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, MA 02210
(Address of principal executive offices) (Zip code)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | November 30 |
Date of reporting period: | May 31, 2016 |
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 Series Equity Growth Fund, Fidelity Advisor Series Growth Opportunities Fund, Fidelity Advisor Series Small Cap Fund, Fidelity Advisor Small Cap Fund, Fidelity Advisor Stock Selector Mid Cap Fund, and Fidelity Advisor Value Strategies Fund series (each, a “Fund” and collectively, the “Funds”).
Item 1.
Reports to Stockholders
Fidelity Advisor® Equity Growth Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Facebook, Inc. Class A | 12.6 | 11.3 |
Alphabet, Inc. Class A | 8.1 | 6.5 |
Gilead Sciences, Inc. | 3.4 | 5.1 |
Amazon.com, Inc. | 3.2 | 2.7 |
Salesforce.com, Inc. | 2.9 | 2.6 |
Home Depot, Inc. | 2.5 | 2.4 |
Danaher Corp. | 2.4 | 2.3 |
Electronic Arts, Inc. | 2.3 | 1.8 |
Alphabet, Inc. Class C | 2.2 | 1.1 |
Visa, Inc. Class A | 1.9 | 1.8 |
41.5 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 39.1 | 41.6 |
Consumer Discretionary | 15.3 | 16.3 |
Health Care | 12.2 | 15.7 |
Industrials | 9.9 | 10.3 |
Financials | 7.9 | 6.7 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 92.6% | |
Convertible Securities | 1.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.3% |
* Foreign investments - 7.4%
As of November 30, 2015* | ||
Stocks | 93.6% | |
Convertible Securities | 0.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.5% |
* Foreign investments - 14.5%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.2% | |||
Automobiles - 2.0% | |||
Tesla Motors, Inc. (a) | 237,700 | $53,062 | |
Diversified Consumer Services - 0.7% | |||
Bright Horizons Family Solutions, Inc. (a) | 166,600 | 10,794 | |
Houghton Mifflin Harcourt Co. (a) | 221,900 | 3,817 | |
Nord Anglia Education, Inc. (a) | 249,236 | 5,538 | |
20,149 | |||
Hotels, Restaurants & Leisure - 3.4% | |||
Buffalo Wild Wings, Inc. (a) | 12,800 | 1,861 | |
Dave & Buster's Entertainment, Inc. (a) | 276,000 | 10,772 | |
Domino's Pizza, Inc. | 151,000 | 18,253 | |
Jubilant Foodworks Ltd. | 52,463 | 806 | |
Popeyes Louisiana Kitchen, Inc. (a) | 116,700 | 6,783 | |
Starbucks Corp. | 940,402 | 51,619 | |
Wingstop, Inc. (b) | 57,700 | 1,610 | |
91,704 | |||
Household Durables - 0.6% | |||
Harman International Industries, Inc. | 201,000 | 15,726 | |
Internet & Catalog Retail - 3.6% | |||
Amazon.com, Inc. (a) | 117,800 | 85,145 | |
Netflix, Inc. (a) | 83,300 | 8,544 | |
NutriSystem, Inc. | 122,400 | 3,322 | |
97,011 | |||
Leisure Products - 0.0% | |||
NJOY, Inc. (a)(c) | 202,642 | 26 | |
Media - 0.2% | |||
Sirius XM Holdings, Inc. (a)(b) | 1,623,400 | 6,526 | |
Specialty Retail - 4.0% | |||
AutoZone, Inc. (a) | 21,800 | 16,616 | |
Five Below, Inc. (a) | 201,700 | 8,443 | |
Home Depot, Inc. | 518,244 | 68,470 | |
Lowe's Companies, Inc. | 152,700 | 12,236 | |
MarineMax, Inc. (a) | 209,400 | 3,556 | |
109,321 | |||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Kate Spade & Co. (a) | 824,824 | 18,031 | |
TOTAL CONSUMER DISCRETIONARY | 411,556 | ||
CONSUMER STAPLES - 6.7% | |||
Beverages - 2.6% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 71,000 | 10,874 | |
Kweichow Moutai Co. Ltd. | 64,130 | 2,576 | |
Molson Coors Brewing Co. Class B | 206,400 | 20,471 | |
The Coca-Cola Co. | 852,826 | 38,036 | |
71,957 | |||
Food & Staples Retailing - 0.9% | |||
CVS Health Corp. | 165,200 | 15,934 | |
Whole Foods Market, Inc. | 253,583 | 8,203 | |
24,137 | |||
Household Products - 0.5% | |||
Procter & Gamble Co. | 161,900 | 13,120 | |
Personal Products - 1.0% | |||
Avon Products, Inc. | 432,100 | 1,685 | |
Estee Lauder Companies, Inc. Class A | 143,700 | 13,189 | |
Herbalife Ltd. (a) | 191,866 | 11,107 | |
25,981 | |||
Tobacco - 1.7% | |||
Reynolds American, Inc. | 935,100 | 46,474 | |
TOTAL CONSUMER STAPLES | 181,669 | ||
ENERGY - 0.9% | |||
Oil, Gas & Consumable Fuels - 0.9% | |||
Anadarko Petroleum Corp. | 400,900 | 20,791 | |
Golar LNG Ltd. | 264,848 | 4,608 | |
25,399 | |||
FINANCIALS - 7.9% | |||
Banks - 1.0% | |||
First Republic Bank | 302,800 | 21,926 | |
HDFC Bank Ltd. (a) | 68,446 | 1,421 | |
M&T Bank Corp. | 25,400 | 3,035 | |
26,382 | |||
Capital Markets - 1.5% | |||
BlackRock, Inc. Class A | 42,000 | 15,282 | |
E*TRADE Financial Corp. (a) | 850,445 | 23,719 | |
JMP Group, Inc. | 141,100 | 762 | |
PJT Partners, Inc. | 21,880 | 568 | |
40,331 | |||
Diversified Financial Services - 2.4% | |||
Berkshire Hathaway, Inc. Class B (a) | 55,800 | 7,842 | |
CME Group, Inc. | 277,554 | 27,170 | |
McGraw Hill Financial, Inc. | 135,975 | 15,203 | |
MSCI, Inc. Class A | 191,600 | 15,288 | |
65,503 | |||
Insurance - 0.4% | |||
Marsh & McLennan Companies, Inc. | 178,200 | 11,774 | |
Real Estate Investment Trusts - 0.9% | |||
American Tower Corp. | 231,700 | 24,509 | |
Real Estate Management & Development - 1.5% | |||
Realogy Holdings Corp. (a) | 1,235,118 | 40,512 | |
Thrifts & Mortgage Finance - 0.2% | |||
Essent Group Ltd. (a) | 229,300 | 5,012 | |
TOTAL FINANCIALS | 214,023 | ||
HEALTH CARE - 12.2% | |||
Biotechnology - 8.2% | |||
Amgen, Inc. | 178,100 | 28,131 | |
BioMarin Pharmaceutical, Inc. (a) | 161,679 | 14,495 | |
Cytokinetics, Inc. (a) | 57,600 | 469 | |
Cytokinetics, Inc. warrants 6/25/17 (a) | 856,620 | 468 | |
Gilead Sciences, Inc. | 1,053,947 | 91,757 | |
Insmed, Inc. (a) | 744,220 | 8,782 | |
Medivation, Inc. (a) | 635,400 | 38,416 | |
Regeneron Pharmaceuticals, Inc. (a) | 43,100 | 17,194 | |
Vertex Pharmaceuticals, Inc. (a) | 253,674 | 23,630 | |
223,342 | |||
Health Care Equipment & Supplies - 2.3% | |||
Boston Scientific Corp. (a) | 843,400 | 19,154 | |
Edwards Lifesciences Corp. (a) | 106,100 | 10,451 | |
Intuitive Surgical, Inc. (a) | 12,800 | 8,124 | |
Medtronic PLC | 138,800 | 11,171 | |
Novadaq Technologies, Inc. (a) | 575,300 | 5,557 | |
ResMed, Inc. | 138,400 | 8,174 | |
62,631 | |||
Health Care Providers & Services - 0.1% | |||
VCA, Inc. (a) | 24,600 | 1,597 | |
Pharmaceuticals - 1.6% | |||
Astellas Pharma, Inc. | 3,065,000 | 41,647 | |
Collegium Pharmaceutical, Inc. | 69,300 | 1,159 | |
42,806 | |||
TOTAL HEALTH CARE | 330,376 | ||
INDUSTRIALS - 9.9% | |||
Aerospace & Defense - 1.1% | |||
Honeywell International, Inc. | 189,100 | 21,525 | |
TransDigm Group, Inc. (a) | 33,377 | 8,796 | |
30,321 | |||
Air Freight & Logistics - 0.2% | |||
C.H. Robinson Worldwide, Inc. | 57,600 | 4,319 | |
Airlines - 0.8% | |||
Ryanair Holdings PLC sponsored ADR | 262,060 | 22,904 | |
Building Products - 0.7% | |||
A.O. Smith Corp. | 138,138 | 11,369 | |
Caesarstone Sdot-Yam Ltd. (a) | 221,800 | 8,754 | |
20,123 | |||
Commercial Services & Supplies - 0.6% | |||
KAR Auction Services, Inc. | 389,000 | 15,965 | |
Electrical Equipment - 1.0% | |||
Acuity Brands, Inc. | 65,200 | 16,889 | |
AMETEK, Inc. | 199,955 | 9,562 | |
26,451 | |||
Industrial Conglomerates - 2.9% | |||
Danaher Corp. | 674,214 | 66,316 | |
Roper Technologies, Inc. | 74,369 | 12,723 | |
79,039 | |||
Professional Services - 2.3% | |||
Equifax, Inc. | 128,600 | 16,169 | |
Resources Connection, Inc. | 222,200 | 3,462 | |
Robert Half International, Inc. | 287,800 | 11,970 | |
TransUnion Holding Co., Inc. | 86,300 | 2,857 | |
WageWorks, Inc. (a) | 474,200 | 26,579 | |
61,037 | |||
Road & Rail - 0.0% | |||
Swift Transporation Co. (a) | 57,400 | 894 | |
Trading Companies & Distributors - 0.3% | |||
HD Supply Holdings, Inc. (a) | 226,200 | 7,985 | |
TOTAL INDUSTRIALS | 269,038 | ||
INFORMATION TECHNOLOGY - 38.1% | |||
Electronic Equipment & Components - 0.2% | |||
CDW Corp. | 100,000 | 4,256 | |
Internet Software & Services - 24.0% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 184,100 | 15,096 | |
Alphabet, Inc.: | |||
Class A | 292,950 | 219,376 | |
Class C | 79,436 | 58,443 | |
Facebook, Inc. Class A (a) | 2,874,700 | 341,539 | |
GoDaddy, Inc. (a) | 208,400 | 6,779 | |
Just Dial Ltd. | 139,013 | 1,406 | |
JUST EAT Ltd. (a) | 825,555 | 5,436 | |
Shopify, Inc. Class A | 40,800 | 1,195 | |
Stamps.com, Inc. (a) | 26,281 | 2,391 | |
651,661 | |||
IT Services - 3.4% | |||
Gartner, Inc. Class A (a) | 68,900 | 7,002 | |
Global Payments, Inc. | 307,200 | 23,866 | |
MasterCard, Inc. Class A | 81,000 | 7,768 | |
Visa, Inc. Class A | 672,532 | 53,090 | |
91,726 | |||
Semiconductors & Semiconductor Equipment - 0.6% | |||
Maxim Integrated Products, Inc. | 168,728 | 6,405 | |
Monolithic Power Systems, Inc. | 162,432 | 11,099 | |
17,504 | |||
Software - 9.9% | |||
Activision Blizzard, Inc. | 246,600 | 9,682 | |
Adobe Systems, Inc. (a) | 363,400 | 36,147 | |
Computer Modelling Group Ltd. | 541,600 | 4,283 | |
CyberArk Software Ltd. (a) | 91,800 | 4,170 | |
Electronic Arts, Inc. (a) | 823,345 | 63,192 | |
Fleetmatics Group PLC (a) | 129,500 | 5,297 | |
Intuit, Inc. | 56,500 | 6,026 | |
Mobileye NV (a)(b) | 1,124,800 | 42,709 | |
Red Hat, Inc. (a) | 249,100 | 19,295 | |
Salesforce.com, Inc. (a) | 928,292 | 77,707 | |
268,508 | |||
TOTAL INFORMATION TECHNOLOGY | 1,033,655 | ||
MATERIALS - 1.5% | |||
Chemicals - 1.4% | |||
Albemarle Corp. U.S. | 497,100 | 39,022 | |
CF Industries Holdings, Inc. | 2,600 | 72 | |
39,094 | |||
Metals & Mining - 0.1% | |||
Orocobre Ltd. (a) | 405,514 | 1,331 | |
TOTAL MATERIALS | 40,425 | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.2% | |||
SBA Communications Corp. Class A (a) | 53,500 | 5,318 | |
TOTAL COMMON STOCKS | |||
(Cost $1,953,822) | 2,511,459 | ||
Convertible Preferred Stocks - 1.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Household Durables - 0.1% | |||
Blu Homes, Inc. Series A, 5.00% (a)(c) | 875,350 | 3,475 | |
INFORMATION TECHNOLOGY - 1.0% | |||
Internet Software & Services - 0.9% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(c) | 485,012 | 23,655 | |
IT Services - 0.1% | |||
AppNexus, Inc. Series E (a)(c) | 105,425 | 1,921 | |
TOTAL INFORMATION TECHNOLOGY | 25,576 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $13,680) | 29,051 | ||
Money Market Funds - 6.9% | |||
Fidelity Cash Central Fund, 0.40% (d) | 138,229,448 | 138,229 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (d)(e) | 49,421,753 | 49,422 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $187,651) | 187,651 | ||
TOTAL INVESTMENT PORTFOLIO - 100.6% | |||
(Cost $2,155,153) | 2,728,161 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (16,454) | ||
NET ASSETS - 100% | $2,711,707 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $29,077,000 or 1.1% of net assets.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
AppNexus, Inc. Series E | 8/1/14 | $2,112 |
Blu Homes, Inc. Series A, 5.00% | 6/21/13 | $4,044 |
NJOY, Inc. | 9/11/13 | $1,637 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $7,524 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $261 |
Fidelity Securities Lending Cash Central Fund | 229 |
Total | $490 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $415,031 | $411,530 | $-- | $3,501 |
Consumer Staples | 181,669 | 181,669 | -- | -- |
Energy | 25,399 | 25,399 | -- | -- |
Financials | 214,023 | 212,602 | 1,421 | -- |
Health Care | 330,376 | 288,261 | 42,115 | -- |
Industrials | 269,038 | 269,038 | -- | -- |
Information Technology | 1,059,231 | 1,033,655 | -- | 25,576 |
Materials | 40,425 | 40,425 | -- | -- |
Telecommunication Services | 5,318 | 5,318 | -- | -- |
Money Market Funds | 187,651 | 187,651 | -- | -- |
Total Investments in Securities: | $2,728,161 | $2,655,548 | $43,536 | $29,077 |
The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $25,124 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 3,953 |
Cost of Purchases | -- |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $29,077 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2016 | $3,953 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $48,525) — See accompanying schedule: Unaffiliated issuers (cost $1,967,502) | $2,540,510 | |
Fidelity Central Funds (cost $187,651) | 187,651 | |
Total Investments (cost $2,155,153) | $2,728,161 | |
Receivable for investments sold | 41,953 | |
Receivable for fund shares sold | 1,469 | |
Dividends receivable | 1,486 | |
Distributions receivable from Fidelity Central Funds | 90 | |
Prepaid expenses | 1 | |
Other receivables | 171 | |
Total assets | 2,773,331 | |
Liabilities | ||
Payable for investments purchased | $4,958 | |
Payable for fund shares redeemed | 4,542 | |
Accrued management fee | 1,218 | |
Distribution and service plan fees payable | 814 | |
Other affiliated payables | 505 | |
Other payables and accrued expenses | 165 | |
Collateral on securities loaned, at value | 49,422 | |
Total liabilities | 61,624 | |
Net Assets | $2,711,707 | |
Net Assets consist of: | ||
Paid in capital | $2,220,210 | |
Accumulated net investment loss | (15,640) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (65,878) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 573,015 | |
Net Assets | $2,711,707 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($842,225.5 ÷ 8,888.71 shares) | $94.75 | |
Maximum offering price per share (100/94.25 of $94.75) | $100.53 | |
Class T: | ||
Net Asset Value and redemption price per share ($1,206,267.5 ÷ 12,893.07 shares) | $93.56 | |
Maximum offering price per share (100/96.50 of $93.56) | $96.95 | |
Class B: | ||
Net Asset Value and offering price per share ($6,440.5 ÷ 78.32 shares)(a) | $82.23 | |
Class C: | ||
Net Asset Value and offering price per share ($172,448.9 ÷ 2,056.94 shares)(a) | $83.84 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($453,614.6 ÷ 4,445.75 shares) | $102.03 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($30,710.3 ÷ 299.80 shares) | $102.44 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $8,960 | |
Income from Fidelity Central Funds | 490 | |
Total income | 9,450 | |
Expenses | ||
Management fee | $7,351 | |
Transfer agent fees | 2,645 | |
Distribution and service plan fees | 4,938 | |
Accounting and security lending fees | 400 | |
Custodian fees and expenses | 21 | |
Independent trustees' fees and expenses | 6 | |
Registration fees | 66 | |
Audit | 37 | |
Legal | 4 | |
Miscellaneous | 10 | |
Total expenses before reductions | 15,478 | |
Expense reductions | (60) | 15,418 |
Net investment income (loss) | (5,968) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (63,583) | |
Foreign currency transactions | (47) | |
Total net realized gain (loss) | (63,630) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 13,966 | |
Assets and liabilities in foreign currencies | 16 | |
Total change in net unrealized appreciation (depreciation) | 13,982 | |
Net gain (loss) | (49,648) | |
Net increase (decrease) in net assets resulting from operations | $(55,616) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(5,968) | $(6,975) |
Net realized gain (loss) | (63,630) | 205,321 |
Change in net unrealized appreciation (depreciation) | 13,982 | (53,557) |
Net increase (decrease) in net assets resulting from operations | (55,616) | 144,789 |
Distributions to shareholders from net realized gain | (69,494) | – |
Share transactions - net increase (decrease) | (38,355) | (115,712) |
Total increase (decrease) in net assets | (163,465) | 29,077 |
Net Assets | ||
Beginning of period | 2,875,172 | 2,846,095 |
End of period (including accumulated net investment loss of $15,640 and accumulated net investment loss of $9,672, respectively) | $2,711,707 | $2,875,172 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $98.79 | $93.78 | $80.87 | $61.77 | $54.56 | $50.75 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.16) | (.13) | (.07) | (.05) | .02 | (.04) |
Net realized and unrealized gain (loss) | (1.50) | 5.14 | 12.98 | 19.15 | 7.30 | 3.90 |
Total from investment operations | (1.66) | 5.01 | 12.91 | 19.10 | 7.32 | 3.86 |
Distributions from net realized gain | (2.38) | – | – | – | (.11) | (.05) |
Total distributions | (2.38) | – | – | – | (.11) | (.05) |
Net asset value, end of period | $94.75 | $98.79 | $93.78 | $80.87 | $61.77 | $54.56 |
Total ReturnB,C,D | (1.74)% | 5.34% | 15.96% | 30.92% | 13.45% | 7.61% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.05%G | 1.05% | 1.07% | 1.11% | 1.14% | 1.15% |
Expenses net of fee waivers, if any | 1.05%G | 1.05% | 1.07% | 1.11% | 1.14% | 1.15% |
Expenses net of all reductions | 1.05%G | 1.04% | 1.07% | 1.10% | 1.14% | 1.14% |
Net investment income (loss) | (.34)%G | (.13)% | (.08)% | (.07)% | .04% | (.08)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $842 | $887 | $853 | $772 | $632 | $609 |
Portfolio turnover rateH | 51%G | 63% | 49%I | 81% | 73% | 70% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $97.68 | $92.94 | $80.31 | $61.45 | $54.26 | $50.51 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.26) | (.34) | (.25) | (.17) | (.08) | (.14) |
Net realized and unrealized gain (loss) | (1.48) | 5.08 | 12.88 | 19.03 | 7.27 | 3.89 |
Total from investment operations | (1.74) | 4.74 | 12.63 | 18.86 | 7.19 | 3.75 |
Distributions from net realized gain | (2.38) | – | – | – | – | – |
Total distributions | (2.38) | – | – | – | – | – |
Net asset value, end of period | $93.56 | $97.68 | $92.94 | $80.31 | $61.45 | $54.26 |
Total ReturnB,C,D | (1.84)% | 5.10% | 15.73% | 30.69% | 13.25% | 7.42% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.28%G | 1.27% | 1.28% | 1.29% | 1.31% | 1.32% |
Expenses net of fee waivers, if any | 1.28%G | 1.27% | 1.28% | 1.29% | 1.31% | 1.32% |
Expenses net of all reductions | 1.27%G | 1.27% | 1.28% | 1.28% | 1.31% | 1.31% |
Net investment income (loss) | (.57)%G | (.36)% | (.29)% | (.25)% | (.13)% | (.25)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,206 | $1,306 | $1,368 | $1,283 | $1,108 | $1,139 |
Portfolio turnover rateH | 51%G | 63% | 49%I | 81% | 73% | 70% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $86.40 | $82.71 | $71.91 | $55.36 | $49.17 | $46.04 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.47) | (.82) | (.70) | (.52) | (.39) | (.42) |
Net realized and unrealized gain (loss) | (1.32) | 4.51 | 11.50 | 17.07 | 6.58 | 3.55 |
Total from investment operations | (1.79) | 3.69 | 10.80 | 16.55 | 6.19 | 3.13 |
Distributions from net realized gain | (2.38) | – | – | – | – | – |
Net asset value, end of period | $82.23 | $86.40 | $82.71 | $71.91 | $55.36 | $49.17 |
Total ReturnB,C,D | (2.15)% | 4.46% | 15.02% | 29.90% | 12.59% | 6.80% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.89%G | 1.89% | 1.89% | 1.89% | 1.90% | 1.90% |
Expenses net of fee waivers, if any | 1.89%G | 1.89% | 1.89% | 1.89% | 1.90% | 1.90% |
Expenses net of all reductions | 1.89%G | 1.89% | 1.89% | 1.88% | 1.90% | 1.90% |
Net investment income (loss) | (1.18)%G | (.98)% | (.91)% | (.85)% | (.72)% | (.83)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $6 | $11 | $18 | $23 | $26 | $35 |
Portfolio turnover rateH | 51%G | 63% | 49%I | 81% | 73% | 70% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $88.01 | $84.18 | $73.13 | $56.27 | $49.96 | $46.77 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.45) | (.77) | (.66) | (.50) | (.37) | (.41) |
Net realized and unrealized gain (loss) | (1.34) | 4.60 | 11.71 | 17.36 | 6.68 | 3.60 |
Total from investment operations | (1.79) | 3.83 | 11.05 | 16.86 | 6.31 | 3.19 |
Distributions from net realized gain | (2.38) | – | – | – | – | – |
Net asset value, end of period | $83.84 | $88.01 | $84.18 | $73.13 | $56.27 | $49.96 |
Total ReturnB,C,D | (2.11)% | 4.55% | 15.11% | 29.96% | 12.63% | 6.82% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.81%G | 1.81% | 1.81% | 1.84% | 1.86% | 1.88% |
Expenses net of fee waivers, if any | 1.81%G | 1.81% | 1.81% | 1.84% | 1.86% | 1.88% |
Expenses net of all reductions | 1.81%G | 1.80% | 1.81% | 1.83% | 1.86% | 1.87% |
Net investment income (loss) | (1.10)%G | (.89)% | (.83)% | (.79)% | (.68)% | (.81)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $172 | $183 | $175 | $157 | $133 | $136 |
Portfolio turnover rateH | 51%G | 63% | 49%I | 81% | 73% | 70% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $106.06 | $100.40 | $86.32 | $65.92 | $58.24 | $54.14 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | .15 | .20 | .20 | .25 | .16 |
Net realized and unrealized gain (loss) | (1.61) | 5.51 | 13.88 | 20.40 | 7.75 | 4.16 |
Total from investment operations | (1.65) | 5.66 | 14.08 | 20.60 | 8.00 | 4.32 |
Distributions from net investment income | – | – | – | (.20) | – | – |
Distributions from net realized gain | (2.38) | – | – | – | (.32) | (.22) |
Total distributions | (2.38) | – | – | (.20) | (.32) | (.22) |
Net asset value, end of period | $102.03 | $106.06 | $100.40 | $86.32 | $65.92 | $58.24 |
Total ReturnB,C | (1.61)% | 5.64% | 16.31% | 31.36% | 13.83% | 7.99% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .78%F | .78% | .77% | .78% | .80% | .80% |
Expenses net of fee waivers, if any | .78%F | .77% | .77% | .78% | .80% | .80% |
Expenses net of all reductions | .78%F | .77% | .77% | .77% | .79% | .79% |
Net investment income (loss) | (.07)%F | .14% | .21% | .27% | .39% | .27% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $454 | $463 | $432 | $1,266 | $1,063 | $897 |
Portfolio turnover rateG | 51%F | 63% | 49%H | 81% | 73% | 70% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Growth Fund Class Z
Six months ended (Unaudited) May 31, | Years ended November 30, | |||
2016 | 2015 | 2014 | 2013 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $106.39 | $100.59 | $86.36 | $78.49 |
Income from Investment Operations | ||||
Net investment income (loss)B | .04 | .29 | .33 | .09 |
Net realized and unrealized gain (loss) | (1.61) | 5.51 | 13.90 | 7.78 |
Total from investment operations | (1.57) | 5.80 | 14.23 | 7.87 |
Distributions from net realized gain | (2.38) | – | – | – |
Net asset value, end of period | $102.44 | $106.39 | $100.59 | $86.36 |
Total ReturnC,D | (1.53)% | 5.77% | 16.48% | 10.03% |
Ratios to Average Net AssetsE,F | ||||
Expenses before reductions | .64%G | .64% | .64% | .64%G |
Expenses net of fee waivers, if any | .64%G | .64% | .64% | .64%G |
Expenses net of all reductions | .63%G | .63% | .64% | .63%G |
Net investment income (loss) | .07%G | .28% | .35% | .38%G |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $30,710 | $25,638 | $122 | $110 |
Portfolio turnover rateH | 51%G | 63% | 49%I | 81% |
A For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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, Class I and Class Z 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value at 05/31/16 | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $29,077 | Expected distribution | Discount rate | 10.0% | Decrease |
Liquidation preference | $23.41 | Increase | |||
Last transaction price | Transaction price | $0.13 - $48.77 / $48.72 | Increase | ||
Market comparable | Enterprise Value / Sales multiple | 4.1 | Increase | ||
Discount rate | 15.0% | Decrease | |||
Discount for lack of marketability | 10.0% - 20.0% / 16.4% | Decrease | |||
P/E multiple | 0.6 | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2016, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, net operating losses, 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 | $656,949 |
Gross unrealized depreciation | (85,232) |
Net unrealized appreciation (depreciation) on securities | $571,717 |
Tax cost | $2,156,444 |
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 $652,989 and $778,060, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $1,033 | $– |
Class T | .25% | .25% | 3,006 | – |
Class B | .75% | .25% | 41 | 31 |
Class C | .75% | .25% | 858 | 53 |
$4,938 | $84 |
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 by FDC | |
Class A | $58 |
Class T | 15 |
Class B(a) | – |
Class C(a) | 5 |
$78 |
(a) 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $882 | .21 |
Class T | 1,129 | .19 |
Class B | 12 | .30 |
Class C | 194 | .23 |
Class I | 421 | .19 |
Class Z | 7 | .05 |
$2,645 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $11 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $12,006. 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 $229, including $59 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $50 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $10.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net realized gain | ||
Class A | $21,468 | $– |
Class T | 31,793 | – |
Class B | 295 | – |
Class C | 4,972 | – |
Class I | 10,387 | – |
Class Z | 579 | – |
Total | $69,494 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 820 | 1,688 | $75,369 | $162,907 |
Reinvestment of distributions | 205 | – | 19,967 | – |
Shares redeemed | (1,115) | (1,807) | (101,837) | (173,253) |
Net increase (decrease) | (90) | (119) | $(6,501) | $(10,346) |
Class T | ||||
Shares sold | 821 | 1,492 | $73,763 | $141,497 |
Reinvestment of distributions | 321 | ��� | 30,879 | – |
Shares redeemed | (1,618) | (2,839) | (146,372) | (269,251) |
Net increase (decrease) | (476) | (1,347) | $(41,730) | $(127,754) |
Class B | ||||
Shares sold | 2 | 2 | $127 | $164 |
Reinvestment of distributions | 3 | – | 278 | – |
Shares redeemed | (51) | (95) | (4,062) | (7,987) |
Net increase (decrease) | (46) | (93) | $(3,657) | $(7,823) |
Class C | ||||
Shares sold | 158 | 365 | $12,947 | $31,362 |
Reinvestment of distributions | 52 | – | 4,525 | – |
Shares redeemed | (232) | (360) | (18,562) | (30,838) |
Net increase (decrease) | (22) | 5 | $(1,090) | $524 |
Class I | ||||
Shares sold | 492 | 1,565 | $48,370 | $159,813 |
Reinvestment of distributions | 95 | – | 9,952 | – |
Shares redeemed | (505) | (1,508) | (49,812) | (155,242) |
Net increase (decrease) | 82 | 57 | $8,510 | $4,571 |
Class Z | ||||
Shares sold | 73 | 259 | $7,504 | $27,086 |
Reinvestment of distributions | 6 | – | 579 | – |
Shares redeemed | (20) | (19) | (1,970) | (1,970) |
Net increase (decrease) | 59 | 240 | $6,113 | $25,116 |
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.
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, 2015 to May 31, 2016).
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.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | 1.05% | |||
Actual | $1,000.00 | $982.60 | $5.20 | |
Hypothetical-C | $1,000.00 | $1,019.75 | $5.30 | |
Class T | 1.28% | |||
Actual | $1,000.00 | $981.60 | $6.34 | |
Hypothetical-C | $1,000.00 | $1,018.60 | $6.46 | |
Class B | 1.89% | |||
Actual | $1,000.00 | $978.50 | $9.35 | |
Hypothetical-C | $1,000.00 | $1,015.55 | $9.52 | |
Class C | 1.81% | |||
Actual | $1,000.00 | $978.90 | $8.95 | |
Hypothetical-C | $1,000.00 | $1,015.95 | $9.12 | |
Class I | .78% | |||
Actual | $1,000.00 | $983.90 | $3.87 | |
Hypothetical-C | $1,000.00 | $1,021.10 | $3.94 | |
Class Z | .64% | |||
Actual | $1,000.00 | $984.70 | $3.18 | |
Hypothetical-C | $1,000.00 | $1,021.80 | $3.23 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
EPG-SANN-0716
1.704747.118
Fidelity® Value Strategies Fund Semi-Annual Report May 31, 2016 (A class of Fidelity Advisor® Value Strategies Fund) |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
LyondellBasell Industries NV Class A | 5.3 | 6.5 |
Citigroup, Inc. | 4.6 | 3.0 |
Bank of America Corp. | 3.9 | 4.1 |
U.S. Bancorp | 3.3 | 2.7 |
Cott Corp. | 3.0 | 2.6 |
Boston Scientific Corp. | 2.7 | 2.3 |
General Motors Co. | 2.7 | 3.3 |
WestRock Co. | 2.6 | 1.2 |
Universal Health Services, Inc. Class B | 2.6 | 2.4 |
St. Jude Medical, Inc. | 2.5 | 2.1 |
33.2 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 18.0 | 15.2 |
Health Care | 16.3 | 14.5 |
Consumer Discretionary | 15.6 | 19.8 |
Materials | 10.8 | 10.0 |
Industrials | 9.0 | 7.7 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 83.7% | |
Bonds | 5.4% | |
Other Investments | 0.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 10.3% |
* Foreign investments - 15.5%
As of November 30, 2015* | ||
Stocks | 88.9% | |
Bonds | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 11.0% |
* Foreign investments - 15.9%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 83.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.6% | |||
Auto Components - 1.6% | |||
Delphi Automotive PLC | 287,077 | $19,510 | |
Tenneco, Inc. (a) | 90,224 | 4,847 | |
24,357 | |||
Automobiles - 2.7% | |||
General Motors Co. | 1,284,836 | 40,190 | |
Diversified Consumer Services - 1.3% | |||
Service Corp. International | 683,850 | 18,737 | |
Hotels, Restaurants & Leisure - 1.8% | |||
Cedar Fair LP (depositary unit) | 227,420 | 13,652 | |
Wyndham Worldwide Corp. | 199,867 | 13,469 | |
27,121 | |||
Household Durables - 3.6% | |||
CalAtlantic Group, Inc. | 527,581 | 19,515 | |
Lennar Corp. Class A | 424,700 | 19,354 | |
PulteGroup, Inc. | 744,504 | 13,967 | |
52,836 | |||
Leisure Products - 3.5% | |||
Hasbro, Inc. | 266,797 | 23,289 | |
Vista Outdoor, Inc. (a) | 557,700 | 27,985 | |
51,274 | |||
Media - 0.5% | |||
Regal Entertainment Group Class A (b) | 330,800 | 6,957 | |
Specialty Retail - 0.6% | |||
GameStop Corp. Class A (b) | 313,213 | 9,114 | |
TOTAL CONSUMER DISCRETIONARY | 230,586 | ||
CONSUMER STAPLES - 5.4% | |||
Beverages - 3.0% | |||
Cott Corp. | 3,069,864 | 44,315 | |
Food & Staples Retailing - 1.5% | |||
CVS Health Corp. | 237,100 | 22,868 | |
Food Products - 0.9% | |||
Calavo Growers, Inc. | 232,028 | 13,135 | |
TOTAL CONSUMER STAPLES | 80,318 | ||
ENERGY - 2.9% | |||
Energy Equipment & Services - 0.5% | |||
Halliburton Co. | 183,600 | 7,744 | |
Oil, Gas & Consumable Fuels - 2.4% | |||
Continental Resources, Inc. (a) | 145,000 | 6,099 | |
Kinder Morgan, Inc. | 170,400 | 3,081 | |
Range Resources Corp. (b) | 191,300 | 8,147 | |
Valero Energy Corp. | 327,300 | 17,903 | |
35,230 | |||
TOTAL ENERGY | 42,974 | ||
FINANCIALS - 17.4% | |||
Banks - 16.1% | |||
Bank of America Corp. | 3,923,013 | 58,021 | |
CIT Group, Inc. | 157,349 | 5,391 | |
Citigroup, Inc. | 1,481,723 | 69,004 | |
JPMorgan Chase & Co. | 314,200 | 20,508 | |
Regions Financial Corp. | 774,763 | 7,616 | |
SunTrust Banks, Inc. | 249,500 | 10,933 | |
U.S. Bancorp | 1,129,384 | 48,360 | |
Wells Fargo & Co. | 377,370 | 19,140 | |
238,973 | |||
Capital Markets - 0.5% | |||
The Blackstone Group LP | 267,400 | 7,003 | |
Insurance - 0.8% | |||
Progressive Corp. | 347,700 | 11,578 | |
TOTAL FINANCIALS | 257,554 | ||
HEALTH CARE - 15.2% | |||
Health Care Equipment & Supplies - 5.9% | |||
Boston Scientific Corp. (a) | 1,785,400 | 40,546 | |
St. Jude Medical, Inc. | 463,300 | 36,304 | |
Zimmer Biomet Holdings, Inc. | 87,600 | 10,697 | |
87,547 | |||
Health Care Providers & Services - 3.4% | |||
DaVita HealthCare Partners, Inc. (a) | 158,496 | 12,255 | |
Universal Health Services, Inc. Class B | 278,914 | 37,614 | |
49,869 | |||
Life Sciences Tools & Services - 0.8% | |||
PerkinElmer, Inc. | 207,500 | 11,361 | |
Pharmaceuticals - 5.1% | |||
Johnson & Johnson | 126,000 | 14,199 | |
Merck & Co., Inc. | 474,100 | 26,673 | |
Sanofi SA sponsored ADR | 159,344 | 6,565 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 992,000 | 28,222 | |
75,659 | |||
TOTAL HEALTH CARE | 224,436 | ||
INDUSTRIALS - 8.6% | |||
Aerospace & Defense - 4.1% | |||
Esterline Technologies Corp. (a) | 180,022 | 12,135 | |
Honeywell International, Inc. | 139,500 | 15,879 | |
Orbital ATK, Inc. | 278,850 | 24,268 | |
Textron, Inc. | 223,717 | 8,515 | |
60,797 | |||
Airlines - 0.3% | |||
Air Canada (a) | 674,400 | 4,953 | |
Machinery - 1.8% | |||
Deere & Co. | 164,900 | 13,570 | |
Ingersoll-Rand PLC | 208,100 | 13,903 | |
27,473 | |||
Road & Rail - 1.7% | |||
Avis Budget Group, Inc. (a) | 297,500 | 8,925 | |
Hertz Global Holdings, Inc. (a) | 1,617,300 | 15,672 | |
24,597 | |||
Trading Companies & Distributors - 0.7% | |||
Aircastle Ltd. | 467,200 | 9,877 | |
TOTAL INDUSTRIALS | 127,697 | ||
INFORMATION TECHNOLOGY - 3.9% | |||
IT Services - 0.8% | |||
Fidelity National Information Services, Inc. | 165,730 | 12,309 | |
Semiconductors & Semiconductor Equipment - 1.6% | |||
Cypress Semiconductor Corp. (b) | 1,507,475 | 16,024 | |
Micron Technology, Inc. (a) | 559,183 | 7,113 | |
23,137 | |||
Software - 1.5% | |||
Microsoft Corp. | 429,324 | 22,754 | |
TOTAL INFORMATION TECHNOLOGY | 58,200 | ||
MATERIALS - 10.4% | |||
Chemicals - 7.8% | |||
Ashland, Inc. | 83,100 | 9,420 | |
Axiall Corp. | 284,126 | 6,617 | |
Ingevity Corp. (a) | 159,333 | 4,643 | |
LyondellBasell Industries NV Class A | 965,892 | 78,589 | |
PPG Industries, Inc. | 154,592 | 16,646 | |
115,915 | |||
Containers & Packaging - 2.6% | |||
WestRock Co. | 956,000 | 37,867 | |
TOTAL MATERIALS | 153,782 | ||
TELECOMMUNICATION SERVICES - 2.1% | |||
Diversified Telecommunication Services - 2.1% | |||
Level 3 Communications, Inc. (a) | 558,139 | 30,112 | |
UTILITIES - 2.2% | |||
Independent Power and Renewable Electricity Producers - 0.9% | |||
Calpine Corp. (a) | 310,763 | 4,599 | |
Dynegy, Inc. (a) | 441,400 | 8,316 | |
12,915 | |||
Multi-Utilities - 1.3% | |||
Sempra Energy | 179,639 | 19,243 | |
TOTAL UTILITIES | 32,158 | ||
TOTAL COMMON STOCKS | |||
(Cost $844,962) | 1,237,817 | ||
Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - 5.4% | |||
ENERGY - 3.5% | |||
Oil, Gas & Consumable Fuels - 3.5% | |||
Chesapeake Energy Corp. 4.875% 4/15/22 | 22,905 | 13,743 | |
Continental Resources, Inc. 4.5% 4/15/23 | 10,000 | 9,106 | |
Sabine Pass Liquefaction LLC 5.75% 5/15/24 | 20,000 | 20,100 | |
Whiting Petroleum Corp. 5.75% 3/15/21 | 10,000 | 8,475 | |
51,424 | |||
HEALTH CARE - 1.1% | |||
Pharmaceuticals - 1.1% | |||
Valeant Pharmaceuticals International, Inc. 6.125% 4/15/25 (c) | 18,955 | 15,851 | |
INDUSTRIALS - 0.4% | |||
Machinery - 0.4% | |||
Harsco Corp. 5.75% 5/15/18 | 6,749 | 6,040 | |
MATERIALS - 0.4% | |||
Metals & Mining - 0.4% | |||
Freeport-McMoRan, Inc. 3.875% 3/15/23 | 7,525 | 6,189 | |
TOTAL NONCONVERTIBLE BONDS | |||
(Cost $65,623) | 79,504 | ||
Preferred Securities - 0.6% | |||
FINANCIALS - 0.6% | |||
Banks - 0.6% | |||
Barclays PLC 6.625%(d)(e) | |||
(Cost $9,904) | 10,000 | 9,515 | |
Shares | Value (000s) | ||
Money Market Funds - 11.4% | |||
Fidelity Cash Central Fund, 0.40% (f) | 150,790,718 | 150,791 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (f)(g) | 18,207,279 | 18,207 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $168,998) | 168,998 | ||
TOTAL INVESTMENT PORTFOLIO - 101.1% | |||
(Cost $1,089,487) | 1,495,834 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (16,337) | ||
NET ASSETS - 100% | $1,479,497 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $15,851,000 or 1.1% of net assets.
