32.36 | $ 27.62 | $ 22.71 | $ 23.11 | $ 18.77 | $ 11.87 |
Total Return B, C, D | 17.48% | 22.29% | (1.57)% | 23.16% | 59.70% | (54.45)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.21% | 1.18% | 1.08% | 1.03% | 1.14% |
Expenses net of fee waivers, if any | 1.04% A | 1.21% | 1.18% | 1.08% | 1.03% | 1.14% |
Expenses net of all reductions | 1.02% A | 1.21% | 1.17% | 1.07% | 1.02% | 1.14% |
Net investment income (loss) | .97% A | -% H | .51% I | .12% J | .39% | .45% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 228 | $ 203 | $ 190 | $ 221 | $ 206 | $ 139 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.58 | $ 23.48 | $ 23.90 | $ 19.44 | $ 12.25 | $ 31.48 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .12 | (.05) H | .08 I | (.01) J | .03 | .06 |
Net realized and unrealized gain (loss) | 4.84 | 5.22 | (.50) | 4.48 | 7.21 | (14.84) |
Total from investment operations | 4.96 | 5.17 | (.42) | 4.47 | 7.24 | (14.78) |
Distributions from net investment income | (.02) | (.07) | - | - | (.05) | - |
Distributions from net realized gain | - | - | - | (.01) | - | (4.45) |
Total distributions | (.02) | (.07) | - | (.01) | (.05) | (4.45) |
Net asset value, end of period | $ 33.52 | $ 28.58 | $ 23.48 | $ 23.90 | $ 19.44 | $ 12.25 |
Total Return B, C, D | 17.35% | 22.08% | (1.76)% | 22.98% | 59.40% | (54.56)% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.23% A | 1.38% | 1.35% | 1.26% | 1.24% | 1.33% |
Expenses net of fee waivers, if any | 1.23% A | 1.38% | 1.35% | 1.26% | 1.24% | 1.33% |
Expenses net of all reductions | 1.21% A | 1.38% | 1.35% | 1.25% | 1.22% | 1.32% |
Net investment income (loss) | .79% A | (.17)% H | .33% I | (.06)% J | .18% | .26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 316 | $ 283 | $ 274 | $ 344 | $ 339 | $ 253 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.23)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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|
| |
Net asset value, beginning of period | $ 25.34 | $ 20.87 | $ 21.37 | $ 17.48 | $ 11.03 | $ 28.74 |
Income from Investment |
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| |
Net investment income (loss) E | .03 | (.18) H | (.06) I | (.13) J | (.05) | (.06) |
Net realized and unrealized gain (loss) | 4.27 | 4.65 | (.44) | 4.03 | 6.50 | (13.38) |
Total from investment operations | 4.30 | 4.47 | (.50) | 3.90 | 6.45 | (13.44) |
Distributions from net realized gain | - | - | - | (.01) | - | (4.27) |
Net asset value, end of period | $ 29.64 | $ 25.34 | $ 20.87 | $ 21.37 | $ 17.48 | $ 11.03 |
Total Return B, C, D | 16.97% | 21.42% | (2.34)% | 22.29% | 58.48% | (54.80)% |
Ratios to Average Net Assets F, K |
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|
| |
Expenses before reductions | 1.83% A | 1.97% | 1.93% | 1.83% | 1.78% | 1.90% |
Expenses net of fee waivers, if any | 1.83% A | 1.97% | 1.93% | 1.83% | 1.78% | 1.90% |
Expenses net of all reductions | 1.81% A | 1.97% | 1.93% | 1.82% | 1.77% | 1.89% |
Net investment income (loss) | .19% A | (.76)% H | (.25)% I | (.64)% J | (.36)% | (.31)% |
Supplemental Data |
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|
|
Net assets, end of period (in millions) | $ 12 | $ 13 | $ 16 | $ 30 | $ 40 | $ 47 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.04)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.06 | $ 20.64 | $ 21.13 | $ 17.29 | $ 10.91 | $ 28.51 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .03 | (.17) H | (.05) I | (.12) J | (.05) | (.06) |
Net realized and unrealized gain (loss) | 4.23 | 4.59 | (.44) | 3.97 | 6.43 | (13.24) |
Total from investment operations | 4.26 | 4.42 | (.49) | 3.85 | 6.38 | (13.30) |
Distributions from net realized gain | - | - | - | (.01) | - | (4.30) |
Net asset value, end of period | $ 29.32 | $ 25.06 | $ 20.64 | $ 21.13 | $ 17.29 | $ 10.91 |
Total Return B, C, D | 17.00% | 21.41% | (2.32)% | 22.25% | 58.48% | (54.80)% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.79% A | 1.95% | 1.92% | 1.83% | 1.78% | 1.90% |
Expenses net of fee waivers, if any | 1.79% A | 1.95% | 1.92% | 1.83% | 1.78% | 1.90% |
Expenses net of all reductions | 1.77% A | 1.95% | 1.92% | 1.82% | 1.77% | 1.89% |
Net investment income (loss) | .23% A | (.75)% H | (.24)% I | (.63)% J | (.36)% | (.31)% |
Supplemental Data |
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|
|
|
|
Net assets, end of period (in millions) | $ 52 | $ 43 | $ 40 | $ 49 | $ 43 | $ 32 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.02)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Value Strategies Fund
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 30.89 | $ 25.37 | $ 25.80 | $ 20.89 | $ 13.21 | $ 33.60 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .22 | .09 G | .22 H | .09 I | .11 | .17 |
Net realized and unrealized gain (loss) | 5.21 | 5.62 | (.54) | 4.83 | 7.73 | (15.97) |
Total from investment operations | 5.43 | 5.71 | (.32) | 4.92 | 7.84 | (15.80) |
Distributions from net investment income | (.18) | (.19) | (.10) J | - | (.16) | - |
Distributions from net realized gain | - | - | (.01) J | (.01) | - | (4.59) |
Total distributions | (.18) | (.19) | (.11) | (.01) | (.16) | (4.59) |
Net asset value, end of period | $ 36.14 | $ 30.89 | $ 25.37 | $ 25.80 | $ 20.89 | $ 13.21 |
Total Return B, C | 17.66% | 22.69% | (1.29)% | 23.54% | 60.05% | (54.35)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .73% A | .89% | .88% | .81% | .78% | .89% |
Expenses net of fee waivers, if any | .73% A | .89% | .88% | .81% | .78% | .89% |
Expenses net of all reductions | .71% A | .89% | .88% | .80% | .77% | .88% |
Net investment income (loss) | 1.28% A | .31% G | .80% H | .39% I | .64% | .70% |
Supplemental Data |
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|
|
|
Net assets, end of period (in millions) | $ 655 | $ 396 | $ 284 | $ 360 | $ 237 | $ 122 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been ..04%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Value Strategies Fund Class K
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 J |
Selected Per-Share Data |
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|
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|
| |
Net asset value, beginning of period | $ 30.89 | $ 25.38 | $ 25.82 | $ 20.86 | $ 13.23 | $ 26.92 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .24 | .14 G | .28 H | .15 I | .16 | .12 |
Net realized and unrealized gain (loss) | 5.20 | 5.61 | (.55) | 4.82 | 7.70 | (13.81) |
Total from investment operations | 5.44 | 5.75 | (.27) | 4.97 | 7.86 | (13.69) |
Distributions from net investment income | (.22) | (.24) | (.16) K | - | (.23) | - |
Distributions from net realized gain | - | - | (.01) K | (.01) | - | - |
Total distributions | (.22) | (.24) | (.17) | (.01) | (.23) | - |
Net asset value, end of period | $ 36.11 | $ 30.89 | $ 25.38 | $ 25.82 | $ 20.86 | $ 13.23 |
Total Return B, C | 17.74% | 22.93% | (1.11)% | 23.81% | 60.52% | (50.85)% |
Ratios to Average Net Assets E, L |
|
|
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|
| |
Expenses before reductions | .58% A | .71% | .68% | .58% | .51% | .65% A |
Expenses net of fee waivers, if any | .58% A | .71% | .68% | .58% | .51% | .65% A |
Expenses net of all reductions | .55% A | .71% | .68% | .56% | .49% | .64% A |
Net investment income (loss) | 1.44% A | .50% G | 1.00% H | .62% I | .91% | 1.38% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 163 | $ 70 | $ 47 | $ 47 | $ 27 | $ 5 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%. JFor the period May 9, 2008 (commencement of sale of shares) to November 30, 2008. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 29.51 | $ 24.26 | $ 24.69 | $ 19.97 | $ 12.67 | $ 32.43 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .20 | .08 G | .22 H | .10 I | .11 | .18 |
Net realized and unrealized gain (loss) | 4.98 | 5.37 | (.53) | 4.63 | 7.38 | (15.31) |
Total from investment operations | 5.18 | 5.45 | (.31) | 4.73 | 7.49 | (15.13) |
Distributions from net investment income | (.18) | (.20) | (.11) J | - | (.19) | - |
Distributions from net realized gain | - | - | (.01) J | (.01) | - | (4.63) |
Total distributions | (.18) | (.20) | (.12) | (.01) | (.19) | (4.63) |
Net asset value, end of period | $ 34.51 | $ 29.51 | $ 24.26 | $ 24.69 | $ 19.97 | $ 12.67 |
Total Return B, C | 17.65% | 22.67% | (1.30)% | 23.67% | 60.08% | (54.29)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .75% A | .90% | .86% | .74% | .70% | .80% |
Expenses net of fee waivers, if any | .75% A | .90% | .86% | .74% | .70% | .80% |
Expenses net of all reductions | .73% A | .90% | .86% | .73% | .69% | .79% |
Net investment income (loss) | 1.26% A | .31% G | .82% H | .46% I | .71% | .79% |
Supplemental Data |
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|
|
|
|
|
Net assets, end of period (in millions) | $ 67 | $ 66 | $ 52 | $ 53 | $ 48 | $ 45 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Value Strategies Fund, Fidelity Value Strategies Fund Class K and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses - continued
assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. These differences resulted in distribution reclassifications for the period ended November 30, 2012.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 375,726 |
Gross unrealized depreciation | (21,466) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 354,260 |
|
|
Tax cost | $ 1,216,653 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
Fiscal year of expiration |
|
2016 | $ (135,603) |
2017 | (187,132) |
Total capital loss carryforward | $ (322,735) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $318,655 and $95,669, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 Fidelity Value Strategies Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 273 | $ 1 |
Class T | .25% | .25% | 759 | 3 |
Class B | .75% | .25% | 62 | 47 |
Class C | .75% | .25% | 236 | 12 |
|
|
| $ 1,330 | $ 63 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14 |
Class T | 6 |
Class B* | 6 |
Class C* | 1 |
| $ 27 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of respective classes of the Fund, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 291 | .27 |
Class T | 309 | .20 |
Class B | 18 | .30 |
Class C | 63 | .26 |
Fidelity Value Strategies Fund | 594 | .21 |
Fidelity Value Strategies Fund Class K | 30 | .05 |
Institutional Class | 75 | .23 |
| $ 1,380 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $8 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
7. Security Lending - continued
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. 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 $788. 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 $459, including $45 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $152 for the period.