(d) Security is perpetual in nature with no stated maturity date.
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(f) 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.
(g) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $121 |
Fidelity Securities Lending Cash Central Fund | 256 |
Total | $377 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $230,586 | $230,586 | $-- | $-- |
Consumer Staples | 80,318 | 80,318 | -- | -- |
Energy | 42,974 | 42,974 | -- | -- |
Financials | 257,554 | 257,554 | -- | -- |
Health Care | 224,436 | 224,436 | -- | -- |
Industrials | 127,697 | 127,697 | -- | -- |
Information Technology | 58,200 | 58,200 | -- | -- |
Materials | 153,782 | 153,782 | -- | -- |
Telecommunication Services | 30,112 | 30,112 | -- | -- |
Utilities | 32,158 | 32,158 | -- | -- |
Corporate Bonds | 79,504 | -- | 79,504 | -- |
Preferred Securities | 9,515 | -- | 9,515 | -- |
Money Market Funds | 168,998 | 168,998 | -- | -- |
Total Investments in Securities: | $1,495,834 | $1,406,815 | $89,019 | $-- |
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
BB | 2.4% |
B | 2.1% |
CCC,CC,C | 1.5% |
Equities | 83.7% |
Short-Term Investments and Net Other Assets | 10.3% |
100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 84.5% |
Canada | 6.3% |
Netherlands | 5.3% |
Bailiwick of Jersey | 1.3% |
Others (Individually Less Than 1%) | 2.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $18,003) — See accompanying schedule: Unaffiliated issuers (cost $920,489) | $1,326,836 | |
Fidelity Central Funds (cost $168,998) | 168,998 | |
Total Investments (cost $1,089,487) | $1,495,834 | |
Receivable for fund shares sold | 2,194 | |
Dividends receivable | 2,151 | |
Interest receivable | 600 | |
Distributions receivable from Fidelity Central Funds | 70 | |
Total assets | 1,500,849 | |
Liabilities | ||
Payable for fund shares redeemed | $2,275 | |
Accrued management fee | 411 | |
Distribution and service plan fees payable | 194 | |
Other affiliated payables | 236 | |
Other payables and accrued expenses | 29 | |
Collateral on securities loaned, at value | 18,207 | |
Total liabilities | 21,352 | |
Net Assets | $1,479,497 | |
Net Assets consist of: | ||
Paid in capital | $1,178,624 | |
Undistributed net investment income | 7,712 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (113,186) | |
Net unrealized appreciation (depreciation) on investments | 406,347 | |
Net Assets | $1,479,497 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($206,841 ÷ 5,349.749 shares) | $38.66 | |
Maximum offering price per share (100/94.25 of $38.66) | $41.02 | |
Class T: | ||
Net Asset Value and redemption price per share ($272,503 ÷ 6,792.650 shares) | $40.12 | |
Maximum offering price per share (100/96.50 of $40.12) | $41.58 | |
Class B: | ||
Net Asset Value and offering price per share ($2,342 ÷ 66.037 shares)(a) | $35.46 | |
Class C: | ||
Net Asset Value and offering price per share ($45,075 ÷ 1,291.389 shares)(a) | $34.90 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($812,258 ÷ 18,748.304 shares) | $43.32 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($73,227 ÷ 1,690.737 shares) | $43.31 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($67,251 ÷ 1,627.341 shares) | $41.33 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $12,359 | |
Interest | 2,481 | |
Income from Fidelity Central Funds | 377 | |
Total income | 15,217 | |
Expenses | ||
Management fee | ||
Basic fee | $3,597 | |
Performance adjustment | (1,445) | |
Transfer agent fees | 1,206 | |
Distribution and service plan fees | 1,140 | |
Accounting and security lending fees | 213 | |
Custodian fees and expenses | 7 | |
Independent trustees' fees and expenses | 3 | |
Registration fees | 118 | |
Audit | 38 | |
Legal | 3 | |
Miscellaneous | 5 | |
Total expenses before reductions | 4,885 | |
Expense reductions | (7) | 4,878 |
Net investment income (loss) | 10,339 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 23,221 | |
Foreign currency transactions | 11 | |
Total net realized gain (loss) | 23,232 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (44,756) | |
Total change in net unrealized appreciation (depreciation) | (44,756) | |
Net gain (loss) | (21,524) | |
Net increase (decrease) in net assets resulting from operations | $(11,185) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,339 | $14,207 |
Net realized gain (loss) | 23,232 | 117,291 |
Change in net unrealized appreciation (depreciation) | (44,756) | (113,531) |
Net increase (decrease) in net assets resulting from operations | (11,185) | 17,967 |
Distributions to shareholders from net investment income | (15,368) | (11,929) |
Distributions to shareholders from net realized gain | (316) | (1,090) |
Total distributions | (15,684) | (13,019) |
Share transactions - net increase (decrease) | 91,730 | (175,423) |
Total increase (decrease) in net assets | 64,861 | (170,475) |
Net Assets | ||
Beginning of period | 1,414,636 | 1,585,111 |
End of period (including undistributed net investment income of $7,712 and undistributed net investment income of $12,741, respectively) | $1,479,497 | $1,414,636 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 | $23.11 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .26 | .35 | .25 | .23 | –B | .13C |
Net realized and unrealized gain (loss) | (.20) | .06 | 2.87 | 8.25 | 5.03 | (.49) |
Total from investment operations | .06 | .41 | 3.12 | 8.48 | 5.03 | (.36) |
Distributions from net investment income | (.40) | (.28)D | (.23) | (.08) | (.12) | (.03)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.41) | (.31) | (.23) | (.08) | (.12) | (.04) |
Net asset value, end of period | $38.66 | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 |
Total ReturnE,F,G | .21% | 1.07% | 8.74% | 30.77% | 22.29% | (1.57)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .87%J | .93% | .96% | 1.04% | 1.21% | 1.18% |
Expenses net of fee waivers, if any | .87%J | .93% | .96% | 1.04% | 1.21% | 1.18% |
Expenses net of all reductions | .86%J | .93% | .96% | 1.03% | 1.21% | 1.17% |
Net investment income (loss) | 1.45%J | .89% | .68% | .73% | - %B | .51%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $207 | $215 | $233 | $243 | $203 | $190 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 | $23.90 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .23 | .28 | .18 | .18 | (.05)B | .08C |
Net realized and unrealized gain (loss) | (.20) | .06 | 2.98 | 8.54 | 5.22 | (.50) |
Total from investment operations | .03 | .34 | 3.16 | 8.72 | 5.17 | (.42) |
Distributions from net investment income | (.30) | (.19)D | (.16) | (.02) | (.07) | – |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | – |
Total distributions | (.31) | (.22) | (.16) | (.02) | (.07) | – |
Net asset value, end of period | $40.12 | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 |
Total ReturnE,F,G | .11% | .86% | 8.51% | 30.52% | 22.08% | (1.76)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.08%J | 1.15% | 1.17% | 1.23% | 1.38% | 1.35% |
Expenses net of fee waivers, if any | 1.07%J | 1.14% | 1.17% | 1.23% | 1.38% | 1.35% |
Expenses net of all reductions | 1.07%J | 1.14% | 1.17% | 1.22% | 1.38% | 1.35% |
Net investment income (loss) | 1.25%J | .68% | .47% | .54% | (.17)%B | .33%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $273 | $294 | $324 | $335 | $283 | $274 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.53 | $35.44 | $32.86 | $25.34 | $20.87 | $21.37 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .02 | (.05) | (.02) | (.18)B | (.06)C |
Net realized and unrealized gain (loss) | (.18) | .07 | 2.63 | 7.54 | 4.65 | (.44) |
Total from investment operations | (.07) | .09 | 2.58 | 7.52 | 4.47 | (.50) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | – | – | – | – | – | – |
Total distributions | – | – | – | – | – | – |
Net asset value, end of period | $35.46 | $35.53 | $35.44 | $32.86 | $25.34 | $20.87 |
Total ReturnD,E,F | (.20)% | .25% | 7.85% | 29.68% | 21.42% | (2.34)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.69%I | 1.77% | 1.78% | 1.83% | 1.97% | 1.93% |
Expenses net of fee waivers, if any | 1.69%I | 1.76% | 1.78% | 1.83% | 1.97% | 1.93% |
Expenses net of all reductions | 1.69%I | 1.76% | 1.78% | 1.82% | 1.97% | 1.93% |
Net investment income (loss) | .63%I | .06% | (.14)% | (.07)% | (.76)%B | (.25)%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2 | $4 | $7 | $11 | $13 | $16 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04) %.
C Net Investment 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) %.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 | $21.13 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .05 | (.03) | (.01) | (.17)B | (.05)C |
Net realized and unrealized gain (loss) | (.19) | .07 | 2.60 | 7.47 | 4.59 | (.44) |
Total from investment operations | (.08) | .12 | 2.57 | 7.46 | 4.42 | (.49) |
Distributions from net investment income | (.13) | (.04)D | (.02) | – | – | – |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | – |
Total distributions | (.14) | (.07) | (.02) | – | – | – |
Net asset value, end of period | $34.90 | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 |
Total ReturnE,F,G | (.20)% | .33% | 7.91% | 29.77% | 21.41% | (2.32)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.63%J | 1.70% | 1.72% | 1.78% | 1.95% | 1.92% |
Expenses net of fee waivers, if any | 1.63%J | 1.69% | 1.72% | 1.78% | 1.95% | 1.92% |
Expenses net of all reductions | 1.63%J | 1.69% | 1.72% | 1.77% | 1.95% | 1.92% |
Net investment income (loss) | .69%J | .13% | (.08)% | (.02)% | (.75)%B | (.24)%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $45 | $49 | $53 | $54 | $43 | $40 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.02) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Value Strategies Fund
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 | $25.80 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .36 | .51 | .40 | .37 | .09B | .22C |
Net realized and unrealized gain (loss) | (.24) | .07 | 3.21 | 9.20 | 5.62 | (.54) |
Total from investment operations | .12 | .58 | 3.61 | 9.57 | 5.71 | (.32) |
Distributions from net investment income | (.51) | (.39)D | (.33) | (.18) | (.19) | (.10)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.52) | (.42) | (.33) | (.18) | (.19) | (.11) |
Net asset value, end of period | $43.32 | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 |
Total ReturnE,F | .36% | 1.35% | 9.05% | 31.14% | 22.69% | (1.29)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .56%I | .67% | .69% | .73% | .89% | .88% |
Expenses net of fee waivers, if any | .56%I | .67% | .69% | .73% | .89% | .88% |
Expenses net of all reductions | .56%I | .66% | .69% | .72% | .89% | .88% |
Net investment income (loss) | 1.76%I | 1.16% | .95% | 1.03% | .31%B | .80%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $812 | $716 | $786 | $681 | $396 | $284 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class K
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 | $25.82 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .38 | .58 | .47 | .43 | .14B | .28C |
Net realized and unrealized gain (loss) | (.23) | .07 | 3.20 | 9.18 | 5.61 | (.55) |
Total from investment operations | .15 | .65 | 3.67 | 9.61 | 5.75 | (.27) |
Distributions from net investment income | (.57) | (.45)D | (.38) | (.22) | (.24) | (.16)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.58) | (.48) | (.38) | (.22) | (.24) | (.17) |
Net asset value, end of period | $43.31 | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 |
Total ReturnE,F | .43% | 1.51% | 9.21% | 31.34% | 22.93% | (1.11)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .43%I | .51% | .53% | .58% | .71% | .68% |
Expenses net of fee waivers, if any | .43%I | .51% | .53% | .58% | .71% | .68% |
Expenses net of all reductions | .43%I | .51% | .53% | .57% | .71% | .68% |
Net investment income (loss) | 1.89%I | 1.31% | 1.11% | 1.18% | .50%B | 1.00%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $73 | $72 | $97 | $119 | $70 | $47 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 | $24.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .33 | .48 | .37 | .34 | .08B | .22C |
Net realized and unrealized gain (loss) | (.22) | .08 | 3.06 | 8.79 | 5.37 | (.53) |
Total from investment operations | .11 | .56 | 3.43 | 9.13 | 5.45 | (.31) |
Distributions from net investment income | (.48) | (.39)D | (.32) | (.18) | (.20) | (.11)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.49) | (.42) | (.32) | (.18) | (.20) | (.12) |
Net asset value, end of period | $41.33 | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 |
Total ReturnE,F | .34% | 1.36% | 9.01% | 31.11% | 22.67% | (1.30)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .61%I | .68% | .71% | .76% | .90% | .86% |
Expenses net of fee waivers, if any | .61%I | .68% | .71% | .76% | .90% | .86% |
Expenses net of all reductions | .60%I | .68% | .71% | .75% | .90% | .86% |
Net investment income (loss) | 1.71%I | 1.14% | .93% | 1.00% | .31%B | .82%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $67 | $65 | $86 | $74 | $66 | $52 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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, Class K and Class I 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $448,497 |
Gross unrealized depreciation | (43,804) |
Net unrealized appreciation (depreciation) on securities | $404,693 |
Tax cost | $1,091,141 |
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 prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
2017 | $(133,637) |
The Fund elected to defer to its next fiscal year approximately $734 of capital losses recognized during the period November 1, 2015 to November 30, 2015.
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 $263,755 and $175,867, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Fidelity Value Strategies Fund as compared to its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .33% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $245 | $– |
Class T | .25% | .25% | 661 | – |
Class B | .75% | .25% | 15 | 11 |
Class C | .75% | .25% | 219 | 7 |
$1,140 | $18 |
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 by FDC | |
Class A | $8 |
Class T | 4 |
Class B(a) | –(b) |
Class C(a) | 1 |
$13 |
(a) 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.
(b) In the amount of less than five hundred dollars
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the 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 reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $225 | .23 |
Class T | 250 | .19 |
Class B | 4 | .30 |
Class C | 54 | .24 |
Fidelity Value Strategies Fund | 591 | .17 |
Class K | 16 | .05 |
Class I | 66 | .22 |
$1,206 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $36.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $256. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $2 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $5.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $2,185 | $1,691 |
Class T | 2,155 | 1,553 |
Class C | 187 | 56 |
Fidelity Value Strategies Fund | 9,140 | 6,934 |
Class K | 955 | 896 |
Class I | 746 | 799 |
Total | $15,368 | $11,929 |
From net realized gain | ||
Class A | $49 | $174 |
Class T | 65 | 234 |
Class C | 13 | 44 |
Fidelity Value Strategies Fund | 160 | 520 |
Class K | 15 | 58 |
Class I | 14 | 60 |
Total | $316 | $1,090 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 305 | 391 | $11,127 | $15,470 |
Reinvestment of distributions | 58 | 46 | 2,110 | 1,760 |
Shares redeemed | (528) | (904) | (19,018) | (35,567) |
Net increase (decrease) | (165) | (467) | $(5,781) | $(18,337) |
Class T | ||||
Shares sold | 232 | 486 | $8,710 | $19,926 |
Reinvestment of distributions | 54 | 41 | 2,045 | 1,646 |
Shares redeemed | (773) | (1,296) | (29,117) | (52,610) |
Net increase (decrease) | (487) | (769) | $(18,362) | $(31,038) |
Class B | ||||
Shares sold | – | – | $9 | $12 |
Shares redeemed | (44) | (95) | (1,469) | (3,438) |
Net increase (decrease) | (44) | (95) | $(1,460) | $(3,426) |
Class C | ||||
Shares sold | 43 | 131 | $1,404 | $4,724 |
Reinvestment of distributions | 6 | 3 | 191 | 95 |
Shares redeemed | (157) | (237) | (5,029) | (8,407) |
Net increase (decrease) | (108) | (103) | $(3,434) | $(3,588) |
Fidelity Value Strategies Fund | ||||
Shares sold | 7,288 | 3,980 | $307,450 | $174,437 |
Reinvestment of distributions | 182 | 106 | 7,409 | 4,551 |
Shares redeemed | (5,095) | (5,750) | (199,371) | (250,149) |
Net increase (decrease) | 2,375 | (1,664) | $115,488 | $(71,161) |
Class K | ||||
Shares sold | 292 | 390 | $12,136 | $17,106 |
Reinvestment of distributions | 24 | 22 | 970 | 954 |
Shares redeemed | (263) | (1,001) | (10,650) | (44,142) |
Net increase (decrease) | 53 | (589) | $2,456 | $(26,082) |
Class I | ||||
Shares sold | 202 | 288 | $7,838 | $12,081 |
Reinvestment of distributions | 19 | 18 | 723 | 748 |
Shares redeemed | (150) | (809) | (5,738) | (34,620) |
Net increase (decrease) | 71 | (503) | $2,823 | $(21,791) |
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.
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, 2015 to May 31, 2016).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .87% | |||
Actual | $1,000.00 | $1,002.10 | $4.35 | |
Hypothetical-C | $1,000.00 | $1,020.65 | $4.39 | |
Class T | 1.07% | |||
Actual | $1,000.00 | $1,001.10 | $5.35 | |
Hypothetical-C | $1,000.00 | $1,019.65 | $5.40 | |
Class B | 1.69% | |||
Actual | $1,000.00 | $998.00 | $8.44 | |
Hypothetical-C | $1,000.00 | $1,016.55 | $8.52 | |
Class C | 1.63% | |||
Actual | $1,000.00 | $998.00 | $8.14 | |
Hypothetical-C | $1,000.00 | $1,016.85 | $8.22 | |
Fidelity Value Strategies Fund | .56% | |||
Actual | $1,000.00 | $1,003.60 | $2.81 | |
Hypothetical-C | $1,000.00 | $1,022.20 | $2.83 | |
Class K | .43% | |||
Actual | $1,000.00 | $1,004.30 | $2.15 | |
Hypothetical-C | $1,000.00 | $1,022.85 | $2.17 | |
Class I | .61% | |||
Actual | $1,000.00 | $1,003.40 | $3.06 | |
Hypothetical-C | $1,000.00 | $1,021.95 | $3.08 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
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Fidelity Advisor® Series Growth Opportunities Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Apple, Inc. | 5.3 | 6.9 |
Amazon.com, Inc. | 3.6 | 2.2 |
Alphabet, Inc. Class C | 3.0 | 3.0 |
Alphabet, Inc. Class A | 2.7 | 3.0 |
Facebook, Inc. Class A | 2.5 | 2.5 |
Tesla Motors, Inc. | 2.2 | 0.7 |
American Tower Corp. | 2.1 | 2.1 |
Salesforce.com, Inc. | 2.1 | 1.8 |
Visa, Inc. Class A | 2.0 | 2.0 |
Alliance Data Systems Corp. | 1.9 | 0.9 |
27.4 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 37.2 | 38.8 |
Consumer Discretionary | 17.5 | 16.9 |
Health Care | 17.1 | 17.9 |
Consumer Staples | 7.8 | 6.2 |
Industrials | 6.3 | 8.4 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 95.9% | |
Convertible Securities | 0.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.2% |
* Foreign investments - 9.3%
As of November 30, 2015* | ||
Stocks | 98.7% | |
Convertible Securities | 0.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 10.4%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 17.5% | |||
Auto Components - 0.4% | |||
Tenneco, Inc. (a) | 49,900 | $2,680,628 | |
Automobiles - 2.2% | |||
Tesla Motors, Inc. (a)(b) | 59,700 | 13,326,831 | |
Diversified Consumer Services - 0.7% | |||
ServiceMaster Global Holdings, Inc. (a) | 115,700 | 4,424,368 | |
Hotels, Restaurants & Leisure - 1.5% | |||
Domino's Pizza, Inc. | 5,000 | 604,400 | |
Las Vegas Sands Corp. | 12,800 | 591,872 | |
Starbucks Corp. | 137,200 | 7,530,908 | |
8,727,180 | |||
Internet & Catalog Retail - 5.1% | |||
Amazon.com, Inc. (a) | 30,300 | 21,900,537 | |
Expedia, Inc. | 15,300 | 1,701,972 | |
Netflix, Inc.(a) | 36,400 | 3,733,548 | |
Priceline Group, Inc. (a) | 2,400 | 3,034,392 | |
Wayfair LLC Class A (a) | 15,800 | 650,644 | |
31,021,093 | |||
Media - 3.8% | |||
Altice NV Class A (a) | 91,307 | 1,573,671 | |
AMC Networks, Inc. Class A (a) | 7,400 | 473,156 | |
Charter Communications, Inc. (a) | 45,662 | 9,997,238 | |
Comcast Corp. Class A | 65,700 | 4,158,810 | |
Liberty Global PLC Class A (a) | 31,300 | 1,169,055 | |
Lions Gate Entertainment Corp. | 60,200 | 1,342,460 | |
The Walt Disney Co. | 39,300 | 3,899,346 | |
Twenty-First Century Fox, Inc. Class A | 2,500 | 72,200 | |
22,685,936 | |||
Multiline Retail - 0.3% | |||
Dollar General Corp. | 17,000 | 1,528,300 | |
Specialty Retail - 1.2% | |||
CarMax, Inc. (a)(b) | 17,200 | 922,952 | |
Home Depot, Inc. | 22,200 | 2,933,064 | |
TJX Companies, Inc. | 46,300 | 3,524,356 | |
7,380,372 | |||
Textiles, Apparel & Luxury Goods - 2.3% | |||
lululemon athletica, Inc. (a) | 74,700 | 4,857,741 | |
NIKE, Inc. Class B | 111,500 | 6,157,030 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 48,300 | 1,505,511 | |
VF Corp. | 26,100 | 1,626,552 | |
14,146,834 | |||
TOTAL CONSUMER DISCRETIONARY | 105,921,542 | ||
CONSUMER STAPLES - 7.6% | |||
Beverages - 2.8% | |||
Anheuser-Busch InBev SA NV ADR | 7,100 | 896,162 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 28,500 | 4,364,775 | |
Molson Coors Brewing Co. Class B | 24,600 | 2,439,828 | |
Monster Beverage Corp. | 28,000 | 4,200,000 | |
PepsiCo, Inc. | 21,900 | 2,215,623 | |
The Coca-Cola Co. | 57,500 | 2,564,500 | |
16,680,888 | |||
Food & Staples Retailing - 2.6% | |||
Costco Wholesale Corp. | 39,700 | 5,906,169 | |
CVS Health Corp. | 69,100 | 6,664,695 | |
Walgreens Boots Alliance, Inc. | 33,000 | 2,554,200 | |
Whole Foods Market, Inc. | 18,400 | 595,240 | |
15,720,304 | |||
Food Products - 0.3% | |||
Mead Johnson Nutrition Co. Class A | 20,600 | 1,694,968 | |
Post Holdings, Inc. (a) | 4,400 | 334,444 | |
2,029,412 | |||
Personal Products - 0.2% | |||
Herbalife Ltd. (a) | 14,800 | 856,772 | |
Tobacco - 1.7% | |||
Altria Group, Inc. | 9,300 | 591,852 | |
British American Tobacco PLC (United Kingdom) | 15,100 | 918,568 | |
Imperial Tobacco Group PLC | 28,424 | 1,548,325 | |
Philip Morris International, Inc. | 19,900 | 1,963,732 | |
Reynolds American, Inc. | 106,400 | 5,288,080 | |
10,310,557 | |||
TOTAL CONSUMER STAPLES | 45,597,933 | ||
ENERGY - 1.0% | |||
Oil, Gas & Consumable Fuels - 1.0% | |||
Cabot Oil & Gas Corp. | 56,200 | 1,347,114 | |
Devon Energy Corp. | 34,300 | 1,237,887 | |
PDC Energy, Inc. (a) | 20,500 | 1,190,025 | |
Targa Resources Corp. | 3,100 | 132,773 | |
Teekay LNG Partners LP | 44,800 | 625,856 | |
The Williams Companies, Inc. | 38,200 | 846,512 | |
Williams Partners LP | 20,300 | 647,976 | |
6,028,143 | |||
FINANCIALS - 4.1% | |||
Banks - 0.5% | |||
HDFC Bank Ltd. sponsored ADR | 46,900 | 3,018,484 | |
Capital Markets - 0.7% | |||
BlackRock, Inc. Class A | 2,500 | 909,625 | |
Charles Schwab Corp. | 81,900 | 2,504,502 | |
Invesco Ltd. | 20,000 | 628,000 | |
4,042,127 | |||
Diversified Financial Services - 0.6% | |||
Bats Global Markets, Inc. | 1,700 | 47,260 | |
MSCI, Inc. Class A | 45,300 | 3,614,487 | |
On Deck Capital, Inc. (a)(b) | 21,500 | 111,155 | |
3,772,902 | |||
Insurance - 0.2% | |||
FNF Group | 43,800 | 1,530,810 | |
Real Estate Investment Trusts - 2.1% | |||
American Tower Corp. | 118,300 | 12,513,774 | |
TOTAL FINANCIALS | 24,878,097 | ||
HEALTH CARE - 17.1% | |||
Biotechnology - 10.3% | |||
AbbVie, Inc. | 107,800 | 6,783,854 | |
ACADIA Pharmaceuticals, Inc. (a) | 43,246 | 1,532,206 | |
Aduro Biotech, Inc. (a) | 13,900 | 170,831 | |
Adverum Biotechnologies, Inc. (a) | 6,900 | 31,188 | |
Agios Pharmaceuticals, Inc. (a) | 5,100 | 285,345 | |
Alexion Pharmaceuticals, Inc. (a) | 29,800 | 4,496,820 | |
Alkermes PLC (a) | 17,261 | 801,083 | |
Alnylam Pharmaceuticals, Inc. (a) | 45,477 | 3,261,610 | |
Amgen, Inc. | 45,900 | 7,249,905 | |
Amicus Therapeutics, Inc. (a) | 123,400 | 873,672 | |
Asterias Biotherapeutics, Inc. (a)(b) | 9,895 | 31,070 | |
Asterias Biotherapeutics, Inc. warrants 9/30/16 (a) | 1,979 | 1,108 | |
Biogen, Inc. (a) | 16,100 | 4,664,653 | |
BioMarin Pharmaceutical, Inc. (a) | 28,900 | 2,590,885 | |
BioTime, Inc. warrants 10/1/18 (a) | 26,180 | 12,331 | |
bluebird bio, Inc. (a) | 23,300 | 1,054,325 | |
Celgene Corp. (a) | 5,800 | 612,016 | |
Celldex Therapeutics, Inc. (a) | 30,800 | 141,064 | |
Coherus BioSciences, Inc. (a) | 19,000 | 354,350 | |
Genocea Biosciences, Inc. (a)(b) | 13,033 | 61,255 | |
Geron Corp. (a) | 11,400 | 33,744 | |
Gilead Sciences, Inc. | 56,000 | 4,875,360 | |
Infinity Pharmaceuticals, Inc. (a) | 17,404 | 92,241 | |
Insmed, Inc. (a) | 69,900 | 824,820 | |
Intercept Pharmaceuticals, Inc. (a) | 2,900 | 430,244 | |
Ionis Pharmaceuticals, Inc. (a) | 106,356 | 2,413,218 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 28,996 | 412,033 | |
Merrimack Pharmaceuticals, Inc. (a)(b) | 79,600 | 530,932 | |
Novavax, Inc. (a) | 170,600 | 1,038,954 | |
Ophthotech Corp. (a) | 15,500 | 832,350 | |
Prothena Corp. PLC (a) | 34,505 | 1,674,873 | |
Regeneron Pharmaceuticals, Inc. (a) | 22,100 | 8,816,353 | |
Regulus Therapeutics, Inc. (a) | 8,700 | 53,418 | |
Rigel Pharmaceuticals, Inc. (a) | 181,900 | 469,302 | |
Sage Therapeutics, Inc. (a) | 2,800 | 92,148 | |
Seres Therapeutics, Inc. | 5,500 | 167,365 | |
Spark Therapeutics, Inc. (a) | 900 | 50,355 | |
Transition Therapeutics, Inc. (a) | 60,500 | 47,981 | |
Vertex Pharmaceuticals, Inc. (a) | 43,300 | 4,033,395 | |
XOMA Corp. (a)(b) | 210,525 | 144,231 | |
62,042,888 | |||
Health Care Equipment & Supplies - 1.3% | |||
Boston Scientific Corp. (a) | 143,200 | 3,252,072 | |
Medtronic PLC | 45,000 | 3,621,600 | |
Nevro Corp. (a) | 6,400 | 446,208 | |
Stryker Corp. | 6,200 | 689,192 | |
8,009,072 | |||
Health Care Providers & Services - 1.9% | |||
Cardinal Health, Inc. | 23,700 | 1,871,115 | |
Express Scripts Holding Co. (a) | 8,200 | 619,510 | |
McKesson Corp. | 35,800 | 6,556,412 | |
UnitedHealth Group, Inc. | 17,700 | 2,365,959 | |
11,412,996 | |||
Health Care Technology - 0.5% | |||
athenahealth, Inc. (a) | 22,100 | 2,803,827 | |
Castlight Health, Inc. Class B (a) | 28,800 | 121,248 | |
2,925,075 | |||
Pharmaceuticals - 3.1% | |||
AcelRx Pharmaceuticals, Inc. (a)(b) | 120,278 | 416,162 | |
Allergan PLC (a) | 9,360 | 2,206,620 | |
Bristol-Myers Squibb Co. | 48,300 | 3,463,110 | |
Endo International PLC (a) | 320,900 | 5,073,429 | |
Innoviva, Inc. | 83,400 | 940,752 | |
Intra-Cellular Therapies, Inc. (a) | 9,605 | 371,714 | |
Jazz Pharmaceuticals PLC (a) | 6,700 | 1,015,452 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 99,100 | 5,140,317 | |
18,627,556 | |||
TOTAL HEALTH CARE | 103,017,587 | ||
INDUSTRIALS - 6.3% | |||
Aerospace & Defense - 0.2% | |||
Honeywell International, Inc. | 13,100 | 1,491,173 | |
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 5,700 | 940,329 | |
United Parcel Service, Inc. Class B | 5,700 | 587,613 | |
1,527,942 | |||
Airlines - 2.4% | |||
Delta Air Lines, Inc. | 51,800 | 2,251,228 | |
JetBlue Airways Corp. (a) | 131,900 | 2,364,967 | |
Southwest Airlines Co. | 169,900 | 7,217,352 | |
Spirit Airlines, Inc. (a) | 63,200 | 2,747,304 | |
Wizz Air Holdings PLC (a) | 859 | 24,074 | |
14,604,925 | |||
Electrical Equipment - 0.6% | |||
SolarCity Corp. (a)(b) | 106,923 | 2,394,006 | |
Sunrun, Inc. (a)(b) | 207,700 | 1,316,818 | |
3,710,824 | |||
Industrial Conglomerates - 0.9% | |||
3M Co. | 10,800 | 1,817,856 | |
Danaher Corp. | 39,700 | 3,904,892 | |
5,722,748 | |||
Professional Services - 1.0% | |||
TransUnion Holding Co., Inc. | 50,200 | 1,661,620 | |
TriNet Group, Inc. (a) | 171,000 | 3,445,650 | |
Verisk Analytics, Inc. (a) | 8,500 | 674,815 | |
5,782,085 | |||
Road & Rail - 0.3% | |||
Genesee & Wyoming, Inc. Class A (a) | 9,500 | 570,665 | |
J.B. Hunt Transport Services, Inc. | 17,800 | 1,472,416 | |
2,043,081 | |||
Trading Companies & Distributors - 0.6% | |||
HD Supply Holdings, Inc. (a) | 97,000 | 3,424,100 | |
TOTAL INDUSTRIALS | 38,306,878 | ||
INFORMATION TECHNOLOGY - 36.7% | |||
Communications Equipment - 0.2% | |||
Infinera Corp. (a) | 81,200 | 1,064,532 | |
Electronic Equipment & Components - 0.1% | |||
CDW Corp. | 7,200 | 306,432 | |
Internet Software & Services - 11.9% | |||
Alphabet, Inc.: | |||
Class A | 21,900 | 16,399,815 | |
Class C | 24,300 | 17,877,996 | |
Endurance International Group Holdings, Inc. (a)(b) | 802,994 | 7,564,203 | |
Facebook, Inc. Class A (a) | 125,200 | 14,875,012 | |
GoDaddy, Inc. (a) | 304,500 | 9,905,385 | |
Rackspace Hosting, Inc. (a) | 63,200 | 1,580,000 | |
Wix.com Ltd. (a) | 131,669 | 3,641,965 | |
71,844,376 | |||
IT Services - 11.3% | |||
Accenture PLC Class A | 3,800 | 452,086 | |
Alliance Data Systems Corp. (a) | 53,100 | 11,798,289 | |
Booz Allen Hamilton Holding Corp. Class A | 70,000 | 2,048,900 | |
Capgemini SA | 9,900 | 944,006 | |
Cognizant Technology Solutions Corp. Class A (a) | 155,000 | 9,523,200 | |
EPAM Systems, Inc. (a) | 100,000 | 7,651,000 | |
Fidelity National Information Services, Inc. | 14,500 | 1,076,915 | |
First Data Corp. Class A (a) | 24,600 | 308,238 | |
Gartner, Inc. Class A (a) | 13,900 | 1,412,518 | |
Global Payments, Inc. | 21,100 | 1,639,259 | |
Luxoft Holding, Inc. (a) | 31,400 | 2,039,116 | |
MasterCard, Inc. Class A | 79,500 | 7,624,050 | |
PayPal Holdings, Inc. (a) | 15,500 | 585,745 | |
Sabre Corp. | 213,100 | 6,003,027 | |
Travelport Worldwide Ltd. | 212,600 | 2,814,824 | |
Visa, Inc. Class A | 153,000 | 12,077,820 | |
67,998,993 | |||
Semiconductors & Semiconductor Equipment - 2.5% | |||
Micron Technology, Inc. (a) | 87,900 | 1,118,088 | |
NVIDIA Corp. | 69,500 | 3,247,040 | |
NXP Semiconductors NV (a) | 66,200 | 6,255,238 | |
SolarEdge Technologies, Inc. (a)(b) | 214,580 | 4,688,573 | |
15,308,939 | |||
Software - 5.1% | |||
Activision Blizzard, Inc. | 5,000 | 196,300 | |
Adobe Systems, Inc. (a) | 20,800 | 2,068,976 | |
Autodesk, Inc. (a) | 15,500 | 903,185 | |
Electronic Arts, Inc. (a) | 31,100 | 2,386,925 | |
Microsoft Corp. | 167,800 | 8,893,400 | |
NetSuite, Inc. (a)(b) | 13,400 | 1,062,754 | |
Red Hat, Inc. (a) | 7,700 | 596,442 | |
Salesforce.com, Inc. (a) | 148,348 | 12,418,211 | |
Tyler Technologies, Inc. (a) | 8,800 | 1,348,952 | |
Workday, Inc. Class A (a) | 13,200 | 1,001,088 | |
30,876,233 | |||
Technology Hardware, Storage & Peripherals - 5.6% | |||
Apple, Inc. | 323,400 | 32,294,722 | |
Nimble Storage, Inc. (a) | 199,700 | 1,783,321 | |
34,078,043 | |||
TOTAL INFORMATION TECHNOLOGY | 221,477,548 | ||
MATERIALS - 3.2% | |||
Chemicals - 2.6% | |||
E.I. du Pont de Nemours & Co. | 21,800 | 1,425,938 | |
Eastman Chemical Co. | 12,300 | 902,328 | |
LyondellBasell Industries NV Class A | 90,800 | 7,387,488 | |
PPG Industries, Inc. | 39,800 | 4,285,664 | |
The Chemours Co. LLC | 4,260 | 37,105 | |
The Dow Chemical Co. | 31,500 | 1,617,840 | |
W.R. Grace & Co. | 4,000 | 310,560 | |
15,966,923 | |||
Containers & Packaging - 0.6% | |||
Sealed Air Corp. | 73,800 | 3,427,272 | |
TOTAL MATERIALS | 19,394,195 | ||
TELECOMMUNICATION SERVICES - 2.4% | |||
Diversified Telecommunication Services - 1.2% | |||
SBA Communications Corp. Class A (a) | 70,900 | 7,047,460 | |
Wireless Telecommunication Services - 1.2% | |||
T-Mobile U.S., Inc. (a) | 175,100 | 7,487,276 | |
TOTAL TELECOMMUNICATION SERVICES | 14,534,736 | ||
TOTAL COMMON STOCKS | |||
(Cost $496,512,714) | 579,156,659 | ||
Convertible Preferred Stocks - 0.9% | |||
CONSUMER STAPLES - 0.2% | |||
Food & Staples Retailing - 0.1% | |||
Blue Apron, Inc. Series D (c) | 56,277 | 812,077 | |
Tobacco - 0.1% | |||
PAX Labs, Inc. Series C (c) | 273,248 | 726,840 | |
TOTAL CONSUMER STAPLES | 1,538,917 | ||
FINANCIALS - 0.2% | |||
Real Estate Management & Development - 0.2% | |||
Redfin Corp. Series G (a)(c) | 282,324 | 1,112,357 | |
INFORMATION TECHNOLOGY - 0.5% | |||
Internet Software & Services - 0.5% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(c) | 55,696 | 2,716,418 | |
Software - 0.0% | |||
Cloudera, Inc. Series F (a)(c) | 10,396 | 263,227 | |
TOTAL INFORMATION TECHNOLOGY | 2,979,645 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $3,260,964) | 5,630,919 | ||
Money Market Funds - 4.6% | |||
Fidelity Cash Central Fund, 0.40% (d) | 15,779,260 | 15,779,260 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (d)(e) | 12,294,270 | 12,294,270 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $28,073,530) | 28,073,530 | ||
TOTAL INVESTMENT PORTFOLIO - 101.4% | |||
(Cost $527,847,208) | 612,861,108 | ||
NET OTHER ASSETS (LIABILITIES) - (1.4)% | (8,724,034) | ||
NET ASSETS - 100% | $604,137,074 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,630,919 or 0.9% of net assets.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Blue Apron, Inc. Series D | 5/18/15 | $749,998 |
Cloudera, Inc. Series F | 2/5/14 | $151,366 |
PAX Labs, Inc. Series C | 5/22/15 | $1,052,005 |
Redfin Corp. Series G | 12/16/14 | $931,020 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $864,015 |
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 | $24,840 |
Fidelity Securities Lending Cash Central Fund | 839,248 |
Total | $864,088 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $105,921,542 | $105,921,542 | $-- | $-- |
Consumer Staples | 47,136,850 | 44,679,365 | 918,568 | 1,538,917 |
Energy | 6,028,143 | 6,028,143 | -- | -- |
Financials | 25,990,454 | 24,878,097 | -- | 1,112,357 |
Health Care | 103,017,587 | 103,017,587 | -- | -- |
Industrials | 38,306,878 | 38,306,878 | -- | -- |
Information Technology | 224,457,193 | 221,477,548 | -- | 2,979,645 |
Materials | 19,394,195 | 19,394,195 | -- | -- |
Telecommunication Services | 14,534,736 | 14,534,736 | -- | -- |
Money Market Funds | 28,073,530 | 28,073,530 | -- | -- |
Total Investments in Securities: | $612,861,108 | $606,311,621 | $918,568 | $5,630,919 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2016 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $11,993,503) — See accompanying schedule: Unaffiliated issuers (cost $499,773,678) | $584,787,578 | |
Fidelity Central Funds (cost $28,073,530) | 28,073,530 | |
Total Investments (cost $527,847,208) | $612,861,108 | |
Receivable for investments sold | 7,116,948 | |
Receivable for fund shares sold | 14,998 | |
Dividends receivable | 385,929 | |
Distributions receivable from Fidelity Central Funds | 117,446 | |
Prepaid expenses | 287 | |
Other receivables | 2,659 | |
Total assets | 620,499,375 | |
Liabilities | ||
Payable for investments purchased | $2,628,103 | |
Payable for fund shares redeemed | 1,104,475 | |
Accrued management fee | 196,225 | |
Other affiliated payables | 105,759 | |
Other payables and accrued expenses | 33,469 | |
Collateral on securities loaned, at value | 12,294,270 | |
Total liabilities | 16,362,301 | |
Net Assets | $604,137,074 | |
Net Assets consist of: | ||
Paid in capital | $517,690,687 | |
Undistributed net investment income | 1,248,361 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 184,184 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 85,013,842 | |
Net Assets, for 57,528,201 shares outstanding | $604,137,074 | |
Net Asset Value, offering price and redemption price per share ($604,137,074 ÷ 57,528,201 shares) | $10.50 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2016 (Unaudited) | ||
Investment Income | ||
Dividends | $2,466,071 | |
Income from Fidelity Central Funds (including $839,248 from security lending) | 864,088 | |
Total income | 3,330,159 | |
Expenses | ||
Management fee | ||
Basic fee | $1,602,658 | |
Performance adjustment | (385,092) | |
Transfer agent fees | 519,495 | |
Accounting and security lending fees | 111,730 | |
Custodian fees and expenses | 19,031 | |
Independent trustees' fees and expenses | 1,304 | |
Audit | 39,970 | |
Legal | 346 | |
Interest | 221 | |
Miscellaneous | 3,293 | |
Total expenses before reductions | 1,912,956 | |
Expense reductions | (9,547) | 1,903,409 |
Net investment income (loss) | 1,426,750 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 4,409,198 | |
Foreign currency transactions | (2,203) | |
Total net realized gain (loss) | 4,406,995 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (24,707,230) | |
Assets and liabilities in foreign currencies | (51) | |
Total change in net unrealized appreciation (depreciation) | (24,707,281) | |
Net gain (loss) | (20,300,286) | |
Net increase (decrease) in net assets resulting from operations | $(18,873,536) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,426,750 | $3,766,873 |
Net realized gain (loss) | 4,406,995 | 61,593,311 |
Change in net unrealized appreciation (depreciation) | (24,707,281) | (21,665,232) |
Net increase (decrease) in net assets resulting from operations | (18,873,536) | 43,694,952 |
Distributions to shareholders from net investment income | (3,620,189) | (1,322,749) |
Distributions to shareholders from net realized gain | (65,761,689) | (16,291,441) |
Total distributions | (69,381,878) | (17,614,190) |
Share transactions | ||
Proceeds from sales of shares | 42,377,672 | 49,421,613 |
Reinvestment of distributions | 69,381,877 | 17,614,189 |
Cost of shares redeemed | (52,475,868) | (434,471,004) |
Net increase (decrease) in net assets resulting from share transactions | 59,283,681 | (367,435,202) |
Total increase (decrease) in net assets | (28,971,733) | (341,354,440) |
Net Assets | ||
Beginning of period | 633,108,807 | 974,463,247 |
End of period (including undistributed net investment income of $1,248,361 and undistributed net investment income of $3,441,800, respectively) | $604,137,074 | $633,108,807 |
Other Information | ||
Shares | ||
Sold | 4,215,135 | 4,216,771 |
Issued in reinvestment of distributions | 6,584,295 | 1,574,182 |
Redeemed | (5,047,948) | (36,674,390) |
Net increase (decrease) | 5,751,482 | (30,883,437) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Series Growth Opportunities Fund
Six months ended (Unaudited) May 31, | Years ended November 30, | |||
2016 | 2015 | 2014 | 2013 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $12.23 | $11.79 | $10.23 | $10.00 |
Income from Investment Operations | ||||
Net investment income (loss)B | .02 | .05C | .02 | –D |
Net realized and unrealized gain (loss) | (.41) | .60 | 1.56 | .23 |
Total from investment operations | (.39) | .65 | 1.58 | .23 |
Distributions from net investment income | (.07) | (.02) | –D | – |
Distributions from net realized gain | (1.27) | (.20) | (.02) | – |
Total distributions | (1.34) | (.21)E | (.02) | – |
Net asset value, end of period | $10.50 | $12.23 | $11.79 | $10.23 |
Total ReturnF,G | (3.20)% | 5.71% | 15.51% | 2.30% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .65%J | .74% | .77% | .85%J |
Expenses net of fee waivers, if any | .65%J | .74% | .77% | .85%J |
Expenses net of all reductions | .65%J | .74% | .77% | .85%J |
Net investment income (loss) | .49%J | .44%C | .16% | .38%J |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $604,137 | $633,109 | $974,463 | $852,281 |
Portfolio turnover rateK | 71%J | 50% | 16% | 65%L |
A For the period November 7, 2013 (commencement of operations) to November 30, 2013.