In addition, FMR reimbursed a portion of Fund's operating expenses during the period in the amount of $2.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 555 | $ 998 |
Class T | 167 | 760 |
Fidelity Value Strategies Fund | 2,356 | 2,061 |
Fidelity Value Strategies Fund Class K | 520 | 448 |
Institutional Class | 395 | 412 |
Total | $ 3,993 | $ 4,679 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 472 | 854 | $ 14,216 | $ 21,748 |
Reinvestment of distributions | 18 | 42 | 513 | 917 |
Shares redeemed | (780) | (1,927) | (23,500) | (48,930) |
Net increase (decrease) | (290) | (1,031) | $ (8,771) | $ (26,265) |
Class T |
|
|
|
|
Shares sold | 517 | 878 | $ 16,104 | $ 23,229 |
Reinvestment of distributions | 5 | 31 | 152 | 697 |
Shares redeemed | (1,004) | (2,697) | (31,379) | (69,951) |
Net increase (decrease) | (482) | (1,788) | $ (15,123) | $ (46,025) |
Class B |
|
|
|
|
Shares sold | 3 | 5 | $ 70 | $ 128 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (104) | (292) | (2,869) | (6,718) |
Net increase (decrease) | (101) | (287) | $ (2,799) | $ (6,590) |
Class C |
|
|
|
|
Shares sold | 228 | 217 | $ 6,251 | $ 5,049 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (191) | (454) | (5,216) | (10,427) |
Net increase (decrease) | 37 | (237) | $ 1,035 | $ (5,378) |
Fidelity Value Strategies Fund |
|
|
|
|
Shares sold | 9,571 | 5,614 | $ 317,123 | $ 163,914 |
Reinvestment of distributions | 73 | 81 | 2,266 | 1,967 |
Shares redeemed | (4,347) | (4,064) | (146,917) | (114,471) |
Net increase (decrease) | 5,297 | 1,631 | $ 172,472 | $ 51,410 |
Fidelity Value Strategies Fund Class K |
|
|
|
|
Shares sold | 2,927 | 1,339 | $ 97,615 | $ 38,174 |
Reinvestment of distributions | 17 | 18 | 520 | 448 |
Shares redeemed | (679) | (943) | (23,218) | (26,603) |
Net increase (decrease) | 2,265 | 414 | $ 74,917 | $ 12,019 |
Institutional Class |
|
|
|
|
Shares sold | 391 | 903 | $ 12,475 | $ 25,700 |
Reinvestment of distributions | 11 | 17 | 327 | 392 |
Shares redeemed | (687) | (822) | (21,771) | (21,824) |
Net increase (decrease) | (285) | 98 | $ (8,969) | $ 4,268 |
Semiannual Report
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
ISO-USAN-0713 1.786806.110
Fidelity® Value Strategies Fund
Class K
(A Class of Fidelity Advisor® Value
Strategies Fund)
(Fidelity Investment logo)(registered trademark)
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,174.80 | $ 5.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.75 | $ 5.24 |
Class T | 1.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,173.50 | $ 6.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.80 | $ 6.19 |
Class B | 1.83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,169.70 | $ 9.90 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.81 | $ 9.20 |
Class C | 1.79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,170.00 | $ 9.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.01 | $ 9.00 |
Fidelity Value Strategies Fund | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.60 | $ 3.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.29 | $ 3.68 |
Fidelity Value Strategies Fund Class K | .58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,177.40 | $ 3.15 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.04 | $ 2.92 |
Institutional Class | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.50 | $ 4.07 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.19 | $ 3.78 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
LyondellBasell Industries NV Class A | 6.5 | 6.7 |
Sanofi SA sponsored ADR | 4.0 | 2.9 |
Cott Corp. | 3.8 | 5.5 |
General Motors Co. | 3.4 | 0.5 |
Symantec Corp. | 3.3 | 0.0 |
Bank of America Corp. | 3.1 | 0.0 |
Delphi Automotive PLC | 2.6 | 1.5 |
Apple, Inc. | 2.5 | 0.0 |
The Bon-Ton Stores, Inc. | 2.5 | 1.1 |
AFLAC, Inc. | 2.1 | 2.8 |
| 33.8 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 23.3 | 21.8 |
Health Care | 13.3 | 12.4 |
Information Technology | 12.5 | 7.7 |
Materials | 10.5 | 12.0 |
Financials | 10.2 | 9.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 93.3% |
| Stocks 89.9% |
| ||||
Bonds 0.0% |
| Bonds 0.1% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 19.5% |
| ** Foreign investments | 20.9% |
|
† Amount represents less than 0.1% |
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 23.3% | |||
Auto Components - 3.5% | |||
Delphi Automotive PLC | 794,777 | $ 38,793 | |
Tenneco, Inc. (a) | 171,824 | 7,622 | |
TRW Automotive Holdings Corp. (a) | 91,400 | 5,790 | |
| 52,205 | ||
Automobiles - 3.9% | |||
Bayerische Motoren Werke AG (BMW) | 36,387 | 3,485 | |
General Motors Co. (a) | 1,496,836 | 50,728 | |
Volkswagen AG | 18,856 | 4,045 | |
| 58,258 | ||
Diversified Consumer Services - 0.9% | |||
Service Corp. International | 744,250 | 13,382 | |
Hotels, Restaurants & Leisure - 2.2% | |||
Ameristar Casinos, Inc. | 192,820 | 5,052 | |
Cedar Fair LP (depositary unit) | 231,920 | 9,488 | |
DineEquity, Inc. | 86,934 | 6,293 | |
Wyndham Worldwide Corp. | 203,867 | 11,849 | |
| 32,682 | ||
Household Durables - 3.2% | |||
Lennar Corp. Class A | 212,200 | 8,344 | |
PulteGroup, Inc. (a) | 759,504 | 16,398 | |
Ryland Group, Inc. (d) | 151,400 | 6,855 | |
Standard Pacific Corp. (a)(d) | 1,903,450 | 16,846 | |
| 48,443 | ||
Leisure Equipment & Products - 0.8% | |||
Hasbro, Inc. (d) | 272,197 | 12,107 | |
Media - 1.6% | |||
Omnicom Group, Inc. | 125,512 | 7,798 | |
Regal Entertainment Group Class A (d) | 379,300 | 6,714 | |
Valassis Communications, Inc. | 349,089 | 9,073 | |
| 23,585 | ||
Multiline Retail - 4.3% | |||
Target Corp. | 381,409 | 26,508 | |
The Bon-Ton Stores, Inc. (d)(e) | 1,735,217 | 36,943 | |
| 63,451 | ||
Specialty Retail - 2.9% | |||
Asbury Automotive Group, Inc. (a) | 350,441 | 14,438 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
CST Brands, Inc. (a)(d) | 37,100 | $ 1,127 | |
GameStop Corp. Class A (d) | 829,313 | 27,500 | |
| 43,065 | ||
TOTAL CONSUMER DISCRETIONARY | 347,178 | ||
CONSUMER STAPLES - 6.3% | |||
Beverages - 3.8% | |||
Cott Corp. (d)(e) | 6,920,243 | 56,670 | |
Food & Staples Retailing - 0.9% | |||
CVS Caremark Corp. | 241,700 | 13,917 | |
Food Products - 1.6% | |||
Bunge Ltd. | 54,100 | 3,765 | |
Calavo Growers, Inc. | 232,028 | 6,894 | |
ConAgra Foods, Inc. | 142,700 | 4,808 | |
SunOpta, Inc. (a) | 1,029,085 | 8,070 | |
| 23,537 | ||
TOTAL CONSUMER STAPLES | 94,124 | ||
ENERGY - 5.2% | |||
Energy Equipment & Services - 0.5% | |||
Halliburton Co. | 187,200 | 7,834 | |
Oil, Gas & Consumable Fuels - 4.7% | |||
Alpha Natural Resources, Inc. (a) | 1,350,359 | 9,020 | |
Denbury Resources, Inc. (a) | 1,547,080 | 28,389 | |
HollyFrontier Corp. | 159,900 | 7,915 | |
Marathon Oil Corp. | 159,000 | 5,468 | |
The Williams Companies, Inc. | 154,500 | 5,435 | |
Valero Energy Corp. | 333,900 | 13,566 | |
| 69,793 | ||
TOTAL ENERGY | 77,627 | ||
FINANCIALS - 10.2% | |||
Commercial Banks - 3.6% | |||
Regions Financial Corp. | 812,863 | 7,421 | |
U.S. Bancorp | 879,484 | 30,835 | |
Wells Fargo & Co. | 384,870 | 15,606 | |
| 53,862 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - 3.1% | |||
Bank of America Corp. | 3,422,113 | $ 46,746 | |
Insurance - 3.2% | |||
AFLAC, Inc. | 560,886 | 31,236 | |
American International Group, Inc. (a) | 205,698 | 9,145 | |
Unum Group | 245,860 | 7,002 | |
| 47,383 | ||
Real Estate Investment Trusts - 0.3% | |||
Host Hotels & Resorts, Inc. | 210,800 | 3,750 | |
TOTAL FINANCIALS | 151,741 | ||
HEALTH CARE - 13.3% | |||
Health Care Equipment & Supplies - 4.0% | |||
Alere, Inc. (a) | 308,600 | 7,894 | |
Boston Scientific Corp. (a) | 1,820,900 | 16,825 | |
C.R. Bard, Inc. | 76,900 | 7,928 | |
Covidien PLC | 114,575 | 7,287 | |
St. Jude Medical, Inc. | 472,400 | 20,422 | |
| 60,356 | ||
Health Care Providers & Services - 2.0% | |||
DaVita, Inc. (a) | 80,798 | 10,025 | |
Universal Health Services, Inc. Class B | 284,414 | 19,664 | |
| 29,689 | ||
Life Sciences Tools & Services - 1.0% | |||
Agilent Technologies, Inc. | 184,300 | 8,376 | |
PerkinElmer, Inc. | 211,600 | 6,627 | |
| 15,003 | ||
Pharmaceuticals - 6.3% | |||
Johnson & Johnson | 191,600 | 16,129 | |
Merck & Co., Inc. | 398,700 | 18,619 | |
Sanofi SA sponsored ADR | 1,109,944 | 58,927 | |
| 93,675 | ||
TOTAL HEALTH CARE | 198,723 | ||
INDUSTRIALS - 6.3% | |||
Aerospace & Defense - 2.9% | |||
Alliant Techsystems, Inc. | 177,500 | 13,937 | |
Esterline Technologies Corp. (a) | 101,822 | 7,473 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Honeywell International, Inc. | 142,300 | $ 11,165 | |
Textron, Inc. | 223,717 | 6,031 | |
United Technologies Corp. | 49,700 | 4,717 | |
| 43,323 | ||
Building Products - 0.5% | |||
Armstrong World Industries, Inc. (a) | 77,022 | 4,003 | |
Owens Corning (a) | 73,911 | 3,230 | |
| 7,233 | ||
Electrical Equipment - 0.3% | |||
Regal-Beloit Corp. | 63,554 | 4,291 | |
Industrial Conglomerates - 0.5% | |||
Carlisle Companies, Inc. | 100,460 | 6,571 | |
Machinery - 2.1% | |||
Blount International, Inc. (a) | 292,004 | 3,919 | |
Deere & Co. | 112,300 | 9,782 | |
Ingersoll-Rand PLC | 212,400 | 12,219 | |
Stanley Black & Decker, Inc. | 74,137 | 5,873 | |
| 31,793 | ||
TOTAL INDUSTRIALS | 93,211 | ||
INFORMATION TECHNOLOGY - 12.5% | |||
Communications Equipment - 0.3% | |||
Cisco Systems, Inc. | 215,300 | 5,184 | |
Computers & Peripherals - 2.5% | |||
Apple, Inc. | 82,580 | 37,135 | |
IT Services - 0.8% | |||
Fidelity National Information Services, Inc. | 268,430 | 12,053 | |
Semiconductors & Semiconductor Equipment - 4.4% | |||
Fairchild Semiconductor International, Inc. (a) | 320,000 | 4,643 | |
Intersil Corp. Class A | 345,143 | 2,830 | |
KLA-Tencor Corp. | 174,580 | 9,827 | |
MagnaChip Semiconductor Corp. (a) | 998,200 | 18,467 | |
Micron Technology, Inc. (a) | 929,483 | 10,856 | |
ON Semiconductor Corp. (a) | 1,214,770 | 10,398 | |
Spansion, Inc. Class A (a) | 641,043 | 8,782 | |
| 65,803 | ||
Software - 4.5% | |||
Microsoft Corp. | 438,024 | 15,278 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Nuance Communications, Inc. (a) | 152,500 | $ 2,898 | |
Symantec Corp. | 2,158,771 | 48,335 | |
| 66,511 | ||
TOTAL INFORMATION TECHNOLOGY | 186,686 | ||
MATERIALS - 10.5% | |||
Chemicals - 10.2% | |||
Ashland, Inc. | 86,800 | 7,718 | |
Axiall Corp. | 88,226 | 3,807 | |
Innophos Holdings, Inc. | 153,933 | 7,786 | |
LyondellBasell Industries NV Class A | 1,457,392 | 97,136 | |
PPG Industries, Inc. | 153,705 | 23,611 | |
W.R. Grace & Co. (a) | 136,728 | 11,555 | |
| 151,613 | ||
Metals & Mining - 0.3% | |||
Carpenter Technology Corp. | 86,796 | 4,180 | |
Haynes International, Inc. | 18,860 | 923 | |
| 5,103 | ||
TOTAL MATERIALS | 156,716 | ||
TELECOMMUNICATION SERVICES - 0.8% | |||
Diversified Telecommunication Services - 0.8% | |||
Level 3 Communications, Inc. (a) | 569,139 | 12,197 | |
UTILITIES - 4.9% | |||
Electric Utilities - 1.0% | |||
FirstEnergy Corp. | 241,669 | 9,428 | |
NextEra Energy, Inc. | 71,100 | 5,377 | |
| 14,805 | ||
Independent Power Producers & Energy Traders - 2.5% | |||
Calpine Corp. (a) | 839,263 | 17,045 | |
The AES Corp. | 1,721,200 | 20,999 | |
| 38,044 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Multi-Utilities - 1.4% | |||
Alliant Energy Corp. | 114,800 | $ 5,655 | |
Sempra Energy | 183,139 | 14,889 | |
| 20,544 | ||
TOTAL UTILITIES | 73,393 | ||
TOTAL COMMON STOCKS (Cost $1,033,228) |
| ||
Money Market Funds - 12.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 97,795,927 | 97,796 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 81,521,386 | 81,521 | |
TOTAL MONEY MARKET FUNDS (Cost $179,317) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.3% (Cost $1,212,545) | 1,570,913 | ||
NET OTHER ASSETS (LIABILITIES) - (5.3)% | (78,962) | ||
NET ASSETS - 100% | $ 1,491,951 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 117 |
Fidelity Securities Lending Cash Central Fund | 459 |
Total | $ 576 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Cott Corp. | $ 59,355 | $ - | $ - | $ 688 | $ 56,670 |
The Bon-Ton Stores, Inc. | 11,279 | 14,142 | - | 104 | 36,943 |
Total | $ 70,634 | $ 14,142 | $ - | $ 792 | $ 93,613 |
Other Information |
All investments are categorized as level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 80.5% |
Netherlands | 6.5% |
Canada | 4.3% |
France | 4.0% |
Bailiwick of Jersey | 2.6% |
Ireland | 1.3% |
Others (Individually Less Than 1%) | 0.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $78,228) - See accompanying schedule: Unaffiliated issuers (cost $958,340) | $ 1,297,983 |
|
Fidelity Central Funds (cost $179,317) | 179,317 |
|
Other affiliated issuers (cost $74,888) | 93,613 |
|
Total Investments (cost $1,212,545) |
| $ 1,570,913 |
Receivable for fund shares sold | 1,209 | |
Dividends receivable | 4,442 | |
Interest receivable | 39 | |
Distributions receivable from Fidelity Central Funds | 116 | |
Receivable from investment adviser for expense reductions | 2 | |
Other receivables | 11 | |
Total assets | 1,576,732 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | 2,158 | |
Accrued management fee | 558 | |
Distribution and service plan fees payable | 233 | |
Other affiliated payables | 280 | |
Other payables and accrued expenses | 31 | |
Collateral on securities loaned, at value | 81,521 | |
Total liabilities | 84,781 | |
|
|
|
Net Assets | $ 1,491,951 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,450,980 | |
Undistributed net investment income | 5,882 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (323,274) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 358,363 | |
Net Assets | $ 1,491,951 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 32.36 | |
|
|
|
Maximum offering price per share (100/94.25 of $32.36) | $ 34.33 | |
Class T: | $ 33.52 | |
|
|
|
Maximum offering price per share (100/96.50 of $33.52) | $ 34.74 | |
Class B: | $ 29.64 | |
|
|
|
Class C: | $ 29.32 | |
|
|
|
Fidelity Value Strategies Fund: | $ 36.14 | |
|
|
|
Fidelity Value Strategies Fund Class K: | $ 36.11 | |
|
|
|
Institutional Class: | $ 34.51 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $792 earned from other affiliated issuers) |
| $ 12,820 |
Interest |
| 42 |
Income from Fidelity Central Funds |
| 576 |
Total income |
| 13,438 |
|
|
|
Expenses | ||
Management fee | $ 3,729 | |
Performance adjustment | (572) | |
Transfer agent fees | 1,380 | |
Distribution and service plan fees | 1,330 | |
Accounting and security lending fees | 221 | |
Custodian fees and expenses | 8 | |
Independent trustees' compensation | 4 | |
Registration fees | 122 | |
Audit | 37 | |
Legal | 2 | |
Miscellaneous | 5 | |
Total expenses before reductions | 6,266 | |
Expense reductions | (154) | 6,112 |
Net investment income (loss) | 7,326 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 3,136 | |
Foreign currency transactions | (4) | |
Total net realized gain (loss) |
| 3,132 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 199,997 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) |
| 199,996 |
Net gain (loss) | 203,128 | |
Net increase (decrease) in net assets resulting from operations | $ 210,454 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 7,326 | $ 539 |
Net realized gain (loss) | 3,132 | 42,952 |
Change in net unrealized appreciation (depreciation) | 199,996 | 147,048 |
Net increase (decrease) in net assets resulting | 210,454 | 190,539 |
Distributions to shareholders from net investment income | (3,993) | (4,679) |
Share transactions - net increase (decrease) | 212,762 | (16,561) |
Total increase (decrease) in net assets | 419,223 | 169,299 |
|
|
|
Net Assets | ||
Beginning of period | 1,072,728 | 903,429 |
End of period (including undistributed net investment income of $5,882 and undistributed net investment income of $2,549, respectively) | $ 1,491,951 | $ 1,072,728 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 27.62 | $ 22.71 | $ 23.11 | $ 18.77 | $ 11.87 | $ 30.67 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .15 | - H | .13 I | .03 J | .06 | .10 |
Net realized and unrealized gain (loss) | 4.67 | 5.03 | (.49) | 4.32 | 6.96 | (14.37) |
Total from investment operations | 4.82 | 5.03 | (.36) | 4.35 | 7.02 | (14.27) |
Distributions from net investment income | (.08) | (.12) | (.03) K | - | (.12) | - |
Distributions from net realized gain | - | - | (.01) K | (.01) | - | (4.53) |
Total distributions | (.08) | (.12) | (.04) | (.01) | (.12) | (4.53) |
Net asset value, end of period | $ 32.36 | $ 27.62 | $ 22.71 | $ 23.11 | $ 18.77 | $ 11.87 |
Total Return B, C, D | 17.48% | 22.29% | (1.57)% | 23.16% | 59.70% | (54.45)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.21% | 1.18% | 1.08% | 1.03% | 1.14% |
Expenses net of fee waivers, if any | 1.04% A | 1.21% | 1.18% | 1.08% | 1.03% | 1.14% |
Expenses net of all reductions | 1.02% A | 1.21% | 1.17% | 1.07% | 1.02% | 1.14% |
Net investment income (loss) | .97% A | -% H | .51% I | .12% J | .39% | .45% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 228 | $ 203 | $ 190 | $ 221 | $ 206 | $ 139 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.58 | $ 23.48 | $ 23.90 | $ 19.44 | $ 12.25 | $ 31.48 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .12 | (.05) H | .08 I | (.01) J | .03 | .06 |
Net realized and unrealized gain (loss) | 4.84 | 5.22 | (.50) | 4.48 | 7.21 | (14.84) |
Total from investment operations | 4.96 | 5.17 | (.42) | 4.47 | 7.24 | (14.78) |
Distributions from net investment income | (.02) | (.07) | - | - | (.05) | - |
Distributions from net realized gain | - | - | - | (.01) | - | (4.45) |
Total distributions | (.02) | (.07) | - | (.01) | (.05) | (4.45) |
Net asset value, end of period | $ 33.52 | $ 28.58 | $ 23.48 | $ 23.90 | $ 19.44 | $ 12.25 |
Total Return B, C, D | 17.35% | 22.08% | (1.76)% | 22.98% | 59.40% | (54.56)% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.23% A | 1.38% | 1.35% | 1.26% | 1.24% | 1.33% |
Expenses net of fee waivers, if any | 1.23% A | 1.38% | 1.35% | 1.26% | 1.24% | 1.33% |
Expenses net of all reductions | 1.21% A | 1.38% | 1.35% | 1.25% | 1.22% | 1.32% |
Net investment income (loss) | .79% A | (.17)% H | .33% I | (.06)% J | .18% | .26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 316 | $ 283 | $ 274 | $ 344 | $ 339 | $ 253 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.23)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.34 | $ 20.87 | $ 21.37 | $ 17.48 | $ 11.03 | $ 28.74 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .03 | (.18) H | (.06) I | (.13) J | (.05) | (.06) |
Net realized and unrealized gain (loss) | 4.27 | 4.65 | (.44) | 4.03 | 6.50 | (13.38) |
Total from investment operations | 4.30 | 4.47 | (.50) | 3.90 | 6.45 | (13.44) |
Distributions from net realized gain | - | - | - | (.01) | - | (4.27) |
Net asset value, end of period | $ 29.64 | $ 25.34 | $ 20.87 | $ 21.37 | $ 17.48 | $ 11.03 |
Total Return B, C, D | 16.97% | 21.42% | (2.34)% | 22.29% | 58.48% | (54.80)% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.83% A | 1.97% | 1.93% | 1.83% | 1.78% | 1.90% |
Expenses net of fee waivers, if any | 1.83% A | 1.97% | 1.93% | 1.83% | 1.78% | 1.90% |
Expenses net of all reductions | 1.81% A | 1.97% | 1.93% | 1.82% | 1.77% | 1.89% |
Net investment income (loss) | .19% A | (.76)% H | (.25)% I | (.64)% J | (.36)% | (.31)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 12 | $ 13 | $ 16 | $ 30 | $ 40 | $ 47 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.04)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.06 | $ 20.64 | $ 21.13 | $ 17.29 | $ 10.91 | $ 28.51 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .03 | (.17) H | (.05) I | (.12) J | (.05) | (.06) |
Net realized and unrealized gain (loss) | 4.23 | 4.59 | (.44) | 3.97 | 6.43 | (13.24) |
Total from investment operations | 4.26 | 4.42 | (.49) | 3.85 | 6.38 | (13.30) |
Distributions from net realized gain | - | - | - | (.01) | - | (4.30) |
Net asset value, end of period | $ 29.32 | $ 25.06 | $ 20.64 | $ 21.13 | $ 17.29 | $ 10.91 |
Total Return B, C, D | 17.00% | 21.41% | (2.32)% | 22.25% | 58.48% | (54.80)% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.79% A | 1.95% | 1.92% | 1.83% | 1.78% | 1.90% |
Expenses net of fee waivers, if any | 1.79% A | 1.95% | 1.92% | 1.83% | 1.78% | 1.90% |
Expenses net of all reductions | 1.77% A | 1.95% | 1.92% | 1.82% | 1.77% | 1.89% |
Net investment income (loss) | .23% A | (.75)% H | (.24)% I | (.63)% J | (.36)% | (.31)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 52 | $ 43 | $ 40 | $ 49 | $ 43 | $ 32 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.02)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Value Strategies Fund
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 30.89 | $ 25.37 | $ 25.80 | $ 20.89 | $ 13.21 | $ 33.60 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .22 | .09 G | .22 H | .09 I | .11 | .17 |
Net realized and unrealized gain (loss) | 5.21 | 5.62 | (.54) | 4.83 | 7.73 | (15.97) |
Total from investment operations | 5.43 | 5.71 | (.32) | 4.92 | 7.84 | (15.80) |
Distributions from net investment income | (.18) | (.19) | (.10) J | - | (.16) | - |
Distributions from net realized gain | - | - | (.01) J | (.01) | - | (4.59) |
Total distributions | (.18) | (.19) | (.11) | (.01) | (.16) | (4.59) |
Net asset value, end of period | $ 36.14 | $ 30.89 | $ 25.37 | $ 25.80 | $ 20.89 | $ 13.21 |
Total Return B, C | 17.66% | 22.69% | (1.29)% | 23.54% | 60.05% | (54.35)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .73% A | .89% | .88% | .81% | .78% | .89% |
Expenses net of fee waivers, if any | .73% A | .89% | .88% | .81% | .78% | .89% |
Expenses net of all reductions | .71% A | .89% | .88% | .80% | .77% | .88% |
Net investment income (loss) | 1.28% A | .31% G | .80% H | .39% I | .64% | .70% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 655 | $ 396 | $ 284 | $ 360 | $ 237 | $ 122 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been ..04%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Value Strategies Fund Class K
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 J |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 30.89 | $ 25.38 | $ 25.82 | $ 20.86 | $ 13.23 | $ 26.92 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .24 | .14 G | .28 H | .15 I | .16 | .12 |
Net realized and unrealized gain (loss) | 5.20 | 5.61 | (.55) | 4.82 | 7.70 | (13.81) |
Total from investment operations | 5.44 | 5.75 | (.27) | 4.97 | 7.86 | (13.69) |
Distributions from net investment income | (.22) | (.24) | (.16) K | - | (.23) | - |
Distributions from net realized gain | - | - | (.01) K | (.01) | - | - |
Total distributions | (.22) | (.24) | (.17) | (.01) | (.23) | - |
Net asset value, end of period | $ 36.11 | $ 30.89 | $ 25.38 | $ 25.82 | $ 20.86 | $ 13.23 |
Total Return B, C | 17.74% | 22.93% | (1.11)% | 23.81% | 60.52% | (50.85)% |
Ratios to Average Net Assets E, L |
|
|
|
|
| |
Expenses before reductions | .58% A | .71% | .68% | .58% | .51% | .65% A |
Expenses net of fee waivers, if any | .58% A | .71% | .68% | .58% | .51% | .65% A |
Expenses net of all reductions | .55% A | .71% | .68% | .56% | .49% | .64% A |
Net investment income (loss) | 1.44% A | .50% G | 1.00% H | .62% I | .91% | 1.38% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 163 | $ 70 | $ 47 | $ 47 | $ 27 | $ 5 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%. JFor the period May 9, 2008 (commencement of sale of shares) to November 30, 2008. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 29.51 | $ 24.26 | $ 24.69 | $ 19.97 | $ 12.67 | $ 32.43 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .20 | .08 G | .22 H | .10 I | .11 | .18 |
Net realized and unrealized gain (loss) | 4.98 | 5.37 | (.53) | 4.63 | 7.38 | (15.31) |
Total from investment operations | 5.18 | 5.45 | (.31) | 4.73 | 7.49 | (15.13) |
Distributions from net investment income | (.18) | (.20) | (.11) J | - | (.19) | - |
Distributions from net realized gain | - | - | (.01) J | (.01) | - | (4.63) |
Total distributions | (.18) | (.20) | (.12) | (.01) | (.19) | (4.63) |
Net asset value, end of period | $ 34.51 | $ 29.51 | $ 24.26 | $ 24.69 | $ 19.97 | $ 12.67 |
Total Return B, C | 17.65% | 22.67% | (1.30)% | 23.67% | 60.08% | (54.29)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .75% A | .90% | .86% | .74% | .70% | .80% |
Expenses net of fee waivers, if any | .75% A | .90% | .86% | .74% | .70% | .80% |
Expenses net of all reductions | .73% A | .90% | .86% | .73% | .69% | .79% |
Net investment income (loss) | 1.26% A | .31% G | .82% H | .46% I | .71% | .79% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 67 | $ 66 | $ 52 | $ 53 | $ 48 | $ 45 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Value Strategies Fund, Fidelity Value Strategies Fund Class K and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses - continued
assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. These differences resulted in distribution reclassifications for the period ended November 30, 2012.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 375,726 |
Gross unrealized depreciation | (21,466) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 354,260 |
|
|
Tax cost | $ 1,216,653 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
Fiscal year of expiration |
|
2016 | $ (135,603) |
2017 | (187,132) |
Total capital loss carryforward | $ (322,735) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $318,655 and $95,669, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 Fidelity Value Strategies Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 273 | $ 1 |
Class T | .25% | .25% | 759 | 3 |
Class B | .75% | .25% | 62 | 47 |
Class C | .75% | .25% | 236 | 12 |
|
|
| $ 1,330 | $ 63 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14 |
Class T | 6 |
Class B* | 6 |
Class C* | 1 |
| $ 27 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of respective classes of the Fund, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 291 | .27 |
Class T | 309 | .20 |
Class B | 18 | .30 |
Class C | 63 | .26 |
Fidelity Value Strategies Fund | 594 | .21 |
Fidelity Value Strategies Fund Class K | 30 | .05 |
Institutional Class | 75 | .23 |
| $ 1,380 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $8 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
7. Security Lending - continued
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. 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 $788. 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 $459, including $45 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $152 for the period.