B Calculated based on average shares outstanding during the period.
C Net 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 .22%.
D Amount represents less than $.005 per share.
E Total distributions of $.21 per share is comprised of distributions from net investment income of $.016 and distributions from net realized gain of $.197 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
1. Organization.
Fidelity Advisor Series 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. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2016 included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $111,614,571 |
Gross unrealized depreciation | (31,430,644) |
Net unrealized appreciation (depreciation) on securities | $80,183,927 |
Tax cost | $532,677,181 |
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 $205,080,226 and $228,876,906, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .42% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .18% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment 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 $4,500 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 or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $10,992,000 | .36% | $221 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $525 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $839,248. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $7,317 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $2,230.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2015 to May 31, 2016).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Actual | .65% | $1,000.00 | $968.00 | $3.20 |
Hypothetical-C | $1,000.00 | $1,021.75 | $3.29 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
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Fidelity Advisor® Small Cap Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
CDW Corp. | 2.6 | 2.4 |
Primerica, Inc. | 2.5 | 2.2 |
Syntel, Inc. | 2.3 | 2.2 |
Standex International Corp. | 1.9 | 1.6 |
SYNNEX Corp. | 1.8 | 1.7 |
Zensar Technologies Ltd. | 1.8 | 1.9 |
PolyOne Corp. | 1.8 | 1.5 |
Stamps.com, Inc. | 1.8 | 1.1 |
MEDNAX, Inc. | 1.8 | 0.7 |
The Ensign Group, Inc. | 1.8 | 1.9 |
20.1 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 22.8 | 21.3 |
Information Technology | 19.3 | 22.4 |
Health Care | 17.0 | 13.1 |
Industrials | 14.3 | 15.6 |
Consumer Discretionary | 12.1 | 8.9 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks and Equity Futures | 98.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.2% |
* Foreign investments - 21.5%
As of November 30, 2015* | ||
Stocks, Investment Companies and Equity Futures | 98.6% | |
Other Investments | 0.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments - 15.4%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.1% | |||
Auto Components - 0.9% | |||
Gentex Corp. | 1,500,000 | $24,870 | |
Diversified Consumer Services - 2.1% | |||
Grand Canyon Education, Inc. (a) | 500,000 | 20,880 | |
Meiko Network Japan Co. Ltd. (b) | 1,577,900 | 18,232 | |
Tsukada Global Holdings, Inc. (b) | 2,800,000 | 18,577 | |
57,689 | |||
Household Durables - 1.5% | |||
Tupperware Brands Corp. | 740,000 | 41,869 | |
Internet & Catalog Retail - 1.4% | |||
Duluth Holdings, Inc. (c) | 480,000 | 12,720 | |
HSN, Inc. | 500,000 | 26,185 | |
38,905 | |||
Specialty Retail - 5.3% | |||
Aarons, Inc. Class A | 753,400 | 18,910 | |
Hibbett Sports, Inc. (a)(c) | 770,000 | 26,596 | |
Sally Beauty Holdings, Inc. (a) | 960,000 | 27,571 | |
Select Comfort Corp. (a) | 1,400,000 | 31,388 | |
The Buckle, Inc. (c) | 724,200 | 17,909 | |
Williams-Sonoma, Inc. | 400,000 | 21,216 | |
143,590 | |||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Steven Madden Ltd. (a) | 700,000 | 24,017 | |
TOTAL CONSUMER DISCRETIONARY | 330,940 | ||
CONSUMER STAPLES - 2.4% | |||
Beverages - 0.4% | |||
Britvic PLC | 1,000,000 | 9,784 | |
Food & Staples Retailing - 2.0% | |||
Sundrug Co. Ltd. | 310,000 | 25,482 | |
Tsuruha Holdings, Inc. | 290,000 | 30,034 | |
55,516 | |||
TOTAL CONSUMER STAPLES | 65,300 | ||
ENERGY - 1.7% | |||
Energy Equipment & Services - 0.0% | |||
Cathedral Energy Services Ltd. | 253,000 | 61 | |
Oil, Gas & Consumable Fuels - 1.7% | |||
Delek Logistics Partners LP | 469,308 | 12,385 | |
World Fuel Services Corp. | 740,000 | 34,018 | |
46,403 | |||
TOTAL ENERGY | 46,464 | ||
FINANCIALS - 22.8% | |||
Banks - 5.1% | |||
Allegiance Bancshares, Inc. (a) | 361,013 | 8,621 | |
Bank of the Ozarks, Inc. | 560,000 | 21,790 | |
ConnectOne Bancorp, Inc. (b) | 1,588,147 | 25,156 | |
East West Bancorp, Inc. | 450,000 | 17,370 | |
First NBC Bank Holding Co. (a) | 2,532 | 47 | |
German American Bancorp, Inc. | 525,580 | 16,918 | |
Investors Bancorp, Inc. | 2,206,900 | 26,417 | |
Wilshire Bancorp, Inc. | 1,890,000 | 21,603 | |
137,922 | |||
Consumer Finance - 0.9% | |||
PRA Group, Inc. (a) | 281,070 | 7,732 | |
SLM Corp. (a) | 2,535,800 | 17,421 | |
25,153 | |||
Diversified Financial Services - 0.5% | |||
Scandinavian Tobacco Group A/S | 864,218 | 14,144 | |
Insurance - 7.2% | |||
Allied World Assurance Co. Holdings AG | 260,000 | 9,641 | |
CNO Financial Group, Inc. | 1,550,000 | 31,450 | |
Enstar Group Ltd. (a) | 135,000 | 21,042 | |
Hanover Insurance Group, Inc. | 160,000 | 13,869 | |
James River Group Holdings Ltd. | 552,152 | 19,519 | |
National Western Life Group, Inc. | 4,100 | 875 | |
Primerica, Inc. | 1,212,000 | 68,005 | |
Reinsurance Group of America, Inc. | 330,000 | 32,716 | |
197,117 | |||
Real Estate Investment Trusts - 2.4% | |||
National Health Investors, Inc. | 335,000 | 23,393 | |
Tanger Factory Outlet Centers, Inc. | 650,000 | 22,893 | |
VEREIT, Inc. | 2,080,000 | 19,947 | |
66,233 | |||
Real Estate Management & Development - 5.2% | |||
CBRE Group, Inc. (a) | 1,000,000 | 29,850 | |
Daito Trust Construction Co. Ltd. | 130,000 | 18,836 | |
Jones Lang LaSalle, Inc. | 250,000 | 29,465 | |
Open House Co. Ltd. | 500,000 | 13,255 | |
Relo Holdings Corp. | 140,000 | 19,065 | |
Savills PLC | 915,000 | 10,304 | |
Sumitomo Real Estate Sales Co. Ltd. | 619,200 | 12,056 | |
Takara Leben Co. Ltd. | 1,300,000 | 8,950 | |
141,781 | |||
Thrifts & Mortgage Finance - 1.5% | |||
BofI Holding, Inc. (a)(c) | 417,321 | 7,833 | |
Meridian Bancorp, Inc. | 1,030,000 | 15,450 | |
Oritani Financial Corp. | 991,600 | 16,609 | |
39,892 | |||
TOTAL FINANCIALS | 622,242 | ||
HEALTH CARE - 17.0% | |||
Biotechnology - 1.5% | |||
United Therapeutics Corp. (a) | 350,000 | 41,675 | |
Health Care Equipment & Supplies - 1.4% | |||
Ansell Ltd. (a) | 744,707 | 10,286 | |
Fukuda Denshi Co. Ltd. | 130,000 | 6,644 | |
LivaNova PLC (a) | 430,000 | 20,988 | |
37,918 | |||
Health Care Providers & Services - 8.7% | |||
Aceto Corp. | 1,200,000 | 26,772 | |
HealthSouth Corp. | 1,100,000 | 44,352 | |
MEDNAX, Inc. (a) | 700,000 | 47,915 | |
Patterson Companies, Inc. | 450,000 | 21,965 | |
Providence Service Corp. (a) | 600,000 | 28,536 | |
Ryman Healthcare Group Ltd. | 900,000 | 5,846 | |
Ship Healthcare Holdings, Inc. | 310,000 | 8,796 | |
Sigma Pharmaceuticals Ltd. | 6,200,000 | 5,512 | |
The Ensign Group, Inc. | 2,400,000 | 47,640 | |
237,334 | |||
Life Sciences Tools & Services - 2.8% | |||
Gerresheimer AG | 130,000 | 10,348 | |
PAREXEL International Corp. (a) | 370,000 | 23,269 | |
VWR Corp. (a) | 1,500,000 | 43,290 | |
76,907 | |||
Pharmaceuticals - 2.6% | |||
Jazz Pharmaceuticals PLC (a) | 180,000 | 27,281 | |
Kaken Pharmaceutical Co. Ltd. | 230,000 | 12,968 | |
Sawai Pharmaceutical Co. Ltd. | 300,000 | 21,278 | |
Towa Pharmaceutical Co. Ltd. | 147,900 | 7,928 | |
69,455 | |||
TOTAL HEALTH CARE | 463,289 | ||
INDUSTRIALS - 14.3% | |||
Aerospace & Defense - 2.1% | |||
Engility Holdings, Inc. (a) | 521,596 | 12,273 | |
Moog, Inc. Class A (a) | 480,325 | 25,904 | |
Teledyne Technologies, Inc. (a) | 200,000 | 19,626 | |
57,803 | |||
Air Freight & Logistics - 0.1% | |||
Hub Group, Inc. Class A (a) | 58,522 | 2,342 | |
Commercial Services & Supplies - 5.0% | |||
Coor Service Management Holding AB | 1,535,502 | 7,382 | |
Deluxe Corp. | 500,000 | 32,565 | |
Mitie Group PLC | 5,600,000 | 22,848 | |
UniFirst Corp. | 250,000 | 28,918 | |
West Corp. | 2,150,000 | 45,365 | |
137,078 | |||
Electrical Equipment - 1.4% | |||
EnerSys | 620,000 | 37,274 | |
Machinery - 3.1% | |||
Federal Signal Corp. | 1,360,269 | 17,697 | |
Hy-Lok Corp. (b) | 700,000 | 15,023 | |
Standex International Corp. | 600,000 | 52,002 | |
84,722 | |||
Marine - 0.4% | |||
SITC International Holdings Co. Ltd. | 19,000,000 | 10,905 | |
Professional Services - 2.2% | |||
Benefit One, Inc. | 1,100,000 | 29,561 | |
CEB, Inc. | 477,662 | 30,456 | |
60,017 | |||
TOTAL INDUSTRIALS | 390,141 | ||
INFORMATION TECHNOLOGY - 19.3% | |||
Electronic Equipment & Components - 6.6% | |||
CDW Corp. | 1,700,000 | 72,352 | |
Insight Enterprises, Inc. (a) | 1,400,000 | 37,996 | |
SYNNEX Corp. | 545,762 | 49,719 | |
Zebra Technologies Corp. Class A (a) | 400,000 | 21,244 | |
181,311 | |||
Internet Software & Services - 1.8% | |||
Stamps.com, Inc. (a) | 530,000 | 48,225 | |
IT Services - 8.0% | |||
Blackhawk Network Holdings, Inc. (a) | 1,097,900 | 37,790 | |
Cardtronics, Inc. (a) | 350,000 | 13,752 | |
EVERTEC, Inc. | 1,365,000 | 20,898 | |
Global Payments, Inc. | 360,000 | 27,968 | |
MoneyGram International, Inc. (a) | 54,330 | 353 | |
Perficient, Inc. (a) | 600,000 | 12,570 | |
Syntel, Inc. (a) | 1,350,000 | 62,208 | |
WEX, Inc. (a) | 470,000 | 43,362 | |
218,901 | |||
Software - 2.9% | |||
NIIT Technologies Ltd. (b) | 3,800,000 | 27,440 | |
Verint Systems, Inc. (a) | 38,400 | 1,267 | |
Zensar Technologies Ltd. (b) | 3,500,000 | 49,387 | |
78,094 | |||
TOTAL INFORMATION TECHNOLOGY | 526,531 | ||
MATERIALS - 3.3% | |||
Chemicals - 2.4% | |||
Ingevity Corp. (a) | 500,000 | 14,570 | |
Innospec, Inc. | 50,000 | 2,428 | |
PolyOne Corp. | 1,300,000 | 48,711 | |
65,709 | |||
Containers & Packaging - 0.1% | |||
Silgan Holdings, Inc. | 50,000 | 2,557 | |
Paper & Forest Products - 0.8% | |||
Neenah Paper, Inc. | 332,516 | 23,073 | |
TOTAL MATERIALS | 91,339 | ||
TELECOMMUNICATION SERVICES - 0.3% | |||
Diversified Telecommunication Services - 0.2% | |||
APT Satellite Holdings Ltd. | 3,900,000 | 2,946 | |
Asia Satellite Telecommunications Holdings Ltd. | 800,000 | 1,122 | |
4,068 | |||
Wireless Telecommunication Services - 0.1% | |||
Cellcom Israel Ltd. (Israel) (a) | 200,000 | 1,664 | |
Partner Communications Co. Ltd. (a) | 293,070 | 1,566 | |
3,230 | |||
TOTAL TELECOMMUNICATION SERVICES | 7,298 | ||
UTILITIES - 0.7% | |||
Gas Utilities - 0.6% | |||
Amerigas Partners LP | 240,000 | 11,011 | |
Star Gas Partners LP | 600,000 | 5,154 | |
16,165 | |||
Multi-Utilities - 0.1% | |||
Telecom Plus PLC (c) | 150,000 | 2,242 | |
TOTAL UTILITIES | 18,407 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,061,243) | 2,561,951 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.4% | |||
U.S. Treasury Bills, yield at date of purchase 0.19% to 0.25% 7/28/16 to 8/11/16 (d) | |||
(Cost $9,666) | 9,670 | 9,665 | |
Shares | Value (000s) | ||
Money Market Funds - 5.6% | |||
Fidelity Cash Central Fund, 0.40% (e) | 130,822,460 | $130,822 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (e)(f) | 23,098,631 | 23,099 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $153,921) | 153,921 | ||
TOTAL INVESTMENT PORTFOLIO - 99.9% | |||
(Cost $2,224,830) | 2,725,537 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 2,600 | ||
NET ASSETS - 100% | $2,728,137 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||
Equity Index Contracts | |||
1,165 ICE Russell 2000 Index Contracts (United States) | June 2016 | $134,371 | $3,496 |
The face value of futures purchased as a percentage of Net Assets is 4.9%
For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $187,171,000.
Legend
(a) Non-income producing
(b) Affiliated company
(c) Security or a portion of the security is on loan at period end.
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $6,628,000.
(e) 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.
(f) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $367 |
Fidelity Securities Lending Cash Central Fund | 225 |
Total | $592 |
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Cathedral Energy Services Ltd. | $1,461 | $-- | $794 | $-- | $-- |
ConnectOne Bancorp, Inc. | 30,241 | 728 | 136 | 236 | 25,156 |
First NBC Bank Holding Co. | 43,456 | 75 | 21,638 | -- | -- |
Hy-Lok Corp. | 15,207 | -- | -- | 200 | 15,023 |
Meiko Network Japan Co. Ltd. | 17,932 | -- | -- | 239 | 18,232 |
NIIT Technologies Ltd. | 32,572 | -- | -- | -- | 27,440 |
Sword Group | 14,676 | -- | 15,281 | 454 | -- |
Tsukada Global Holdings, Inc. | 18,583 | -- | -- | 105 | 18,577 |
Zensar Technologies Ltd. | 57,126 | -- | -- | 625 | 49,387 |
Total | $231,254 | $803 | $37,849 | $1,859 | $153,815 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $330,940 | $294,131 | $36,809 | $-- |
Consumer Staples | 65,300 | 9,784 | 55,516 | -- |
Energy | 46,464 | 46,464 | -- | -- |
Financials | 622,242 | 550,080 | 72,162 | -- |
Health Care | 463,289 | 405,675 | 57,614 | -- |
Industrials | 390,141 | 360,580 | 29,561 | -- |
Information Technology | 526,531 | 526,531 | -- | -- |
Materials | 91,339 | 91,339 | -- | -- |
Telecommunication Services | 7,298 | 7,298 | -- | -- |
Utilities | 18,407 | 18,407 | -- | -- |
U.S. Government and Government Agency Obligations | 9,665 | -- | 9,665 | -- |
Money Market Funds | 153,921 | 153,921 | -- | -- |
Total Investments in Securities: | $2,725,537 | $2,464,210 | $261,327 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $3,496 | $3,496 | $-- | $-- |
Total Assets | $3,496 | $3,496 | $-- | $-- |
Total Derivative Instruments: | $3,496 | $3,496 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended May 31, 2016. 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 | $160,969 |
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, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
(Amounts in thousands) | Asset | Liability |
Equity Risk | ||
Futures Contracts(a) | $3,496 | $0 |
Total Equity Risk | 3,496 | 0 |
Total Value of Derivatives | $3,496 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 78.5% |
Japan | 9.2% |
India | 2.8% |
United Kingdom | 2.5% |
Bermuda | 1.7% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 4.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $22,662) — See accompanying schedule: Unaffiliated issuers (cost $1,974,092) | $2,417,801 | |
Fidelity Central Funds (cost $153,921) | 153,921 | |
Other affiliated issuers (cost $96,817) | 153,815 | |
Total Investments (cost $2,224,830) | $2,725,537 | |
Foreign currency held at value (cost $975) | 975 | |
Receivable for investments sold | 52,948 | |
Receivable for fund shares sold | 1,750 | |
Dividends receivable | 2,268 | |
Distributions receivable from Fidelity Central Funds | 74 | |
Receivable for daily variation margin for derivative instruments | 384 | |
Prepaid expenses | 1 | |
Other receivables | 22 | |
Total assets | 2,783,959 | |
Liabilities | ||
Payable to custodian bank | $2,209 | |
Payable for investments purchased | 21,365 | |
Payable for fund shares redeemed | 5,933 | |
Accrued management fee | 1,864 | |
Distribution and service plan fees payable | 763 | |
Other affiliated payables | 541 | |
Other payables and accrued expenses | 48 | |
Collateral on securities loaned, at value | 23,099 | |
Total liabilities | 55,822 | |
Net Assets | $2,728,137 | |
Net Assets consist of: | ||
Paid in capital | $2,316,668 | |
Accumulated net investment loss | (4,769) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (87,971) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 504,209 | |
Net Assets | $2,728,137 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($948,961 ÷ 39,424 shares) | $24.07 | |
Maximum offering price per share (100/94.25 of $24.07) | $25.54 | |
Class T: | ||
Net Asset Value and redemption price per share ($785,547 ÷ 34,845 shares) | $22.54 | |
Maximum offering price per share (100/96.50 of $22.54) | $23.36 | |
Class B: | ||
Net Asset Value and offering price per share ($12,970 ÷ 693 shares)(a) | $18.72 | |
Class C: | ||
Net Asset Value and offering price per share ($283,796 ÷ 14,859 shares)(a) | $19.10 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($655,376 ÷ 25,164 shares) | $26.04 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($41,487 ÷ 1,595 shares) | $26.01 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends (including $1,859 earned from other affiliated issuers) | $18,116 | |
Interest | 12 | |
Income from Fidelity Central Funds | 592 | |
Total income | 18,720 | |
Expenses | ||
Management fee | ||
Basic fee | $9,376 | |
Performance adjustment | 2,629 | |
Transfer agent fees | 2,833 | |
Distribution and service plan fees | 4,630 | |
Accounting and security lending fees | 404 | |
Custodian fees and expenses | 69 | |
Independent trustees' fees and expenses | 6 | |
Registration fees | 76 | |
Audit | 38 | |
Legal | 2 | |
Miscellaneous | 12 | |
Total expenses before reductions | 20,075 | |
Expense reductions | (84) | 19,991 |
Net investment income (loss) | (1,271) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (22,321) | |
Other affiliated issuers | (46,627) | |
Foreign currency transactions | (54) | |
Futures contracts | (12,541) | |
Total net realized gain (loss) | (81,543) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (52,668) | |
Assets and liabilities in foreign currencies | 60 | |
Futures contracts | (3,319) | |
Total change in net unrealized appreciation (depreciation) | (55,927) | |
Net gain (loss) | (137,470) | |
Net increase (decrease) in net assets resulting from operations | $(138,741) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(1,271) | $(784) |
Net realized gain (loss) | (81,543) | 272,853 |
Change in net unrealized appreciation (depreciation) | (55,927) | (152,796) |
Net increase (decrease) in net assets resulting from operations | (138,741) | 119,273 |
Distributions to shareholders from net investment income | – | (1,701) |
Distributions to shareholders from net realized gain | (249,036) | (353,938) |
Total distributions | (249,036) | (355,639) |
Share transactions - net increase (decrease) | 97,170 | 204,314 |
Total increase (decrease) in net assets | (290,607) | (32,052) |
Net Assets | ||
Beginning of period | 3,018,744 | 3,050,796 |
End of period (including accumulated net investment loss of $4,769 and accumulated net investment loss of $3,498, respectively) | $2,728,137 | $3,018,744 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Small Cap Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
May 31, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.56 | $29.85 | $30.96 | $22.45 | $23.60 | $24.35 |
Income from Investment Operations | ||||||
Net investment income (loss)A | –B | .02C | .04 | .12D | (.03) | (.09)E |
Net realized and unrealized gain (loss) | (1.28) | 1.10 | 2.36 | 8.45 | .79 | .67 |
Total from investment operations | (1.28) | 1.12 | 2.40 | 8.57 | .76 | .58 |
Distributions from net investment income | – | – | (.01) | (.05) | – | – |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | (.01) | (1.91) | (1.33) |
Total distributions | (2.21) | (3.41) | (3.51) | (.06) | (1.91) | (1.33) |
Net asset value, end of period | $24.07 | $27.56 | $29.85 | $30.96 | $22.45 | $23.60 |
Total ReturnF,G,H | (4.45)% | 4.17% | 9.06% | 38.30% | 3.87% | 2.17% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.41%K | 1.26% | .98% | 1.01% | 1.06% | 1.31% |
Expenses net of fee waivers, if any | 1.41%K | 1.26% | .98% | 1.01% | 1.06% | 1.31% |
Expenses net of all reductions | 1.41%K | 1.25% | .97% | 1.00% | 1.06% | 1.31% |
Net investment income (loss) | (.01)%K | .07%C | .14% | .46%D | (.13)% | (.35)%E |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $949 | $1,047 | $1,097 | $1,263 | $1,212 | $1,461 |
Portfolio turnover rateL | 74%K | 33% | 39% | 34% | 69% | 38% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.16) %.
D Net 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 .29%.
E Net 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) %.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
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 Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Small Cap Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.99 | $28.40 | $29.69 | $21.52 | $22.75 | $23.57 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | (.04)B | (.02) | .06C | (.07) | (.13)D |
Net realized and unrealized gain (loss) | (1.21) | 1.04 | 2.23 | 8.13 | .75 | .64 |
Total from investment operations | (1.24) | 1.00 | 2.21 | 8.19 | .68 | .51 |
Distributions from net investment income | – | – | – | (.01) | – | – |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | (.01) | (1.91) | (1.33) |
Total distributions | (2.21) | (3.41) | (3.50) | (.02) | (1.91) | (1.33) |
Net asset value, end of period | $22.54 | $25.99 | $28.40 | $29.69 | $21.52 | $22.75 |
Total ReturnE,F,G | (4.57)% | 3.93% | 8.79% | 38.11% | 3.64% | 1.94% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.64%J | 1.49% | 1.20% | 1.22% | 1.26% | 1.51% |
Expenses net of fee waivers, if any | 1.64%J | 1.49% | 1.20% | 1.22% | 1.26% | 1.51% |
Expenses net of all reductions | 1.63%J | 1.49% | 1.20% | 1.21% | 1.25% | 1.51% |
Net investment income (loss) | (.24)%J | (.16)%B | (.08)% | .25%C | (.33)% | (.55)%D |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $786 | $888 | $958 | $1,113 | $1,054 | $1,244 |
Portfolio turnover rateK | 74%J | 33% | 39% | 34% | 69% | 38% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.39) %.
C Net 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 .09%.
D Net 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) %.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Small Cap Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.05 | $24.73 | $26.45 | $19.27 | $20.69 | $21.66 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.08) | (.17)B | (.16) | (.08)C | (.18) | (.25)D |
Net realized and unrealized gain (loss) | (1.04) | .90 | 1.94 | 7.26 | .67 | .61 |
Total from investment operations | (1.12) | .73 | 1.78 | 7.18 | .49 | .36 |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | – | (1.91) | (1.33) |
Net asset value, end of period | $18.72 | $22.05 | $24.73 | $26.45 | $19.27 | $20.69 |
Total ReturnE,F,G | (4.87)% | 3.35% | 8.16% | 37.26% | 3.03% | 1.39% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 2.24%J | 2.07% | 1.80% | 1.81% | 1.85% | 2.10% |
Expenses net of fee waivers, if any | 2.24%J | 2.06% | 1.80% | 1.81% | 1.85% | 2.10% |
Expenses net of all reductions | 2.23%J | 2.06% | 1.79% | 1.80% | 1.84% | 2.10% |
Net investment income (loss) | (.84)%J | (.74)%B | (.68)% | (.34)%C | (.92)% | (1.14)%D |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $13 | $21 | $31 | $40 | $40 | $55 |
Portfolio turnover rateK | 74%J | 33% | 39% | 34% | 69% | 38% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.96) %.
C Net 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 (.51) %.
D Net 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) %.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Small Cap Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.44 | $25.10 | $26.77 | $19.50 | $20.90 | $21.87 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.07) | (.16)B | (.15) | (.07)C | (.17) | (.24)D |
Net realized and unrealized gain (loss) | (1.06) | .91 | 1.98 | 7.34 | .68 | .60 |
Total from investment operations | (1.13) | .75 | 1.83 | 7.27 | .51 | .36 |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | – | (1.91) | (1.33) |
Net asset value, end of period | $19.10 | $22.44 | $25.10 | $26.77 | $19.50 | $20.90 |
Total ReturnE,F,G | (4.83)% | 3.38% | 8.26% | 37.28% | 3.10% | 1.37% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 2.17%J | 2.02% | 1.73% | 1.76% | 1.81% | 2.06% |
Expenses net of fee waivers, if any | 2.17%J | 2.02% | 1.73% | 1.76% | 1.81% | 2.06% |
Expenses net of all reductions | 2.17%J | 2.01% | 1.73% | 1.75% | 1.80% | 2.05% |
Net investment income (loss) | (.77)%J | (.69)%B | (.62)% | (.29)%C | (.88)% | (1.10)%D |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $284 | $318 | $317 | $334 | $284 | $328 |
Portfolio turnover rateK | 74%J | 33% | 39% | 34% | 69% | 38% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.91) %.
C Net 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 (.45) %.
D Net 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) %.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Small Cap Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.59 | $31.80 | $32.73 | $23.73 | $24.77 | $25.42 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .03 | .10B | .13 | .21C | .04 | (.01)D |
Net realized and unrealized gain (loss) | (1.37) | 1.18 | 2.50 | 8.94 | .83 | .69 |
Total from investment operations | (1.34) | 1.28 | 2.63 | 9.15 | .87 | .68 |
Distributions from net investment income | – | (.08) | (.06) | (.13) | – | – |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | (.01) | (1.91) | (1.33) |
Total distributions | (2.21) | (3.49) | (3.56) | (.15)E | (1.91) | (1.33) |
Net asset value, end of period | $26.04 | $29.59 | $31.80 | $32.73 | $23.73 | $24.77 |
Total ReturnF,G | (4.34)% | 4.46% | 9.33% | 38.79% | 4.15% | 2.49% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.14%J | .99% | .70% | .71% | .75% | 1.01% |
Expenses net of fee waivers, if any | 1.14%J | .99% | .70% | .71% | .75% | 1.01% |
Expenses net of all reductions | 1.13%J | .99% | .70% | .70% | .74% | 1.00% |
Net investment income (loss) | .26%J | .34%B | .41% | .76%C | .18% | (.05)%D |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $655 | $704 | $627 | $718 | $1,141 | $1,314 |
Portfolio turnover rateK | 74%J | 33% | 39% | 34% | 69% | 38% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .11%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .59%.
D Net 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) %.
E 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.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Small Cap Fund Class Z
Six months ended (Unaudited) May 31, | Years ended November 30, | |||
2016 | 2015 | 2014 | 2013 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $29.53 | $31.76 | $32.74 | $29.79 |
Income from Investment Operations | ||||
Net investment income (loss)B | .05 | .14C | .17 | .02D |
Net realized and unrealized gain (loss) | (1.36) | 1.17 | 2.51 | 2.93 |
Total from investment operations | (1.31) | 1.31 | 2.68 | 2.95 |
Distributions from net investment income | – | (.14) | (.16) | – |
Distributions from net realized gain | (2.21) | (3.41) | (3.50) | – |
Total distributions | (2.21) | (3.54)E | (3.66) | – |
Net asset value, end of period | $26.01 | $29.53 | $31.76 | $32.74 |
Total ReturnF,G | (4.24)% | 4.59% | 9.52% | 9.90% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .99%J | .84% | .55% | .56%J |
Expenses net of fee waivers, if any | .99%J | .84% | .55% | .56%J |
Expenses net of all reductions | .98%J | .84% | .54% | .55%J |
Net investment income (loss) | .41%J | .48%C | .57% | .26%D,J |
Supplemental Data | ||||
Net assets, end of period (in millions) | $41 | $41 | $20 | $5 |
Portfolio turnover rateK | 74%J | 33% | 39% | 34% |
A For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .26%.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .09%.
E Total distributions of $3.54 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $3.406 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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, Class I and Class Z 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. 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, 2016, 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 cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, market discount, foreign currency transactions, partnerships 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 | $596,289 |
Gross unrealized depreciation | (95,752) |
Net unrealized appreciation (depreciation) on securities | $500,537 |
Tax cost | $2,225,000 |
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 may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the 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 daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. 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 $(12,541) and a change in net unrealized appreciation (depreciation) of $(3,319) related to its investment in futures contracts. These amounts included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $929,580 and $981,928, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the Russell 2000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .89% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $1,170 | $– |
Class T | .25% | .25% | 1,959 | – |
Class B | .75% | .25% | 81 | 61 |
Class C | .75% | .25% | 1,420 | 85 |
$4,630 | $146 |
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 by FDC | |
Class A | $69 |
Class T | 13 |
Class B(a) | 1 |
Class C(a) | 6 |
$89 |
(a) 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $1,059 | .23 |
Class T | 780 | .20 |
Class B | 24 | .30 |
Class C | 332 | .23 |
Class I | 629 | .20 |
Class Z | 9 | .05 |
$2,833 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $36 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $225, including $9 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $73 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $11.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $– | $–(a) |
Class I | – | 1,619 |
Class Z | – | 82 |
Total | $– | $1,701 |
From net realized gain | ||
Class A | $84,569 | $123,666 |
Class T | 76,028 | 113,567 |
Class B | 2,089 | 4,225 |
Class C | 31,633 | 42,961 |
Class I | 51,636 | 67,403 |
Class Z | 3,081 | 2,116 |
Total | $249,036 | $353,938 |
(a) In the amount of less than five hundred dollars.