In addition, FMR reimbursed a portion of Fund's operating expenses during the period in the amount of $2.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 555 | $ 998 |
Class T | 167 | 760 |
Fidelity Value Strategies Fund | 2,356 | 2,061 |
Fidelity Value Strategies Fund Class K | 520 | 448 |
Institutional Class | 395 | 412 |
Total | $ 3,993 | $ 4,679 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 472 | 854 | $ 14,216 | $ 21,748 |
Reinvestment of distributions | 18 | 42 | 513 | 917 |
Shares redeemed | (780) | (1,927) | (23,500) | (48,930) |
Net increase (decrease) | (290) | (1,031) | $ (8,771) | $ (26,265) |
Class T |
|
|
|
|
Shares sold | 517 | 878 | $ 16,104 | $ 23,229 |
Reinvestment of distributions | 5 | 31 | 152 | 697 |
Shares redeemed | (1,004) | (2,697) | (31,379) | (69,951) |
Net increase (decrease) | (482) | (1,788) | $ (15,123) | $ (46,025) |
Class B |
|
|
|
|
Shares sold | 3 | 5 | $ 70 | $ 128 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (104) | (292) | (2,869) | (6,718) |
Net increase (decrease) | (101) | (287) | $ (2,799) | $ (6,590) |
Class C |
|
|
|
|
Shares sold | 228 | 217 | $ 6,251 | $ 5,049 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (191) | (454) | (5,216) | (10,427) |
Net increase (decrease) | 37 | (237) | $ 1,035 | $ (5,378) |
Fidelity Value Strategies Fund |
|
|
|
|
Shares sold | 9,571 | 5,614 | $ 317,123 | $ 163,914 |
Reinvestment of distributions | 73 | 81 | 2,266 | 1,967 |
Shares redeemed | (4,347) | (4,064) | (146,917) | (114,471) |
Net increase (decrease) | 5,297 | 1,631 | $ 172,472 | $ 51,410 |
Fidelity Value Strategies Fund Class K |
|
|
|
|
Shares sold | 2,927 | 1,339 | $ 97,615 | $ 38,174 |
Reinvestment of distributions | 17 | 18 | 520 | 448 |
Shares redeemed | (679) | (943) | (23,218) | (26,603) |
Net increase (decrease) | 2,265 | 414 | $ 74,917 | $ 12,019 |
Institutional Class |
|
|
|
|
Shares sold | 391 | 903 | $ 12,475 | $ 25,700 |
Reinvestment of distributions | 11 | 17 | 327 | 392 |
Shares redeemed | (687) | (822) | (21,771) | (21,824) |
Net increase (decrease) | (285) | 98 | $ (8,969) | $ 4,268 |
Semiannual Report
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
SOI-K-USAN-0713 1.863338.104
(Fidelity Investment logo)(registered trademark)
Fidelity® Value Strategies Fund
(A Class of Fidelity Advisor® Value
Strategies Fund)
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,174.80 | $ 5.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.75 | $ 5.24 |
Class T | 1.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,173.50 | $ 6.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.80 | $ 6.19 |
Class B | 1.83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,169.70 | $ 9.90 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.81 | $ 9.20 |
Class C | 1.79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,170.00 | $ 9.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.01 | $ 9.00 |
Fidelity Value Strategies Fund | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.60 | $ 3.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.29 | $ 3.68 |
Fidelity Value Strategies Fund Class K | .58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,177.40 | $ 3.15 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.04 | $ 2.92 |
Institutional Class | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.50 | $ 4.07 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.19 | $ 3.78 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
LyondellBasell Industries NV Class A | 6.5 | 6.7 |
Sanofi SA sponsored ADR | 4.0 | 2.9 |
Cott Corp. | 3.8 | 5.5 |
General Motors Co. | 3.4 | 0.5 |
Symantec Corp. | 3.3 | 0.0 |
Bank of America Corp. | 3.1 | 0.0 |
Delphi Automotive PLC | 2.6 | 1.5 |
Apple, Inc. | 2.5 | 0.0 |
The Bon-Ton Stores, Inc. | 2.5 | 1.1 |
AFLAC, Inc. | 2.1 | 2.8 |
| 33.8 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 23.3 | 21.8 |
Health Care | 13.3 | 12.4 |
Information Technology | 12.5 | 7.7 |
Materials | 10.5 | 12.0 |
Financials | 10.2 | 9.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 93.3% |
| Stocks 89.9% |
| ||||
Bonds 0.0% |
| Bonds 0.1% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 19.5% |
| ** Foreign investments | 20.9% |
|
† Amount represents less than 0.1% |
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 23.3% | |||
Auto Components - 3.5% | |||
Delphi Automotive PLC | 794,777 | $ 38,793 | |
Tenneco, Inc. (a) | 171,824 | 7,622 | |
TRW Automotive Holdings Corp. (a) | 91,400 | 5,790 | |
| 52,205 | ||
Automobiles - 3.9% | |||
Bayerische Motoren Werke AG (BMW) | 36,387 | 3,485 | |
General Motors Co. (a) | 1,496,836 | 50,728 | |
Volkswagen AG | 18,856 | 4,045 | |
| 58,258 | ||
Diversified Consumer Services - 0.9% | |||
Service Corp. International | 744,250 | 13,382 | |
Hotels, Restaurants & Leisure - 2.2% | |||
Ameristar Casinos, Inc. | 192,820 | 5,052 | |
Cedar Fair LP (depositary unit) | 231,920 | 9,488 | |
DineEquity, Inc. | 86,934 | 6,293 | |
Wyndham Worldwide Corp. | 203,867 | 11,849 | |
| 32,682 | ||
Household Durables - 3.2% | |||
Lennar Corp. Class A | 212,200 | 8,344 | |
PulteGroup, Inc. (a) | 759,504 | 16,398 | |
Ryland Group, Inc. (d) | 151,400 | 6,855 | |
Standard Pacific Corp. (a)(d) | 1,903,450 | 16,846 | |
| 48,443 | ||
Leisure Equipment & Products - 0.8% | |||
Hasbro, Inc. (d) | 272,197 | 12,107 | |
Media - 1.6% | |||
Omnicom Group, Inc. | 125,512 | 7,798 | |
Regal Entertainment Group Class A (d) | 379,300 | 6,714 | |
Valassis Communications, Inc. | 349,089 | 9,073 | |
| 23,585 | ||
Multiline Retail - 4.3% | |||
Target Corp. | 381,409 | 26,508 | |
The Bon-Ton Stores, Inc. (d)(e) | 1,735,217 | 36,943 | |
| 63,451 | ||
Specialty Retail - 2.9% | |||
Asbury Automotive Group, Inc. (a) | 350,441 | 14,438 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
CST Brands, Inc. (a)(d) | 37,100 | $ 1,127 | |
GameStop Corp. Class A (d) | 829,313 | 27,500 | |
| 43,065 | ||
TOTAL CONSUMER DISCRETIONARY | 347,178 | ||
CONSUMER STAPLES - 6.3% | |||
Beverages - 3.8% | |||
Cott Corp. (d)(e) | 6,920,243 | 56,670 | |
Food & Staples Retailing - 0.9% | |||
CVS Caremark Corp. | 241,700 | 13,917 | |
Food Products - 1.6% | |||
Bunge Ltd. | 54,100 | 3,765 | |
Calavo Growers, Inc. | 232,028 | 6,894 | |
ConAgra Foods, Inc. | 142,700 | 4,808 | |
SunOpta, Inc. (a) | 1,029,085 | 8,070 | |
| 23,537 | ||
TOTAL CONSUMER STAPLES | 94,124 | ||
ENERGY - 5.2% | |||
Energy Equipment & Services - 0.5% | |||
Halliburton Co. | 187,200 | 7,834 | |
Oil, Gas & Consumable Fuels - 4.7% | |||
Alpha Natural Resources, Inc. (a) | 1,350,359 | 9,020 | |
Denbury Resources, Inc. (a) | 1,547,080 | 28,389 | |
HollyFrontier Corp. | 159,900 | 7,915 | |
Marathon Oil Corp. | 159,000 | 5,468 | |
The Williams Companies, Inc. | 154,500 | 5,435 | |
Valero Energy Corp. | 333,900 | 13,566 | |
| 69,793 | ||
TOTAL ENERGY | 77,627 | ||
FINANCIALS - 10.2% | |||
Commercial Banks - 3.6% | |||
Regions Financial Corp. | 812,863 | 7,421 | |
U.S. Bancorp | 879,484 | 30,835 | |
Wells Fargo & Co. | 384,870 | 15,606 | |
| 53,862 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - 3.1% | |||
Bank of America Corp. | 3,422,113 | $ 46,746 | |
Insurance - 3.2% | |||
AFLAC, Inc. | 560,886 | 31,236 | |
American International Group, Inc. (a) | 205,698 | 9,145 | |
Unum Group | 245,860 | 7,002 | |
| 47,383 | ||
Real Estate Investment Trusts - 0.3% | |||
Host Hotels & Resorts, Inc. | 210,800 | 3,750 | |
TOTAL FINANCIALS | 151,741 | ||
HEALTH CARE - 13.3% | |||
Health Care Equipment & Supplies - 4.0% | |||
Alere, Inc. (a) | 308,600 | 7,894 | |
Boston Scientific Corp. (a) | 1,820,900 | 16,825 | |
C.R. Bard, Inc. | 76,900 | 7,928 | |
Covidien PLC | 114,575 | 7,287 | |
St. Jude Medical, Inc. | 472,400 | 20,422 | |
| 60,356 | ||
Health Care Providers & Services - 2.0% | |||
DaVita, Inc. (a) | 80,798 | 10,025 | |
Universal Health Services, Inc. Class B | 284,414 | 19,664 | |
| 29,689 | ||
Life Sciences Tools & Services - 1.0% | |||
Agilent Technologies, Inc. | 184,300 | 8,376 | |
PerkinElmer, Inc. | 211,600 | 6,627 | |
| 15,003 | ||
Pharmaceuticals - 6.3% | |||
Johnson & Johnson | 191,600 | 16,129 | |
Merck & Co., Inc. | 398,700 | 18,619 | |
Sanofi SA sponsored ADR | 1,109,944 | 58,927 | |
| 93,675 | ||
TOTAL HEALTH CARE | 198,723 | ||
INDUSTRIALS - 6.3% | |||
Aerospace & Defense - 2.9% | |||
Alliant Techsystems, Inc. | 177,500 | 13,937 | |
Esterline Technologies Corp. (a) | 101,822 | 7,473 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Honeywell International, Inc. | 142,300 | $ 11,165 | |
Textron, Inc. | 223,717 | 6,031 | |
United Technologies Corp. | 49,700 | 4,717 | |
| 43,323 | ||
Building Products - 0.5% | |||
Armstrong World Industries, Inc. (a) | 77,022 | 4,003 | |
Owens Corning (a) | 73,911 | 3,230 | |
| 7,233 | ||
Electrical Equipment - 0.3% | |||
Regal-Beloit Corp. | 63,554 | 4,291 | |
Industrial Conglomerates - 0.5% | |||
Carlisle Companies, Inc. | 100,460 | 6,571 | |
Machinery - 2.1% | |||
Blount International, Inc. (a) | 292,004 | 3,919 | |
Deere & Co. | 112,300 | 9,782 | |
Ingersoll-Rand PLC | 212,400 | 12,219 | |
Stanley Black & Decker, Inc. | 74,137 | 5,873 | |
| 31,793 | ||
TOTAL INDUSTRIALS | 93,211 | ||
INFORMATION TECHNOLOGY - 12.5% | |||
Communications Equipment - 0.3% | |||
Cisco Systems, Inc. | 215,300 | 5,184 | |
Computers & Peripherals - 2.5% | |||
Apple, Inc. | 82,580 | 37,135 | |
IT Services - 0.8% | |||
Fidelity National Information Services, Inc. | 268,430 | 12,053 | |
Semiconductors & Semiconductor Equipment - 4.4% | |||
Fairchild Semiconductor International, Inc. (a) | 320,000 | 4,643 | |
Intersil Corp. Class A | 345,143 | 2,830 | |
KLA-Tencor Corp. | 174,580 | 9,827 | |
MagnaChip Semiconductor Corp. (a) | 998,200 | 18,467 | |
Micron Technology, Inc. (a) | 929,483 | 10,856 | |
ON Semiconductor Corp. (a) | 1,214,770 | 10,398 | |
Spansion, Inc. Class A (a) | 641,043 | 8,782 | |
| 65,803 | ||
Software - 4.5% | |||
Microsoft Corp. | 438,024 | 15,278 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Nuance Communications, Inc. (a) | 152,500 | $ 2,898 | |
Symantec Corp. | 2,158,771 | 48,335 | |
| 66,511 | ||
TOTAL INFORMATION TECHNOLOGY | 186,686 | ||
MATERIALS - 10.5% | |||
Chemicals - 10.2% | |||
Ashland, Inc. | 86,800 | 7,718 | |
Axiall Corp. | 88,226 | 3,807 | |
Innophos Holdings, Inc. | 153,933 | 7,786 | |
LyondellBasell Industries NV Class A | 1,457,392 | 97,136 | |
PPG Industries, Inc. | 153,705 | 23,611 | |
W.R. Grace & Co. (a) | 136,728 | 11,555 | |
| 151,613 | ||
Metals & Mining - 0.3% | |||
Carpenter Technology Corp. | 86,796 | 4,180 | |
Haynes International, Inc. | 18,860 | 923 | |
| 5,103 | ||
TOTAL MATERIALS | 156,716 | ||
TELECOMMUNICATION SERVICES - 0.8% | |||
Diversified Telecommunication Services - 0.8% | |||
Level 3 Communications, Inc. (a) | 569,139 | 12,197 | |
UTILITIES - 4.9% | |||
Electric Utilities - 1.0% | |||
FirstEnergy Corp. | 241,669 | 9,428 | |
NextEra Energy, Inc. | 71,100 | 5,377 | |
| 14,805 | ||
Independent Power Producers & Energy Traders - 2.5% | |||
Calpine Corp. (a) | 839,263 | 17,045 | |
The AES Corp. | 1,721,200 | 20,999 | |
| 38,044 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Multi-Utilities - 1.4% | |||
Alliant Energy Corp. | 114,800 | $ 5,655 | |
Sempra Energy | 183,139 | 14,889 | |
| 20,544 | ||
TOTAL UTILITIES | 73,393 | ||
TOTAL COMMON STOCKS (Cost $1,033,228) |
| ||
Money Market Funds - 12.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 97,795,927 | 97,796 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 81,521,386 | 81,521 | |