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 3,423 | 7,266 | $79,781 | $201,961 |
Reinvestment of distributions | 3,443 | 4,474 | 81,777 | 119,319 |
Shares redeemed | (5,415) | (10,527) | (126,107) | (292,656) |
Net increase (decrease) | 1,451 | 1,213 | $35,451 | $28,624 |
Class T | ||||
Shares sold | 2,719 | 6,096 | $59,505 | $160,232 |
Reinvestment of distributions | 3,332 | 4,384 | 74,245 | 110,516 |
Shares redeemed | (5,384) | (10,046) | (117,423) | (263,505) |
Net increase (decrease) | 667 | 434 | $16,327 | $7,243 |
Class B | ||||
Shares sold | 5 | 21 | $86 | $461 |
Reinvestment of distributions | 108 | 189 | 2,016 | 4,069 |
Shares redeemed | (376) | (510) | (6,859) | (11,385) |
Net increase (decrease) | (263) | (300) | $(4,757) | $(6,855) |
Class C | ||||
Shares sold | 1,027 | 1,967 | $19,059 | $44,618 |
Reinvestment of distributions | 1,552 | 1,812 | 29,420 | 39,668 |
Shares redeemed | (1,888) | (2,262) | (35,179) | (51,403) |
Net increase (decrease) | 691 | 1,517 | $13,300 | $32,883 |
Class I | ||||
Shares sold | 5,363 | 8,618 | $133,785 | $256,826 |
Reinvestment of distributions | 1,747 | 2,131 | 44,806 | 60,822 |
Shares redeemed | (5,726) | (6,687) | (146,715) | (197,913) |
Net increase (decrease) | 1,384 | 4,062 | $31,876 | $119,735 |
Class Z | ||||
Shares sold | 248 | 1,152 | $6,026 | $33,575 |
Reinvestment of distributions | 120 | 77 | 3,081 | 2,198 |
Shares redeemed | (164) | (454) | (4,134) | (13,089) |
Net increase (decrease) | 204 | 775 | $4,973 | $22,684 |
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.
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, 2015 to May 31, 2016).
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.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | 1.41% | |||
Actual | $1,000.00 | $955.50 | $6.89 | |
Hypothetical-C | $1,000.00 | $1,017.95 | $7.11 | |
Class T | 1.64% | |||
Actual | $1,000.00 | $954.30 | $8.01 | |
Hypothetical-C | $1,000.00 | $1,016.80 | $8.27 | |
Class B | 2.24% | |||
Actual | $1,000.00 | $951.30 | $10.93 | |
Hypothetical-C | $1,000.00 | $1,013.80 | $11.28 | |
Class C | 2.17% | |||
Actual | $1,000.00 | $951.70 | $10.59 | |
Hypothetical-C | $1,000.00 | $1,014.15 | $10.93 | |
Class I | 1.14% | |||
Actual | $1,000.00 | $956.60 | $5.58 | |
Hypothetical-C | $1,000.00 | $1,019.30 | $5.76 | |
Class Z | .99% | |||
Actual | $1,000.00 | $957.60 | $4.85 | |
Hypothetical-C | $1,000.00 | $1,020.05 | $5.00 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
ASCF-SANN-0716
1.721218.117
Fidelity Advisor® Dividend Growth Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Apple, Inc. | 4.1 | 4.8 |
Microsoft Corp. | 3.1 | 3.1 |
Johnson & Johnson | 3.0 | 3.0 |
Exxon Mobil Corp. | 2.8 | 2.4 |
General Electric Co. | 2.5 | 3.0 |
JPMorgan Chase & Co. | 2.5 | 2.8 |
Chevron Corp. | 2.4 | 2.1 |
Wells Fargo & Co. | 2.4 | 2.5 |
Medtronic PLC | 2.3 | 1.9 |
Alphabet, Inc. Class C | 2.0 | 2.2 |
27.1 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 21.0 | 24.1 |
Financials | 16.5 | 16.4 |
Consumer Staples | 13.9 | 13.2 |
Health Care | 11.6 | 12.9 |
Industrials | 11.3 | 9.8 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 96.2% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.7% |
* Foreign investments - 14.8%
As of November 30, 2015* | ||
Stocks | 95.3% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.6% |
* Foreign investments - 14.2%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 8.7% | |||
Diversified Consumer Services - 0.6% | |||
H&R Block, Inc. | 211,306 | $4,513 | |
ServiceMaster Global Holdings, Inc. (a) | 27,500 | 1,052 | |
5,565 | |||
Hotels, Restaurants & Leisure - 2.2% | |||
Las Vegas Sands Corp. | 94,700 | 4,379 | |
McDonald's Corp. | 71,600 | 8,739 | |
Wyndham Worldwide Corp. | 131,052 | 8,832 | |
21,950 | |||
Leisure Products - 0.1% | |||
Vista Outdoor, Inc. (a) | 20,300 | 1,019 | |
Media - 1.7% | |||
Altice NV Class A (a) | 141,687 | 2,442 | |
Comcast Corp. Class A | 219,825 | 13,915 | |
16,357 | |||
Multiline Retail - 1.5% | |||
Dillard's, Inc. Class A | 33,100 | 1,957 | |
Target Corp. | 182,600 | 12,559 | |
14,516 | |||
Specialty Retail - 2.3% | |||
AutoZone, Inc. (a) | 10,300 | 7,851 | |
Foot Locker, Inc. | 176,391 | 9,864 | |
Kingfisher PLC | 4,010 | 21 | |
L Brands, Inc. | 41,200 | 2,824 | |
Ross Stores, Inc. | 40,800 | 2,179 | |
22,739 | |||
Textiles, Apparel & Luxury Goods - 0.3% | |||
VF Corp. | 56,300 | 3,509 | |
TOTAL CONSUMER DISCRETIONARY | 85,655 | ||
CONSUMER STAPLES - 13.9% | |||
Beverages - 5.4% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 56,400 | 8,638 | |
Dr. Pepper Snapple Group, Inc. | 81,111 | 7,414 | |
Molson Coors Brewing Co. Class B | 42,900 | 4,255 | |
PepsiCo, Inc. | 164,200 | 16,612 | |
The Coca-Cola Co. | 373,410 | 16,654 | |
53,573 | |||
Food & Staples Retailing - 3.7% | |||
CVS Health Corp. | 175,300 | 16,908 | |
Kroger Co. | 110,920 | 3,966 | |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 70,193 | 3,043 | |
Rite Aid Corp. (a) | 116,600 | 898 | |
Walgreens Boots Alliance, Inc. | 148,523 | 11,496 | |
36,311 | |||
Food Products - 0.6% | |||
Greencore Group PLC | 812,005 | 4,054 | |
Hilton Food Group PLC | 243,744 | 2,074 | |
6,128 | |||
Household Products - 1.9% | |||
Procter & Gamble Co. | 237,900 | 19,279 | |
Tobacco - 2.3% | |||
British American Tobacco PLC (United Kingdom) | 109,857 | 6,683 | |
Imperial Tobacco Group PLC | 91,063 | 4,960 | |
Reynolds American, Inc. | 213,700 | 10,621 | |
22,264 | |||
TOTAL CONSUMER STAPLES | 137,555 | ||
ENERGY - 8.1% | |||
Energy Equipment & Services - 0.2% | |||
Baker Hughes, Inc. | 46,500 | 2,157 | |
Oil, Gas & Consumable Fuels - 7.9% | |||
Chevron Corp. | 234,990 | 23,734 | |
ConocoPhillips Co. | 110,100 | 4,821 | |
Exxon Mobil Corp. | 311,022 | 27,687 | |
Imperial Oil Ltd. | 247,700 | 7,894 | |
Kinder Morgan, Inc. | 157,300 | 2,844 | |
Northern Oil & Gas, Inc. (a) | 128,694 | 561 | |
PrairieSky Royalty Ltd. (b) | 121,700 | 2,355 | |
Suncor Energy, Inc. | 289,980 | 8,009 | |
77,905 | |||
TOTAL ENERGY | 80,062 | ||
FINANCIALS - 16.5% | |||
Banks - 10.9% | |||
Bank of America Corp. | 1,102,803 | 16,310 | |
Citigroup, Inc. | 303,223 | 14,121 | |
JPMorgan Chase & Co. | 371,993 | 24,280 | |
PacWest Bancorp | 159,000 | 6,627 | |
SunTrust Banks, Inc. | 163,100 | 7,147 | |
U.S. Bancorp | 346,817 | 14,851 | |
Wells Fargo & Co. | 467,790 | 23,726 | |
107,062 | |||
Capital Markets - 0.5% | |||
Diamond Hill Investment Group, Inc. | 10,100 | 1,821 | |
Franklin Resources, Inc. | 84,400 | 3,152 | |
4,973 | |||
Consumer Finance - 0.0% | |||
Imperial Holdings, Inc. warrants 4/11/19 (a) | 4,481 | 0 | |
Diversified Financial Services - 2.8% | |||
Berkshire Hathaway, Inc. Class B (a) | 50,700 | 7,125 | |
McGraw Hill Financial, Inc. | 136,467 | 15,258 | |
MSCI, Inc. Class A | 70,700 | 5,641 | |
28,024 | |||
Insurance - 1.5% | |||
Chubb Ltd. | 82,900 | 10,496 | |
MetLife, Inc. | 93,300 | 4,250 | |
14,746 | |||
Real Estate Investment Trusts - 0.8% | |||
American Tower Corp. | 75,700 | 8,008 | |
TOTAL FINANCIALS | 162,813 | ||
HEALTH CARE - 11.6% | |||
Biotechnology - 1.9% | |||
AbbVie, Inc. | 127,000 | 7,992 | |
Amgen, Inc. | 69,737 | 11,015 | |
19,007 | |||
Health Care Equipment & Supplies - 2.3% | |||
Medtronic PLC | 277,402 | 22,325 | |
Health Care Providers & Services - 0.6% | |||
McKesson Corp. | 30,432 | 5,573 | |
Health Care Technology - 0.3% | |||
CompuGroup Medical AG | 68,579 | 2,992 | |
Pharmaceuticals - 6.5% | |||
Allergan PLC (a) | 33,900 | 7,992 | |
Astellas Pharma, Inc. | 255,200 | 3,468 | |
GlaxoSmithKline PLC | 69,600 | 1,455 | |
Johnson & Johnson | 264,002 | 29,750 | |
Sanofi SA sponsored ADR | 163,300 | 6,728 | |
Shire PLC | 60,000 | 3,707 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 213,500 | 11,074 | |
64,174 | |||
TOTAL HEALTH CARE | 114,071 | ||
INDUSTRIALS - 11.3% | |||
Aerospace & Defense - 3.7% | |||
BWX Technologies, Inc. | 269,400 | 9,475 | |
General Dynamics Corp. | 37,100 | 5,263 | |
Honeywell International, Inc. | 55,400 | 6,306 | |
The Boeing Co. | 56,900 | 7,178 | |
United Technologies Corp. | 87,500 | 8,801 | |
37,023 | |||
Air Freight & Logistics - 0.3% | |||
C.H. Robinson Worldwide, Inc. | 42,200 | 3,164 | |
Commercial Services & Supplies - 0.2% | |||
Deluxe Corp. | 31,500 | 2,052 | |
Construction & Engineering - 0.1% | |||
Astaldi SpA | 145,300 | 713 | |
Electrical Equipment - 0.8% | |||
AMETEK, Inc. | 163,800 | 7,833 | |
Industrial Conglomerates - 5.7% | |||
Danaher Corp. | 166,394 | 16,367 | |
General Electric Co. | 817,200 | 24,704 | |
Roper Technologies, Inc. | 87,096 | 14,900 | |
55,971 | |||
Machinery - 0.5% | |||
Deere & Co. | 29,200 | 2,403 | |
Wabtec Corp. | 31,700 | 2,453 | |
4,856 | |||
Trading Companies & Distributors - 0.0% | |||
Now, Inc. (a) | 17,720 | 307 | |
TOTAL INDUSTRIALS | 111,919 | ||
INFORMATION TECHNOLOGY - 21.0% | |||
Communications Equipment - 1.7% | |||
Cisco Systems, Inc. | 585,279 | 17,002 | |
Internet Software & Services - 2.0% | |||
Alphabet, Inc. Class C | 27,128 | 19,959 | |
IT Services - 5.0% | |||
Accenture PLC Class A | 157,600 | 18,750 | |
ASAC II LP (a)(c) | 298,480 | 8,931 | |
Fidelity National Information Services, Inc. | 54,798 | 4,070 | |
IBM Corp. | 65,800 | 10,116 | |
Total System Services, Inc. | 135,200 | 7,260 | |
49,127 | |||
Semiconductors & Semiconductor Equipment - 1.0% | |||
Qualcomm, Inc. | 179,878 | 9,879 | |
Software - 5.7% | |||
Activision Blizzard, Inc. | 207,867 | 8,161 | |
Micro Focus International PLC | 246,900 | 5,829 | |
Microsoft Corp. | 567,463 | 30,076 | |
Oracle Corp. | 297,728 | 11,969 | |
56,035 | |||
Technology Hardware, Storage & Peripherals - 5.6% | |||
Apple, Inc. | 410,524 | 40,993 | |
EMC Corp. | 531,200 | 14,847 | |
55,840 | |||
TOTAL INFORMATION TECHNOLOGY | 207,842 | ||
MATERIALS - 3.1% | |||
Chemicals - 2.6% | |||
CF Industries Holdings, Inc. | 102,000 | 2,821 | |
E.I. du Pont de Nemours & Co. | 151,800 | 9,929 | |
LyondellBasell Industries NV Class A | 93,700 | 7,623 | |
The Dow Chemical Co. | 87,500 | 4,494 | |
W.R. Grace & Co. | 14,000 | 1,087 | |
25,954 | |||
Containers & Packaging - 0.5% | |||
Ball Corp. | 64,368 | 4,654 | |
TOTAL MATERIALS | 30,608 | ||
TELECOMMUNICATION SERVICES - 2.0% | |||
Diversified Telecommunication Services - 2.0% | |||
AT&T, Inc. | 499,700 | 19,563 | |
TOTAL COMMON STOCKS | |||
(Cost $811,762) | 950,088 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Amyris, Inc. 3% 2/27/17 (Cost $791) | 791 | 747 | |
Shares | Value (000s) | ||
Money Market Funds - 3.9% | |||
Fidelity Cash Central Fund, 0.40% (d) | 36,395,708 | 36,396 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (d)(e) | 2,437,850 | 2,438 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $38,834) | 38,834 | ||
TOTAL INVESTMENT PORTFOLIO - 100.2% | |||
(Cost $851,387) | 989,669 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (1,718) | ||
NET ASSETS - 100% | $987,951 |
Values shown as $0 may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $8,931,000 or 0.9% of net assets.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
ASAC II LP | 10/10/13 | $2,985 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $78 |
Fidelity Securities Lending Cash Central Fund | 14 |
Total | $92 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $85,655 | $85,634 | $21 | $-- |
Consumer Staples | 137,555 | 130,872 | 6,683 | -- |
Energy | 80,062 | 80,062 | -- | -- |
Financials | 162,813 | 162,813 | -- | -- |
Health Care | 114,071 | 105,441 | 8,630 | -- |
Industrials | 111,919 | 111,919 | -- | -- |
Information Technology | 207,842 | 198,911 | -- | 8,931 |
Materials | 30,608 | 30,608 | -- | -- |
Telecommunication Services | 19,563 | 19,563 | -- | -- |
Corporate Bonds | 747 | -- | -- | 747 |
Money Market Funds | 38,834 | 38,834 | -- | -- |
Total Investments in Securities: | $989,669 | $964,657 | $15,334 | $9,678 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 85.2% |
Ireland | 5.4% |
United Kingdom | 2.1% |
Canada | 1.8% |
Israel | 1.4% |
Switzerland | 1.1% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 1.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $2,348) — See accompanying schedule: Unaffiliated issuers (cost $812,553) | $950,835 | |
Fidelity Central Funds (cost $38,834) | 38,834 | |
Total Investments (cost $851,387) | $989,669 | |
Cash | 12 | |
Receivable for investments sold | 48 | |
Receivable for fund shares sold | 450 | |
Dividends receivable | 2,455 | |
Interest receivable | 18 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Other receivables | 3 | |
Total assets | 992,669 | |
Liabilities | ||
Payable for fund shares redeemed | $1,373 | |
Accrued management fee | 319 | |
Distribution and service plan fees payable | 354 | |
Other affiliated payables | 200 | |
Other payables and accrued expenses | 34 | |
Collateral on securities loaned, at value | 2,438 | |
Total liabilities | 4,718 | |
Net Assets | $987,951 | |
Net Assets consist of: | ||
Paid in capital | $863,883 | |
Undistributed net investment income | 4,846 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (19,060) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 138,282 | |
Net Assets | $987,951 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($346,722 ÷ 21,484.89 shares) | $16.14 | |
Maximum offering price per share (100/94.25 of $16.14) | $17.12 | |
Class T: | ||
Net Asset Value and redemption price per share ($355,241 ÷ 22,110.83 shares) | $16.07 | |
Maximum offering price per share (100/96.50 of $16.07) | $16.65 | |
Class B: | ||
Net Asset Value and offering price per share ($4,323 ÷ 278.76 shares)(a) | $15.51 | |
Class C: | ||
Net Asset Value and offering price per share ($158,325 ÷ 10,287.05 shares)(a) | $15.39 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($120,804 ÷ 7,156.61 shares) | $16.88 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($2,536 ÷ 148.29 shares) | $17.10 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $10,883 | |
Interest | 12 | |
Income from Fidelity Central Funds | 92 | |
Total income | 10,987 | |
Expenses | ||
Management fee | ||
Basic fee | $2,684 | |
Performance adjustment | (660) | |
Transfer agent fees | 1,033 | |
Distribution and service plan fees | 2,115 | |
Accounting and security lending fees | 163 | |
Custodian fees and expenses | 14 | |
Independent trustees' fees and expenses | 2 | |
Registration fees | 46 | |
Audit | 35 | |
Legal | 4 | |
Miscellaneous | 4 | |
Total expenses before reductions | 5,440 | |
Expense reductions | (9) | 5,431 |
Net investment income (loss) | 5,556 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (12,799) | |
Foreign currency transactions | (13) | |
Total net realized gain (loss) | (12,812) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,459 | |
Assets and liabilities in foreign currencies | 3 | |
Total change in net unrealized appreciation (depreciation) | 1,462 | |
Net gain (loss) | (11,350) | |
Net increase (decrease) in net assets resulting from operations | $(5,794) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $5,556 | $10,156 |
Net realized gain (loss) | (12,812) | 57,657 |
Change in net unrealized appreciation (depreciation) | 1,462 | (74,633) |
Net increase (decrease) in net assets resulting from operations | (5,794) | (6,820) |
Distributions to shareholders from net investment income | (8,944) | (9,131) |
Distributions to shareholders from net realized gain | (56,257) | (113,106) |
Total distributions | (65,201) | (122,237) |
Share transactions - net increase (decrease) | 24,599 | 43,684 |
Total increase (decrease) in net assets | (46,396) | (85,373) |
Net Assets | ||
Beginning of period | 1,034,347 | 1,119,720 |
End of period (including undistributed net investment income of $4,846 and undistributed net investment income of $8,234, respectively) | $987,951 | $1,034,347 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Dividend Growth Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.35 | $19.65 | $17.23 | $13.33 | $11.45 | $11.58 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .10 | .20 | .23B | .13 | .07 | .02 |
Net realized and unrealized gain (loss) | (.19) | (.34)C | 2.29 | 3.87 | 1.81 | (.09) |
Total from investment operations | (.09) | (.14) | 2.52 | 4.00 | 1.88 | (.07) |
Distributions from net investment income | (.18) | (.19) | (.09) | (.10) | – | – |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – | – | (.06) |
Total distributions | (1.12) | (2.16)D | (.10) | (.10) | – | (.06) |
Net asset value, end of period | $16.14 | $17.35 | $19.65 | $17.23 | $13.33 | $11.45 |
Total ReturnE,F,G | (.34)% | (.41)%C | 14.70% | 30.26% | 16.42% | (.63)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .93%J | 1.01% | .94% | .98% | 1.21% | 1.36% |
Expenses net of fee waivers, if any | .93%J | 1.00% | .94% | .98% | 1.21% | 1.33% |
Expenses net of all reductions | .93%J | 1.00% | .94% | .97% | 1.20% | 1.33% |
Net investment income (loss) | 1.31%J | 1.13% | 1.29%B | .87% | .53% | .16% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $347 | $356 | $386 | $369 | $301 | $295 |
Portfolio turnover rateK | 24%J | 56% | 106% | 70% | 64% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.07%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.51)%.
D Total distributions of $2.16 per share is comprised of distributions from net investment income of $.193 and distributions from net realized gain of $1.962 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Dividend Growth Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.25 | $19.55 | $17.15 | $13.26 | $11.42 | $11.55 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .08 | .15 | .19B | .10 | .04 | (.01) |
Net realized and unrealized gain (loss) | (.18) | (.34)C | 2.27 | 3.86 | 1.80 | (.09) |
Total from investment operations | (.10) | (.19) | 2.46 | 3.96 | 1.84 | (.10) |
Distributions from net investment income | (.14) | (.15) | (.06) | (.07) | – | – |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – | – | (.03) |
Total distributions | (1.08) | (2.11) | (.06)D | (.07) | – | (.03) |
Net asset value, end of period | $16.07 | $17.25 | $19.55 | $17.15 | $13.26 | $11.42 |
Total ReturnE,F,G | (.44)% | (.67)%C | 14.41% | 30.05% | 16.11% | (.90)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.17%J | 1.24% | 1.18% | 1.20% | 1.42% | 1.57% |
Expenses net of fee waivers, if any | 1.17%J | 1.24% | 1.18% | 1.20% | 1.42% | 1.55% |
Expenses net of all reductions | 1.17%J | 1.24% | 1.17% | 1.19% | 1.42% | 1.54% |
Net investment income (loss) | 1.08%J | .89% | 1.05%B | .65% | .32% | (.06)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $355 | $372 | $412 | $375 | $304 | $294 |
Portfolio turnover rateK | 24%J | 56% | 106% | 70% | 64% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .83%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.77)%.
D Total distributions of $.06 per share is comprised of distributions from net investment income of $.055 and distributions from net realized gain of $.007 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Dividend Growth Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.60 | $18.84 | $16.57 | $12.82 | $11.11 | $11.26 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .05 | .08B | .01 | (.03) | (.07) |
Net realized and unrealized gain (loss) | (.19) | (.32)C | 2.20 | 3.74 | 1.74 | (.08) |
Total from investment operations | (.15) | (.27) | 2.28 | 3.75 | 1.71 | (.15) |
Distributions from net investment income | – | (.01) | – | – | – | – |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – | – | – |
Total distributions | (.94) | (1.97) | (.01) | – | – | – |
Net asset value, end of period | $15.51 | $16.60 | $18.84 | $16.57 | $12.82 | $11.11 |
Total ReturnD,E,F | (.78)% | (1.20)%C | 13.75% | 29.25% | 15.39% | (1.33)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.77%I | 1.84% | 1.78% | 1.79% | 1.99% | 2.14% |
Expenses net of fee waivers, if any | 1.77%I | 1.84% | 1.78% | 1.79% | 1.99% | 2.09% |
Expenses net of all reductions | 1.77%I | 1.84% | 1.78% | 1.78% | 1.99% | 2.09% |
Net investment income (loss) | .48%I | .29% | .45%B | .06% | (.25)% | (.61)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $4 | $6 | $11 | $15 | $17 | $22 |
Portfolio turnover rateJ | 24%I | 56% | 106% | 70% | 64% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .23%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (1.30)%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Dividend Growth Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.53 | $18.82 | $16.54 | $12.79 | $11.07 | $11.22 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .06 | .09B | .02 | (.02) | (.07) |
Net realized and unrealized gain (loss) | (.18) | (.32)C | 2.20 | 3.73 | 1.74 | (.08) |
Total from investment operations | (.14) | (.26) | 2.29 | 3.75 | 1.72 | (.15) |
Distributions from net investment income | (.06) | (.06) | – | – | – | – |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – | – | – |
Total distributions | (1.00) | (2.03)D | (.01) | – | – | – |
Net asset value, end of period | $15.39 | $16.53 | $18.82 | $16.54 | $12.79 | $11.07 |
Total ReturnE,F,G | (.74)% | (1.16)%C | 13.83% | 29.36% | 15.54% | (1.34)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.69%J | 1.76% | 1.69% | 1.72% | 1.94% | 2.08% |
Expenses net of fee waivers, if any | 1.69%J | 1.76% | 1.69% | 1.72% | 1.94% | 2.06% |
Expenses net of all reductions | 1.69%J | 1.76% | 1.69% | 1.71% | 1.93% | 2.05% |
Net investment income (loss) | .56%J | .37% | .54%B | .13% | (.20)% | (.57)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $158 | $167 | $179 | $160 | $123 | $124 |
Portfolio turnover rateK | 24%J | 56% | 106% | 70% | 64% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .32%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (1.26)%.
D Total distributions of $2.03 per share is comprised of distributions from net investment income of $.064 and distributions from net realized gain of $1.962 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Dividend Growth Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.12 | $20.42 | $17.91 | $13.86 | $11.88 | $12.00 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .13 | .25 | .29B | .18 | .11 | .06 |
Net realized and unrealized gain (loss) | (.20) | (.35)C | 2.37 | 4.02 | 1.87 | (.09) |
Total from investment operations | (.07) | (.10) | 2.66 | 4.20 | 1.98 | (.03) |
Distributions from net investment income | (.22) | (.24) | (.14) | (.15) | – | (.02) |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – | – | (.07) |
Total distributions | (1.17)D | (2.20) | (.15) | (.15) | – | (.09) |
Net asset value, end of period | $16.88 | $18.12 | $20.42 | $17.91 | $13.86 | $11.88 |
Total ReturnE,F | (.25)% | (.14)%C | 14.99% | 30.63% | 16.67% | (.33)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .69%I | .76% | .69% | .70% | .91% | 1.04% |
Expenses net of fee waivers, if any | .69%I | .76% | .69% | .70% | .91% | 1.03% |
Expenses net of all reductions | .69%I | .76% | .69% | .69% | .90% | 1.02% |
Net investment income (loss) | 1.55%I | 1.37% | 1.54%B | 1.15% | .83% | .46% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $121 | $125 | $131 | $135 | $103 | $83 |
Portfolio turnover rateJ | 24%I | 56% | 106% | 70% | 64% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.32%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.24)%.
D Total distributions of $1.17 per share is comprised of distributions from net investment income of $.224 and distributions from net realized gain of $.941 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Dividend Growth Fund Class Z
Six months ended (Unaudited) May 31, | Years ended November 30, | |||
2016 | 2015 | 2014 | 2013 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $18.36 | $20.44 | $17.92 | $16.59 |
Income from Investment Operations | ||||
Net investment income (loss)B | .14 | .28 | .31C | .06 |
Net realized and unrealized gain (loss) | (.20) | (.35)D | 2.38 | 1.27 |
Total from investment operations | (.06) | (.07) | 2.69 | 1.33 |
Distributions from net investment income | (.26) | (.05) | (.17) | – |
Distributions from net realized gain | (.94) | (1.96) | (.01) | – |
Total distributions | (1.20) | (2.01) | (.17)E | – |
Net asset value, end of period | $17.10 | $18.36 | $20.44 | $17.92 |
Total ReturnF,G | (.16)% | (.01)%D | 15.20% | 8.02% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .52%J | .59% | .52% | .54%J |
Expenses net of fee waivers, if any | .51%J | .59% | .52% | .54%J |
Expenses net of all reductions | .51%J | .59% | .52% | .52%J |
Net investment income (loss) | 1.73%J | 1.54% | 1.71%C | 1.26%J |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $2,536 | $8,642 | $118 | $7,394 |
Portfolio turnover rateK | 24%J | 56% | 106% | 70% |
A For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.49%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.11)%.
E Total distributions of $.17 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $.007 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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, Class I and Class Z 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships 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 | $172,508 |
Gross unrealized depreciation | (35,393) |
Net unrealized appreciation (depreciation) on securities | $137,115 |
Tax cost | $852,554 |
The fund intends to elect to defer to its next fiscal year $4,451 of capital loss recognized during the period November 1, 2015 to November 30, 2015.
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 $114,951 and $138,883, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $423 | $– |
Class T | .25% | .25% | 878 | – |
Class B | .75% | .25% | 26 | 19 |
Class C | .75% | .25% | 788 | 9 |
$2,115 | $28 |
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 by FDC | |
Class A | $45 |
Class T | 11 |
Class B(a) | 1 |
Class C(a) | 5 |
$62 |
(a) 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $365 | .21 |
Class T | 352 | .20 |
Class B | 8 | .30 |
Class C | 174 | .22 |
Class I | 132 | .22 |
Class Z | 2 | .05 |
$1,033 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $14. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $6 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $3
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $3,749 | $3,806 |
Class T | 2,967 | 3,175 |
Class B | – | 5 |
Class C | 563 | 609 |
Class I | 1,543 | 1,536 |
Class Z | 122 | –(a) |
Total | $8,944 | $9,131 |
From net realized gain | ||
Class A | $19,280 | $38,921 |
Class T | 20,231 | 41,529 |
Class B | 361 | 1,164 |
Class C | 9,460 | 18,788 |
Class I | 6,482 | 12,693 |
Class Z | 443 | 11 |
Total | $56,257 | $113,106 |
(a) In the amount of less than five hundred dollars.
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,675 | 2,750 | $26,204 | $48,068 |
Reinvestment of distributions | 1,348 | 2,322 | 21,238 | 39,381 |
Shares redeemed | (2,078) | (4,182) | (32,531) | (72,975) |
Net increase (decrease) | 945 | 890 | $14,911 | $14,474 |
Class T | ||||
Shares sold | 1,934 | 3,861 | $30,257 | $67,241 |
Reinvestment of distributions | 1,444 | 2,576 | 22,671 | 43,556 |
Shares redeemed | (2,816) | (5,958) | (44,082) | (103,477) |
Net increase (decrease) | 562 | 479 | $8,846 | $7,320 |
Class B | ||||
Shares sold | 10 | 11 | $140 | $199 |
Reinvestment of distributions | 22 | 68 | 337 | 1,105 |
Shares redeemed | (144) | (286) | (2,178) | (4,794) |
Net increase (decrease) | (112) | (207) | $(1,701) | $(3,490) |
Class C | ||||
Shares sold | 609 | 1,178 | $9,154 | $19,680 |
Reinvestment of distributions | 579 | 1,033 | 8,736 | 16,812 |
Shares redeemed | (977) | (1,654) | (14,715) | (27,529) |
Net increase (decrease) | 211 | 557 | $3,175 | $8,963 |
Class I | ||||
Shares sold | 809 | 1,619 | $13,214 | $29,609 |
Reinvestment of distributions | 451 | 752 | 7,424 | 13,280 |
Shares redeemed | (981) | (1,918) | (15,799) | (35,222) |
Net increase (decrease) | 279 | 453 | $4,839 | $7,667 |
Class Z | ||||
Shares sold | 21 | 511 | $351 | $9,593 |
Reinvestment of distributions | 34 | 1 | 565 | 11 |
Shares redeemed | (378) | (47) | (6,387) | (854) |
Net increase (decrease) | (323) | 465 | $(5,471) | $8,750 |
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.
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, 2015 to May 31, 2016).
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.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .93% | |||
Actual | $1,000.00 | $996.60 | $4.64 | |
Hypothetical-C | $1,000.00 | $1,020.35 | $4.70 | |
Class T | 1.17% | |||
Actual | $1,000.00 | $995.60 | $5.84 | |
Hypothetical-C | $1,000.00 | $1,019.15 | $5.91 | |
Class B | 1.77% | |||
Actual | $1,000.00 | $992.20 | $8.82 | |
Hypothetical-C | $1,000.00 | $1,016.15 | $8.92 | |
Class C | 1.69% | |||
Actual | $1,000.00 | $992.60 | $8.42 | |
Hypothetical-C | $1,000.00 | $1,016.55 | $8.52 | |
Class I | .69% | |||
Actual | $1,000.00 | $997.50 | $3.45 | |
Hypothetical-C | $1,000.00 | $1,021.55 | $3.49 | |
Class Z | .51% | |||
Actual | $1,000.00 | $998.40 | $2.55 | |
Hypothetical-C | $1,000.00 | $1,022.45 | $2.58 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
ADGF-SANN-0716
1.721239.117
Fidelity Advisor® Equity Income Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Chevron Corp. | 4.1 | 3.7 |
Johnson & Johnson(a) | 3.6 | 5.4 |
Procter & Gamble Co.(a) | 3.5 | 3.1 |
JPMorgan Chase & Co. | 3.4 | 3.3 |
General Electric Co.(a) | 2.7 | 3.9 |
Cisco Systems, Inc. | 2.5 | 1.9 |
United Parcel Service, Inc. Class B | 2.5 | 2.5 |
AT&T, Inc.(a) | 2.3 | 2.0 |
Verizon Communications, Inc. | 2.0 | 1.8 |
Exelon Corp. | 1.8 | 1.4 |
28.4 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 23.9 | 24.8 |
Energy | 11.9 | 9.8 |
Industrials | 11.4 | 11.8 |
Information Technology | 11.1 | 11.6 |
Health Care | 9.7 | 10.4 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016*,** | ||
Stocks | 94.9% | |
Bonds | 0.2% | |
Convertible Securities | 0.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.4% |
* Foreign investments - 9.4%
** Written options - (0.1)%
As of November 30, 2015*,** | ||
Stocks | 94.7% | |
Bonds | 0.1% | |
Convertible Securities | 0.6% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.5% |
* Foreign investments - 9.1%
** Written options - (0.1)%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.9% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 7.4% | |||
Automobiles - 1.5% | |||
Ford Motor Co. | 692,500 | $9,342 | |
General Motors Co. | 686,800 | 21,483 | |
30,825 | |||
Hotels, Restaurants & Leisure - 0.6% | |||
Compass Group PLC | 13,500 | 251 | |
Dunkin' Brands Group, Inc. | 232,500 | 10,065 | |
Whitbread PLC | 50,963 | 3,109 | |
13,425 | |||
Household Durables - 0.7% | |||
M.D.C. Holdings, Inc. | 250,400 | 5,819 | |
Tupperware Brands Corp. | 153,500 | 8,685 | |
14,504 | |||
Leisure Products - 1.2% | |||
Mattel, Inc. | 395,100 | 12,596 | |
New Academy Holding Co. LLC unit (a)(b)(c) | 52,800 | 7,253 | |
Polaris Industries, Inc. | 52,600 | 4,472 | |
24,321 | |||
Media - 1.1% | |||
Comcast Corp. Class A | 303,174 | 19,191 | |
Time Warner, Inc. | 60,800 | 4,600 | |
23,791 | |||
Multiline Retail - 1.7% | |||
Kohl's Corp. | 161,548 | 5,822 | |
Macy's, Inc. | 220,300 | 7,316 | |
Target Corp. | 318,755 | 21,924 | |
35,062 | |||
Specialty Retail - 0.6% | |||
Foot Locker, Inc. | 81,200 | 4,541 | |
GNC Holdings, Inc. | 177,416 | 4,622 | |
L Brands, Inc. | 20,300 | 1,392 | |
Stage Stores, Inc. (d) | 246,561 | 1,363 | |
11,918 | |||
TOTAL CONSUMER DISCRETIONARY | 153,846 | ||
CONSUMER STAPLES - 8.3% | |||
Beverages - 0.5% | |||
Molson Coors Brewing Co. Class B (e) | 35,005 | 3,472 | |
The Coca-Cola Co. | 144,400 | 6,440 | |
9,912 | |||
Food & Staples Retailing - 3.1% | |||
CVS Health Corp. | 364,400 | 35,146 | |
Wal-Mart Stores, Inc. | 189,650 | 13,423 | |
Walgreens Boots Alliance, Inc. | 157,244 | 12,171 | |
Whole Foods Market, Inc. | 103,600 | 3,351 | |
64,091 | |||
Food Products - 1.1% | |||
B&G Foods, Inc. Class A | 149,854 | 6,442 | |
Flowers Foods, Inc. | 34,000 | 638 | |
Sanderson Farms, Inc. (d) | 30,000 | 2,691 | |
The Hain Celestial Group, Inc. (a) | 31,900 | 1,577 | |
The Hershey Co. (e) | 130,600 | 12,126 | |
23,474 | |||
Household Products - 3.5% | |||
Procter & Gamble Co. (e) | 896,917 | 72,686 | |
Personal Products - 0.1% | |||
Avon Products, Inc. | 858,295 | 3,347 | |
TOTAL CONSUMER STAPLES | 173,510 | ||
ENERGY - 11.8% | |||
Energy Equipment & Services - 1.1% | |||
Baker Hughes, Inc. | 114,300 | 5,301 | |
Halliburton Co. | 134,000 | 5,652 | |
National Oilwell Varco, Inc. | 38,749 | 1,277 | |
Oceaneering International, Inc. | 66,800 | 2,208 | |
Schlumberger Ltd. | 97,500 | 7,439 | |
21,877 | |||
Oil, Gas & Consumable Fuels - 10.7% | |||
Anadarko Petroleum Corp. | 129,945 | 6,739 | |
Apache Corp. | 265,127 | 15,149 | |
Avance Gas Holding Ltd. (d) | 195,254 | 1,059 | |
BW LPG Ltd. | 350,634 | 1,760 | |
Cameco Corp. | 123,900 | 1,444 | |
Chevron Corp. | 846,269 | 85,473 | |
ConocoPhillips Co. | 49,600 | 2,172 | |
CONSOL Energy, Inc. (d) | 367,675 | 5,647 | |
Energy Transfer Equity LP | 745,400 | 9,422 | |
Golar LNG Ltd. | 69,800 | 1,215 | |
Imperial Oil Ltd. | 48,000 | 1,530 | |
Kinder Morgan, Inc. | 576,300 | 10,420 | |
Legacy Reserves LP | 505,299 | 1,218 | |
MPLX LP | 252,230 | 8,046 | |
Noble Energy, Inc. | 46,700 | 1,670 | |
Suncor Energy, Inc. | 706,600 | 19,517 | |
The Williams Companies, Inc. | 1,099,850 | 24,373 | |
Williams Partners LP | 834,415 | 26,635 | |
223,489 | |||
TOTAL ENERGY | 245,366 | ||
FINANCIALS - 23.8% | |||
Banks - 12.2% | |||
Bank of America Corp. | 2,137,100 | 31,608 | |
Comerica, Inc. | 273,080 | 12,862 | |
First Niagara Financial Group, Inc. | 743,500 | 8,119 | |
FirstMerit Corp. | 277,340 | 6,290 | |
Huntington Bancshares, Inc. | 94,900 | 992 | |
JPMorgan Chase & Co. | 1,088,457 | 71,044 | |
KeyCorp | 653,700 | 8,380 | |
Lloyds Banking Group PLC | 1,703,700 | 1,773 | |
M&T Bank Corp. | 247,217 | 29,542 | |
Prosperity Bancshares, Inc. | 29,200 | 1,572 | |
Regions Financial Corp. | 1,439,700 | 14,152 | |
Standard Chartered PLC (United Kingdom) | 381,284 | 2,923 | |
SunTrust Banks, Inc. | 389,900 | 17,085 | |
U.S. Bancorp | 460,000 | 19,697 | |
Wells Fargo & Co. | 561,650 | 28,487 | |
254,526 | |||
Capital Markets - 4.8% | |||
Apollo Global Management LLC Class A | 77,300 | 1,269 | |
Apollo Investment Corp. | 751,457 | 3,930 | |
Ares Capital Corp. | 298,142 | 4,424 | |
Ares Management LP | 111,296 | 1,569 | |
KKR & Co. LP | 1,817,796 | 24,558 | |
Morgan Stanley | 310,942 | 8,510 | |
State Street Corp. | 364,499 | 22,985 | |
The Blackstone Group LP | 1,161,003 | 30,407 | |
TPG Specialty Lending, Inc. | 97,270 | 1,595 | |
99,247 | |||
Diversified Financial Services - 0.3% | |||
McGraw Hill Financial, Inc. | 50,000 | 5,591 | |
Insurance - 4.0% | |||
Chubb Ltd. | 253,184 | 32,056 | |
Marsh & McLennan Companies, Inc. | 84,300 | 5,570 | |
MetLife, Inc. | 724,257 | 32,990 | |
Pricoa Global Funding I | 170,198 | 13,488 | |
84,104 | |||
Real Estate Investment Trusts - 2.4% | |||
American Capital Agency Corp. | 181,780 | 3,434 | |
American Tower Corp. | 26,200 | 2,771 | |
Annaly Capital Management, Inc. | 349,694 | 3,700 | |
Cousins Properties, Inc. | 356,400 | 3,828 | |
Crown Castle International Corp. | 99,600 | 9,045 | |
Duke Realty LP | 257,500 | 6,095 | |
First Potomac Realty Trust | 452,777 | 4,052 | |
Piedmont Office Realty Trust, Inc. Class A | 249,935 | 5,011 | |
Public Storage | 14,700 | 3,730 | |
Sabra Health Care REIT, Inc. | 70,700 | 1,480 | |
Two Harbors Investment Corp. | 301,541 | 2,557 | |
Ventas, Inc. | 61,094 | 4,052 | |
49,755 | |||
Thrifts & Mortgage Finance - 0.1% | |||
Radian Group, Inc. | 226,490 | 2,811 | |
TOTAL FINANCIALS | 496,034 | ||
HEALTH CARE - 9.6% | |||
Biotechnology - 1.4% | |||
AbbVie, Inc. | 189,900 | 11,950 | |
Amgen, Inc. | 63,049 | 9,959 | |
Gilead Sciences, Inc. | 83,500 | 7,270 | |
29,179 | |||
Health Care Equipment & Supplies - 2.1% | |||
Dentsply Sirona, Inc. | 75,200 | 4,674 | |
Medtronic PLC | 425,282 | 34,227 | |
St. Jude Medical, Inc. | 76,462 | 5,992 | |
44,893 | |||
Pharmaceuticals - 6.1% | |||
Astellas Pharma, Inc. | 70,700 | 961 | |
GlaxoSmithKline PLC | 915,900 | 19,141 | |
Johnson & Johnson (e) | 659,218 | 74,287 | |
Merck & Co., Inc. | 194,700 | 10,954 | |
Pfizer, Inc. | 240,513 | 8,346 | |
Sanofi SA | 73,234 | 6,019 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 145,300 | 7,537 | |
127,245 | |||
TOTAL HEALTH CARE | 201,317 | ||
INDUSTRIALS - 11.4% | |||
Aerospace & Defense - 3.0% | |||
General Dynamics Corp. | 79,100 | 11,222 | |
Raytheon Co. | 87,200 | 11,307 | |
The Boeing Co. | 109,800 | 13,851 | |
United Technologies Corp. | 262,107 | 26,363 | |
62,743 | |||
Air Freight & Logistics - 3.2% | |||
C.H. Robinson Worldwide, Inc. | 80,979 | 6,072 | |
PostNL NV (a) | 1,871,900 | 8,244 | |
United Parcel Service, Inc. Class B | 503,090 | 51,864 | |
66,180 | |||
Airlines - 0.2% | |||
Copa Holdings SA Class A | 75,700 | 3,904 | |
Commercial Services & Supplies - 0.6% | |||
KAR Auction Services, Inc. | 231,504 | 9,501 | |
Republic Services, Inc. | 29,789 | 1,438 | |
Waste Connection, Inc. (Canada) | 73,300 | 2,314 | |
13,253 | |||
Construction & Engineering - 0.0% | |||
Koninklijke Boskalis Westminster NV | 5,000 | 181 | |
Electrical Equipment - 1.4% | |||
Eaton Corp. PLC | 205,000 | 12,634 | |
Emerson Electric Co. | 295,870 | 15,391 | |
28,025 | |||
Industrial Conglomerates - 2.7% | |||
General Electric Co. (e) | 1,875,954 | 56,710 | |
Machinery - 0.2% | |||
Cummins, Inc. | 26,100 | 2,988 | |
Deere & Co. | 13,100 | 1,078 | |
4,066 | |||
Road & Rail - 0.1% | |||
Norfolk Southern Corp. | 25,200 | 2,118 | |
TOTAL INDUSTRIALS | 237,180 | ||
INFORMATION TECHNOLOGY - 10.9% | |||
Communications Equipment - 2.5% | |||
Cisco Systems, Inc. | 1,801,653 | 52,338 | |
Electronic Equipment & Components - 0.3% | |||
TE Connectivity Ltd. | 95,630 | 5,738 | |
Internet Software & Services - 0.3% | |||
Yahoo!, Inc. (a) | 170,700 | 6,476 | |
IT Services - 2.3% | |||
First Data Corp. (f) | 779,769 | 9,771 | |
First Data Corp. Class A (a) | 121,300 | 1,520 | |
IBM Corp. | 171,123 | 26,308 | |
Paychex, Inc. (e) | 193,178 | 10,474 | |
48,073 | |||
Semiconductors & Semiconductor Equipment - 2.7% | |||
Applied Materials, Inc. (e) | 726,577 | 17,743 | |
Maxim Integrated Products, Inc. | 248,600 | 9,437 | |
Qualcomm, Inc. | 527,789 | 28,986 | |
56,166 | |||
Software - 0.7% | |||
Microsoft Corp. | 264,738 | 14,031 | |
SS&C Technologies Holdings, Inc. | 17,000 | 1,047 | |
15,078 | |||
Technology Hardware, Storage & Peripherals - 2.1% | |||
Apple, Inc. | 149,400 | 14,919 | |
EMC Corp. | 973,100 | 27,198 | |
Seagate Technology LLC | 103,600 | 2,337 | |
44,454 | |||
TOTAL INFORMATION TECHNOLOGY | 228,323 | ||
MATERIALS - 1.8% | |||
Chemicals - 1.2% | |||
LyondellBasell Industries NV Class A | 87,900 | 7,152 | |
Potash Corp. of Saskatchewan, Inc. | 328,800 | 5,366 | |
Syngenta AG sponsored ADR | 4,500 | 355 | |
The Dow Chemical Co. | 231,900 | 11,910 | |
Tronox Ltd. Class A | 174,965 | 810 | |
25,593 | |||
Containers & Packaging - 0.6% | |||
Packaging Corp. of America | 89,600 | 6,113 | |
WestRock Co. | 154,800 | 6,132 | |
12,245 | |||
TOTAL MATERIALS | 37,838 | ||
TELECOMMUNICATION SERVICES - 4.4% | |||
Diversified Telecommunication Services - 4.3% | |||
AT&T, Inc. (e) | 1,241,527 | 48,606 | |
Verizon Communications, Inc. | 802,190 | 40,831 | |
89,437 | |||
Wireless Telecommunication Services - 0.1% | |||
KDDI Corp. | 94,900 | 2,753 | |
TOTAL TELECOMMUNICATION SERVICES | 92,190 | ||
UTILITIES - 5.5% | |||
Electric Utilities - 5.1% | |||
American Electric Power Co., Inc. | 78,915 | 5,108 | |
Entergy Corp. | 127,200 | 9,657 | |
Exelon Corp. | 1,081,900 | 37,077 | |
FirstEnergy Corp. | 57,600 | 1,890 | |
NextEra Energy, Inc. | 8,586 | 1,031 | |
PPL Corp. (e) | 655,800 | 25,275 | |
Southern Co. (e) | 458,325 | 22,660 | |
Xcel Energy, Inc. | 85,700 | 3,545 | |
106,243 | |||
Multi-Utilities - 0.4% | |||
CenterPoint Energy, Inc. | 375,500 | 8,460 | |
TOTAL UTILITIES | 114,703 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,814,123) | 1,980,307 | ||
Convertible Preferred Stocks - 0.2% | |||
HEALTH CARE - 0.1% | |||
Health Care Providers & Services - 0.0% | |||
AmSurg Corp. Series A-1, 5.25% (a) | 1,925 | 272 | |
Pharmaceuticals - 0.1% | |||
Allergan PLC 5.50% | 1,297 | 1,096 | |
Teva Pharmaceutical Industries Ltd. 7% | 390 | 332 | |
1,428 | |||
TOTAL HEALTH CARE | 1,700 | ||
TELECOMMUNICATION SERVICES - 0.0% | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. Series A 5.50% | 13,700 | 993 | |
UTILITIES - 0.1% | |||
Independent Power and Renewable Electricity Producers - 0.0% | |||
Dynegy, Inc. 5.375% | 10,375 | 701 | |
Multi-Utilities - 0.1% | |||
CenterPoint Energy, Inc. 2.00% ZENS (a) | 16,200 | 1,047 | |
TOTAL UTILITIES | 1,748 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $4,174) | 4,441 | ||
Principal Amount (000s) | Value (000s) | ||
Corporate Bonds - 0.5% | |||
Convertible Bonds - 0.3% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Amyris, Inc. 3% 2/27/17 | 516 | 487 | |
Scorpio Tankers, Inc. 2.375% 7/1/19 (f) | 3,165 | 2,647 | |
3,134 | |||
INFORMATION TECHNOLOGY - 0.2% | |||
Communications Equipment - 0.1% | |||
InterDigital, Inc. 1.5% 3/1/20 | 1,800 | 1,913 | |
Internet Software & Services - 0.0% | |||
Twitter, Inc. 1% 9/15/21 | 1,210 | 1,015 | |
Semiconductors & Semiconductor Equipment - 0.1% | |||
NXP Semiconductors NV 1% 12/1/19 | 900 | 1,063 | |
TOTAL INFORMATION TECHNOLOGY | 3,991 | ||
TOTAL CONVERTIBLE BONDS | 7,125 | ||
Nonconvertible Bonds - 0.2% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Media - 0.1% | |||
Altice SA 7.625% 2/15/25 (f) | 1,040 | 1,027 | |
FINANCIALS - 0.1% | |||
Thrifts & Mortgage Finance - 0.1% | |||
Prime Securities Services Borrower LLC/Prime Finance, Inc. 9.25% 5/15/23 (f) | 1,005 | 1,048 | |
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Valeant Pharmaceuticals International, Inc. 6.125% 4/15/25 (f) | 700 | 585 | |
MATERIALS - 0.0% | |||
Metals & Mining - 0.0% | |||
Walter Energy, Inc. 8.5% 4/15/21 (g) | 2,030 | 0 | |
UTILITIES - 0.0% | |||
Independent Power and Renewable Electricity Producers - 0.0% | |||
Dynegy, Inc. 7.375% 11/1/22 | 700 | 676 | |
TOTAL NONCONVERTIBLE BONDS | 3,336 | ||
TOTAL CORPORATE BONDS | |||
(Cost $12,587) | 10,461 | ||
Shares | Value (000s) | ||
Money Market Funds - 4.7% | |||
Fidelity Cash Central Fund, 0.40% (h) | 92,951,673 | 92,952 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (h)(i) | 5,649,749 | 5,650 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $98,602) | 98,602 | ||
TOTAL INVESTMENT PORTFOLIO - 100.3% | |||
(Cost $1,929,486) | 2,093,811 | ||
NET OTHER ASSETS (LIABILITIES) - (0.3)% | (5,656) | ||
NET ASSETS - 100% | $2,088,155 |
Written Options | ||||
Expiration Date/Exercise Price | Number of Contracts | Premium (000s) | Value (000s) | |
Call Options | ||||
Applied Materials, Inc. | 7/15/16 - $22.00 | 3,631 | $224 | $(939) |
AT&T, Inc. | 6/17/16 - $40.00 | 4,181 | 84 | (38) |
General Electric Co. | 6/17/16 - $31.00 | 6,187 | 373 | (56) |
Johnson & Johnson | 6/17/16 - $115.00 | 1,644 | 146 | (37) |
Molson Coors Brewing Co. Class B | 6/17/16 - $97.50 | 113 | 29 | (29) |
Paychex, Inc. | 9/16/16 - $55.00 | 962 | 74 | (139) |
PPL Corp. | 6/17/16 - $39.00 | 4,325 | 125 | (87) |
Procter & Gamble Co. | 7/15/16 - $85.00 | 2,957 | 65 | (56) |
Southern Co. | 8/19/16 - $52.50 | 3,299 | 96 | (86) |
The Hershey Co. | 6/17/16 - $95.00 | 152 | 8 | (7) |
TOTAL WRITTEN OPTIONS | $1,224 | $(1,474) |
Values shown as $0 may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,253,000 or 0.3% of net assets.
(d) Security or a portion of the security is on loan at period end.
(e) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $127,155,000.
(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 $15,078,000 or 0.7% of net assets.
(g) Non-income producing - Security is in default.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
New Academy Holding Co. LLC unit | 8/1/11 | $5,565 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $101 |
Fidelity Securities Lending Cash Central Fund | 94 |
Total | $195 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $153,846 | $146,342 | $251 | $7,253 |
Consumer Staples | 173,510 | 173,510 | -- | -- |
Energy | 245,366 | 245,366 | -- | -- |
Financials | 496,034 | 494,261 | 1,773 | -- |
Health Care | 203,017 | 176,564 | 26,453 | -- |
Industrials | 237,180 | 237,180 | -- | -- |
Information Technology | 228,323 | 228,323 | -- | -- |
Materials | 37,838 | 37,838 | -- | -- |
Telecommunication Services | 93,183 | 90,430 | 2,753 | -- |
Utilities | 116,451 | 115,404 | 1,047 | -- |
Corporate Bonds | 10,461 | -- | 9,974 | 487 |
Money Market Funds | 98,602 | 98,602 | -- | -- |
Total Investments in Securities: | $2,093,811 | $2,043,820 | $42,251 | $7,740 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(1,474) | $(1,474) | $-- | $-- |
Total Liabilities | $(1,474) | $(1,474) | $-- | $-- |
Total Derivative Instruments: | $(1,474) | $(1,474) | $-- | $-- |
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, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
(Amounts in thousands) | Asset | Liability |
Equity Risk | ||
Written Options(a) | $0 | $(1,474) |
Total Equity Risk | 0 | (1,474) |
Total Value of Derivatives | $0 | $(1,474) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $5,627) — See accompanying schedule: Unaffiliated issuers (cost $1,830,884) | $1,995,209 | |
Fidelity Central Funds (cost $98,602) | 98,602 | |
Total Investments (cost $1,929,486) | $2,093,811 | |
Cash | 41 | |
Receivable for fund shares sold | 1,284 | |
Dividends receivable | 7,034 | |
Interest receivable | 80 | |
Distributions receivable from Fidelity Central Funds | 44 | |
Prepaid expenses | 1 | |
Other receivables | 94 | |
Total assets | 2,102,389 | |
Liabilities | ||
Payable for investments purchased | $2,158 | |
Payable for fund shares redeemed | 3,045 | |
Accrued management fee | 770 | |
Distribution and service plan fees payable | 618 | |
Written options, at value (premium received $1,224) | 1,474 | |
Other affiliated payables | 398 | |
Other payables and accrued expenses | 121 | |
Collateral on securities loaned, at value | 5,650 | |
Total liabilities | 14,234 | |
Net Assets | $2,088,155 | |
Net Assets consist of: | ||
Paid in capital | $1,921,944 | |
Undistributed net investment income | 6,940 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,798) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 164,069 | |
Net Assets | $2,088,155 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($672,597 ÷ 22,860.6 shares) | $29.42 | |
Maximum offering price per share (100/94.25 of $29.42) | $31.21 | |
Class T: | ||
Net Asset Value and redemption price per share ($782,202 ÷ 26,088.9 shares) | $29.98 | |
Maximum offering price per share (100/96.50 of $29.98) | $31.07 | |
Class B: | ||
Net Asset Value and offering price per share ($6,306 ÷ 212.3 shares)(a) | $29.70 | |
Class C: | ||
Net Asset Value and offering price per share ($185,282 ÷ 6,264.2 shares)(a) | $29.58 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($427,696 ÷ 13,990.1 shares) | $30.57 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($14,072 ÷ 460.4 shares) | $30.56 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $30,992 | |
Interest | 235 | |
Income from Fidelity Central Funds | 195 | |
Total income | 31,422 | |
Expenses | ||
Management fee | $4,526 | |
Transfer agent fees | 2,047 | |
Distribution and service plan fees | 3,636 | |
Accounting and security lending fees | 307 | |
Custodian fees and expenses | 20 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 56 | |
Audit | 43 | |
Legal | 4 | |
Miscellaneous | 7 | |
Total expenses before reductions | 10,651 | |
Expense reductions | (36) | 10,615 |
Net investment income (loss) | 20,807 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (7,411) | |
Foreign currency transactions | (39) | |
Written options | 1,975 | |
Total net realized gain (loss) | (5,475) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 50,886 | |
Assets and liabilities in foreign currencies | 10 | |
Written options | 69 | |
Total change in net unrealized appreciation (depreciation) | 50,965 | |
Net gain (loss) | 45,490 | |
Net increase (decrease) in net assets resulting from operations | $66,297 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $20,807 | $63,860 |
Net realized gain (loss) | (5,475) | 155,192 |
Change in net unrealized appreciation (depreciation) | 50,965 | (305,503) |
Net increase (decrease) in net assets resulting from operations | 66,297 | (86,451) |
Distributions to shareholders from net investment income | (29,955) | (66,216) |
Distributions to shareholders from net realized gain | (143,227) | (81,483) |
Total distributions | (173,182) | (147,699) |
Share transactions - net increase (decrease) | 54,638 | (126,756) |
Total increase (decrease) in net assets | (52,247) | (360,906) |
Net Assets | ||
Beginning of period | 2,140,402 | 2,501,308 |
End of period (including undistributed net investment income of $6,940 and undistributed net investment income of $16,088, respectively) | $2,088,155 | $2,140,402 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Income Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.10 | $34.44 | $31.60 | $25.55 | $22.18 | $21.07 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .30 | .92 | .84B | .60 | .61 | .42 |
Net realized and unrealized gain (loss) | .58 | (2.15) | 2.67 | 6.06 | 3.32 | 1.11 |
Total from investment operations | .88 | (1.23) | 3.51 | 6.66 | 3.93 | 1.53 |
Distributions from net investment income | (.46) | (.98) | (.64) | (.58) | (.56) | (.42) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – | – |
Total distributions | (2.56)C | (2.11)D | (.67)E | (.61) | (.56) | (.42) |
Net asset value, end of period | $29.42 | $31.10 | $34.44 | $31.60 | $25.55 | $22.18 |
Total ReturnF,G,H | 3.50% | (3.61)% | 11.28% | 26.43% | 17.90% | 7.25% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .96%K | .95% | .96% | .98% | 1.02% | 1.03% |
Expenses net of fee waivers, if any | .95%K | .95% | .96% | .98% | 1.02% | 1.03% |
Expenses net of all reductions | .95%K | .94% | .95% | .97% | 1.01% | 1.02% |
Net investment income (loss) | 2.16%K | 2.85% | 2.55%B | 2.07% | 2.52% | 1.82% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $673 | $688 | $794 | $777 | $646 | $634 |
Portfolio turnover rateL | 27%K | 53% | 33% | 34% | 49% | 89% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.21%.
C Total distributions of $2.56 per share is comprised of distributions from net investment income of $.456 and distributions from net realized gain of $2.106 per share.
D Total distributions of $2.11 per share is comprised of distributions from net investment income of $.975 and distributions from net realized gain of $1.136 per share.
E Total distributions of $.67 per share is comprised of distributions from net investment income of $.636 and distributions from net realized gain of $.038 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
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 Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Income Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.64 | $34.99 | $32.09 | $25.94 | $22.50 | $21.37 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .28 | .86 | .78B | .55 | .57 | .38 |
Net realized and unrealized gain (loss) | .59 | (2.18) | 2.72 | 6.15 | 3.37 | 1.13 |
Total from investment operations | .87 | (1.32) | 3.50 | 6.70 | 3.94 | 1.51 |
Distributions from net investment income | (.42) | (.89) | (.56) | (.52) | (.50) | (.38) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – | – |
Total distributions | (2.53) | (2.03) | (.60) | (.55) | (.50) | (.38) |
Net asset value, end of period | $29.98 | $31.64 | $34.99 | $32.09 | $25.94 | $22.50 |
Total ReturnC,D,E | 3.37% | (3.83)% | 11.04% | 26.14% | 17.70% | 7.02% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.18%H | 1.18% | 1.18% | 1.19% | 1.21% | 1.22% |
Expenses net of fee waivers, if any | 1.18%H | 1.18% | 1.18% | 1.19% | 1.21% | 1.22% |
Expenses net of all reductions | 1.18%H | 1.17% | 1.18% | 1.18% | 1.21% | 1.21% |
Net investment income (loss) | 1.94%H | 2.62% | 2.33%B | 1.86% | 2.32% | 1.63% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $782 | $813 | $974 | $984 | $854 | $862 |
Portfolio turnover rateI | 27%H | 53% | 33% | 34% | 49% | 89% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.98%.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Income Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.34 | $34.65 | $31.79 | $25.69 | $22.29 | $21.16 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .19 | .66 | .57B | .36 | .42 | .24 |
Net realized and unrealized gain (loss) | .59 | (2.17) | 2.69 | 6.10 | 3.34 | 1.12 |
Total from investment operations | .78 | (1.51) | 3.26 | 6.46 | 3.76 | 1.36 |
Distributions from net investment income | (.31) | (.67) | (.37) | (.33) | (.36) | (.23) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – | – |
Total distributions | (2.42) | (1.80)C | (.40)D | (.36) | (.36) | (.23) |
Net asset value, end of period | $29.70 | $31.34 | $34.65 | $31.79 | $25.69 | $22.29 |
Total ReturnE,F,G | 3.07% | (4.43)% | 10.37% | 25.39% | 16.97% | 6.43% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.79%J | 1.79% | 1.79% | 1.80% | 1.80% | 1.81% |
Expenses net of fee waivers, if any | 1.79%J | 1.79% | 1.79% | 1.80% | 1.80% | 1.81% |
Expenses net of all reductions | 1.79%J | 1.79% | 1.79% | 1.79% | 1.80% | 1.80% |
Net investment income (loss) | 1.33%J | 2.01% | 1.71%B | 1.26% | 1.73% | 1.04% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $6 | $10 | $19 | $27 | $31 | $42 |
Portfolio turnover rateK | 27%J | 53% | 33% | 34% | 49% | 89% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.37%.
C Total distributions of $1.80 per share is comprised of distributions from net investment income of $.665 and distributions from net realized gain of $1.136 per share.
D Total distributions of $.40 per share is comprised of distributions from net investment income of $.366 and distributions from net realized gain of $.038 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Income Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.24 | $34.57 | $31.73 | $25.66 | $22.27 | $21.16 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .20 | .68 | .59B | .38 | .43 | .25 |
Net realized and unrealized gain (loss) | .58 | (2.15) | 2.69 | 6.09 | 3.33 | 1.11 |
Total from investment operations | .78 | (1.47) | 3.28 | 6.47 | 3.76 | 1.36 |
Distributions from net investment income | (.34) | (.72) | (.40) | (.37) | (.37) | (.25) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – | – |
Total distributions | (2.44)C | (1.86) | (.44) | (.40) | (.37) | (.25) |
Net asset value, end of period | $29.58 | $31.24 | $34.57 | $31.73 | $25.66 | $22.27 |
Total ReturnD,E,F | 3.11% | (4.34)% | 10.44% | 25.46% | 17.03% | 6.40% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.72%I | 1.72% | 1.72% | 1.74% | 1.77% | 1.78% |
Expenses net of fee waivers, if any | 1.72%I | 1.71% | 1.72% | 1.74% | 1.77% | 1.78% |
Expenses net of all reductions | 1.72%I | 1.71% | 1.71% | 1.73% | 1.77% | 1.77% |
Net investment income (loss) | 1.39%I | 2.09% | 1.79%B | 1.32% | 1.76% | 1.06% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $185 | $187 | $214 | $195 | $143 | $134 |
Portfolio turnover rateJ | 27%I | 53% | 33% | 34% | 49% | 89% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.45%.
C Total distributions of $2.44 per share is comprised of distributions from net investment income of $.337 and distributions from net realized gain of $2.106 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Income Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.21 | $35.59 | $32.62 | $26.36 | $22.86 | $21.70 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .35 | 1.04 | .95B | .70 | .70 | .50 |
Net realized and unrealized gain (loss) | .61 | (2.23) | 2.77 | 6.24 | 3.43 | 1.14 |
Total from investment operations | .96 | (1.19) | 3.72 | 6.94 | 4.13 | 1.64 |
Distributions from net investment income | (.50) | (1.06) | (.72) | (.65) | (.63) | (.48) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | (.03) | – | – |
Total distributions | (2.60)C | (2.19)D | (.75)E | (.68) | (.63) | (.48) |
Net asset value, end of period | $30.57 | $32.21 | $35.59 | $32.62 | $26.36 | $22.86 |
Total ReturnF,G | 3.64% | (3.37)% | 11.59% | 26.72% | 18.27% | 7.55% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .69%J | .69% | .70% | .72% | .73% | .74% |
Expenses net of fee waivers, if any | .69%J | .69% | .70% | .72% | .73% | .74% |
Expenses net of all reductions | .69%J | .69% | .70% | .71% | .73% | .73% |
Net investment income (loss) | 2.42%J | 3.11% | 2.81%B | 2.34% | 2.80% | 2.10% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $428 | $428 | $496 | $483 | $445 | $360 |
Portfolio turnover rateK | 27%J | 53% | 33% | 34% | 49% | 89% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.46%.
C Total distributions of $2.60 per share is comprised of distributions from net investment income of $.496 and distributions from net realized gain of $2.106 per share.
D Total distributions of $2.19 per share is comprised of distributions from net investment income of $1.058 and distributions from net realized gain of $1.136 per share.
E Total distributions of $.75 per share is comprised of distributions from net investment income of $.716 and distributions from net realized gain of $.038 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Income Fund Class Z
Six months ended (Unaudited) May 31, | Years ended November 30, | |||
2016 | 2015 | 2014 | 2013 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $32.21 | $35.59 | $32.63 | $31.44 |
Income from Investment Operations | ||||
Net investment income (loss)B | .38 | 1.08 | 1.03C | .23 |
Net realized and unrealized gain (loss) | .60 | (2.21) | 2.74 | 1.12 |
Total from investment operations | .98 | (1.13) | 3.77 | 1.35 |
Distributions from net investment income | (.52) | (1.11) | (.78) | (.16) |
Distributions from net realized gain | (2.11) | (1.14) | (.04) | – |
Total distributions | (2.63) | (2.25) | (.81)D | (.16) |
Net asset value, end of period | $30.56 | $32.21 | $35.59 | $32.63 |
Total ReturnE,F | 3.69% | (3.20)% | 11.75% | 4.30% |
Ratios to Average Net AssetsG,H | ||||
Expenses before reductions | .54%I | .54% | .54% | .54%I |
Expenses net of fee waivers, if any | .54%I | .54% | .54% | .54%I |
Expenses net of all reductions | .54%I | .53% | .54% | .54%I |
Net investment income (loss) | 2.58%I | 3.26% | 2.97%C | 2.37%I |
Supplemental Data | ||||
Net assets, end of period (000s omitted) | $14 | $14,254 | $4,060 | $104 |
Portfolio turnover rateJ | 27%I | 53% | 33% | 34% |
A For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.62%.
D Total distributions of $.81 per share is comprised of distributions from net investment income of $.775 and distributions from net realized gain of $.038 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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, Class I and Class Z 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price 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, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, contigent interest, certain conversion ratio adjustments, equity-debt classifications and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $314,861 |
Gross unrealized depreciation | (162,987) |
Net unrealized appreciation (depreciation) on securities | $151,874 |
Tax cost | $1,941,937 |
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. 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 options. 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 options may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund (the Fund) used exchange-traded written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are reflected separately on the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options".
During the period, the Fund recognized net realized gain (loss) of $1,975 and a change in net unrealized appreciation (depreciation) of $69 related to its investment in written options. This amount is included in the Statement of Operations.
The following is a summary of the Fund's written options activity:
Number of Contracts | Amount of Premiums | |
Outstanding at beginning of period | 20 | $1,640 |
Options Opened | 52 | 3,298 |
Options Exercised | (16) | (1,338) |
Options Closed | (7) | (542) |
Options Expired | (22) | (1,834) |
Outstanding at end of period | 27 | $1,224 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $264,371 and $351,061, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting 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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $808 | $– |
Class T | .25% | .25% | 1,901 | – |
Class B | .75% | .25% | 39 | 29 |
Class C | .75% | .25% | 888 | 23 |
$3,636 | $52 |
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 by FDC | |
Class A | $65 |
Class T | 14 |
Class B(a) | –(b) |
Class C(a) | 7 |
$86 |
(a) 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.
(b) In the amount of less than five hundred dollars.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $690 | .21 |
Class T | 725 | .19 |
Class B | 12 | .30 |
Class C | 207 | .23 |
Class I | 410 | .20 |
Class Z | 3 | .05 |
$2,047 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $6 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $94. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $29 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $10,110 | $22,360 |
Class T | 10,792 | 24,297 |
Class B | 95 | 312 |
Class C | 2,030 | 4,432 |
Class I | 6,696 | 14,486 |
Class Z | 232 | 329 |
Total | $29,955 | $66,216 |
From net realized gain | ||
Class A | $46,540 | $26,221 |
Class T | 54,221 | 31,523 |
Class B | 661 | 619 |
Class C | 12,684 | 7,102 |
Class I | 28,166 | 15,863 |
Class Z | 955 | 155 |
Total | $143,227 | $81,483 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,245 | 2,362 | $34,930 | $75,894 |
Reinvestment of distributions | 1,937 | 1,433 | 53,412 | 45,794 |
Shares redeemed | (2,437) | (4,745) | (68,567) | (152,883) |
Net increase (decrease) | 745 | (950) | $19,775 | $(31,195) |
Class T | ||||
Shares sold | 1,266 | 2,316 | $36,152 | $76,171 |
Reinvestment of distributions | 2,256 | 1,671 | 63,386 | 54,352 |
Shares redeemed | (3,130) | (6,115) | (89,371) | (200,386) |
Net increase (decrease) | 392 | (2,128) | $10,167 | $(69,863) |
Class B | ||||
Shares sold | 4 | 9 | $149 | $284 |
Reinvestment of distributions | 25 | 26 | 692 | 855 |
Shares redeemed | (139) | (270) | (3,945) | (8,810) |
Net increase (decrease) | (110) | (235) | $(3,104) | $(7,671) |
Class C | ||||
Shares sold | 397 | 655 | $11,246 | $21,329 |
Reinvestment of distributions | 477 | 323 | 13,237 | 10,405 |
Shares redeemed | (602) | (1,186) | (16,942) | (38,343) |
Net increase (decrease) | 272 | (208) | $7,541 | $(6,609) |
Class I | ||||
Shares sold | 976 | 1,946 | $28,405 | $64,288 |
Reinvestment of distributions | 1,181 | 888 | 33,799 | 29,367 |
Shares redeemed | (1,455) | (3,471) | (42,561) | (116,106) |
Net increase (decrease) | 702 | (637) | $19,643 | $(22,451) |
Class Z | ||||
Shares sold | 105 | 374 | $3,101 | $12,522 |
Reinvestment of distributions | 42 | 15 | 1,187 | 484 |
Shares redeemed | (130) | (60) | (3,672) | (1,973) |
Net increase (decrease) | 17 | 329 | $616 | $11,033 |
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.
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, 2015 to May 31, 2016).