TOTAL MONEY MARKET FUNDS (Cost $179,317) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.3% (Cost $1,212,545) | 1,570,913 | ||
NET OTHER ASSETS (LIABILITIES) - (5.3)% | (78,962) | ||
NET ASSETS - 100% | $ 1,491,951 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 117 |
Fidelity Securities Lending Cash Central Fund | 459 |
Total | $ 576 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Cott Corp. | $ 59,355 | $ - | $ - | $ 688 | $ 56,670 |
The Bon-Ton Stores, Inc. | 11,279 | 14,142 | - | 104 | 36,943 |
Total | $ 70,634 | $ 14,142 | $ - | $ 792 | $ 93,613 |
Other Information |
All investments are categorized as level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 80.5% |
Netherlands | 6.5% |
Canada | 4.3% |
France | 4.0% |
Bailiwick of Jersey | 2.6% |
Ireland | 1.3% |
Others (Individually Less Than 1%) | 0.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $78,228) - See accompanying schedule: Unaffiliated issuers (cost $958,340) | $ 1,297,983 |
|
Fidelity Central Funds (cost $179,317) | 179,317 |
|
Other affiliated issuers (cost $74,888) | 93,613 |
|
Total Investments (cost $1,212,545) |
| $ 1,570,913 |
Receivable for fund shares sold | 1,209 | |
Dividends receivable | 4,442 | |
Interest receivable | 39 | |
Distributions receivable from Fidelity Central Funds | 116 | |
Receivable from investment adviser for expense reductions | 2 | |
Other receivables | 11 | |
Total assets | 1,576,732 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | 2,158 | |
Accrued management fee | 558 | |
Distribution and service plan fees payable | 233 | |
Other affiliated payables | 280 | |
Other payables and accrued expenses | 31 | |
Collateral on securities loaned, at value | 81,521 | |
Total liabilities | 84,781 | |
|
|
|
Net Assets | $ 1,491,951 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,450,980 | |
Undistributed net investment income | 5,882 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (323,274) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 358,363 | |
Net Assets | $ 1,491,951 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 32.36 | |
|
|
|
Maximum offering price per share (100/94.25 of $32.36) | $ 34.33 | |
Class T: | $ 33.52 | |
|
|
|
Maximum offering price per share (100/96.50 of $33.52) | $ 34.74 | |
Class B: | $ 29.64 | |
|
|
|
Class C: | $ 29.32 | |
|
|
|
Fidelity Value Strategies Fund: | $ 36.14 | |
|
|
|
Fidelity Value Strategies Fund Class K: | $ 36.11 | |
|
|
|
Institutional Class: | $ 34.51 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $792 earned from other affiliated issuers) |
| $ 12,820 |
Interest |
| 42 |
Income from Fidelity Central Funds |
| 576 |
Total income |
| 13,438 |
|
|
|
Expenses | ||
Management fee | $ 3,729 | |
Performance adjustment | (572) | |
Transfer agent fees | 1,380 | |
Distribution and service plan fees | 1,330 | |
Accounting and security lending fees | 221 | |
Custodian fees and expenses | 8 | |
Independent trustees' compensation | 4 | |
Registration fees | 122 | |
Audit | 37 | |
Legal | 2 | |
Miscellaneous | 5 | |
Total expenses before reductions | 6,266 | |
Expense reductions | (154) | 6,112 |
Net investment income (loss) | 7,326 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 3,136 | |
Foreign currency transactions | (4) | |
Total net realized gain (loss) |
| 3,132 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 199,997 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) |
| 199,996 |
Net gain (loss) | 203,128 | |
Net increase (decrease) in net assets resulting from operations | $ 210,454 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 7,326 | $ 539 |
Net realized gain (loss) | 3,132 | 42,952 |
Change in net unrealized appreciation (depreciation) | 199,996 | 147,048 |
Net increase (decrease) in net assets resulting | 210,454 | 190,539 |
Distributions to shareholders from net investment income | (3,993) | (4,679) |
Share transactions - net increase (decrease) | 212,762 | (16,561) |
Total increase (decrease) in net assets | 419,223 | 169,299 |
|
|
|
Net Assets | ||
Beginning of period | 1,072,728 | 903,429 |
End of period (including undistributed net investment income of $5,882 and undistributed net investment income of $2,549, respectively) | $ 1,491,951 | $ 1,072,728 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 27.62 | $ 22.71 | $ 23.11 | $ 18.77 | $ 11.87 | $ 30.67 |
Income from Investment |
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Net investment income (loss) E | .15 | - H | .13 I | .03 J | .06 | .10 |
Net realized and unrealized gain (loss) | 4.67 | 5.03 | (.49) | 4.32 | 6.96 | (14.37) |
Total from investment operations | 4.82 | 5.03 | (.36) | 4.35 | 7.02 | (14.27) |
Distributions from net investment income | (.08) | (.12) | (.03) K | - | (.12) | - |
Distributions from net realized gain | - | - | (.01) K | (.01) | - | (4.53) |
Total distributions | (.08) | (.12) | (.04) | (.01) | (.12) | (4.53) |
Net asset value, end of period | $ 32.36 | $ 27.62 | $ 22.71 | $ 23.11 | $ 18.77 | $ 11.87 |
Total Return B, C, D | 17.48% | 22.29% | (1.57)% | 23.16% | 59.70% | (54.45)% |
Ratios to Average Net Assets F, L |
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Expenses before reductions | 1.04% A | 1.21% | 1.18% | 1.08% | 1.03% | 1.14% |
Expenses net of fee waivers, if any | 1.04% A | 1.21% | 1.18% | 1.08% | 1.03% | 1.14% |
Expenses net of all reductions | 1.02% A | 1.21% | 1.17% | 1.07% | 1.02% | 1.14% |
Net investment income (loss) | .97% A | -% H | .51% I | .12% J | .39% | .45% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 228 | $ 203 | $ 190 | $ 221 | $ 206 | $ 139 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 28.58 | $ 23.48 | $ 23.90 | $ 19.44 | $ 12.25 | $ 31.48 |
Income from Investment |
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Net investment income (loss) E | .12 | (.05) H | .08 I | (.01) J | .03 | .06 |
Net realized and unrealized gain (loss) | 4.84 | 5.22 | (.50) | 4.48 | 7.21 | (14.84) |
Total from investment operations | 4.96 | 5.17 | (.42) | 4.47 | 7.24 | (14.78) |
Distributions from net investment income | (.02) | (.07) | - | - | (.05) | - |
Distributions from net realized gain | - | - | - | (.01) | - | (4.45) |
Total distributions | (.02) | (.07) | - | (.01) | (.05) | (4.45) |
Net asset value, end of period | $ 33.52 | $ 28.58 | $ 23.48 | $ 23.90 | $ 19.44 | $ 12.25 |
Total Return B, C, D | 17.35% | 22.08% | (1.76)% | 22.98% | 59.40% | (54.56)% |
Ratios to Average Net Assets F, K |
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Expenses before reductions | 1.23% A | 1.38% | 1.35% | 1.26% | 1.24% | 1.33% |
Expenses net of fee waivers, if any | 1.23% A | 1.38% | 1.35% | 1.26% | 1.24% | 1.33% |
Expenses net of all reductions | 1.21% A | 1.38% | 1.35% | 1.25% | 1.22% | 1.32% |
Net investment income (loss) | .79% A | (.17)% H | .33% I | (.06)% J | .18% | .26% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 316 | $ 283 | $ 274 | $ 344 | $ 339 | $ 253 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.23)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 25.34 | $ 20.87 | $ 21.37 | $ 17.48 | $ 11.03 | $ 28.74 |
Income from Investment |
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Net investment income (loss) E | .03 | (.18) H | (.06) I | (.13) J | (.05) | (.06) |
Net realized and unrealized gain (loss) | 4.27 | 4.65 | (.44) | 4.03 | 6.50 | (13.38) |
Total from investment operations | 4.30 | 4.47 | (.50) | 3.90 | 6.45 | (13.44) |
Distributions from net realized gain | - | - | - | (.01) | - | (4.27) |
Net asset value, end of period | $ 29.64 | $ 25.34 | $ 20.87 | $ 21.37 | $ 17.48 | $ 11.03 |
Total Return B, C, D | 16.97% | 21.42% | (2.34)% | 22.29% | 58.48% | (54.80)% |
Ratios to Average Net Assets F, K |
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Expenses before reductions | 1.83% A | 1.97% | 1.93% | 1.83% | 1.78% | 1.90% |
Expenses net of fee waivers, if any | 1.83% A | 1.97% | 1.93% | 1.83% | 1.78% | 1.90% |
Expenses net of all reductions | 1.81% A | 1.97% | 1.93% | 1.82% | 1.77% | 1.89% |
Net investment income (loss) | .19% A | (.76)% H | (.25)% I | (.64)% J | (.36)% | (.31)% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 12 | $ 13 | $ 16 | $ 30 | $ 40 | $ 47 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.04)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 25.06 | $ 20.64 | $ 21.13 | $ 17.29 | $ 10.91 | $ 28.51 |
Income from Investment |
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Net investment income (loss) E | .03 | (.17) H | (.05) I | (.12) J | (.05) | (.06) |
Net realized and unrealized gain (loss) | 4.23 | 4.59 | (.44) | 3.97 | 6.43 | (13.24) |
Total from investment operations | 4.26 | 4.42 | (.49) | 3.85 | 6.38 | (13.30) |
Distributions from net realized gain | - | - | - | (.01) | - | (4.30) |
Net asset value, end of period | $ 29.32 | $ 25.06 | $ 20.64 | $ 21.13 | $ 17.29 | $ 10.91 |
Total Return B, C, D | 17.00% | 21.41% | (2.32)% | 22.25% | 58.48% | (54.80)% |
Ratios to Average Net Assets F, K |
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Expenses before reductions | 1.79% A | 1.95% | 1.92% | 1.83% | 1.78% | 1.90% |
Expenses net of fee waivers, if any | 1.79% A | 1.95% | 1.92% | 1.83% | 1.78% | 1.90% |
Expenses net of all reductions | 1.77% A | 1.95% | 1.92% | 1.82% | 1.77% | 1.89% |
Net investment income (loss) | .23% A | (.75)% H | (.24)% I | (.63)% J | (.36)% | (.31)% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 52 | $ 43 | $ 40 | $ 49 | $ 43 | $ 32 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.02)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Value Strategies Fund
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 30.89 | $ 25.37 | $ 25.80 | $ 20.89 | $ 13.21 | $ 33.60 |
Income from Investment |
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Net investment income (loss) D | .22 | .09 G | .22 H | .09 I | .11 | .17 |
Net realized and unrealized gain (loss) | 5.21 | 5.62 | (.54) | 4.83 | 7.73 | (15.97) |
Total from investment operations | 5.43 | 5.71 | (.32) | 4.92 | 7.84 | (15.80) |
Distributions from net investment income | (.18) | (.19) | (.10) J | - | (.16) | - |
Distributions from net realized gain | - | - | (.01) J | (.01) | - | (4.59) |
Total distributions | (.18) | (.19) | (.11) | (.01) | (.16) | (4.59) |
Net asset value, end of period | $ 36.14 | $ 30.89 | $ 25.37 | $ 25.80 | $ 20.89 | $ 13.21 |
Total Return B, C | 17.66% | 22.69% | (1.29)% | 23.54% | 60.05% | (54.35)% |
Ratios to Average Net Assets E, K |
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Expenses before reductions | .73% A | .89% | .88% | .81% | .78% | .89% |
Expenses net of fee waivers, if any | .73% A | .89% | .88% | .81% | .78% | .89% |
Expenses net of all reductions | .71% A | .89% | .88% | .80% | .77% | .88% |
Net investment income (loss) | 1.28% A | .31% G | .80% H | .39% I | .64% | .70% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 655 | $ 396 | $ 284 | $ 360 | $ 237 | $ 122 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been ..04%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Value Strategies Fund Class K
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 J |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 30.89 | $ 25.38 | $ 25.82 | $ 20.86 | $ 13.23 | $ 26.92 |
Income from Investment |
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Net investment income (loss) D | .24 | .14 G | .28 H | .15 I | .16 | .12 |