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.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .95% | |||
Actual | $1,000.00 | $1,035.00 | $4.83 | |
Hypothetical-C | $1,000.00 | $1,020.25 | $4.80 | |
Class T | 1.18% | |||
Actual | $1,000.00 | $1,033.70 | $6.00 | |
Hypothetical-C | $1,000.00 | $1,019.10 | $5.96 | |
Class B | 1.79% | |||
Actual | $1,000.00 | $1,030.70 | $9.09 | |
Hypothetical-C | $1,000.00 | $1,016.05 | $9.02 | |
Class C | 1.72% | |||
Actual | $1,000.00 | $1,031.10 | $8.73 | |
Hypothetical-C | $1,000.00 | $1,016.40 | $8.67 | |
Class I | .69% | |||
Actual | $1,000.00 | $1,036.40 | $3.51 | |
Hypothetical-C | $1,000.00 | $1,021.55 | $3.49 | |
Class Z | .54% | |||
Actual | $1,000.00 | $1,036.90 | $2.75 | |
Hypothetical-C | $1,000.00 | $1,022.30 | $2.73 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
EPI-SANN-0716
1.704674.118
Fidelity® Stock Selector Mid Cap Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
AMETEK, Inc. | 3.9 | 3.5 |
Roper Technologies, Inc. | 3.5 | 3.2 |
Ecolab, Inc. | 1.8 | 1.5 |
Teledyne Technologies, Inc. | 1.7 | 1.3 |
IDEX Corp. | 1.5 | 2.5 |
Arthur J. Gallagher & Co. | 1.5 | 1.2 |
Capital One Financial Corp. | 1.4 | 1.4 |
Verisk Analytics, Inc. | 1.4 | 0.0 |
PPG Industries, Inc. | 1.3 | 1.5 |
Dollar General Corp. | 1.2 | 0.9 |
19.2 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 25.2 | 24.8 |
Information Technology | 16.7 | 16.9 |
Industrials | 14.1 | 14.8 |
Consumer Discretionary | 12.0 | 13.1 |
Health Care | 8.8 | 8.3 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016 * | ||
Stocks and Equity Futures | 97.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.1% |
* Foreign investments - 5.2%
As of November 30, 2015 * | ||
Stocks and Equity Futures | 96.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.2% |
* Foreign investments - 6.0%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.0% | |||
Distributors - 0.8% | |||
LKQ Corp. (a) | 497,500 | $16,452 | |
Hotels, Restaurants & Leisure - 1.3% | |||
Dunkin' Brands Group, Inc. | 453,900 | 19,649 | |
Wyndham Worldwide Corp. | 107,800 | 7,265 | |
26,914 | |||
Household Durables - 1.1% | |||
Newell Brands, Inc. | 216,858 | 10,342 | |
NVR, Inc. (a) | 7,200 | 12,478 | |
22,820 | |||
Internet & Catalog Retail - 0.7% | |||
HSN, Inc. | 199,300 | 10,437 | |
Liberty Interactive Corp. QVC Group Series A (a) | 141,210 | 3,810 | |
14,247 | |||
Leisure Products - 0.5% | |||
Polaris Industries, Inc. (b) | 125,400 | 10,662 | |
Media - 3.1% | |||
AMC Networks, Inc. Class A (a) | 165,000 | 10,550 | |
Discovery Communications, Inc. Class A (a) | 443,200 | 12,343 | |
Live Nation Entertainment, Inc. (a) | 317,300 | 7,663 | |
Omnicom Group, Inc. | 118,000 | 9,833 | |
Scripps Networks Interactive, Inc. Class A | 222,200 | 14,296 | |
Viacom, Inc. Class B (non-vtg.) | 149,100 | 6,616 | |
61,301 | |||
Multiline Retail - 1.2% | |||
Dollar General Corp. | 270,100 | 24,282 | |
Specialty Retail - 2.2% | |||
AutoZone, Inc. (a) | 10,300 | 7,851 | |
GameStop Corp. Class A | 277,300 | 8,069 | |
O'Reilly Automotive, Inc. (a) | 37,700 | 9,969 | |
Ross Stores, Inc. | 325,700 | 17,392 | |
43,281 | |||
Textiles, Apparel & Luxury Goods - 1.1% | |||
PVH Corp. | 149,500 | 14,023 | |
Ralph Lauren Corp. | 90,000 | 8,490 | |
22,513 | |||
TOTAL CONSUMER DISCRETIONARY | 242,472 | ||
CONSUMER STAPLES - 4.2% | |||
Beverages - 0.8% | |||
Coca-Cola European Partners PLC | 98,500 | 3,823 | |
Dr. Pepper Snapple Group, Inc. | 49,300 | 4,506 | |
Molson Coors Brewing Co. Class B | 83,600 | 8,291 | |
16,620 | |||
Food & Staples Retailing - 0.5% | |||
United Natural Foods, Inc. (a) | 169,200 | 6,304 | |
Whole Foods Market, Inc. | 96,800 | 3,131 | |
9,435 | |||
Food Products - 1.1% | |||
ConAgra Foods, Inc. | 117,500 | 5,370 | |
Mead Johnson Nutrition Co. Class A | 67,900 | 5,587 | |
WhiteWave Foods Co. (a) | 235,300 | 10,506 | |
21,463 | |||
Household Products - 1.1% | |||
Church & Dwight Co., Inc. | 108,100 | 10,646 | |
Energizer Holdings, Inc. | 232,700 | 11,014 | |
21,660 | |||
Personal Products - 0.6% | |||
Coty, Inc. Class A | 83,300 | 2,194 | |
Edgewell Personal Care Co. (a) | 133,500 | 10,604 | |
12,798 | |||
Tobacco - 0.1% | |||
Universal Corp. | 37,100 | 2,029 | |
TOTAL CONSUMER STAPLES | 84,005 | ||
ENERGY - 3.2% | |||
Energy Equipment & Services - 1.1% | |||
Dril-Quip, Inc. (a) | 137,400 | 8,386 | |
Nabors Industries Ltd. | 622,300 | 5,850 | |
Oil States International, Inc. (a) | 221,000 | 7,262 | |
21,498 | |||
Oil, Gas & Consumable Fuels - 2.1% | |||
Cabot Oil & Gas Corp. | 60,800 | 1,457 | |
Cimarex Energy Co. | 56,600 | 6,581 | |
Energen Corp. | 189,800 | 9,038 | |
HollyFrontier Corp. | 366,300 | 9,802 | |
PDC Energy, Inc. (a) | 75,100 | 4,360 | |
Whiting Petroleum Corp. (a) | 428,400 | 5,291 | |
WPX Energy, Inc. (a) | 588,500 | 6,056 | |
42,585 | |||
TOTAL ENERGY | 64,083 | ||
FINANCIALS - 25.2% | |||
Banks - 5.0% | |||
Aldermore Group PLC (a) | 1,920,700 | 6,012 | |
CIT Group, Inc. | 200,000 | 6,852 | |
Comerica, Inc. | 126,100 | 5,939 | |
FirstMerit Corp. | 409,900 | 9,297 | |
Huntington Bancshares, Inc. | 2,251,078 | 23,524 | |
Prosperity Bancshares, Inc. | 165,200 | 8,896 | |
Shawbrook Group PLC (a) | 1,401,100 | 5,986 | |
Signature Bank (a) | 108,100 | 14,594 | |
Synovus Financial Corp. | 539,027 | 17,340 | |
The Jammu & Kashmir Bank Ltd. | 2,407,373 | 2,051 | |
100,491 | |||
Capital Markets - 0.8% | |||
Fortress Investment Group LLC | 435,700 | 2,200 | |
Interactive Brokers Group, Inc. | 238,667 | 9,590 | |
KCG Holdings, Inc. Class A (a) | 150,644 | 2,120 | |
Stifel Financial Corp. (a) | 40,000 | 1,511 | |
15,421 | |||
Consumer Finance - 3.0% | |||
Capital One Financial Corp. | 391,600 | 28,681 | |
Enova International, Inc. (a) | 268,767 | 1,957 | |
Navient Corp. | 653,116 | 8,954 | |
OneMain Holdings, Inc. (a) | 252,380 | 7,889 | |
SLM Corp. (a) | 2,056,916 | 14,131 | |
61,612 | |||
Diversified Financial Services - 1.6% | |||
Bats Global Markets, Inc. | 5,500 | 153 | |
MSCI, Inc. Class A | 302,400 | 24,128 | |
On Deck Capital, Inc. (a)(b) | 1,667,958 | 8,623 | |
32,904 | |||
Insurance - 4.4% | |||
Allied World Assurance Co. Holdings AG | 200,000 | 7,416 | |
Arthur J. Gallagher & Co. | 626,300 | 30,269 | |
Direct Line Insurance Group PLC | 2,404,758 | 13,071 | |
Employers Holdings, Inc. | 150,000 | 4,478 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 20,400 | 10,483 | |
Hanover Insurance Group, Inc. | 112,900 | 9,786 | |
Principal Financial Group, Inc. | 183,300 | 8,168 | |
ProAssurance Corp. | 81,200 | 4,262 | |
87,933 | |||
Real Estate Investment Trusts - 9.5% | |||
Altisource Residential Corp. Class B | 507,921 | 5,089 | |
Communications Sales & Leasing, Inc. | 176,300 | 4,404 | |
DCT Industrial Trust, Inc. | 352,800 | 15,216 | |
Douglas Emmett, Inc. | 424,500 | 14,386 | |
Equity Lifestyle Properties, Inc. | 138,000 | 10,115 | |
Extra Space Storage, Inc. | 65,200 | 6,062 | |
FelCor Lodging Trust, Inc. | 1,097,100 | 7,252 | |
Healthcare Realty Trust, Inc. | 401,600 | 12,767 | |
Liberty Property Trust (SBI) | 158,753 | 5,925 | |
Mack-Cali Realty Corp. | 627,900 | 16,476 | |
Mid-America Apartment Communities, Inc. | 206,250 | 21,242 | |
Outfront Media, Inc. | 293,900 | 6,536 | |
Pennsylvania Real Estate Investment Trust (SBI) | 526,600 | 11,111 | |
Potlatch Corp. | 164,000 | 5,606 | |
Ramco-Gershenson Properties Trust (SBI) | 340,000 | 6,123 | |
Redwood Trust, Inc. | 358,100 | 5,103 | |
Sabra Health Care REIT, Inc. | 413,400 | 8,657 | |
The GEO Group, Inc. | 92,550 | 3,078 | |
Urban Edge Properties | 499,800 | 13,420 | |
VEREIT, Inc. | 1,341,400 | 12,864 | |
191,432 | |||
Real Estate Management & Development - 0.3% | |||
CBRE Group, Inc. (a) | 191,950 | 5,730 | |
Thrifts & Mortgage Finance - 0.6% | |||
Essent Group Ltd. (a) | 301,300 | 6,586 | |
LIC Housing Finance Ltd. | 719,652 | 5,038 | |
11,624 | |||
TOTAL FINANCIALS | 507,147 | ||
HEALTH CARE - 8.8% | |||
Biotechnology - 0.8% | |||
Puma Biotechnology, Inc. (a) | 65,000 | 2,456 | |
Vertex Pharmaceuticals, Inc. (a) | 152,000 | 14,159 | |
16,615 | |||
Health Care Equipment & Supplies - 3.9% | |||
Boston Scientific Corp. (a) | 700,000 | 15,897 | |
Nevro Corp. (a) | 101,591 | 7,083 | |
The Cooper Companies, Inc. | 125,000 | 20,351 | |
The Spectranetics Corp. (a) | 550,000 | 10,076 | |
Wright Medical Group NV (a) | 620,000 | 11,991 | |
Zimmer Biomet Holdings, Inc. | 100,500 | 12,272 | |
77,670 | |||
Health Care Providers & Services - 2.4% | |||
Adeptus Health, Inc. Class A (a)(b) | 100,000 | 7,150 | |
American Renal Associates Holdings, Inc. | 400,000 | 11,196 | |
AmSurg Corp. (a) | 140,000 | 10,471 | |
MEDNAX, Inc. (a) | 200,000 | 13,690 | |
Surgical Care Affiliates, Inc. (a) | 150,000 | 6,716 | |
49,223 | |||
Life Sciences Tools & Services - 0.6% | |||
Agilent Technologies, Inc. | 240,000 | 11,014 | |
Pharmaceuticals - 1.1% | |||
Catalent, Inc. (a) | 620,000 | 17,434 | |
Endo International PLC (a) | 320,000 | 5,059 | |
22,493 | |||
TOTAL HEALTH CARE | 177,015 | ||
INDUSTRIALS - 14.1% | |||
Aerospace & Defense - 1.7% | |||
Teledyne Technologies, Inc. (a) | 344,936 | 33,849 | |
Electrical Equipment - 5.0% | |||
AMETEK, Inc. | 1,629,472 | 77,922 | |
Hubbell, Inc. Class B | 210,600 | 22,380 | |
100,302 | |||
Industrial Conglomerates - 3.5% | |||
Roper Technologies, Inc. | 408,386 | 69,867 | |
Machinery - 1.5% | |||
IDEX Corp. | 367,200 | 30,602 | |
Professional Services - 1.4% | |||
Verisk Analytics, Inc. (a) | 360,077 | 28,587 | |
Trading Companies & Distributors - 1.0% | |||
AerCap Holdings NV (a) | 58,500 | 2,287 | |
MSC Industrial Direct Co., Inc. Class A | 252,400 | 18,917 | |
21,204 | |||
TOTAL INDUSTRIALS | 284,411 | ||
INFORMATION TECHNOLOGY - 16.7% | |||
Communications Equipment - 0.3% | |||
F5 Networks, Inc. (a) | 51,230 | 5,646 | |
Electronic Equipment & Components - 2.9% | |||
CDW Corp. | 238,500 | 10,151 | |
IPG Photonics Corp. (a) | 116,500 | 10,063 | |
Jabil Circuit, Inc. | 768,300 | 14,659 | |
Trimble Navigation Ltd. (a) | 666,600 | 17,052 | |
Zebra Technologies Corp. Class A (a) | 111,700 | 5,932 | |
57,857 | |||
Internet Software & Services - 2.0% | |||
Akamai Technologies, Inc. (a) | 80,800 | 4,410 | |
Box, Inc. Class A (a)(b) | 196,000 | 2,462 | |
LinkedIn Corp. Class A (a) | 30,500 | 4,163 | |
Marketo, Inc. (a) | 229,050 | 8,069 | |
Rackspace Hosting, Inc. (a) | 699,400 | 17,485 | |
SPS Commerce, Inc. (a) | 83,100 | 4,529 | |
Velti PLC (a)(c) | 215,084 | 1 | |
41,119 | |||
IT Services - 3.9% | |||
Alliance Data Systems Corp. (a) | 76,700 | 17,042 | |
Blackhawk Network Holdings, Inc. (a) | 170,000 | 5,851 | |
Cognizant Technology Solutions Corp. Class A (a) | 164,500 | 10,107 | |
EPAM Systems, Inc. (a) | 114,400 | 8,753 | |
Global Payments, Inc. | 203,300 | 15,794 | |
Maximus, Inc. | 270,500 | 15,594 | |
PayPal Holdings, Inc. (a) | 119,800 | 4,527 | |
77,668 | |||
Semiconductors & Semiconductor Equipment - 2.6% | |||
Applied Materials, Inc. | 11,100 | 271 | |
Cirrus Logic, Inc. (a) | 137,000 | 4,932 | |
Cree, Inc. (a)(b) | 328,900 | 7,920 | |
Lam Research Corp. | 2,927 | 242 | |
Micron Technology, Inc. (a) | 458,600 | 5,833 | |
NXP Semiconductors NV (a) | 133,300 | 12,596 | |
Qorvo, Inc. (a) | 191,900 | 9,781 | |
Skyworks Solutions, Inc. | 160,800 | 10,735 | |
52,310 | |||
Software - 4.3% | |||
CommVault Systems, Inc. (a) | 344,000 | 15,576 | |
Fair Isaac Corp. | 42,100 | 4,691 | |
Fleetmatics Group PLC (a) | 136,700 | 5,591 | |
Fortinet, Inc. (a) | 238,500 | 8,159 | |
Paylocity Holding Corp. (a) | 104,000 | 3,818 | |
Proofpoint, Inc. (a) | 54,000 | 3,165 | |
Salesforce.com, Inc. (a) | 167,500 | 14,021 | |
SS&C Technologies Holdings, Inc. | 64,000 | 3,942 | |
Synchronoss Technologies, Inc. (a) | 23,600 | 832 | |
Tableau Software, Inc. (a) | 74,000 | 3,807 | |
Tyler Technologies, Inc. (a) | 98,300 | 15,068 | |
Workday, Inc. Class A (a) | 110,100 | 8,350 | |
87,020 | |||
Technology Hardware, Storage & Peripherals - 0.7% | |||
HP, Inc. | 485,100 | 6,491 | |
Western Digital Corp. | 159,100 | 7,405 | |
13,896 | |||
TOTAL INFORMATION TECHNOLOGY | 335,516 | ||
MATERIALS - 7.1% | |||
Chemicals - 5.2% | |||
CF Industries Holdings, Inc. | 535,700 | 14,817 | |
Ecolab, Inc. | 313,379 | 36,741 | |
Ingevity Corp. (a) | 325,600 | 9,488 | |
PPG Industries, Inc. | 237,100 | 25,531 | |
W.R. Grace & Co. | 234,197 | 18,183 | |
104,760 | |||
Containers & Packaging - 1.9% | |||
Ball Corp. | 230,711 | 16,680 | |
Sealed Air Corp. | 155,700 | 7,231 | |
WestRock Co. | 361,800 | 14,331 | |
38,242 | |||
TOTAL MATERIALS | 143,002 | ||
TELECOMMUNICATION SERVICES - 0.1% | |||
Diversified Telecommunication Services - 0.1% | |||
Cogent Communications Group, Inc. | 30,300 | 1,207 | |
Zayo Group Holdings, Inc. (a) | 36,000 | 1,000 | |
2,207 | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. (a) | 20,300 | 868 | |
TOTAL TELECOMMUNICATION SERVICES | 3,075 | ||
UTILITIES - 6.1% | |||
Electric Utilities - 3.0% | |||
Great Plains Energy, Inc. | 250,300 | 7,304 | |
OGE Energy Corp. | 299,226 | 9,034 | |
Pinnacle West Capital Corp. | 166,300 | 12,238 | |
PNM Resources, Inc. | 605,900 | 19,898 | |
Westar Energy, Inc. | 213,203 | 12,010 | |
60,484 | |||
Gas Utilities - 1.7% | |||
Atmos Energy Corp. | 211,140 | 15,392 | |
National Fuel Gas Co. | 192,311 | 10,577 | |
South Jersey Industries, Inc. | 275,300 | 7,953 | |
33,922 | |||
Independent Power and Renewable Electricity Producers - 0.4% | |||
Calpine Corp. (a) | 500,300 | 7,404 | |
Talen Energy Corp. (a) | 50,500 | 581 | |
7,985 | |||
Multi-Utilities - 1.0% | |||
Avangrid, Inc. | 156,400 | 6,572 | |
Black Hills Corp. (b) | 237,935 | 14,405 | |
20,977 | |||
TOTAL UTILITIES | 123,368 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,906,821) | 1,964,094 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 0.3% 8/25/16 (d) | |||
(Cost $290) | 290 | 290 | |
Shares | Value (000s) | ||
Money Market Funds - 4.3% | |||
Fidelity Cash Central Fund, 0.40% (e) | 56,851,487 | $56,851 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (e)(f) | 29,393,725 | 29,394 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $86,245) | 86,245 | ||
TOTAL INVESTMENT PORTFOLIO - 101.8% | |||
(Cost $1,993,356) | 2,050,629 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (36,097) | ||
NET ASSETS - 100% | $2,014,532 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||
Equity Index Contracts | |||
48 CME E-mini S&P MidCap 400 Index Contracts (United States) | June 2016 | 7,161 | $21 |
The face value of futures purchased as a percentage of Net Assets is 0.4%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,000 or 0.0% of net assets.
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $290,000.
(e) 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.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Velti PLC | 4/19/13 | $323 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $73 |
Fidelity Securities Lending Cash Central Fund | 310 |
Total | $383 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $242,472 | $242,472 | $-- | $-- |
Consumer Staples | 84,005 | 84,005 | -- | -- |
Energy | 64,083 | 64,083 | -- | -- |
Financials | 507,147 | 507,147 | -- | -- |
Health Care | 177,015 | 177,015 | -- | -- |
Industrials | 284,411 | 284,411 | -- | -- |
Information Technology | 335,516 | 335,515 | 1 | -- |
Materials | 143,002 | 143,002 | -- | -- |
Telecommunication Services | 3,075 | 3,075 | -- | -- |
Utilities | 123,368 | 123,368 | -- | -- |
U.S. Government and Government Agency Obligations | 290 | -- | 290 | -- |
Money Market Funds | 86,245 | 86,245 | -- | -- |
Total Investments in Securities: | $2,050,629 | $2,050,338 | $291 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $21 | $21 | $-- | $-- |
Total Assets | $21 | $21 | $-- | $-- |
Total Derivative Instruments: | $21 | $21 | $-- | $-- |
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, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $21 | $0 |
Total Equity Risk | 21 | 0 |
Total Value of Derivatives | $21 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $28,658) — See accompanying schedule: Unaffiliated issuers (cost $1,907,111) | $1,964,384 | |
Fidelity Central Funds (cost $86,245) | 86,245 | |
Total Investments (cost $1,993,356) | $2,050,629 | |
Cash | 1,248 | |
Receivable for investments sold | 36,904 | |
Receivable for fund shares sold | 910 | |
Dividends receivable | 1,747 | |
Distributions receivable from Fidelity Central Funds | 93 | |
Receivable for daily variation margin for derivative instruments | 5 | |
Prepaid expenses | 1 | |
Other receivables | 34 | |
Total assets | 2,091,571 | |
Liabilities | ||
Payable for investments purchased | $39,430 | |
Payable for fund shares redeemed | 6,688 | |
Accrued management fee | 610 | |
Distribution and service plan fees payable | 487 | |
Other affiliated payables | 392 | |
Other payables and accrued expenses | 38 | |
Collateral on securities loaned, at value | 29,394 | |
Total liabilities | 77,039 | |
Net Assets | $2,014,532 | |
Net Assets consist of: | ||
Paid in capital | $2,057,854 | |
Undistributed net investment income | 3,302 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (103,909) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 57,285 | |
Net Assets | $2,014,532 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($550,806 ÷ 17,738.0 shares) | $31.05 | |
Maximum offering price per share (100/94.25 of $31.05) | $32.94 | |
Class T: | ||
Net Asset Value and redemption price per share ($612,670 ÷ 19,635.0 shares) | $31.20 | |
Maximum offering price per share (100/96.50 of $31.20) | $32.33 | |
Class B: | ||
Net Asset Value and offering price per share ($6,103 ÷ 214.8 shares)(a) | $28.41 | |
Class C: | ||
Net Asset Value and offering price per share ($143,041 ÷ 5,021.4 shares)(a) | $28.49 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($199,434 ÷ 6,169.2 shares) | $32.33 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($502,478 ÷ 15,513.7 shares) | $32.39 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $15,939 | |
Interest | 2 | |
Income from Fidelity Central Funds | 383 | |
Total income | 16,324 | |
Expenses | ||
Management fee | ||
Basic fee | $5,798 | |
Performance adjustment | (1,227) | |
Transfer agent fees | 2,260 | |
Distribution and service plan fees | 2,935 | |
Accounting and security lending fees | 324 | |
Custodian fees and expenses | 30 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 71 | |
Audit | 38 | |
Legal | 8 | |
Interest | 4 | |
Miscellaneous | 10 | |
Total expenses before reductions | 10,256 | |
Expense reductions | (92) | 10,164 |
Net investment income (loss) | 6,160 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $2) | (101,184) | |
Foreign currency transactions | 4 | |
Futures contracts | (313) | |
Total net realized gain (loss) | (101,493) | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $7) | 51,176 | |
Assets and liabilities in foreign currencies | 3 | |
Futures contracts | (198) | |
Total change in net unrealized appreciation (depreciation) | 50,981 | |
Net gain (loss) | (50,512) | |
Net increase (decrease) in net assets resulting from operations | $(44,352) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $6,160 | $4,877 |
Net realized gain (loss) | (101,493) | 274,812 |
Change in net unrealized appreciation (depreciation) | 50,981 | (264,502) |
Net increase (decrease) in net assets resulting from operations | (44,352) | 15,187 |
Distributions to shareholders from net investment income | (3,959) | (2,753) |
Distributions to shareholders from net realized gain | (39,216) | – |
Total distributions | (43,175) | (2,753) |
Share transactions - net increase (decrease) | (301,058) | (166,510) |
Total increase (decrease) in net assets | (388,585) | (154,076) |
Net Assets | ||
Beginning of period | 2,403,117 | 2,557,193 |
End of period (including undistributed net investment income of $3,302 and undistributed net investment income of $1,101, respectively) | $2,014,532 | $2,403,117 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.01 | $31.80 | $28.37 | $22.16 | $19.15 | $19.22 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .09 | .08 | .08 | .10 | .09 | .08B |
Net realized and unrealized gain (loss) | (.48) | .13 | 3.36 | 6.29 | 3.02 | (.15) |
Total from investment operations | (.39) | .21 | 3.44 | 6.39 | 3.11 | (.07) |
Distributions from net investment income | (.04) | – | (.01) | (.14) | (.10) | – |
Distributions from net realized gain | (.53) | – | – | (.04) | – | – |
Total distributions | (.57) | – | (.01) | (.18) | (.10) | – |
Net asset value, end of period | $31.05 | $32.01 | $31.80 | $28.37 | $22.16 | $19.15 |
Total ReturnC,D,E | (1.14)% | .66% | 12.11% | 29.07% | 16.32% | (.36)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .94%H | .98% | 1.05% | .95% | .94% | .92% |
Expenses net of fee waivers, if any | .94%H | .98% | 1.05% | .95% | .94% | .92% |
Expenses net of all reductions | .93%H | .97% | 1.05% | .92% | .94% | .91% |
Net investment income (loss) | .61%H | .24% | .26% | .39% | .41% | .39%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $551 | $593 | $652 | $692 | $593 | $644 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.16 | $32.02 | $28.63 | $22.36 | $19.30 | $19.41 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .06 | – | .01 | .04 | .05 | .04B |
Net realized and unrealized gain (loss) | (.49) | .14 | 3.38 | 6.36 | 3.05 | (.15) |
Total from investment operations | (.43) | .14 | 3.39 | 6.40 | 3.10 | (.11) |
Distributions from net investment income | – | – | – | (.09) | (.04) | – |
Distributions from net realized gain | (.53) | – | – | (.04) | – | – |
Total distributions | (.53) | – | – | (.13) | (.04) | – |
Net asset value, end of period | $31.20 | $32.16 | $32.02 | $28.63 | $22.36 | $19.30 |
Total ReturnC,D,E | (1.26)% | .44% | 11.84% | 28.80% | 16.12% | (.57)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.17%H | 1.22% | 1.28% | 1.16% | 1.14% | 1.11% |
Expenses net of fee waivers, if any | 1.17%H | 1.21% | 1.28% | 1.16% | 1.14% | 1.11% |
Expenses net of all reductions | 1.16%H | 1.21% | 1.27% | 1.13% | 1.13% | 1.10% |
Net investment income (loss) | .38%H | .01% | .03% | .17% | .22% | .20%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $613 | $681 | $794 | $817 | $755 | $871 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.07) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.41 | $29.47 | $26.51 | $20.71 | $17.94 | $18.15 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | (.18) | (.16) | (.10) | (.07) | (.07)B |
Net realized and unrealized gain (loss) | (.44) | .12 | 3.12 | 5.90 | 2.84 | (.14) |
Total from investment operations | (.47) | (.06) | 2.96 | 5.80 | 2.77 | (.21) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.53) | – | – | – | – | – |
Total distributions | (.53) | – | – | – | – | – |
Net asset value, end of period | $28.41 | $29.41 | $29.47 | $26.51 | $20.71 | $17.94 |
Total ReturnC,D,E | (1.52)% | (.20)% | 11.17% | 28.01% | 15.44% | (1.16)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.78%H | 1.83% | 1.89% | 1.76% | 1.73% | 1.71% |
Expenses net of fee waivers, if any | 1.78%H | 1.83% | 1.89% | 1.76% | 1.73% | 1.71% |
Expenses net of all reductions | 1.77%H | 1.82% | 1.88% | 1.74% | 1.73% | 1.70% |
Net investment income (loss) | (.23)%H | (.61)% | (.58)% | (.43)% | (.38)% | (.40)%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $6 | $10 | $16 | $21 | $22 | $28 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.48 | $29.51 | $26.52 | $20.73 | $17.95 | $18.15 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.02) | (.15) | (.14) | (.09) | (.06) | (.07)B |
Net realized and unrealized gain (loss) | (.44) | .12 | 3.13 | 5.91 | 2.84 | (.13) |
Total from investment operations | (.46) | (.03) | 2.99 | 5.82 | 2.78 | (.20) |
Distributions from net investment income | – | – | – | (.02) | – | – |
Distributions from net realized gain | (.53) | – | – | (.01) | – | – |
Total distributions | (.53) | – | – | (.03) | – | – |
Net asset value, end of period | $28.49 | $29.48 | $29.51 | $26.52 | $20.73 | $17.95 |
Total ReturnC,D,E | (1.48)% | (.10)% | 11.27% | 28.09% | 15.49% | (1.10)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.69%H | 1.74% | 1.80% | 1.69% | 1.68% | 1.66% |
Expenses net of fee waivers, if any | 1.69%H | 1.73% | 1.80% | 1.69% | 1.68% | 1.66% |
Expenses net of all reductions | 1.68%H | 1.73% | 1.80% | 1.67% | 1.68% | 1.65% |
Net investment income (loss) | (.14)%H | (.51)% | (.49)% | (.36)% | (.33)% | (.35)%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $143 | $155 | $172 | $172 | $141 | $150 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund
Six months ended (Unaudited) May 31, | Years ended November 30, | ||||
2016 | 2015 | 2014 | 2013 | 2012 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.34 | $33.14 | $29.56 | $23.14 | $21.20 |
Income from Investment Operations | |||||
Net investment income (loss)B | .13 | .16 | .16 | .17 | .09 |
Net realized and unrealized gain (loss) | (.50) | .14 | 3.49 | 6.54 | 1.85 |
Total from investment operations | (.37) | .30 | 3.65 | 6.71 | 1.94 |
Distributions from net investment income | (.12) | (.10) | (.07) | (.25) | – |
Distributions from net realized gain | (.53) | – | – | (.04) | – |
Total distributions | (.64)C | (.10) | (.07) | (.29) | – |
Net asset value, end of period | $32.33 | $33.34 | $33.14 | $29.56 | $23.14 |
Total ReturnD,E | (1.01)% | .90% | 12.38% | 29.36% | 9.15% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .70%H | .75% | .81% | .71% | .59%H |
Expenses net of fee waivers, if any | .70%H | .74% | .81% | .71% | .59%H |
Expenses net of all reductions | .69%H | .74% | .81% | .69% | .58%H |
Net investment income (loss) | .85%H | .48% | .50% | .62% | .86%H |
Supplemental Data | |||||
Net assets, end of period (in millions) | $199 | $486 | $553 | $225 | $1 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% |
A For the period June 6, 2012 (commencement of sale of shares) to November 30, 2012.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.64 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.529 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $33.39 | $33.22 | $29.64 | $23.14 | $20.01 | $20.02 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .13 | .13 | .16 | .18 | .15 | .14B |
Net realized and unrealized gain (loss) | (.50) | .14 | 3.50 | 6.56 | 3.15 | (.15) |
Total from investment operations | (.37) | .27 | 3.66 | 6.74 | 3.30 | (.01) |
Distributions from net investment income | (.11) | (.10) | (.08) | (.20) | (.17) | – |
Distributions from net realized gain | (.53) | – | – | (.04) | – | – |
Total distributions | (.63)C | (.10) | (.08) | (.24) | (.17) | – |
Net asset value, end of period | $32.39 | $33.39 | $33.22 | $29.64 | $23.14 | $20.01 |
Total ReturnD,E | (1.01)% | .80% | 12.39% | 29.44% | 16.66% | (.05)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .72%H | .83% | .80% | .67% | .65% | .62% |
Expenses net of fee waivers, if any | .71%H | .83% | .80% | .67% | .65% | .62% |
Expenses net of all reductions | .71%H | .82% | .80% | .65% | .64% | .61% |
Net investment income (loss) | .84%H | .39% | .51% | .66% | .71% | .69%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $502 | $479 | $371 | $214 | $172 | $234 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
C Total distributions of $.63 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.529 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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 Class I 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. 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, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, market discount, foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $216,130 |
Gross unrealized depreciation | (164,748) |
Net unrealized appreciation (depreciation) on securities | $51,382 |
Tax cost | $1,999,247 |
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 2000 (the Act), the Fund is permitted to carryforward 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 | $(250) |
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. 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 may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the 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 daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. 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 $(313) and a change in net unrealized appreciation (depreciation) of $(198) 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 $939,992 and $1,237,645, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the S&P MidCap 400 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .43% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $675 | $– |
Class T | .25% | .25% | 1,520 | – |
Class B | .75% | .25% | 37 | 28 |
Class C | .75% | .25%�� | 703 | – |
$2,935 | $28 |
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 by FDC | |
Class A | $13 |
Class T | 8 |
Class B(a) | –(b) |
Class C(a) | 3 |
$24 |
(a) 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.
(b) In the amount of less than five hundred dollars
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of 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-Level Average Net Assets(a) | |
Class A | $571 | .21 |
Class T | 594 | .19 |
Class B | 11 | .30 |
Class C | 150 | .21 |
Fidelity Stock Selector Mid Cap Fund | 383 | .22 |
Class I | 551 | .24 |
$2,260 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $36 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 or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $24,655 | .62% | $4 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $826. 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 $310, including $13 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $84 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $755 | $– |
Fidelity Stock Selector Mid Cap Fund | 1,674 | 1,667 |
Class I | 1,530 | 1,086 |
Total | $3,959 | $2,753 |
From net realized gain | ||
Class A | $9,744 | $– |
Class T | 11,098 | – |
Class B | 166 | – |
Class C | 2,758 | – |
Fidelity Stock Selector Mid Cap Fund | 7,708 | – |
Class I | 7,742 | – |
Total | $39,216 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 575 | 1,378 | $17,148 | $44,847 |
Reinvestment of distributions | 331 | – | 9,838 | – |
Shares redeemed | (1,679) | (3,369) | (49,826) | (109,342) |
Net increase (decrease) | (773) | (1,991) | $(22,840) | $(64,495) |
Class T | ||||
Shares sold | 555 | 1,615 | $16,476 | $53,028 |
Reinvestment of distributions | 356 | – | 10,639 | – |
Shares redeemed | (2,467) | (5,214) | (73,497) | (170,224) |
Net increase (decrease) | (1,556) | (3,599) | $(46,382) | $(117,196) |
Class B | ||||
Shares sold | 1 | 2 | $31 | $36 |
Reinvestment of distributions | 5 | – | 145 | – |
Shares redeemed | (116) | (219) | (3,150) | (6,583) |
Net increase (decrease) | (110) | (217) | $(2,974) | $(6,547) |
Class C | ||||
Shares sold | 66 | 234 | $1,829 | $7,096 |
Reinvestment of distributions | 90 | – | 2,469 | – |
Shares redeemed | (378) | (818) | (10,309) | (24,477) |
Net increase (decrease) | (222) | (584) | $(6,011) | $(17,381) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 248 | 939 | $7,634 | $31,733 |
Reinvestment of distributions | 300 | 49 | 9,281 | 1,651 |
Shares redeemed | (8,966) | (3,087) | (277,007) | (101,545) |
Net increase (decrease) | (8,418) | (2,099) | $(260,092) | $(68,161) |
Class I | ||||
Shares sold | 3,466 | 5,194 | $106,483 | $175,072 |
Reinvestment of distributions | 291 | 30 | 9,016 | 1,015 |
Shares redeemed | (2,583) | (2,041) | (78,258) | (68,817) |
Net increase (decrease) | 1,174 | 3,183 | $37,241 | $107,270 |
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.
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, 2015 to May 31, 2016).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .94% | |||
Actual | $1,000.00 | $988.60 | $4.67 | |
Hypothetical-C | $1,000.00 | $1,020.30 | $4.75 | |
Class T | 1.17% | |||
Actual | $1,000.00 | $987.40 | $5.81 | |
Hypothetical-C | $1,000.00 | $1,019.15 | $5.91 | |
Class B | 1.78% | |||
Actual | $1,000.00 | $984.80 | $8.83 | |
Hypothetical-C | $1,000.00 | $1,016.10 | $8.97 | |
Class C | 1.69% | |||
Actual | $1,000.00 | $985.20 | $8.39 | |
Hypothetical-C | $1,000.00 | $1,016.55 | $8.52 | |
Fidelity Stock Selector Mid Cap Fund | .70% | |||
Actual | $1,000.00 | $989.90 | $3.48 | |
Hypothetical-C | $1,000.00 | $1,021.50 | $3.54 | |
Class I | .71% | |||
Actual | $1,000.00 | $989.90 | $3.53 | |
Hypothetical-C | $1,000.00 | $1,021.45 | $3.59 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
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Fidelity Advisor® Equity Value Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Johnson & Johnson | 3.8 | 3.8 |
JPMorgan Chase & Co. | 3.6 | 4.0 |
Berkshire Hathaway, Inc. Class B | 3.1 | 3.0 |
General Electric Co. | 3.0 | 3.4 |
Wells Fargo & Co. | 2.7 | 3.3 |
EMC Corp. | 2.5 | 2.4 |
Allergan PLC | 2.2 | 1.5 |
Chevron Corp. | 2.1 | 2.5 |
Apple, Inc. | 2.0 | 1.1 |
Amgen, Inc. | 1.9 | 1.7 |
26.9 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 26.1 | 25.3 |
Health Care | 16.3 | 15.1 |
Information Technology | 14.9 | 16.4 |
Consumer Discretionary | 10.6 | 10.0 |
Energy | 9.1 | 9.3 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 93.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.9% |
* Foreign investments - 18.3%
As of November 30, 2015* | ||
Stocks | 94.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.3% |
* Foreign investments - 13.9%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.1% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.6% | |||
Auto Components - 0.4% | |||
Hyundai Mobis | 3,315 | $710,053 | |
Media - 8.0% | |||
Cablevision Systems Corp. - NY Group Class A | 34,300 | 1,189,524 | |
CBS Corp. Class B | 35,800 | 1,976,160 | |
Charter Communications, Inc. (a) | 1,711 | 374,606 | |
Corus Entertainment, Inc. Class B (non-vtg.) (b) | 73,600 | 706,057 | |
Discovery Communications, Inc. Class A (a) | 56,600 | 1,576,310 | |
John Wiley & Sons, Inc. Class A | 23,115 | 1,245,436 | |
Starz Series A (a) | 63,900 | 1,725,300 | |
Time Warner, Inc. | 14,900 | 1,127,334 | |
Twenty-First Century Fox, Inc. Class A | 61,300 | 1,770,344 | |
Viacom, Inc. Class B (non-vtg.) | 46,800 | 2,076,516 | |
13,767,587 | |||
Multiline Retail - 0.4% | |||
Macy's, Inc. | 19,347 | 642,514 | |
Specialty Retail - 1.0% | |||
Bed Bath & Beyond, Inc. | 16,300 | 729,425 | |
GNC Holdings, Inc. | 37,900 | 987,295 | |
1,716,720 | |||
Textiles, Apparel & Luxury Goods - 0.8% | |||
PVH Corp. | 14,200 | 1,331,960 | |
TOTAL CONSUMER DISCRETIONARY | 18,168,834 | ||
CONSUMER STAPLES - 3.8% | |||
Beverages - 0.9% | |||
C&C Group PLC | 296,881 | 1,365,232 | |
SABMiller PLC | 3,800 | 236,358 | |
1,601,590 | |||
Food & Staples Retailing - 1.8% | |||
CVS Health Corp. | 12,300 | 1,186,335 | |
Rite Aid Corp. (a) | 121,300 | 934,010 | |
Wal-Mart Stores, Inc. | 12,800 | 905,984 | |
3,026,329 | |||
Food Products - 1.1% | |||
Seaboard Corp. (a) | 300 | 906,000 | |
The J.M. Smucker Co. | 7,479 | 965,913 | |
1,871,913 | |||
TOTAL CONSUMER STAPLES | 6,499,832 | ||
ENERGY - 9.1% | |||
Energy Equipment & Services - 0.4% | |||
BW Offshore Ltd. (b) | 1,534,900 | 177,973 | |
National Oilwell Varco, Inc. | 13,300 | 438,235 | |
616,208 | |||
Oil, Gas & Consumable Fuels - 8.7% | |||
BW LPG Ltd. | 80,080 | 401,951 | |
Chevron Corp. | 35,697 | 3,605,397 | |
GasLog Ltd. (b) | 32,500 | 404,625 | |
GasLog Partners LP | 38,800 | 788,416 | |
Golar LNG Partners LP | 54,700 | 930,447 | |
Hoegh LNG Holdings Ltd. | 10,100 | 111,979 | |
Hoegh LNG Partners LP | 23,600 | 422,204 | |
Niska Gas Storage Partners LLC (a) | 96,173 | 398,156 | |
Phillips 66 Co. | 21,800 | 1,751,848 | |
Suncor Energy, Inc. | 57,400 | 1,585,410 | |
Teekay Corp. | 133,000 | 1,399,160 | |
Teekay LNG Partners LP | 80,500 | 1,124,585 | |
Teekay Offshore Partners LP | 316,900 | 1,999,639 | |
14,923,817 | |||
TOTAL ENERGY | 15,540,025 | ||
FINANCIALS - 26.1% | |||
Banks - 10.5% | |||
JPMorgan Chase & Co. | 94,352 | 6,158,355 | |
Regions Financial Corp. | 213,600 | 2,099,688 | |
SunTrust Banks, Inc. | 52,200 | 2,287,404 | |
U.S. Bancorp | 65,966 | 2,824,664 | |
Wells Fargo & Co. | 89,932 | 4,561,351 | |
17,931,462 | |||
Capital Markets - 1.5% | |||
Goldman Sachs Group, Inc. | 13,600 | 2,168,928 | |
GP Investments Ltd. Class A (depositary receipt) (a) | 175,100 | 341,129 | |
2,510,057 | |||
Consumer Finance - 3.3% | |||
American Express Co. | 15,700 | 1,032,432 | |
Capital One Financial Corp. | 19,618 | 1,436,822 | |
Discover Financial Services | 33,300 | 1,891,773 | |
Synchrony Financial (a) | 44,500 | 1,388,400 | |
5,749,427 | |||
Diversified Financial Services - 3.1% | |||
Berkshire Hathaway, Inc. Class B (a) | 37,469 | 5,265,893 | |
Insurance - 5.3% | |||
Allied World Assurance Co. Holdings AG | 33,000 | 1,223,640 | |
Allstate Corp. | 22,900 | 1,545,979 | |
Chubb Ltd. | 14,400 | 1,823,184 | |
FNF Group | 27,280 | 953,436 | |
FNFV Group (a) | 36,192 | 435,028 | |
Prudential PLC | 46,872 | 934,495 | |
The Travelers Companies, Inc. | 18,387 | 2,098,692 | |
9,014,454 | |||
Real Estate Investment Trusts - 1.6% | |||
American Capital Agency Corp. | 35,701 | 674,392 | |
Annaly Capital Management, Inc. | 106,505 | 1,126,823 | |
MFA Financial, Inc. | 131,836 | 950,538 | |
2,751,753 | |||
Real Estate Management & Development - 0.8% | |||
CBRE Group, Inc. (a) | 47,500 | 1,417,875 | |
TOTAL FINANCIALS | 44,640,921 | ||
HEALTH CARE - 16.3% | |||
Biotechnology - 4.2% | |||
Amgen, Inc. | 21,000 | 3,316,950 | |
Baxalta, Inc. | 48,200 | 2,180,086 | |
Biogen, Inc. (a) | 5,100 | 1,477,623 | |
Dyax Corp. rights 12/31/19 (a) | 58,900 | 140,182 | |
7,114,841 | |||
Health Care Equipment & Supplies - 0.5% | |||
Alere, Inc. (a) | 20,000 | 859,000 | |
Health Care Providers & Services - 2.5% | |||
Aetna, Inc. | 4,100 | 464,243 | |
Anthem, Inc. | 4,500 | 594,720 | |
Cigna Corp. | 18,200 | 2,331,602 | |
McKesson Corp. | 4,900 | 897,386 | |
4,287,951 | |||
Pharmaceuticals - 9.1% | |||
Allergan PLC (a) | 15,900 | 3,748,425 | |
Johnson & Johnson | 56,692 | 6,388,622 | |
Sanofi SA sponsored ADR | 50,300 | 2,072,360 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 63,732 | 3,305,779 | |
15,515,186 | |||
TOTAL HEALTH CARE | 27,776,978 | ||
INDUSTRIALS - 7.6% | |||
Aerospace & Defense - 1.1% | |||
United Technologies Corp. | 18,400 | 1,850,672 | |
Industrial Conglomerates - 3.0% | |||
General Electric Co. | 171,100 | 5,172,353 | |
Machinery - 1.6% | |||
Deere & Co. | 32,410 | 2,667,019 | |
Professional Services - 1.4% | |||
Dun & Bradstreet Corp. | 18,800 | 2,385,720 | |
Trading Companies & Distributors - 0.5% | |||
AerCap Holdings NV (a) | 24,300 | 949,887 | |
TOTAL INDUSTRIALS | 13,025,651 | ||
INFORMATION TECHNOLOGY - 14.9% | |||
Communications Equipment - 3.4% | |||
Cisco Systems, Inc. | 93,882 | 2,727,272 | |
Harris Corp. | 30,400 | 2,394,608 | |
Juniper Networks, Inc. | 32,200 | 753,802 | |
5,875,682 | |||
Electronic Equipment & Components - 0.5% | |||
TE Connectivity Ltd. | 13,398 | 803,880 | |
Internet Software & Services - 2.7% | |||
Alphabet, Inc. Class A | 3,900 | 2,920,515 | |
eBay, Inc. (a) | 67,800 | 1,658,388 | |
4,578,903 | |||
IT Services - 0.9% | |||
The Western Union Co. | 82,500 | 1,604,625 | |
Software - 1.9% | |||
Oracle Corp. | 47,087 | 1,892,897 | |
VMware, Inc. Class A (a)(b) | 21,200 | 1,283,872 | |
3,176,769 | |||
Technology Hardware, Storage & Peripherals - 5.5% | |||
Apple, Inc. | 34,900 | 3,485,114 | |
EMC Corp. | 151,000 | 4,220,450 | |
Samsung Electronics Co. Ltd. | 1,614 | 1,751,592 | |
9,457,156 | |||
TOTAL INFORMATION TECHNOLOGY | 25,497,015 | ||
MATERIALS - 3.2% | |||
Chemicals - 2.6% | |||
CF Industries Holdings, Inc. | 79,975 | 2,212,109 | |
LyondellBasell Industries NV Class A | 28,400 | 2,310,624 | |
4,522,733 | |||
Containers & Packaging - 0.6% | |||
Graphic Packaging Holding Co. | 72,500 | 971,500 | |
TOTAL MATERIALS | 5,494,233 | ||
UTILITIES - 1.5% | |||
Electric Utilities - 1.5% | |||
Exelon Corp. | 72,900 | 2,498,283 | |
TOTAL COMMON STOCKS | |||
(Cost $151,082,037) | 159,141,772 | ||
Money Market Funds - 7.9% | |||
Fidelity Cash Central Fund, 0.40% (c) | 11,451,165 | 11,451,165 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (c)(d) | 1,981,272 | 1,981,272 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $13,432,437) | 13,432,437 | ||
TOTAL INVESTMENT PORTFOLIO - 101.0% | |||
(Cost $164,514,474) | 172,574,209 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (1,679,353) | ||
NET ASSETS - 100% | $170,894,856 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $10,882 |
Fidelity Securities Lending Cash Central Fund | 12,540 |
Total | $23,422 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $18,168,834 | $18,168,834 | $-- | $-- |
Consumer Staples | 6,499,832 | 6,499,832 | -- | -- |
Energy | 15,540,025 | 15,540,025 | -- | -- |
Financials | 44,640,921 | 43,706,426 | 934,495 | -- |
Health Care | 27,776,978 | 27,636,796 | -- | 140,182 |
Industrials | 13,025,651 | 13,025,651 | -- | -- |
Information Technology | 25,497,015 | 25,497,015 | -- | -- |
Materials | 5,494,233 | 5,494,233 | -- | -- |
Utilities | 2,498,283 | 2,498,283 | -- | -- |
Money Market Funds | 13,432,437 | 13,432,437 | -- | -- |
Total Investments in Securities: | $172,574,209 | $171,499,532 | $934,495 | $140,182 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 81.7% |
Marshall Islands | 3.5% |
Ireland | 3.0% |
Switzerland | 2.3% |
Israel | 1.9% |
Netherlands | 1.8% |
Korea (South) | 1.4% |
Canada | 1.3% |
France | 1.2% |
Others (Individually Less Than 1%) | 1.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2016 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $1,899,822) — See accompanying schedule: Unaffiliated issuers (cost $151,082,037) | $159,141,772 | |
Fidelity Central Funds (cost $13,432,437) | 13,432,437 | |
Total Investments (cost $164,514,474) | $172,574,209 | |
Cash | 179 | |
Foreign currency held at value (cost $54,297) | 54,297 | |
Receivable for fund shares sold | 259,052 | |
Dividends receivable | 418,112 | |
Distributions receivable from Fidelity Central Funds | 4,916 | |
Prepaid expenses | 55 | |
Other receivables | 1,859 | |
Total assets | 173,312,679 | |
Liabilities | ||
Payable for fund shares redeemed | $214,417 | |
Accrued management fee | 96,043 | |
Distribution and service plan fees payable | 57,522 | |
Other affiliated payables | 36,355 | |
Other payables and accrued expenses | 32,214 | |
Collateral on securities loaned, at value | 1,981,272 | |
Total liabilities | 2,417,823 | |
Net Assets | $170,894,856 | |
Net Assets consist of: | ||
Paid in capital | $164,717,263 | |
Undistributed net investment income | 619,563 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,501,483) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 8,059,513 | |
Net Assets | $170,894,856 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($73,760,785 ÷ 4,769,459 shares) | $15.47 | |
Maximum offering price per share (100/94.25 of $15.47) | $16.41 | |
Class T: | ||
Net Asset Value and redemption price per share ($39,257,815 ÷ 2,540,032 shares) | $15.46 | |
Maximum offering price per share (100/96.50 of $15.46) | $16.02 | |
Class B: | ||
Net Asset Value and offering price per share ($1,302,512 ÷ 84,480 shares)(a) | $15.42 | |
Class C: | ||
Net Asset Value and offering price per share ($31,179,989 ÷ 2,061,582 shares)(a) | $15.12 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($25,393,755 ÷ 1,616,759 shares) | $15.71 |
(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.
Statement of Operations
Six months ended May 31, 2016 (Unaudited) | ||
Investment Income | ||
Dividends | $1,898,259 | |
Interest | 283 | |
Income from Fidelity Central Funds | 23,422 | |
Total income | 1,921,964 | |
Expenses | ||
Management fee | ||
Basic fee | $435,416 | |
Performance adjustment | 71,907 | |
Transfer agent fees | 181,873 | |
Distribution and service plan fees | 326,336 | |
Accounting and security lending fees | 31,083 | |
Custodian fees and expenses | 9,693 | |
Independent trustees' fees and expenses | 342 | |
Registration fees | 61,296 | |
Audit | 33,572 | |
Legal | 1,907 | |
Miscellaneous | 484 | |
Total expenses before reductions | 1,153,909 | |
Expense reductions | (41,080) | 1,112,829 |
Net investment income (loss) | 809,135 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (659,840) | |
Foreign currency transactions | (245) | |
Futures contracts | 58,155 | |
Total net realized gain (loss) | (601,930) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,515,278 | |
Assets and liabilities in foreign currencies | 114 | |
Total change in net unrealized appreciation (depreciation) | 2,515,392 | |
Net gain (loss) | 1,913,462 | |
Net increase (decrease) in net assets resulting from operations | $2,722,597 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $809,135 | $2,901,174 |
Net realized gain (loss) | (601,930) | 3,727,271 |
Change in net unrealized appreciation (depreciation) | 2,515,392 | (9,228,700) |
Net increase (decrease) in net assets resulting from operations | 2,722,597 | (2,600,255) |
Distributions to shareholders from net investment income | (2,090,312) | (1,112,123) |
Distributions to shareholders from net realized gain | (1,416,760) | – |
Total distributions | (3,507,072) | (1,112,123) |
Share transactions - net increase (decrease) | 13,975,992 | 52,856,883 |
Total increase (decrease) in net assets | 13,191,517 | 49,144,505 |
Net Assets | ||
Beginning of period | 157,703,339 | 108,558,834 |
End of period (including undistributed net investment income of $619,563 and undistributed net investment income of $1,900,740, respectively) | $170,894,856 | $157,703,339 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Value Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.66 | $16.00 | $13.93 | $10.60 | $9.09 | $8.85 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .09 | .35B | .17 | .13 | .12 | .06 |
Net realized and unrealized gain (loss) | .09 | (.50)C | 2.01 | 3.33 | 1.44 | .27 |
Total from investment operations | .18 | (.15) | 2.18 | 3.46 | 1.56 | .33 |
Distributions from net investment income | (.23) | (.19) | (.11) | (.13) | (.05) | (.09) |
Distributions from net realized gain | (.14) | – | – | – | – | – |
Total distributions | (.37) | (.19) | (.11) | (.13) | (.05) | (.09) |
Net asset value, end of period | $15.47 | $15.66 | $16.00 | $13.93 | $10.60 | $9.09 |
Total ReturnD,E,F | 1.27% | (.91)%C | 15.79% | 33.09% | 17.27% | 3.72% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.29%I | 1.24% | 1.23% | 1.22% | 1.30% | 1.27% |
Expenses net of fee waivers, if any | 1.25%I | 1.23% | 1.23% | 1.22% | 1.25% | 1.25% |
Expenses net of all reductions | 1.24%I | 1.23% | 1.23% | 1.20% | 1.25% | 1.25% |
Net investment income (loss) | 1.18%I | 2.23%B | 1.15% | 1.07% | 1.20% | .59% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $73,761 | $67,005 | $50,957 | $39,538 | $29,282 | $27,910 |
Portfolio turnover rateJ | 54%I | 49% | 68% | 68% | 77% | 65% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.31%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.01 per share. Excluding these litigation proceeds, the total return would have been (.99)%
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Value Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.62 | $15.96 | $13.90 | $10.57 | $9.06 | $8.81 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .07 | .31B | .13 | .10 | .09 | .03 |
Net realized and unrealized gain (loss) | .09 | (.50)C | 2.01 | 3.34 | 1.44 | .28 |
Total from investment operations | .16 | (.19) | 2.14 | 3.44 | 1.53 | .31 |
Distributions from net investment income | (.18) | (.15) | (.08) | (.11) | (.02) | (.06) |
Distributions from net realized gain | (.14) | – | – | – | – | – |
Total distributions | (.32) | (.15) | (.08) | (.11) | (.02) | (.06) |
Net asset value, end of period | $15.46 | $15.62 | $15.96 | $13.90 | $10.57 | $9.06 |
Total ReturnD,E,F | 1.15% | (1.19)%C | 15.46% | 32.82% | 16.94% | 3.53% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.56%I | 1.50% | 1.49% | 1.48% | 1.55% | 1.53% |
Expenses net of fee waivers, if any | 1.50%I | 1.50% | 1.49% | 1.48% | 1.50% | 1.50% |
Expenses net of all reductions | 1.49%I | 1.50% | 1.49% | 1.46% | 1.50% | 1.50% |
Net investment income (loss) | .93%I | 1.96%B | .88% | .81% | .95% | .34% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $39,258 | $34,643 | $31,087 | $27,241 | $21,212 | $21,319 |
Portfolio turnover rateJ | 54%I | 49% | 68% | 68% | 77% | 65% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.05%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.01 per share. Excluding these litigation proceeds, the total return would have been (1.27)%
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Value Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.49 | $15.81 | $13.76 | $10.45 | $8.98 | $8.73 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .03 | .23B | .06 | .04 | .04 | (.01) |
Net realized and unrealized gain (loss) | .09 | (.49)C | 1.99 | 3.31 | 1.43 | .27 |
Total from investment operations | .12 | (.26) | 2.05 | 3.35 | 1.47 | .26 |
Distributions from net investment income | (.05) | (.06) | – | (.04) | – | (.01) |
Distributions from net realized gain | (.14) | – | – | – | – | – |
Total distributions | (.19) | (.06) | – | (.04) | – | (.01) |
Net asset value, end of period | $15.42 | $15.49 | $15.81 | $13.76 | $10.45 | $8.98 |
Total ReturnD,E,F | .83% | (1.65)%C | 14.90% | 32.13% | 16.37% | 2.96% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.12%I | 2.08% | 2.04% | 1.99% | 2.06% | 2.02% |
Expenses net of fee waivers, if any | 2.00%I | 2.00% | 2.00% | 1.99% | 2.00% | 2.00% |
Expenses net of all reductions | 1.99%I | 2.00% | 1.99% | 1.97% | 2.00% | 2.00% |
Net investment income (loss) | .43%I | 1.46%B | .38% | .30% | .45% | (.16)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,303 | $1,776 | $2,738 | $2,886 | $2,981 | $3,884 |
Portfolio turnover rateJ | 54%I | 49% | 68% | 68% | 77% | 65% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .55%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.01 per share. Excluding these litigation proceeds, the total return would have been (1.73)%
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Value Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.27 | $15.63 | $13.63 | $10.37 | $8.91 | $8.67 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .03 | .23B | .06 | .04 | .04 | (.01) |
Net realized and unrealized gain (loss) | .08 | (.49)C | 1.97 | 3.28 | 1.42 | .27 |
Total from investment operations | .11 | (.26) | 2.03 | 3.32 | 1.46 | .26 |
Distributions from net investment income | (.12) | (.10) | (.03) | (.06) | – | (.02) |
Distributions from net realized gain | (.14) | – | – | – | – | – |
Total distributions | (.26) | (.10) | (.03) | (.06) | – | (.02) |
Net asset value, end of period | $15.12 | $15.27 | $15.63 | $13.63 | $10.37 | $8.91 |
Total ReturnD,E,F | .81% | (1.68)%C | 14.90% | 32.16% | 16.39% | 2.95% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.05%I | 2.00% | 2.00% | 1.97% | 2.05% | 2.02% |
Expenses net of fee waivers, if any | 2.00%I | 2.00% | 2.00% | 1.97% | 2.00% | 2.00% |
Expenses net of all reductions | 1.99%I | 2.00% | 1.99% | 1.96% | 2.00% | 2.00% |
Net investment income (loss) | .43%I | 1.46%B | .38% | .32% | .45% | (.16)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $31,180 | $28,295 | $18,614 | $12,329 | $8,785 | $8,922 |
Portfolio turnover rateJ | 54%I | 49% | 68% | 68% | 77% | 65% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .55%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.01 per share. Excluding these litigation proceeds, the total return would have been (1.76)%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Equity Value Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.93 | $16.27 | $14.16 | $10.75 | $9.22 | $8.97 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .40B | .22 | .17 | .15 | .08 |
Net realized and unrealized gain (loss) | .09 | (.50)C | 2.04 | 3.39 | 1.45 | .29 |
Total from investment operations | .20 | (.10) | 2.26 | 3.56 | 1.60 | .37 |
Distributions from net investment income | (.28) | (.24) | (.15) | (.15) | (.07) | (.12) |
Distributions from net realized gain | (.14) | – | – | – | – | – |
Total distributions | (.42) | (.24) | (.15) | (.15) | (.07) | (.12) |
Net asset value, end of period | $15.71 | $15.93 | $16.27 | $14.16 | $10.75 | $9.22 |
Total ReturnD,E | 1.38% | (.60)%C | 16.16% | 33.61% | 17.49% | 4.05% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.01%H | .93% | .91% | .89% | .96% | 1.01% |
Expenses net of fee waivers, if any | 1.00%H | .93% | .91% | .89% | .96% | 1.00% |
Expenses net of all reductions | .99%H | .93% | .91% | .87% | .96% | 1.00% |
Net investment income (loss) | 1.43%H | 2.53%B | 1.46% | 1.40% | 1.49% | .84% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $25,394 | $25,984 | $5,162 | $3,126 | $2,123 | $3,381 |
Portfolio turnover rateI | 54%H | 49% | 68% | 68% | 77% | 65% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.15 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.61%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.01 per share. Excluding these litigation proceeds, the total return would have been (.68)%
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
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 Class I 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, 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 | $16,706,184 |
Gross unrealized depreciation | (9,022,149) |
Net unrealized appreciation (depreciation) on securities | $7,684,035 |
Tax cost | $164,890,174 |
The Fund elected to defer to its next fiscal year approximately $1,510,201 of capital losses recognized during the period November 1, 2015 to November 30, 2015.
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 may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the 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 daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $58,155 related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $50,314,693 and $41,574,385, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the Russell 3000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $86,174 | $126 |
Class T | .25% | .25% | 89,075 | – |
Class B | .75% | .25% | 7,395 | 5,546 |
Class C | .75% | .25% | 143,692 | 23,366 |
$326,336 | $29,038 |
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 by FDC | |
Class A | $22,918 |
Class T | 9,096 |
Class B(a) | 145 |
Class C(a) | 1,598 |
$33,757 |
(a) 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of 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-Level Average Net Assets(a) | |
Class A | $77,413 | .22 |
Class T | 43,734 | .24 |
Class B | 2,266 | .31 |
Class C | 35,036 | .24 |
Class I | 23,424 | .20 |
$181,873 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,902 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $136 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $12,540. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
The investment adviser 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 Limitations | Reimbursement | |
Class A | 1.25% | $12,702 |
Class T | 1.50% | 9,992 |
Class B | 2.00% | 861 |
Class C | 2.00% | 8,246 |
Class I | 1.00% | 1,320 |
$33,121 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $7,377 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $25.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $557.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $991,508 | $615,978 |
Class T | 407,377 | 290,749 |
Class B | 5,745 | 10,041 |
Class C | 229,480 | 117,971 |
Class I | 456,202 | 77,384 |
Total | $2,090,312 | $1,112,123 |
From net realized gain | ||
Class A | $600,914 | $– |
Class T | 309,961 | – |
Class B | 15,771 | – |
Class C | 261,196 | – |
Class I | 228,918 | – |
Total | $1,416,760 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,107,098 | 2,015,005 | $16,145,692 | $32,448,584 |
Reinvestment of distributions | 104,688 | 38,605 | 1,546,248 | 595,591 |
Shares redeemed | (720,175) | (960,120) | (10,798,963) | (15,261,622) |
Net increase (decrease) | 491,611 | 1,093,490 | $6,892,977 | $17,782,553 |
Class T | ||||
Shares sold | 552,643 | 826,030 | $7,915,702 | $13,376,322 |
Reinvestment of distributions | 47,581 | 18,532 | 703,253 | 286,169 |
Shares redeemed | (277,459) | (575,170) | (4,116,359) | (9,138,418) |
Net increase (decrease) | 322,765 | 269,392 | $4,502,596 | $4,524,073 |
Class B | ||||
Shares sold | 10,811 | 35,557 | $153,477 | $577,356 |
Reinvestment of distributions | 1,401 | 629 | 20,707 | 9,736 |
Shares redeemed | (42,420) | (94,699) | (625,589) | (1,497,315) |
Net increase (decrease) | (30,208) | (58,513) | $(451,405) | $(910,223) |
Class C | ||||
Shares sold | 372,748 | 1,023,935 | $5,436,162 | $15,818,813 |
Reinvestment of distributions | 31,568 | 7,049 | 457,733 | 107,103 |
Shares redeemed | (195,575) | (369,314) | (2,806,383) | (5,731,970) |
Net increase (decrease) | 208,741 | 661,670 | $3,087,512 | $10,193,946 |
Class I | ||||
Shares sold | 538,858 | 1,650,138 | $8,144,705 | $26,551,745 |
Reinvestment of distributions | 30,682 | 4,819 | 459,926 | 75,344 |
Shares redeemed | (583,766) | (341,188) | (8,660,319) | (5,360,555) |
Net increase (decrease) | (14,226) | 1,313,769 | $(55,688) | $21,266,534 |
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.
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, 2015 to May 31, 2016).
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.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | 1.25% | |||
Actual | $1,000.00 | $1,012.70 | $6.29 | |
Hypothetical-C | $1,000.00 | $1,018.75 | $6.31 | |
Class T | 1.50% | |||
Actual | $1,000.00 | $1,011.50 | $7.54 | |
Hypothetical-C | $1,000.00 | $1,017.50 | $7.57 | |
Class B | 2.00% | |||
Actual | $1,000.00 | $1,008.30 | $10.04 | |
Hypothetical-C | $1,000.00 | $1,015.00 | $10.08 | |
Class C | 2.00% | |||
Actual | $1,000.00 | $1,008.10 | $10.04 | |
Hypothetical-C | $1,000.00 | $1,015.00 | $10.08 | |
Class I | 1.00% | |||
Actual | $1,000.00 | $1,013.80 | $5.03 | |
Hypothetical-C | $1,000.00 | $1,020.00 | $5.05 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
AEV-SANN-0716
1.759108.115
Fidelity Advisor® Series Small Cap Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
CDW Corp. | 2.6 | 2.6 |
Primerica, Inc. | 2.4 | 2.3 |
Syntel, Inc. | 2.2 | 2.3 |
Standex International Corp. | 1.9 | 1.7 |
Stamps.com, Inc. | 1.8 | 1.2 |
SYNNEX Corp. | 1.8 | 2.2 |
PolyOne Corp. | 1.7 | 1.7 |
MEDNAX, Inc. | 1.7 | 0.8 |
The Ensign Group, Inc. | 1.7 | 2.0 |
West Corp. | 1.7 | 2.2 |
19.5 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 22.1 | 22.7 |
Information Technology | 17.2 | 22.1 |
Health Care | 16.5 | 14.0 |
Industrials | 14.0 | 16.8 |
Consumer Discretionary | 11.7 | 9.5 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks and Equity Futures | 97.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.2% |
* Foreign investments - 18.3%
As of November 30, 2015* | ||
Stocks and Equity Futures | 98.8% | |
Other Investments | 0.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.8% |
* Foreign investments - 13.3%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 89.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 11.7% | |||
Auto Components - 0.9% | |||
Gentex Corp. | 246,500 | $4,086,970 | |
Diversified Consumer Services - 1.9% | |||
Grand Canyon Education, Inc. (a) | 82,200 | 3,432,672 | |
Meiko Network Japan Co. Ltd. | 222,100 | 2,566,323 | |
Tsukada Global Holdings, Inc. | 392,500 | 2,604,101 | |
8,603,096 | |||
Household Durables - 1.5% | |||
Tupperware Brands Corp. | 121,600 | 6,880,128 | |
Internet & Catalog Retail - 1.4% | |||
Duluth Holdings, Inc. (b) | 78,900 | 2,090,850 | |
HSN, Inc. | 82,200 | 4,304,814 | |
6,395,664 | |||
Specialty Retail - 5.1% | |||
Aarons, Inc. Class A | 127,300 | 3,195,230 | |
Hibbett Sports, Inc. (a)(b) | 126,500 | 4,369,310 | |
Sally Beauty Holdings, Inc. (a) | 158,900 | 4,563,608 | |
Select Comfort Corp. (a) | 230,100 | 5,158,842 | |
The Buckle, Inc. | 119,231 | 2,948,583 | |
Williams-Sonoma, Inc. | 65,700 | 3,484,728 | |
23,720,301 | |||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Steven Madden Ltd. (a) | 118,500 | 4,065,735 | |
TOTAL CONSUMER DISCRETIONARY | 53,751,894 | ||
CONSUMER STAPLES - 2.5% | |||
Beverages - 0.3% | |||
Britvic PLC | 139,000 | 1,359,921 | |
Food & Staples Retailing - 2.2% | |||
Sundrug Co. Ltd. | 54,500 | 4,479,824 | |
Tsuruha Holdings, Inc. | 52,000 | 5,385,398 | |
9,865,222 | |||
TOTAL CONSUMER STAPLES | 11,225,143 | ||
ENERGY - 1.7% | |||
Oil, Gas & Consumable Fuels - 1.7% | |||
Delek Logistics Partners LP | 76,392 | 2,015,985 | |
World Fuel Services Corp. | 121,615 | 5,590,642 | |
7,606,627 | |||
FINANCIALS - 22.1% | |||
Banks - 5.0% | |||
Allegiance Bancshares, Inc. (a)(b) | 63,420 | 1,514,470 | |
Bank of the Ozarks, Inc. | 92,200 | 3,587,502 | |
ConnectOne Bancorp, Inc. | 259,900 | 4,116,816 | |
East West Bancorp, Inc. | 72,800 | 2,810,080 | |
German American Bancorp, Inc. | 90,897 | 2,925,974 | |
Investors Bancorp, Inc. | 360,699 | 4,317,567 | |
Wilshire Bancorp, Inc. | 303,400 | 3,467,862 | |
22,740,271 | |||
Consumer Finance - 0.9% | |||
PRA Group, Inc. (a) | 46,100 | 1,268,211 | |
SLM Corp. (a) | 430,000 | 2,954,100 | |
4,222,311 | |||
Diversified Financial Services - 0.4% | |||
Scandinavian Tobacco Group A/S | 122,426 | 2,003,591 | |
Insurance - 7.0% | |||
Allied World Assurance Co. Holdings AG | 46,100 | 1,709,388 | |
CNO Financial Group, Inc. | 250,800 | 5,088,732 | |
Enstar Group Ltd. (a) | 21,500 | 3,351,205 | |
Hanover Insurance Group, Inc. | 25,000 | 2,167,000 | |
James River Group Holdings Ltd. | 89,127 | 3,150,639 | |
National Western Life Group, Inc. | 600 | 128,106 | |
Primerica, Inc. | 199,259 | 11,180,422 | |
Reinsurance Group of America, Inc. | 54,200 | 5,373,388 | |
32,148,880 | |||
Real Estate Investment Trusts - 2.5% | |||
National Health Investors, Inc. | 60,500 | 4,224,715 | |
Tanger Factory Outlet Centers, Inc. | 112,200 | 3,951,684 | |
VEREIT, Inc. | 333,000 | 3,193,470 | |
11,369,869 | |||
Real Estate Management & Development - 4.9% | |||
CBRE Group, Inc. (a) | 173,400 | 5,175,990 | |
Daito Trust Construction Co. Ltd. | 18,000 | 2,608,006 | |
Jones Lang LaSalle, Inc. | 45,900 | 5,409,774 | |
Open House Co. Ltd. | 69,600 | 1,845,094 | |
Relo Holdings Corp. | 23,400 | 3,186,620 | |
Savills PLC | 127,900 | 1,440,272 | |
Sumitomo Real Estate Sales Co. Ltd. | 86,200 | 1,678,370 | |
Takara Leben Co. Ltd. | 181,300 | 1,248,242 | |
22,592,368 | |||
Thrifts & Mortgage Finance - 1.4% | |||
BofI Holding, Inc. (a)(b) | 67,900 | 1,274,483 | |
Meridian Bancorp, Inc. | 165,610 | 2,484,150 | |
Oritani Financial Corp. | 150,500 | 2,520,875 | |
6,279,508 | |||
TOTAL FINANCIALS | 101,356,798 | ||
HEALTH CARE - 16.5% | |||
Biotechnology - 1.5% | |||
United Therapeutics Corp. (a) | 57,500 | 6,846,525 | |
Health Care Equipment & Supplies - 1.4% | |||
Ansell Ltd. (a) | 123,584 | 1,706,912 | |
Fukuda Denshi Co. Ltd. | 21,900 | 1,119,275 | |
LivaNova PLC (a) | 72,000 | 3,514,320 | |
6,340,507 | |||
Health Care Providers & Services - 8.5% | |||
Aceto Corp. | 197,200 | 4,399,532 | |
HealthSouth Corp. | 180,800 | 7,289,856 | |
MEDNAX, Inc. (a) | 115,620 | 7,914,189 | |
Patterson Companies, Inc. | 76,000 | 3,709,560 | |
Providence Service Corp. (a) | 98,600 | 4,689,416 | |
Ryman Healthcare Group Ltd. | 152,588 | 991,114 | |
Ship Healthcare Holdings, Inc. | 43,300 | 1,228,548 | |
Sigma Pharmaceuticals Ltd. | 983,479 | 874,296 | |
The Ensign Group, Inc. | 394,400 | 7,828,840 | |
38,925,351 | |||
Life Sciences Tools & Services - 2.7% | |||
Gerresheimer AG | 18,200 | 1,448,701 | |
PAREXEL International Corp. (a) | 63,000 | 3,962,070 | |
VWR Corp. (a) | 247,700 | 7,148,622 | |
12,559,393 | |||
Pharmaceuticals - 2.4% | |||
Jazz Pharmaceuticals PLC (a) | 30,000 | 4,546,800 | |
Kaken Pharmaceutical Co. Ltd. | 31,900 | 1,798,612 | |
Sawai Pharmaceutical Co. Ltd. | 50,200 | 3,560,501 | |
Towa Pharmaceutical Co. Ltd. | 21,800 | 1,168,555 | |
11,074,468 | |||
TOTAL HEALTH CARE | 75,746,244 | ||
INDUSTRIALS - 14.0% | |||
Aerospace & Defense - 2.1% | |||
Engility Holdings, Inc. (a) | 84,900 | 1,997,697 | |
Moog, Inc. Class A (a) | 78,924 | 4,256,371 | |
Teledyne Technologies, Inc. (a) | 32,900 | 3,228,477 | |
9,482,545 | |||
Air Freight & Logistics - 0.1% | |||
Hub Group, Inc. Class A (a) | 10,035 | 401,601 | |
Commercial Services & Supplies - 4.9% | |||
Coor Service Management Holding AB | 207,400 | 997,050 | |
Deluxe Corp. | 80,700 | 5,255,991 | |
Mitie Group PLC | 937,800 | 3,826,226 | |
UniFirst Corp. | 41,100 | 4,754,037 | |
West Corp. | 355,700 | 7,505,270 | |
22,338,574 | |||
Electrical Equipment - 1.3% | |||
EnerSys | 101,900 | 6,126,228 | |
Machinery - 3.0% | |||
Federal Signal Corp. | 221,488 | 2,881,559 | |
Hy-Lok Corp. | 120,411 | 2,584,187 | |
Standex International Corp. | 98,700 | 8,554,329 | |
14,020,075 | |||
Marine - 0.4% | |||
SITC International Holdings Co. Ltd. | 3,182,000 | 1,826,300 | |
Professional Services - 2.2% | |||
Benefit One, Inc. | 184,200 | 4,950,153 | |
CEB, Inc. | 81,210 | 5,177,950 | |
10,128,103 | |||
TOTAL INDUSTRIALS | 64,323,426 | ||
INFORMATION TECHNOLOGY - 17.2% | |||
Electronic Equipment & Components - 6.6% | |||
CDW Corp. | 279,400 | 11,891,263 | |
Insight Enterprises, Inc. (a) | 230,100 | 6,244,914 | |
SYNNEX Corp. | 89,713 | 8,172,854 | |
Zebra Technologies Corp. Class A (a) | 69,700 | 3,701,767 | |
30,010,798 | |||
Internet Software & Services - 1.8% | |||
Stamps.com, Inc. (a) | 92,500 | 8,416,575 | |
IT Services - 7.9% | |||
Blackhawk Network Holdings, Inc. (a) | 185,900 | 6,398,678 | |
Cardtronics, Inc. (a) | 60,900 | 2,392,761 | |
EVERTEC, Inc. | 233,100 | 3,568,761 | |
Global Payments, Inc. | 57,800 | 4,490,482 | |
MoneyGram International, Inc. (a) | 5,836 | 37,876 | |
Perficient, Inc. (a) | 98,600 | 2,065,670 | |
Syntel, Inc. (a) | 221,900 | 10,225,152 | |
WEX, Inc. (a) | 77,200 | 7,122,472 | |
36,301,852 | |||
Software - 0.9% | |||
NIIT Technologies Ltd. | 294,533 | 2,126,870 | |
Verint Systems, Inc. (a) | 6,600 | 217,734 | |
Zensar Technologies Ltd. | 117,836 | 1,662,749 | |
4,007,353 | |||
TOTAL INFORMATION TECHNOLOGY | 78,736,578 | ||
MATERIALS - 3.3% | |||
Chemicals - 2.4% | |||
Ingevity Corp. (a) | 86,900 | 2,532,266 | |
Innospec, Inc. | 6,900 | 335,064 | |
PolyOne Corp. | 213,600 | 8,003,592 | |
10,870,922 | |||
Containers & Packaging - 0.1% | |||
Silgan Holdings, Inc. | 8,500 | 434,690 | |
Paper & Forest Products - 0.8% | |||
Neenah Paper, Inc. | 55,045 | 3,819,573 | |
TOTAL MATERIALS | 15,125,185 | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.1% | |||
APT Satellite Holdings Ltd. | 618,750 | 467,402 | |
Asia Satellite Telecommunications Holdings Ltd. | 129,500 | 181,649 | |
649,051 | |||
Wireless Telecommunication Services - 0.1% | |||
Cellcom Israel Ltd. (Israel) (a) | 32,400 | 269,615 | |
Partner Communications Co. Ltd. (a) | 39,845 | 212,944 | |
482,559 | |||
TOTAL TELECOMMUNICATION SERVICES | 1,131,610 | ||
UTILITIES - 0.7% | |||
Gas Utilities - 0.6% | |||
Amerigas Partners LP | 40,900 | 1,876,492 | |
Star Gas Partners LP | 100,800 | 865,872 | |
2,742,364 | |||
Multi-Utilities - 0.1% | |||
Telecom Plus PLC (b) | 20,800 | 310,897 | |
TOTAL UTILITIES | 3,053,261 | ||
TOTAL COMMON STOCKS | |||
(Cost $374,282,195) | 412,056,766 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.5% | |||
U.S. Treasury Bills, yield at date of purchase 0.2% to 0.31% 7/28/16 to 8/18/16 (c) | |||
(Cost $2,229,048) | 2,230,000 | 2,228,928 | |
Shares | Value | ||
Money Market Funds - 10.7% | |||
Fidelity Cash Central Fund, 0.40% (d) | 40,052,511 | $40,052,511 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (d)(e) | 8,912,519 | 8,912,519 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $48,965,030) | 48,965,030 | ||
TOTAL INVESTMENT PORTFOLIO - 101.1% | |||
(Cost $425,476,273) | 463,250,724 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (5,083,714) | ||
NET ASSETS - 100% | $458,167,010 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||
Equity Index Contracts | |||
314 ICE Russell 2000 Index Contracts (United States) | June 2016 | 36,216,760 | $731,011 |
The face value of futures purchased as a percentage of Net Assets is 7.9%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $1,927,109.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $59,413 |
Fidelity Securities Lending Cash Central Fund | 56,354 |
Total | $115,767 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $53,751,894 | $48,581,470 | $5,170,424 | $-- |
Consumer Staples | 11,225,143 | 1,359,921 | 9,865,222 | -- |
Energy | 7,606,627 | 7,606,627 | -- | -- |
Financials | 101,356,798 | 90,790,466 | 10,566,332 | -- |
Health Care | 75,746,244 | 66,870,753 | 8,875,491 | -- |
Industrials | 64,323,426 | 59,373,273 | 4,950,153 | -- |
Information Technology | 78,736,578 | 78,736,578 | -- | -- |
Materials | 15,125,185 | 15,125,185 | -- | -- |
Telecommunication Services | 1,131,610 | 1,131,610 | -- | -- |
Utilities | 3,053,261 | 3,053,261 | -- | -- |
U.S. Government and Government Agency Obligations | 2,228,928 | -- | 2,228,928 | -- |
Money Market Funds | 48,965,030 | 48,965,030 | -- | -- |
Total Investments in Securities: | $463,250,724 | $421,594,174 | $41,656,550 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $731,011 | $731,011 | $-- | $-- |
Total Assets | $731,011 | $731,011 | $-- | $-- |
Total Derivative Instruments: | $731,011 | $731,011 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended May 31, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $25,431,243 |
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, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $731,011 | $0 |
Total Equity Risk | 731,011 | 0 |
Total Value of Derivatives | $731,011 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 81.7% |
Japan | 8.7% |
United Kingdom | 2.3% |
Bermuda | 1.5% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 4.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2016 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $8,684,835) — See accompanying schedule: Unaffiliated issuers (cost $376,511,243) | $414,285,694 | |
Fidelity Central Funds (cost $48,965,030) | 48,965,030 | |
Total Investments (cost $425,476,273) | $463,250,724 | |
Foreign currency held at value (cost $116,525) | 116,538 | |
Receivable for investments sold | 8,381,679 | |
Receivable for fund shares sold | 11,295 | |
Dividends receivable | 376,964 | |
Distributions receivable from Fidelity Central Funds | 19,030 | |
Receivable for daily variation margin for derivative instruments | 103,620 | |
Prepaid expenses | 164 | |
Other receivables | 3,764 | |
Total assets | 472,263,778 | |
Liabilities | ||
Payable to custodian bank | $705,698 | |
Payable for investments purchased | 3,364,249 | |
Payable for fund shares redeemed | 716,965 | |
Accrued management fee | 285,485 | |
Other affiliated payables | 80,375 | |
Other payables and accrued expenses | 31,477 | |
Collateral on securities loaned, at value | 8,912,519 | |
Total liabilities | 14,096,768 | |
Net Assets | $458,167,010 | |
Net Assets consist of: | ||
Paid in capital | $438,049,561 | |
Undistributed net investment income | 334,512 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (18,724,962) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 38,507,899 | |
Net Assets, for 44,573,144 shares outstanding | $458,167,010 | |
Net Asset Value, offering price and redemption price per share ($458,167,010 ÷ 44,573,144 shares) | $10.28 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2016 (Unaudited) | ||
Investment Income | ||
Dividends | $2,959,408 | |
Interest | 2,600 | |
Income from Fidelity Central Funds | 115,767 | |
Total income | 3,077,775 | |
Expenses | ||
Management fee | ||
Basic fee | $1,550,560 | |
Performance adjustment | 225,744 | |
Transfer agent fees | 397,357 | |
Accounting and security lending fees | 88,370 | |
Custodian fees and expenses | 20,495 | |
Independent trustees' fees and expenses | 983 | |
Audit | 36,844 | |
Legal | 261 | |
Miscellaneous | 1,970 | |
Total expenses before reductions | 2,322,584 | |
Expense reductions | (14,328) | 2,308,256 |
Net investment income (loss) | 769,519 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (17,569,778) | |
Foreign currency transactions | (10,648) | |
Futures contracts | (317,943) | |
Total net realized gain (loss) | (17,898,369) | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $238,915) | (1,525,210) | |
Assets and liabilities in foreign currencies | 10,501 | |
Futures contracts | (119,692) | |
Total change in net unrealized appreciation (depreciation) | (1,634,401) | |
Net gain (loss) | (19,532,770) | |
Net increase (decrease) in net assets resulting from operations | $(18,763,251) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $769,519 | $1,512,532 |
Net realized gain (loss) | (17,898,369) | 21,148,401 |
Change in net unrealized appreciation (depreciation) | (1,634,401) | (1,844,045) |
Net increase (decrease) in net assets resulting from operations | (18,763,251) | 20,816,888 |
Distributions to shareholders from net investment income | (1,156,042) | (873,571) |
Distributions to shareholders from net realized gain | (21,339,829) | (14,905,741) |
Total distributions | (22,495,871) | (15,779,312) |
Share transactions | ||
Proceeds from sales of shares | 39,396,559 | 62,308,107 |
Reinvestment of distributions | 22,495,872 | 15,779,312 |
Cost of shares redeemed | (46,032,536) | (117,385,403) |
Net increase (decrease) in net assets resulting from share transactions | 15,859,895 | (39,297,984) |
Total increase (decrease) in net assets | (25,399,227) | (34,260,408) |
Net Assets | ||
Beginning of period | 483,566,237 | 517,826,645 |
End of period (including undistributed net investment income of $334,512 and undistributed net investment income of $721,035, respectively) | $458,167,010 | $483,566,237 |
Other Information | ||
Shares | ||
Sold | 4,083,356 | 5,521,950 |
Issued in reinvestment of distributions | 2,149,872 | 1,453,584 |
Redeemed | (4,598,027) | (10,299,915) |
Net increase (decrease) | 1,635,201 | (3,324,381) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Series Small Cap Fund
Six months ended (Unaudited) May 31, | Years ended November 30, | |||
2016 | 2015 | 2014 | 2013 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $11.26 | $11.19 | $10.39 | $10.00 |
Income from Investment Operations | ||||
Net investment income (loss)B | .02 | .03C | .02 | –D,E |
Net realized and unrealized gain (loss) | (.48) | .38 | .82 | .39 |
Total from investment operations | (.46) | .41 | .84 | .39 |
Distributions from net investment income | (.03) | (.02) | (.01) | – |
Distributions from net realized gain | (.50) | (.32) | (.03) | – |
Total distributions | (.52)F | (.34) | (.04) | – |
Net asset value, end of period | $10.28 | $11.26 | $11.19 | $10.39 |
Total ReturnG,H | (4.11)% | 3.81% | 8.12% | 3.90% |
Ratios to Average Net AssetsI,J | ||||
Expenses before reductions | 1.05%K | 1.04% | .94% | 1.07%K |
Expenses net of fee waivers, if any | 1.04%K | 1.03% | .94% | .95%K |
Expenses net of all reductions | 1.04%K | 1.02% | .94% | .95%K |
Net investment income (loss) | .35%K | .30%C | .16% | (.25)%D,K |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $458,167 | $483,566 | $517,827 | $485,539 |
Portfolio turnover rateL | 77%K | 35% | 58% | 4%M |
A For the period November 7, 2013 (commencement of operations) to November 30, 2013.