Net realized and unrealized gain (loss) | 5.20 | 5.61 | (.55) | 4.82 | 7.70 | (13.81) |
Total from investment operations | 5.44 | 5.75 | (.27) | 4.97 | 7.86 | (13.69) |
Distributions from net investment income | (.22) | (.24) | (.16) K | - | (.23) | - |
Distributions from net realized gain | - | - | (.01) K | (.01) | - | - |
Total distributions | (.22) | (.24) | (.17) | (.01) | (.23) | - |
Net asset value, end of period | $ 36.11 | $ 30.89 | $ 25.38 | $ 25.82 | $ 20.86 | $ 13.23 |
Total Return B, C | 17.74% | 22.93% | (1.11)% | 23.81% | 60.52% | (50.85)% |
Ratios to Average Net Assets E, L |
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Expenses before reductions | .58% A | .71% | .68% | .58% | .51% | .65% A |
Expenses net of fee waivers, if any | .58% A | .71% | .68% | .58% | .51% | .65% A |
Expenses net of all reductions | .55% A | .71% | .68% | .56% | .49% | .64% A |
Net investment income (loss) | 1.44% A | .50% G | 1.00% H | .62% I | .91% | 1.38% A |
Supplemental Data |
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Net assets, end of period (in millions) | $ 163 | $ 70 | $ 47 | $ 47 | $ 27 | $ 5 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%. JFor the period May 9, 2008 (commencement of sale of shares) to November 30, 2008. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 29.51 | $ 24.26 | $ 24.69 | $ 19.97 | $ 12.67 | $ 32.43 |
Income from Investment |
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Net investment income (loss) D | .20 | .08 G | .22 H | .10 I | .11 | .18 |
Net realized and unrealized gain (loss) | 4.98 | 5.37 | (.53) | 4.63 | 7.38 | (15.31) |
Total from investment operations | 5.18 | 5.45 | (.31) | 4.73 | 7.49 | (15.13) |
Distributions from net investment income | (.18) | (.20) | (.11) J | - | (.19) | - |
Distributions from net realized gain | - | - | (.01) J | (.01) | - | (4.63) |
Total distributions | (.18) | (.20) | (.12) | (.01) | (.19) | (4.63) |
Net asset value, end of period | $ 34.51 | $ 29.51 | $ 24.26 | $ 24.69 | $ 19.97 | $ 12.67 |
Total Return B, C | 17.65% | 22.67% | (1.30)% | 23.67% | 60.08% | (54.29)% |
Ratios to Average Net Assets E, K |
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Expenses before reductions | .75% A | .90% | .86% | .74% | .70% | .80% |
Expenses net of fee waivers, if any | .75% A | .90% | .86% | .74% | .70% | .80% |
Expenses net of all reductions | .73% A | .90% | .86% | .73% | .69% | .79% |
Net investment income (loss) | 1.26% A | .31% G | .82% H | .46% I | .71% | .79% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 67 | $ 66 | $ 52 | $ 53 | $ 48 | $ 45 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Value Strategies Fund, Fidelity Value Strategies Fund Class K and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses - continued
assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. These differences resulted in distribution reclassifications for the period ended November 30, 2012.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 375,726 |
Gross unrealized depreciation | (21,466) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 354,260 |
|
|
Tax cost | $ 1,216,653 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
Fiscal year of expiration |
|
2016 | $ (135,603) |
2017 | (187,132) |
Total capital loss carryforward | $ (322,735) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $318,655 and $95,669, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 Fidelity Value Strategies Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 273 | $ 1 |
Class T | .25% | .25% | 759 | 3 |
Class B | .75% | .25% | 62 | 47 |
Class C | .75% | .25% | 236 | 12 |
|
|
| $ 1,330 | $ 63 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14 |
Class T | 6 |
Class B* | 6 |
Class C* | 1 |
| $ 27 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of respective classes of the Fund, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 291 | .27 |
Class T | 309 | .20 |
Class B | 18 | .30 |
Class C | 63 | .26 |
Fidelity Value Strategies Fund | 594 | .21 |
Fidelity Value Strategies Fund Class K | 30 | .05 |
Institutional Class | 75 | .23 |
| $ 1,380 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $8 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
7. Security Lending - continued
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. 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 $788. 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 $459, including $45 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $152 for the period.
In addition, FMR reimbursed a portion of Fund's operating expenses during the period in the amount of $2.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 555 | $ 998 |
Class T | 167 | 760 |
Fidelity Value Strategies Fund | 2,356 | 2,061 |
Fidelity Value Strategies Fund Class K | 520 | 448 |
Institutional Class | 395 | 412 |
Total | $ 3,993 | $ 4,679 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 472 | 854 | $ 14,216 | $ 21,748 |
Reinvestment of distributions | 18 | 42 | 513 | 917 |
Shares redeemed | (780) | (1,927) | (23,500) | (48,930) |
Net increase (decrease) | (290) | (1,031) | $ (8,771) | $ (26,265) |
Class T |
|
|
|
|
Shares sold | 517 | 878 | $ 16,104 | $ 23,229 |
Reinvestment of distributions | 5 | 31 | 152 | 697 |
Shares redeemed | (1,004) | (2,697) | (31,379) | (69,951) |
Net increase (decrease) | (482) | (1,788) | $ (15,123) | $ (46,025) |
Class B |
|
|
|
|
Shares sold | 3 | 5 | $ 70 | $ 128 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (104) | (292) | (2,869) | (6,718) |
Net increase (decrease) | (101) | (287) | $ (2,799) | $ (6,590) |
Class C |
|
|
|
|
Shares sold | 228 | 217 | $ 6,251 | $ 5,049 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (191) | (454) | (5,216) | (10,427) |
Net increase (decrease) | 37 | (237) | $ 1,035 | $ (5,378) |
Fidelity Value Strategies Fund |
|
|
|
|
Shares sold | 9,571 | 5,614 | $ 317,123 | $ 163,914 |
Reinvestment of distributions | 73 | 81 | 2,266 | 1,967 |
Shares redeemed | (4,347) | (4,064) | (146,917) | (114,471) |
Net increase (decrease) | 5,297 | 1,631 | $ 172,472 | $ 51,410 |
Fidelity Value Strategies Fund Class K |
|
|
|
|
Shares sold | 2,927 | 1,339 | $ 97,615 | $ 38,174 |
Reinvestment of distributions | 17 | 18 | 520 | 448 |
Shares redeemed | (679) | (943) | (23,218) | (26,603) |
Net increase (decrease) | 2,265 | 414 | $ 74,917 | $ 12,019 |
Institutional Class |
|
|
|
|
Shares sold | 391 | 903 | $ 12,475 | $ 25,700 |
Reinvestment of distributions | 11 | 17 | 327 | 392 |
Shares redeemed | (687) | (822) | (21,771) | (21,824) |
Net increase (decrease) | (285) | 98 | $ (8,969) | $ 4,268 |
Semiannual Report
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions and
Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
SOI-USAN-0713 1.786807.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Strategies
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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, 2012 to May 31, 2013).
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,174.80 | $ 5.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.75 | $ 5.24 |
Class T | 1.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,173.50 | $ 6.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.80 | $ 6.19 |
Class B | 1.83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,169.70 | $ 9.90 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.81 | $ 9.20 |
Class C | 1.79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,170.00 | $ 9.68 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.01 | $ 9.00 |
Fidelity Value Strategies Fund | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.60 | $ 3.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.29 | $ 3.68 |
Fidelity Value Strategies Fund Class K | .58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,177.40 | $ 3.15 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.04 | $ 2.92 |
Institutional Class | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,176.50 | $ 4.07 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.19 | $ 3.78 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
LyondellBasell Industries NV Class A | 6.5 | 6.7 |
Sanofi SA sponsored ADR | 4.0 | 2.9 |
Cott Corp. | 3.8 | 5.5 |
General Motors Co. | 3.4 | 0.5 |
Symantec Corp. | 3.3 | 0.0 |
Bank of America Corp. | 3.1 | 0.0 |
Delphi Automotive PLC | 2.6 | 1.5 |
Apple, Inc. | 2.5 | 0.0 |
The Bon-Ton Stores, Inc. | 2.5 | 1.1 |
AFLAC, Inc. | 2.1 | 2.8 |
| 33.8 | |
Top Five Market Sectors as of May 31, 2013 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 23.3 | 21.8 |
Health Care | 13.3 | 12.4 |
Information Technology | 12.5 | 7.7 |
Materials | 10.5 | 12.0 |
Financials | 10.2 | 9.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2013* | As of November 30, 2012** | ||||||
Stocks 93.3% |
| Stocks 89.9% |
| ||||
Bonds 0.0% |
| Bonds 0.1% |
| ||||
Convertible |
| Convertible |
| ||||
Short-Term |
| Short-Term |
| ||||
* Foreign investments | 19.5% |
| ** Foreign investments | 20.9% |
|
† Amount represents less than 0.1% |
Semiannual Report
Investments May 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 23.3% | |||
Auto Components - 3.5% | |||
Delphi Automotive PLC | 794,777 | $ 38,793 | |
Tenneco, Inc. (a) | 171,824 | 7,622 | |
TRW Automotive Holdings Corp. (a) | 91,400 | 5,790 | |
| 52,205 | ||
Automobiles - 3.9% | |||
Bayerische Motoren Werke AG (BMW) | 36,387 | 3,485 | |
General Motors Co. (a) | 1,496,836 | 50,728 | |
Volkswagen AG | 18,856 | 4,045 | |
| 58,258 | ||
Diversified Consumer Services - 0.9% | |||
Service Corp. International | 744,250 | 13,382 | |
Hotels, Restaurants & Leisure - 2.2% | |||
Ameristar Casinos, Inc. | 192,820 | 5,052 | |
Cedar Fair LP (depositary unit) | 231,920 | 9,488 | |
DineEquity, Inc. | 86,934 | 6,293 | |
Wyndham Worldwide Corp. | 203,867 | 11,849 | |
| 32,682 | ||
Household Durables - 3.2% | |||
Lennar Corp. Class A | 212,200 | 8,344 | |
PulteGroup, Inc. (a) | 759,504 | 16,398 | |
Ryland Group, Inc. (d) | 151,400 | 6,855 | |
Standard Pacific Corp. (a)(d) | 1,903,450 | 16,846 | |
| 48,443 | ||
Leisure Equipment & Products - 0.8% | |||
Hasbro, Inc. (d) | 272,197 | 12,107 | |
Media - 1.6% | |||
Omnicom Group, Inc. | 125,512 | 7,798 | |
Regal Entertainment Group Class A (d) | 379,300 | 6,714 | |
Valassis Communications, Inc. | 349,089 | 9,073 | |
| 23,585 | ||
Multiline Retail - 4.3% | |||
Target Corp. | 381,409 | 26,508 | |
The Bon-Ton Stores, Inc. (d)(e) | 1,735,217 | 36,943 | |
| 63,451 | ||
Specialty Retail - 2.9% | |||
Asbury Automotive Group, Inc. (a) | 350,441 | 14,438 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
CST Brands, Inc. (a)(d) | 37,100 | $ 1,127 | |
GameStop Corp. Class A (d) | 829,313 | 27,500 | |
| 43,065 | ||
TOTAL CONSUMER DISCRETIONARY | 347,178 | ||
CONSUMER STAPLES - 6.3% | |||
Beverages - 3.8% | |||
Cott Corp. (d)(e) | 6,920,243 | 56,670 | |
Food & Staples Retailing - 0.9% | |||
CVS Caremark Corp. | 241,700 | 13,917 | |
Food Products - 1.6% | |||
Bunge Ltd. | 54,100 | 3,765 | |
Calavo Growers, Inc. | 232,028 | 6,894 | |
ConAgra Foods, Inc. | 142,700 | 4,808 | |
SunOpta, Inc. (a) | 1,029,085 | 8,070 | |
| 23,537 | ||
TOTAL CONSUMER STAPLES | 94,124 | ||
ENERGY - 5.2% | |||
Energy Equipment & Services - 0.5% | |||
Halliburton Co. | 187,200 | 7,834 | |
Oil, Gas & Consumable Fuels - 4.7% | |||
Alpha Natural Resources, Inc. (a) | 1,350,359 | 9,020 | |
Denbury Resources, Inc. (a) | 1,547,080 | 28,389 | |
HollyFrontier Corp. | 159,900 | 7,915 | |
Marathon Oil Corp. | 159,000 | 5,468 | |
The Williams Companies, Inc. | 154,500 | 5,435 | |
Valero Energy Corp. | 333,900 | 13,566 | |
| 69,793 | ||
TOTAL ENERGY | 77,627 | ||
FINANCIALS - 10.2% | |||
Commercial Banks - 3.6% | |||
Regions Financial Corp. | 812,863 | 7,421 | |
U.S. Bancorp | 879,484 | 30,835 | |
Wells Fargo & Co. | 384,870 | 15,606 | |
| 53,862 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - 3.1% | |||
Bank of America Corp. | 3,422,113 | $ 46,746 | |
Insurance - 3.2% | |||
AFLAC, Inc. | 560,886 | 31,236 | |
American International Group, Inc. (a) | 205,698 | 9,145 | |
Unum Group | 245,860 | 7,002 | |
| 47,383 | ||
Real Estate Investment Trusts - 0.3% | |||
Host Hotels & Resorts, Inc. | 210,800 | 3,750 | |
TOTAL FINANCIALS | 151,741 | ||
HEALTH CARE - 13.3% | |||
Health Care Equipment & Supplies - 4.0% | |||
Alere, Inc. (a) | 308,600 | 7,894 | |
Boston Scientific Corp. (a) | 1,820,900 | 16,825 | |
C.R. Bard, Inc. | 76,900 | 7,928 | |
Covidien PLC | 114,575 | 7,287 | |
St. Jude Medical, Inc. | 472,400 | 20,422 | |
| 60,356 | ||
Health Care Providers & Services - 2.0% | |||
DaVita, Inc. (a) | 80,798 | 10,025 | |
Universal Health Services, Inc. Class B | 284,414 | 19,664 | |
| 29,689 | ||
Life Sciences Tools & Services - 1.0% | |||
Agilent Technologies, Inc. | 184,300 | 8,376 | |
PerkinElmer, Inc. | 211,600 | 6,627 | |
| 15,003 | ||
Pharmaceuticals - 6.3% | |||
Johnson & Johnson | 191,600 | 16,129 | |
Merck & Co., Inc. | 398,700 | 18,619 | |
Sanofi SA sponsored ADR | 1,109,944 | 58,927 | |
| 93,675 | ||
TOTAL HEALTH CARE | 198,723 | ||
INDUSTRIALS - 6.3% | |||
Aerospace & Defense - 2.9% | |||
Alliant Techsystems, Inc. | 177,500 | 13,937 | |
Esterline Technologies Corp. (a) | 101,822 | 7,473 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Honeywell International, Inc. | 142,300 | $ 11,165 | |
Textron, Inc. | 223,717 | 6,031 | |
United Technologies Corp. | 49,700 | 4,717 | |
| 43,323 | ||
Building Products - 0.5% | |||
Armstrong World Industries, Inc. (a) | 77,022 | 4,003 | |
Owens Corning (a) | 73,911 | 3,230 | |
| 7,233 | ||
Electrical Equipment - 0.3% | |||
Regal-Beloit Corp. | 63,554 | 4,291 | |
Industrial Conglomerates - 0.5% | |||
Carlisle Companies, Inc. | 100,460 | 6,571 | |
Machinery - 2.1% | |||
Blount International, Inc. (a) | 292,004 | 3,919 | |
Deere & Co. | 112,300 | 9,782 | |
Ingersoll-Rand PLC | 212,400 | 12,219 | |
Stanley Black & Decker, Inc. | 74,137 | 5,873 | |
| 31,793 | ||
TOTAL INDUSTRIALS | 93,211 | ||
INFORMATION TECHNOLOGY - 12.5% | |||
Communications Equipment - 0.3% | |||
Cisco Systems, Inc. | 215,300 | 5,184 | |
Computers & Peripherals - 2.5% | |||
Apple, Inc. | 82,580 | 37,135 | |
IT Services - 0.8% | |||
Fidelity National Information Services, Inc. | 268,430 | 12,053 | |
Semiconductors & Semiconductor Equipment - 4.4% | |||
Fairchild Semiconductor International, Inc. (a) | 320,000 | 4,643 | |
Intersil Corp. Class A | 345,143 | 2,830 | |
KLA-Tencor Corp. | 174,580 | 9,827 | |
MagnaChip Semiconductor Corp. (a) | 998,200 | 18,467 | |
Micron Technology, Inc. (a) | 929,483 | 10,856 | |
ON Semiconductor Corp. (a) | 1,214,770 | 10,398 | |
Spansion, Inc. Class A (a) | 641,043 | 8,782 | |
| 65,803 | ||
Software - 4.5% | |||
Microsoft Corp. | 438,024 | 15,278 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Nuance Communications, Inc. (a) | 152,500 | $ 2,898 | |
Symantec Corp. | 2,158,771 | 48,335 | |
| 66,511 | ||
TOTAL INFORMATION TECHNOLOGY | 186,686 | ||
MATERIALS - 10.5% | |||
Chemicals - 10.2% | |||
Ashland, Inc. | 86,800 | 7,718 | |
Axiall Corp. | 88,226 | 3,807 | |
Innophos Holdings, Inc. | 153,933 | 7,786 | |
LyondellBasell Industries NV Class A | 1,457,392 | 97,136 | |
PPG Industries, Inc. | 153,705 | 23,611 | |
W.R. Grace & Co. (a) | 136,728 | 11,555 | |
| 151,613 | ||
Metals & Mining - 0.3% | |||
Carpenter Technology Corp. | 86,796 | 4,180 | |
Haynes International, Inc. | 18,860 | 923 | |
| 5,103 | ||
TOTAL MATERIALS | 156,716 | ||
TELECOMMUNICATION SERVICES - 0.8% | |||
Diversified Telecommunication Services - 0.8% | |||
Level 3 Communications, Inc. (a) | 569,139 | 12,197 | |
UTILITIES - 4.9% | |||
Electric Utilities - 1.0% | |||
FirstEnergy Corp. | 241,669 | 9,428 | |
NextEra Energy, Inc. | 71,100 | 5,377 | |
| 14,805 | ||
Independent Power Producers & Energy Traders - 2.5% | |||
Calpine Corp. (a) | 839,263 | 17,045 | |
The AES Corp. | 1,721,200 | 20,999 | |
| 38,044 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Multi-Utilities - 1.4% | |||
Alliant Energy Corp. | 114,800 | $ 5,655 | |
Sempra Energy | 183,139 | 14,889 | |
| 20,544 | ||
TOTAL UTILITIES | 73,393 | ||
TOTAL COMMON STOCKS (Cost $1,033,228) |
| ||
Money Market Funds - 12.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 97,795,927 | 97,796 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 81,521,386 | 81,521 | |
TOTAL MONEY MARKET FUNDS (Cost $179,317) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.3% (Cost $1,212,545) | 1,570,913 | ||
NET OTHER ASSETS (LIABILITIES) - (5.3)% | (78,962) | ||
NET ASSETS - 100% | $ 1,491,951 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 117 |
Fidelity Securities Lending Cash Central Fund | 459 |
Total | $ 576 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Cott Corp. | $ 59,355 | $ - | $ - | $ 688 | $ 56,670 |
The Bon-Ton Stores, Inc. | 11,279 | 14,142 | - | 104 | 36,943 |
Total | $ 70,634 | $ 14,142 | $ - | $ 792 | $ 93,613 |
Other Information |
All investments are categorized as level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 80.5% |
Netherlands | 6.5% |
Canada | 4.3% |
France | 4.0% |
Bailiwick of Jersey | 2.6% |
Ireland | 1.3% |
Others (Individually Less Than 1%) | 0.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $78,228) - See accompanying schedule: Unaffiliated issuers (cost $958,340) | $ 1,297,983 |
|
Fidelity Central Funds (cost $179,317) | 179,317 |
|
Other affiliated issuers (cost $74,888) | 93,613 |
|
Total Investments (cost $1,212,545) |
| $ 1,570,913 |
Receivable for fund shares sold | 1,209 | |
Dividends receivable | 4,442 | |
Interest receivable | 39 | |
Distributions receivable from Fidelity Central Funds | 116 | |
Receivable from investment adviser for expense reductions | 2 | |
Other receivables | 11 | |
Total assets | 1,576,732 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | 2,158 | |
Accrued management fee | 558 | |
Distribution and service plan fees payable | 233 | |
Other affiliated payables | 280 | |
Other payables and accrued expenses | 31 | |
Collateral on securities loaned, at value | 81,521 | |
Total liabilities | 84,781 | |
|
|
|
Net Assets | $ 1,491,951 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,450,980 | |
Undistributed net investment income | 5,882 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (323,274) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 358,363 | |
Net Assets | $ 1,491,951 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | May 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 32.36 | |
|
|
|
Maximum offering price per share (100/94.25 of $32.36) | $ 34.33 | |
Class T: | $ 33.52 | |
|
|
|
Maximum offering price per share (100/96.50 of $33.52) | $ 34.74 | |
Class B: | $ 29.64 | |
|
|
|
Class C: | $ 29.32 | |
|
|
|
Fidelity Value Strategies Fund: | $ 36.14 | |
|
|
|
Fidelity Value Strategies Fund Class K: | $ 36.11 | |
|
|
|
Institutional Class: | $ 34.51 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended May 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $792 earned from other affiliated issuers) |
| $ 12,820 |
Interest |
| 42 |
Income from Fidelity Central Funds |
| 576 |
Total income |
| 13,438 |
|
|
|
Expenses | ||
Management fee | $ 3,729 | |
Performance adjustment | (572) | |
Transfer agent fees | 1,380 | |
Distribution and service plan fees | 1,330 | |
Accounting and security lending fees | 221 | |
Custodian fees and expenses | 8 | |
Independent trustees' compensation | 4 | |
Registration fees | 122 | |
Audit | 37 | |
Legal | 2 | |
Miscellaneous | 5 | |
Total expenses before reductions | 6,266 | |
Expense reductions | (154) | 6,112 |
Net investment income (loss) | 7,326 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 3,136 | |
Foreign currency transactions | (4) | |
Total net realized gain (loss) |
| 3,132 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 199,997 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) |
| 199,996 |
Net gain (loss) | 203,128 | |
Net increase (decrease) in net assets resulting from operations | $ 210,454 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 7,326 | $ 539 |
Net realized gain (loss) | 3,132 | 42,952 |
Change in net unrealized appreciation (depreciation) | 199,996 | 147,048 |
Net increase (decrease) in net assets resulting | 210,454 | 190,539 |
Distributions to shareholders from net investment income | (3,993) | (4,679) |
Share transactions - net increase (decrease) | 212,762 | (16,561) |
Total increase (decrease) in net assets | 419,223 | 169,299 |
|
|
|
Net Assets | ||
Beginning of period | 1,072,728 | 903,429 |
End of period (including undistributed net investment income of $5,882 and undistributed net investment income of $2,549, respectively) | $ 1,491,951 | $ 1,072,728 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 27.62 | $ 22.71 | $ 23.11 | $ 18.77 | $ 11.87 | $ 30.67 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .15 | - H | .13 I | .03 J | .06 | .10 |
Net realized and unrealized gain (loss) | 4.67 | 5.03 | (.49) | 4.32 | 6.96 | (14.37) |
Total from investment operations | 4.82 | 5.03 | (.36) | 4.35 | 7.02 | (14.27) |
Distributions from net investment income | (.08) | (.12) | (.03) K | - | (.12) | - |
Distributions from net realized gain | - | - | (.01) K | (.01) | - | (4.53) |
Total distributions | (.08) | (.12) | (.04) | (.01) | (.12) | (4.53) |
Net asset value, end of period | $ 32.36 | $ 27.62 | $ 22.71 | $ 23.11 | $ 18.77 | $ 11.87 |
Total Return B, C, D | 17.48% | 22.29% | (1.57)% | 23.16% | 59.70% | (54.45)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.21% | 1.18% | 1.08% | 1.03% | 1.14% |
Expenses net of fee waivers, if any | 1.04% A | 1.21% | 1.18% | 1.08% | 1.03% | 1.14% |
Expenses net of all reductions | 1.02% A | 1.21% | 1.17% | 1.07% | 1.02% | 1.14% |
Net investment income (loss) | .97% A | -% H | .51% I | .12% J | .39% | .45% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 228 | $ 203 | $ 190 | $ 221 | $ 206 | $ 139 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.58 | $ 23.48 | $ 23.90 | $ 19.44 | $ 12.25 | $ 31.48 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .12 | (.05) H | .08 I | (.01) J | .03 | .06 |
Net realized and unrealized gain (loss) | 4.84 | 5.22 | (.50) | 4.48 | 7.21 | (14.84) |
Total from investment operations | 4.96 | 5.17 | (.42) | 4.47 | 7.24 | (14.78) |
Distributions from net investment income | (.02) | (.07) | - | - | (.05) | - |
Distributions from net realized gain | - | - | - | (.01) | - | (4.45) |
Total distributions | (.02) | (.07) | - | (.01) | (.05) | (4.45) |
Net asset value, end of period | $ 33.52 | $ 28.58 | $ 23.48 | $ 23.90 | $ 19.44 | $ 12.25 |
Total Return B, C, D | 17.35% | 22.08% | (1.76)% | 22.98% | 59.40% | (54.56)% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.23% A | 1.38% | 1.35% | 1.26% | 1.24% | 1.33% |
Expenses net of fee waivers, if any | 1.23% A | 1.38% | 1.35% | 1.26% | 1.24% | 1.33% |
Expenses net of all reductions | 1.21% A | 1.38% | 1.35% | 1.25% | 1.22% | 1.32% |
Net investment income (loss) | .79% A | (.17)% H | .33% I | (.06)% J | .18% | .26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 316 | $ 283 | $ 274 | $ 344 | $ 339 | $ 253 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.23)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.34 | $ 20.87 | $ 21.37 | $ 17.48 | $ 11.03 | $ 28.74 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .03 | (.18) H | (.06) I | (.13) J | (.05) | (.06) |
Net realized and unrealized gain (loss) | 4.27 | 4.65 | (.44) | 4.03 | 6.50 | (13.38) |
Total from investment operations | 4.30 | 4.47 | (.50) | 3.90 | 6.45 | (13.44) |
Distributions from net realized gain | - | - | - | (.01) | - | (4.27) |
Net asset value, end of period | $ 29.64 | $ 25.34 | $ 20.87 | $ 21.37 | $ 17.48 | $ 11.03 |
Total Return B, C, D | 16.97% | 21.42% | (2.34)% | 22.29% | 58.48% | (54.80)% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.83% A | 1.97% | 1.93% | 1.83% | 1.78% | 1.90% |
Expenses net of fee waivers, if any | 1.83% A | 1.97% | 1.93% | 1.83% | 1.78% | 1.90% |
Expenses net of all reductions | 1.81% A | 1.97% | 1.93% | 1.82% | 1.77% | 1.89% |
Net investment income (loss) | .19% A | (.76)% H | (.25)% I | (.64)% J | (.36)% | (.31)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 12 | $ 13 | $ 16 | $ 30 | $ 40 | $ 47 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.04)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.06 | $ 20.64 | $ 21.13 | $ 17.29 | $ 10.91 | $ 28.51 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .03 | (.17) H | (.05) I | (.12) J | (.05) | (.06) |
Net realized and unrealized gain (loss) | 4.23 | 4.59 | (.44) | 3.97 | 6.43 | (13.24) |
Total from investment operations | 4.26 | 4.42 | (.49) | 3.85 | 6.38 | (13.30) |
Distributions from net realized gain | - | - | - | (.01) | - | (4.30) |
Net asset value, end of period | $ 29.32 | $ 25.06 | $ 20.64 | $ 21.13 | $ 17.29 | $ 10.91 |
Total Return B, C, D | 17.00% | 21.41% | (2.32)% | 22.25% | 58.48% | (54.80)% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.79% A | 1.95% | 1.92% | 1.83% | 1.78% | 1.90% |
Expenses net of fee waivers, if any | 1.79% A | 1.95% | 1.92% | 1.83% | 1.78% | 1.90% |
Expenses net of all reductions | 1.77% A | 1.95% | 1.92% | 1.82% | 1.77% | 1.89% |
Net investment income (loss) | .23% A | (.75)% H | (.24)% I | (.63)% J | (.36)% | (.31)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 52 | $ 43 | $ 40 | $ 49 | $ 43 | $ 32 |
Portfolio turnover rate G | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.02)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Value Strategies Fund
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 30.89 | $ 25.37 | $ 25.80 | $ 20.89 | $ 13.21 | $ 33.60 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .22 | .09 G | .22 H | .09 I | .11 | .17 |
Net realized and unrealized gain (loss) | 5.21 | 5.62 | (.54) | 4.83 | 7.73 | (15.97) |
Total from investment operations | 5.43 | 5.71 | (.32) | 4.92 | 7.84 | (15.80) |
Distributions from net investment income | (.18) | (.19) | (.10) J | - | (.16) | - |
Distributions from net realized gain | - | - | (.01) J | (.01) | - | (4.59) |
Total distributions | (.18) | (.19) | (.11) | (.01) | (.16) | (4.59) |
Net asset value, end of period | $ 36.14 | $ 30.89 | $ 25.37 | $ 25.80 | $ 20.89 | $ 13.21 |
Total Return B, C | 17.66% | 22.69% | (1.29)% | 23.54% | 60.05% | (54.35)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .73% A | .89% | .88% | .81% | .78% | .89% |
Expenses net of fee waivers, if any | .73% A | .89% | .88% | .81% | .78% | .89% |
Expenses net of all reductions | .71% A | .89% | .88% | .80% | .77% | .88% |
Net investment income (loss) | 1.28% A | .31% G | .80% H | .39% I | .64% | .70% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 655 | $ 396 | $ 284 | $ 360 | $ 237 | $ 122 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been ..04%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Fidelity Value Strategies Fund Class K
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 J |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 30.89 | $ 25.38 | $ 25.82 | $ 20.86 | $ 13.23 | $ 26.92 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .24 | .14 G | .28 H | .15 I | .16 | .12 |
Net realized and unrealized gain (loss) | 5.20 | 5.61 | (.55) | 4.82 | 7.70 | (13.81) |
Total from investment operations | 5.44 | 5.75 | (.27) | 4.97 | 7.86 | (13.69) |
Distributions from net investment income | (.22) | (.24) | (.16) K | - | (.23) | - |
Distributions from net realized gain | - | - | (.01) K | (.01) | - | - |
Total distributions | (.22) | (.24) | (.17) | (.01) | (.23) | - |
Net asset value, end of period | $ 36.11 | $ 30.89 | $ 25.38 | $ 25.82 | $ 20.86 | $ 13.23 |
Total Return B, C | 17.74% | 22.93% | (1.11)% | 23.81% | 60.52% | (50.85)% |
Ratios to Average Net Assets E, L |
|
|
|
|
| |
Expenses before reductions | .58% A | .71% | .68% | .58% | .51% | .65% A |
Expenses net of fee waivers, if any | .58% A | .71% | .68% | .58% | .51% | .65% A |
Expenses net of all reductions | .55% A | .71% | .68% | .56% | .49% | .64% A |
Net investment income (loss) | 1.44% A | .50% G | 1.00% H | .62% I | .91% | 1.38% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 163 | $ 70 | $ 47 | $ 47 | $ 27 | $ 5 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%. JFor the period May 9, 2008 (commencement of sale of shares) to November 30, 2008. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended November 30, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 29.51 | $ 24.26 | $ 24.69 | $ 19.97 | $ 12.67 | $ 32.43 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .20 | .08 G | .22 H | .10 I | .11 | .18 |
Net realized and unrealized gain (loss) | 4.98 | 5.37 | (.53) | 4.63 | 7.38 | (15.31) |
Total from investment operations | 5.18 | 5.45 | (.31) | 4.73 | 7.49 | (15.13) |
Distributions from net investment income | (.18) | (.20) | (.11) J | - | (.19) | - |
Distributions from net realized gain | - | - | (.01) J | (.01) | - | (4.63) |
Total distributions | (.18) | (.20) | (.12) | (.01) | (.19) | (4.63) |
Net asset value, end of period | $ 34.51 | $ 29.51 | $ 24.26 | $ 24.69 | $ 19.97 | $ 12.67 |
Total Return B, C | 17.65% | 22.67% | (1.30)% | 23.67% | 60.08% | (54.29)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .75% A | .90% | .86% | .74% | .70% | .80% |
Expenses net of fee waivers, if any | .75% A | .90% | .86% | .74% | .70% | .80% |
Expenses net of all reductions | .73% A | .90% | .86% | .73% | .69% | .79% |
Net investment income (loss) | 1.26% A | .31% G | .82% H | .46% I | .71% | .79% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 67 | $ 66 | $ 52 | $ 53 | $ 48 | $ 45 |
Portfolio turnover rate F | 16% A | 23% | 34% | 99% | 161% | 142% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Value Strategies Fund, Fidelity Value Strategies Fund Class K and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing 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 FMR Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 on a pro-rata basis to each class based on the relative net
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses - continued
assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. These differences resulted in distribution reclassifications for the period ended November 30, 2012.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 375,726 |
Gross unrealized depreciation | (21,466) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 354,260 |
|
|
Tax cost | $ 1,216,653 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
Fiscal year of expiration |
|
2016 | $ (135,603) |
2017 | (187,132) |
Total capital loss carryforward | $ (322,735) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $318,655 and $95,669, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 Fidelity Value Strategies Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 273 | $ 1 |
Class T | .25% | .25% | 759 | 3 |
Class B | .75% | .25% | 62 | 47 |
Class C | .75% | .25% | 236 | 12 |
|
|
| $ 1,330 | $ 63 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14 |
Class T | 6 |
Class B* | 6 |
Class C* | 1 |
| $ 27 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of respective classes of the Fund, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 291 | .27 |
Class T | 309 | .20 |
Class B | 18 | .30 |
Class C | 63 | .26 |
Fidelity Value Strategies Fund | 594 | .21 |
Fidelity Value Strategies Fund Class K | 30 | .05 |
Institutional Class | 75 | .23 |
| $ 1,380 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, 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 $8 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
7. Security Lending - continued
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. 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 $788. 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 $459, including $45 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $152 for the period.
In addition, FMR reimbursed a portion of Fund's operating expenses during the period in the amount of $2.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 555 | $ 998 |
Class T | 167 | 760 |
Fidelity Value Strategies Fund | 2,356 | 2,061 |
Fidelity Value Strategies Fund Class K | 520 | 448 |
Institutional Class | 395 | 412 |
Total | $ 3,993 | $ 4,679 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 472 | 854 | $ 14,216 | $ 21,748 |
Reinvestment of distributions | 18 | 42 | 513 | 917 |
Shares redeemed | (780) | (1,927) | (23,500) | (48,930) |
Net increase (decrease) | (290) | (1,031) | $ (8,771) | $ (26,265) |
Class T |
|
|
|
|
Shares sold | 517 | 878 | $ 16,104 | $ 23,229 |
Reinvestment of distributions | 5 | 31 | 152 | 697 |
Shares redeemed | (1,004) | (2,697) | (31,379) | (69,951) |
Net increase (decrease) | (482) | (1,788) | $ (15,123) | $ (46,025) |
Class B |
|
|
|
|
Shares sold | 3 | 5 | $ 70 | $ 128 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (104) | (292) | (2,869) | (6,718) |
Net increase (decrease) | (101) | (287) | $ (2,799) | $ (6,590) |
Class C |
|
|
|
|
Shares sold | 228 | 217 | $ 6,251 | $ 5,049 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (191) | (454) | (5,216) | (10,427) |
Net increase (decrease) | 37 | (237) | $ 1,035 | $ (5,378) |
Fidelity Value Strategies Fund |
|
|
|
|
Shares sold | 9,571 | 5,614 | $ 317,123 | $ 163,914 |
Reinvestment of distributions | 73 | 81 | 2,266 | 1,967 |
Shares redeemed | (4,347) | (4,064) | (146,917) | (114,471) |
Net increase (decrease) | 5,297 | 1,631 | $ 172,472 | $ 51,410 |
Fidelity Value Strategies Fund Class K |
|
|
|
|
Shares sold | 2,927 | 1,339 | $ 97,615 | $ 38,174 |
Reinvestment of distributions | 17 | 18 | 520 | 448 |
Shares redeemed | (679) | (943) | (23,218) | (26,603) |
Net increase (decrease) | 2,265 | 414 | $ 74,917 | $ 12,019 |
Institutional Class |
|
|
|
|
Shares sold | 391 | 903 | $ 12,475 | $ 25,700 |
Reinvestment of distributions | 11 | 17 | 327 | 392 |
Shares redeemed | (687) | (822) | (21,771) | (21,824) |
Net increase (decrease) | (285) | 98 | $ (8,969) | $ 4,268 |
Semiannual Report
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
SO-USAN-0713 1.786805.110
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 I'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 I'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 I
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | July 24, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | July 24, 2013 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | July 24, 2013 |