B Calculated based on average shares outstanding during the period.
C Net 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 .06%.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.36)%.
E Amount represents less than $.005 per share.
F Total distributions of $.52 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $.496 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
1. Organization.
Fidelity Advisor Series 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. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. 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, 2016, 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 cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, partnerships and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $57,595,015 |
Gross unrealized depreciation | (20,049,765) |
Net unrealized appreciation (depreciation) on securities | $37,545,250 |
Tax cost | $425,705,474 |
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 may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the 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 daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(317,943) and a change in net unrealized appreciation (depreciation) of $(119,692) 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 $159,677,588 and $179,731,063, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 2000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .80% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .18% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment 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 $6,154 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $397 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $56,354. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $12,660 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $1,668.
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.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2015 to May 31, 2016).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Actual | 1.04% | $1,000.00 | $958.90 | $5.09 |
Hypothetical-C | $1,000.00 | $1,019.80 | $5.25 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
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Fidelity Advisor® Series Equity Growth Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Facebook, Inc. Class A | 12.7 | 11.5 |
Alphabet, Inc. Class A | 8.1 | 6.6 |
Gilead Sciences, Inc. | 3.3 | 5.5 |
Amazon.com, Inc. | 3.2 | 2.8 |
Salesforce.com, Inc. | 3.0 | 2.8 |
Home Depot, Inc. | 2.7 | 2.6 |
Danaher Corp. | 2.6 | 2.4 |
Electronic Arts, Inc. | 2.3 | 1.9 |
Visa, Inc. Class A | 2.1 | 2.0 |
Alphabet, Inc. Class C | 2.1 | 1.2 |
42.1 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 38.4 | 42.0 |
Consumer Discretionary | 15.1 | 16.7 |
Health Care | 12.0 | 16.4 |
Industrials | 9.9 | 10.6 |
Financials | 7.7 | 6.8 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 92.2% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 7.7% |
* Foreign investments - 7.2%
As of November 30, 2015* | ||
Stocks | 96.4% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.5% |
* Foreign investments - 14.8%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 15.1% | |||
Automobiles - 2.0% | |||
Tesla Motors, Inc. (a) | 80,900 | $18,059,307 | |
Diversified Consumer Services - 0.7% | |||
Bright Horizons Family Solutions, Inc. (a) | 55,500 | 3,595,845 | |
Houghton Mifflin Harcourt Co. (a) | 73,500 | 1,264,200 | |
Nord Anglia Education, Inc. (a) | 81,129 | 1,802,686 | |
6,662,731 | |||
Hotels, Restaurants & Leisure - 3.3% | |||
Buffalo Wild Wings, Inc. (a) | 4,600 | 668,794 | |
Dave & Buster's Entertainment, Inc. (a) | 90,900 | 3,547,827 | |
Domino's Pizza, Inc. | 54,289 | 6,562,454 | |
Popeyes Louisiana Kitchen, Inc. (a) | 38,600 | 2,243,432 | |
Starbucks Corp. | 308,800 | 16,950,032 | |
Wingstop, Inc.(b) | 18,800 | 524,520 | |
30,497,059 | |||
Household Durables - 0.5% | |||
Harman International Industries, Inc. | 65,100 | 5,093,424 | |
Internet & Catalog Retail - 3.6% | |||
Amazon.com, Inc. (a) | 40,900 | 29,562,111 | |
Netflix, Inc. (a) | 28,700 | 2,943,759 | |
NutriSystem, Inc. | 38,600 | 1,047,604 | |
33,553,474 | |||
Media - 0.2% | |||
Sirius XM Holdings, Inc. (a) | 534,400 | 2,148,288 | |
Specialty Retail - 4.1% | |||
AutoZone, Inc. (a) | 7,100 | 5,411,620 | |
Five Below, Inc. (a) | 60,700 | 2,540,902 | |
Home Depot, Inc. | 186,700 | 24,666,804 | |
Lowe's Companies, Inc. | 50,400 | 4,038,552 | |
MarineMax, Inc. (a) | 65,600 | 1,113,888 | |
37,771,766 | |||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Kate Spade & Co. (a) | 282,723 | 6,180,325 | |
TOTAL CONSUMER DISCRETIONARY | 139,966,374 | ||
CONSUMER STAPLES - 6.6% | |||
Beverages - 2.6% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 23,400 | 3,583,710 | |
Kweichow Moutai Co. Ltd. | 21,780 | 875,018 | |
Molson Coors Brewing Co. Class B | 68,500 | 6,793,830 | |
The Coca-Cola Co. | 281,300 | 12,545,980 | |
23,798,538 | |||
Food & Staples Retailing - 0.8% | |||
CVS Health Corp. | 53,600 | 5,169,720 | |
Whole Foods Market, Inc. | 85,700 | 2,772,395 | |
7,942,115 | |||
Household Products - 0.5% | |||
Procter & Gamble Co. | 54,200 | 4,392,368 | |
Personal Products - 1.0% | |||
Avon Products, Inc. | 141,900 | 553,410 | |
Estee Lauder Companies, Inc. Class A | 47,600 | 4,368,728 | |
Herbalife Ltd. (a) | 74,500 | 4,312,805 | |
9,234,943 | |||
Tobacco - 1.7% | |||
Reynolds American, Inc. | 310,100 | 15,411,970 | |
TOTAL CONSUMER STAPLES | 60,779,934 | ||
ENERGY - 0.9% | |||
Oil, Gas & Consumable Fuels - 0.9% | |||
Anadarko Petroleum Corp. | 131,000 | 6,793,660 | |
Golar LNG Ltd. | 91,774 | 1,596,868 | |
8,390,528 | |||
FINANCIALS - 7.7% | |||
Banks - 0.9% | |||
First Republic Bank | 109,100 | 7,899,931 | |
M&T Bank Corp. | 8,000 | 956,000 | |
8,855,931 | |||
Capital Markets - 1.5% | |||
BlackRock, Inc. Class A | 13,100 | 4,766,435 | |
E*TRADE Financial Corp. (a) | 306,400 | 8,545,496 | |
JMP Group, Inc. | 50,300 | 271,620 | |
PJT Partners, Inc. | 7,885 | 204,695 | |
13,788,246 | |||
Diversified Financial Services - 2.4% | |||
Berkshire Hathaway, Inc. Class B (a) | 18,600 | 2,614,044 | |
CME Group, Inc. | 92,938 | 9,097,701 | |
McGraw Hill Financial, Inc. | 45,600 | 5,098,536 | |
MSCI, Inc. Class A | 64,500 | 5,146,455 | |
21,956,736 | |||
Insurance - 0.4% | |||
Marsh & McLennan Companies, Inc. | 59,700 | 3,944,379 | |
Real Estate Investment Trusts - 0.9% | |||
American Tower Corp. | 75,600 | 7,996,968 | |
Real Estate Management & Development - 1.4% | |||
Realogy Holdings Corp. (a) | 404,400 | 13,264,320 | |
Thrifts & Mortgage Finance - 0.2% | |||
Essent Group Ltd. (a) | 72,000 | 1,573,920 | |
TOTAL FINANCIALS | 71,380,500 | ||
HEALTH CARE - 12.0% | |||
Biotechnology - 8.0% | |||
Amgen, Inc. | 61,400 | 9,698,130 | |
BioMarin Pharmaceutical, Inc. (a) | 58,300 | 5,226,595 | |
Cytokinetics, Inc. (a) | 19,010 | 154,932 | |
Gilead Sciences, Inc. | 348,800 | 30,366,528 | |
Insmed, Inc. (a) | 247,875 | 2,924,925 | |
Medivation, Inc. (a) | 199,100 | 12,037,586 | |
Regeneron Pharmaceuticals, Inc. (a) | 14,200 | 5,664,806 | |
Vertex Pharmaceuticals, Inc. (a) | 85,454 | 7,960,040 | |
74,033,542 | |||
Health Care Equipment & Supplies - 2.2% | |||
Boston Scientific Corp. (a) | 280,000 | 6,358,800 | |
Edwards Lifesciences Corp. (a) | 35,800 | 3,526,300 | |
Intuitive Surgical, Inc. (a) | 4,400 | 2,792,724 | |
Medtronic PLC | 43,700 | 3,516,976 | |
Novadaq Technologies, Inc. (a) | 181,100 | 1,749,426 | |
ResMed, Inc. | 45,600 | 2,693,136 | |
20,637,362 | |||
Health Care Providers & Services - 0.1% | |||
VCA, Inc. (a) | 8,100 | 525,933 | |
Pharmaceuticals - 1.7% | |||
Astellas Pharma, Inc. | 1,104,400 | 15,006,620 | |
Collegium Pharmaceutical, Inc. | 23,500 | 392,920 | |
15,399,540 | |||
TOTAL HEALTH CARE | 110,596,377 | ||
INDUSTRIALS - 9.9% | |||
Aerospace & Defense - 1.1% | |||
Honeywell International, Inc. | 61,800 | 7,034,694 | |
TransDigm Group, Inc. (a) | 10,900 | 2,872,586 | |
9,907,280 | |||
Air Freight & Logistics - 0.2% | |||
C.H. Robinson Worldwide, Inc. | 18,800 | 1,409,624 | |
Airlines - 0.9% | |||
Ryanair Holdings PLC sponsored ADR | 94,380 | 8,248,812 | |
Building Products - 0.7% | |||
A.O. Smith Corp. | 46,683 | 3,842,011 | |
Caesarstone Sdot-Yam Ltd. (a) | 74,700 | 2,948,409 | |
6,790,420 | |||
Commercial Services & Supplies - 0.6% | |||
KAR Auction Services, Inc. | 129,900 | 5,331,096 | |
Electrical Equipment - 1.0% | |||
Acuity Brands, Inc. | 21,200 | 5,491,648 | |
AMETEK, Inc. | 66,600 | 3,184,812 | |
8,676,460 | |||
Industrial Conglomerates - 3.0% | |||
Danaher Corp. | 242,900 | 23,891,644 | |
Roper Technologies, Inc. | 24,300 | 4,157,244 | |
28,048,888 | |||
Professional Services - 2.1% | |||
Equifax, Inc. | 41,900 | 5,268,087 | |
Resources Connection, Inc. | 66,725 | 1,039,576 | |
Robert Half International, Inc. | 88,400 | 3,676,556 | |
TransUnion Holding Co., Inc. | 29,700 | 983,070 | |
WageWorks, Inc. (a) | 155,500 | 8,715,775 | |
19,683,064 | |||
Road & Rail - 0.0% | |||
Swift Transporation Co. (a) | 19,300 | 300,694 | |
Trading Companies & Distributors - 0.3% | |||
HD Supply Holdings, Inc. (a) | 73,900 | 2,608,670 | |
TOTAL INDUSTRIALS | 91,005,008 | ||
INFORMATION TECHNOLOGY - 38.3% | |||
Electronic Equipment & Components - 0.2% | |||
CDW Corp. | 34,700 | 1,476,832 | |
Internet Software & Services - 24.1% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 58,600 | 4,805,200 | |
Alphabet, Inc.: | |||
Class A | 100,200 | 75,034,770 | |
Class C | 25,912 | 19,063,977 | |
Facebook, Inc. Class A (a) | 985,000 | 117,027,848 | |
GoDaddy, Inc. (a) | 99,500 | 3,236,735 | |
Just Dial Ltd. | 43,239 | 437,233 | |
JUST EAT Ltd. (a) | 235,622 | 1,551,382 | |
Shopify, Inc. Class A | 15,600 | 456,924 | |
Stamps.com, Inc. (a) | 8,828 | 803,260 | |
222,417,329 | |||
IT Services - 3.5% | |||
Gartner, Inc. Class A (a) | 23,700 | 2,408,394 | |
Global Payments, Inc. | 105,600 | 8,204,064 | |
MasterCard, Inc. Class A | 25,500 | 2,445,450 | |
Visa, Inc. Class A | 242,300 | 19,127,162 | |
32,185,070 | |||
Semiconductors & Semiconductor Equipment - 0.6% | |||
Maxim Integrated Products, Inc. | 52,414 | 1,989,635 | |
Monolithic Power Systems, Inc. | 53,648 | 3,665,768 | |
5,655,403 | |||
Software - 9.9% | |||
Activision Blizzard, Inc. | 91,500 | 3,592,290 | |
Adobe Systems, Inc. (a) | 120,200 | 11,956,294 | |
Computer Modelling Group Ltd. | 166,300 | 1,315,081 | |
CyberArk Software Ltd. (a) | 30,000 | 1,362,600 | |
Electronic Arts, Inc. (a) | 276,600 | 21,229,050 | |
Fleetmatics Group PLC (a) | 44,100 | 1,803,690 | |
Intuit, Inc. | 19,500 | 2,079,870 | |
Mobileye NV(a)(b) | 376,300 | 14,288,111 | |
Red Hat, Inc. (a) | 82,400 | 6,382,704 | |
Salesforce.com, Inc. (a) | 334,500 | 28,000,995 | |
92,010,685 | |||
TOTAL INFORMATION TECHNOLOGY | 353,745,319 | ||
MATERIALS - 1.5% | |||
Chemicals - 1.5% | |||
Albemarle Corp. U.S. | 170,700 | 13,399,950 | |
Metals & Mining - 0.0% | |||
Orocobre Ltd. (a) | 135,359 | 444,151 | |
TOTAL MATERIALS | 13,844,101 | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.2% | |||
SBA Communications Corp. Class A (a) | 16,800 | 1,669,920 | |
TOTAL COMMON STOCKS | |||
(Cost $694,558,588) | 851,378,061 | ||
Convertible Preferred Stocks - 0.1% | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
AppNexus, Inc. Series E (a)(c) | |||
(Cost $769,617) | 38,419 | 699,994 | |
Money Market Funds - 9.6% | |||
Fidelity Cash Central Fund, 0.40% (d) | 74,272,313 | 74,272,313 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (d)(e) | 14,758,616 | 14,758,616 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $89,030,929) | 89,030,929 | ||
TOTAL INVESTMENT PORTFOLIO - 101.9% | |||
(Cost $784,359,134) | 941,108,984 | ||
NET OTHER ASSETS (LIABILITIES) - (1.9)% | (17,099,780) | ||
NET ASSETS - 100% | $924,009,204 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $699,994 or 0.1% of net assets.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
AppNexus, Inc. Series E | 8/1/14 | $769,617 |
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 | $75,581 |
Fidelity Securities Lending Cash Central Fund | 54,291 |
Total | $129,872 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $139,966,374 | $139,966,374 | $-- | $-- |
Consumer Staples | 60,779,934 | 60,779,934 | -- | -- |
Energy | 8,390,528 | 8,390,528 | -- | -- |
Financials | 71,380,500 | 71,380,500 | -- | -- |
Health Care | 110,596,377 | 95,589,757 | 15,006,620 | -- |
Industrials | 91,005,008 | 91,005,008 | -- | -- |
Information Technology | 354,445,313 | 353,745,319 | -- | 699,994 |
Materials | 13,844,101 | 13,844,101 | -- | -- |
Telecommunication Services | 1,669,920 | 1,669,920 | -- | -- |
Money Market Funds | 89,030,929 | 89,030,929 | -- | -- |
Total Investments in Securities: | $941,108,984 | $925,402,370 | $15,006,620 | $699,994 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2016 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $14,552,517) — See accompanying schedule: Unaffiliated issuers (cost $695,328,205) | $852,078,055 | |
Fidelity Central Funds (cost $89,030,929) | 89,030,929 | |
Total Investments (cost $784,359,134) | $941,108,984 | |
Cash | 27 | |
Receivable for investments sold | 13,782,437 | |
Receivable for fund shares sold | 4,571 | |
Dividends receivable | 520,217 | |
Distributions receivable from Fidelity Central Funds | 35,719 | |
Prepaid expenses | 297 | |
Other receivables | 6,322 | |
Total assets | 955,458,574 | |
Liabilities | ||
Payable for investments purchased | $2,610,530 | |
Payable for fund shares redeemed | 13,563,105 | |
Accrued management fee | 333,342 | |
Other affiliated payables | 158,060 | |
Other payables and accrued expenses | 25,717 | |
Collateral on securities loaned, at value | 14,758,616 | |
Total liabilities | 31,449,370 | |
Net Assets | $924,009,204 | |
Net Assets consist of: | ||
Paid in capital | $821,500,017 | |
Distributions in excess of net investment income | (790,847) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (53,451,990) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 156,752,024 | |
Net Assets, for 83,885,004 shares outstanding | $924,009,204 | |
Net Asset Value, offering price and redemption price per share ($924,009,204 ÷ 83,885,004 shares) | $11.02 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2016 (Unaudited) | ||
Investment Income | ||
Dividends | $3,035,724 | |
Income from Fidelity Central Funds | 129,872 | |
Total income | 3,165,596 | |
Expenses | ||
Management fee | ||
Basic fee | $2,447,373 | |
Performance adjustment | (449,103) | |
Transfer agent fees | 789,476 | |
Accounting and security lending fees | 151,693 | |
Custodian fees and expenses | 16,973 | |
Independent trustees' fees and expenses | 1,962 | |
Audit | 22,315 | |
Legal | 521 | |
Miscellaneous | 3,797 | |
Total expenses before reductions | 2,985,007 | |
Expense reductions | (19,897) | 2,965,110 |
Net investment income (loss) | 200,486 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (33,872,035) | |
Foreign currency transactions | (27,387) | |
Total net realized gain (loss) | (33,899,422) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 15,889,805 | |
Assets and liabilities in foreign currencies | 6,085 | |
Total change in net unrealized appreciation (depreciation) | 15,895,890 | |
Net gain (loss) | (18,003,532) | |
Net increase (decrease) in net assets resulting from operations | $(17,803,046) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $200,486 | $1,774,441 |
Net realized gain (loss) | (33,899,422) | (9,803,089) |
Change in net unrealized appreciation (depreciation) | 15,895,890 | 67,261,344 |
Net increase (decrease) in net assets resulting from operations | (17,803,046) | 59,232,696 |
Distributions to shareholders from net investment income | (1,456,889) | (554,508) |
Share transactions | ||
Proceeds from sales of shares | 74,592,292 | 190,823,867 |
Reinvestment of distributions | 1,456,891 | 554,508 |
Cost of shares redeemed | (97,697,724) | (271,672,435) |
Net increase (decrease) in net assets resulting from share transactions | (21,648,541) | (80,294,060) |
Total increase (decrease) in net assets | (40,908,476) | (21,615,872) |
Net Assets | ||
Beginning of period | 964,917,680 | 986,533,552 |
End of period (including distributions in excess of net investment income of $790,847 and undistributed net investment income of $465,556, respectively) | $924,009,204 | $964,917,680 |
Other Information | ||
Shares | ||
Sold | 7,038,292 | 17,849,661 |
Issued in reinvestment of distributions | 133,293 | 53,627 |
Redeemed | (9,084,539) | (24,778,896) |
Net increase (decrease) | (1,912,954) | (6,875,608) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Series Equity Growth Fund
Six months ended (Unaudited) May 31, | Years ended November 30, | ||
May 31, | 2016 | 2015 | 2014 A |
Selected Per–Share Data | |||
Net asset value, beginning of period | $11.25 | $10.65 | $10.00 |
Income from Investment Operations | |||
Net investment income (loss)B | –C | .02 | .01 |
Net realized and unrealized gain (loss) | (.21) | .59 | .64 |
Total from investment operations | (.21) | .61 | .65 |
Distributions from net investment income | (.02) | (.01) | – |
Total distributions | (.02) | (.01) | – |
Net asset value, end of period | $11.02 | $11.25 | $10.65 |
Total ReturnD,E | (1.89)% | 5.70% | 6.50% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .67%H | .74% | .77%H |
Expenses net of fee waivers, if any | .67%H | .74% | .77%H |
Expenses net of all reductions | .66%H | .73% | .77%H |
Net investment income (loss) | .04%H | .19% | .23%H |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $924,009 | $964,918 | $986,534 |
Portfolio turnover rateI | 49%H | 65% | 26%J,K |
A For the period June 6, 2014 (commencement of operations) to November 30, 2014.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
1. Organization.
Fidelity Advisor Series 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. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the FMR Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2016 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $177,297,561 |
Gross unrealized depreciation | (22,183,591) |
Net unrealized appreciation (depreciation) on securities | $155,113,970 |
Tax cost | $785,995,014 |
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 prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(17,668,003) |
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 $212,040,279 and $273,245,799, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. The Fund's performance adjustment took effect in June 2015. Subsequent months will be added until the performance period includes 36 months. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .45% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .18% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment 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 $3,650 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $802 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $6,600,590. 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 $54,291, including $17,880 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $16,458 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $17.
In addition, during the period the investment adviser reimbursed and/or waived a portion of the operating expenses in the amount of $3,422.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the fund.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2015 to May 31, 2016).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Actual | .67% | $1,000.00 | $981.10 | $3.32 |
Hypothetical-C | $1,000.00 | $1,021.65 | $3.39 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
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Fidelity Advisor® Value Strategies Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
LyondellBasell Industries NV Class A | 5.3 | 6.5 |
Citigroup, Inc. | 4.6 | 3.0 |
Bank of America Corp. | 3.9 | 4.1 |
U.S. Bancorp | 3.3 | 2.7 |
Cott Corp. | 3.0 | 2.6 |
Boston Scientific Corp. | 2.7 | 2.3 |
General Motors Co. | 2.7 | 3.3 |
WestRock Co. | 2.6 | 1.2 |
Universal Health Services, Inc. Class B | 2.6 | 2.4 |
St. Jude Medical, Inc. | 2.5 | 2.1 |
33.2 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 18.0 | 15.2 |
Health Care | 16.3 | 14.5 |
Consumer Discretionary | 15.6 | 19.8 |
Materials | 10.8 | 10.0 |
Industrials | 9.0 | 7.7 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 83.7% | |
Bonds | 5.4% | |
Other Investments | 0.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 10.3% |
* Foreign investments - 15.5%
As of November 30, 2015* | ||
Stocks | 88.9% | |
Bonds | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 11.0% |
* Foreign investments - 15.9%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 83.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.6% | |||
Auto Components - 1.6% | |||
Delphi Automotive PLC | 287,077 | $19,510 | |
Tenneco, Inc. (a) | 90,224 | 4,847 | |
24,357 | |||
Automobiles - 2.7% | |||
General Motors Co. | 1,284,836 | 40,190 | |
Diversified Consumer Services - 1.3% | |||
Service Corp. International | 683,850 | 18,737 | |
Hotels, Restaurants & Leisure - 1.8% | |||
Cedar Fair LP (depositary unit) | 227,420 | 13,652 | |
Wyndham Worldwide Corp. | 199,867 | 13,469 | |
27,121 | |||
Household Durables - 3.6% | |||
CalAtlantic Group, Inc. | 527,581 | 19,515 | |
Lennar Corp. Class A | 424,700 | 19,354 | |
PulteGroup, Inc. | 744,504 | 13,967 | |
52,836 | |||
Leisure Products - 3.5% | |||
Hasbro, Inc. | 266,797 | 23,289 | |
Vista Outdoor, Inc. (a) | 557,700 | 27,985 | |
51,274 | |||
Media - 0.5% | |||
Regal Entertainment Group Class A (b) | 330,800 | 6,957 | |
Specialty Retail - 0.6% | |||
GameStop Corp. Class A (b) | 313,213 | 9,114 | |
TOTAL CONSUMER DISCRETIONARY | 230,586 | ||
CONSUMER STAPLES - 5.4% | |||
Beverages - 3.0% | |||
Cott Corp. | 3,069,864 | 44,315 | |
Food & Staples Retailing - 1.5% | |||
CVS Health Corp. | 237,100 | 22,868 | |
Food Products - 0.9% | |||
Calavo Growers, Inc. | 232,028 | 13,135 | |
TOTAL CONSUMER STAPLES | 80,318 | ||
ENERGY - 2.9% | |||
Energy Equipment & Services - 0.5% | |||
Halliburton Co. | 183,600 | 7,744 | |
Oil, Gas & Consumable Fuels - 2.4% | |||
Continental Resources, Inc. (a) | 145,000 | 6,099 | |
Kinder Morgan, Inc. | 170,400 | 3,081 | |
Range Resources Corp. (b) | 191,300 | 8,147 | |
Valero Energy Corp. | 327,300 | 17,903 | |
35,230 | |||
TOTAL ENERGY | 42,974 | ||
FINANCIALS - 17.4% | |||
Banks - 16.1% | |||
Bank of America Corp. | 3,923,013 | 58,021 | |
CIT Group, Inc. | 157,349 | 5,391 | |
Citigroup, Inc. | 1,481,723 | 69,004 | |
JPMorgan Chase & Co. | 314,200 | 20,508 | |
Regions Financial Corp. | 774,763 | 7,616 | |
SunTrust Banks, Inc. | 249,500 | 10,933 | |
U.S. Bancorp | 1,129,384 | 48,360 | |
Wells Fargo & Co. | 377,370 | 19,140 | |
238,973 | |||
Capital Markets - 0.5% | |||
The Blackstone Group LP | 267,400 | 7,003 | |
Insurance - 0.8% | |||
Progressive Corp. | 347,700 | 11,578 | |
TOTAL FINANCIALS | 257,554 | ||
HEALTH CARE - 15.2% | |||
Health Care Equipment & Supplies - 5.9% | |||
Boston Scientific Corp. (a) | 1,785,400 | 40,546 | |
St. Jude Medical, Inc. | 463,300 | 36,304 | |
Zimmer Biomet Holdings, Inc. | 87,600 | 10,697 | |
87,547 | |||
Health Care Providers & Services - 3.4% | |||
DaVita HealthCare Partners, Inc. (a) | 158,496 | 12,255 | |
Universal Health Services, Inc. Class B | 278,914 | 37,614 | |
49,869 | |||
Life Sciences Tools & Services - 0.8% | |||
PerkinElmer, Inc. | 207,500 | 11,361 | |
Pharmaceuticals - 5.1% | |||
Johnson & Johnson | 126,000 | 14,199 | |
Merck & Co., Inc. | 474,100 | 26,673 | |
Sanofi SA sponsored ADR | 159,344 | 6,565 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 992,000 | 28,222 | |
75,659 | |||
TOTAL HEALTH CARE | 224,436 | ||
INDUSTRIALS - 8.6% | |||
Aerospace & Defense - 4.1% | |||
Esterline Technologies Corp. (a) | 180,022 | 12,135 | |
Honeywell International, Inc. | 139,500 | 15,879 | |
Orbital ATK, Inc. | 278,850 | 24,268 | |
Textron, Inc. | 223,717 | 8,515 | |
60,797 | |||
Airlines - 0.3% | |||
Air Canada (a) | 674,400 | 4,953 | |
Machinery - 1.8% | |||
Deere & Co. | 164,900 | 13,570 | |
Ingersoll-Rand PLC | 208,100 | 13,903 | |
27,473 | |||
Road & Rail - 1.7% | |||
Avis Budget Group, Inc. (a) | 297,500 | 8,925 | |
Hertz Global Holdings, Inc. (a) | 1,617,300 | 15,672 | |
24,597 | |||
Trading Companies & Distributors - 0.7% | |||
Aircastle Ltd. | 467,200 | 9,877 | |
TOTAL INDUSTRIALS | 127,697 | ||
INFORMATION TECHNOLOGY - 3.9% | |||
IT Services - 0.8% | |||
Fidelity National Information Services, Inc. | 165,730 | 12,309 | |
Semiconductors & Semiconductor Equipment - 1.6% | |||
Cypress Semiconductor Corp. (b) | 1,507,475 | 16,024 | |
Micron Technology, Inc. (a) | 559,183 | 7,113 | |
23,137 | |||
Software - 1.5% | |||
Microsoft Corp. | 429,324 | 22,754 | |
TOTAL INFORMATION TECHNOLOGY | 58,200 | ||
MATERIALS - 10.4% | |||
Chemicals - 7.8% | |||
Ashland, Inc. | 83,100 | 9,420 | |
Axiall Corp. | 284,126 | 6,617 | |
Ingevity Corp. (a) | 159,333 | 4,643 | |
LyondellBasell Industries NV Class A | 965,892 | 78,589 | |
PPG Industries, Inc. | 154,592 | 16,646 | |
115,915 | |||
Containers & Packaging - 2.6% | |||
WestRock Co. | 956,000 | 37,867 | |
TOTAL MATERIALS | 153,782 | ||
TELECOMMUNICATION SERVICES - 2.1% | |||
Diversified Telecommunication Services - 2.1% | |||
Level 3 Communications, Inc. (a) | 558,139 | 30,112 | |
UTILITIES - 2.2% | |||
Independent Power and Renewable Electricity Producers - 0.9% | |||
Calpine Corp. (a) | 310,763 | 4,599 | |
Dynegy, Inc. (a) | 441,400 | 8,316 | |
12,915 | |||
Multi-Utilities - 1.3% | |||
Sempra Energy | 179,639 | 19,243 | |
TOTAL UTILITIES | 32,158 | ||
TOTAL COMMON STOCKS | |||
(Cost $844,962) | 1,237,817 | ||
Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - 5.4% | |||
ENERGY - 3.5% | |||
Oil, Gas & Consumable Fuels - 3.5% | |||
Chesapeake Energy Corp. 4.875% 4/15/22 | 22,905 | 13,743 | |
Continental Resources, Inc. 4.5% 4/15/23 | 10,000 | 9,106 | |
Sabine Pass Liquefaction LLC 5.75% 5/15/24 | 20,000 | 20,100 | |
Whiting Petroleum Corp. 5.75% 3/15/21 | 10,000 | 8,475 | |
51,424 | |||
HEALTH CARE - 1.1% | |||
Pharmaceuticals - 1.1% | |||
Valeant Pharmaceuticals International, Inc. 6.125% 4/15/25 (c) | 18,955 | 15,851 | |
INDUSTRIALS - 0.4% | |||
Machinery - 0.4% | |||
Harsco Corp. 5.75% 5/15/18 | 6,749 | 6,040 | |
MATERIALS - 0.4% | |||
Metals & Mining - 0.4% | |||
Freeport-McMoRan, Inc. 3.875% 3/15/23 | 7,525 | 6,189 | |
TOTAL NONCONVERTIBLE BONDS | |||
(Cost $65,623) | 79,504 | ||
Preferred Securities - 0.6% | |||
FINANCIALS - 0.6% | |||
Banks - 0.6% | |||
Barclays PLC 6.625%(d)(e) | |||
(Cost $9,904) | 10,000 | 9,515 | |
Shares | Value (000s) | ||
Money Market Funds - 11.4% | |||
Fidelity Cash Central Fund, 0.40% (f) | 150,790,718 | 150,791 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (f)(g) | 18,207,279 | 18,207 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $168,998) | 168,998 | ||
TOTAL INVESTMENT PORTFOLIO - 101.1% | |||
(Cost $1,089,487) | 1,495,834 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (16,337) | ||
NET ASSETS - 100% | $1,479,497 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $15,851,000 or 1.1% of net assets.
(d) Security is perpetual in nature with no stated maturity date.
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(f) 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.
(g) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $121 |
Fidelity Securities Lending Cash Central Fund | 256 |
Total | $377 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $230,586 | $230,586 | $-- | $-- |
Consumer Staples | 80,318 | 80,318 | -- | -- |
Energy | 42,974 | 42,974 | -- | -- |
Financials | 257,554 | 257,554 | -- | -- |
Health Care | 224,436 | 224,436 | -- | -- |
Industrials | 127,697 | 127,697 | -- | -- |
Information Technology | 58,200 | 58,200 | -- | -- |
Materials | 153,782 | 153,782 | -- | -- |
Telecommunication Services | 30,112 | 30,112 | -- | -- |
Utilities | 32,158 | 32,158 | -- | -- |
Corporate Bonds | 79,504 | -- | 79,504 | -- |
Preferred Securities | 9,515 | -- | 9,515 | -- |
Money Market Funds | 168,998 | 168,998 | -- | -- |
Total Investments in Securities: | $1,495,834 | $1,406,815 | $89,019 | $-- |
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
BB | 2.4% |
B | 2.1% |
CCC,CC,C | 1.5% |
Equities | 83.7% |
Short-Term Investments and Net Other Assets | 10.3% |
100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 84.5% |
Canada | 6.3% |
Netherlands | 5.3% |
Bailiwick of Jersey | 1.3% |
Others (Individually Less Than 1%) | 2.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $18,003) — See accompanying schedule: Unaffiliated issuers (cost $920,489) | $1,326,836 | |
Fidelity Central Funds (cost $168,998) | 168,998 | |
Total Investments (cost $1,089,487) | $1,495,834 | |
Receivable for fund shares sold | 2,194 | |
Dividends receivable | 2,151 | |
Interest receivable | 600 | |
Distributions receivable from Fidelity Central Funds | 70 | |
Total assets | 1,500,849 | |
Liabilities | ||
Payable for fund shares redeemed | $2,275 | |
Accrued management fee | 411 | |
Distribution and service plan fees payable | 194 | |
Other affiliated payables | 236 | |
Other payables and accrued expenses | 29 | |
Collateral on securities loaned, at value | 18,207 | |
Total liabilities | 21,352 | |
Net Assets | $1,479,497 | |
Net Assets consist of: | ||
Paid in capital | $1,178,624 | |
Undistributed net investment income | 7,712 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (113,186) | |
Net unrealized appreciation (depreciation) on investments | 406,347 | |
Net Assets | $1,479,497 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($206,841 ÷ 5,349.749 shares) | $38.66 | |
Maximum offering price per share (100/94.25 of $38.66) | $41.02 | |
Class T: | ||
Net Asset Value and redemption price per share ($272,503 ÷ 6,792.650 shares) | $40.12 | |
Maximum offering price per share (100/96.50 of $40.12) | $41.58 | |
Class B: | ||
Net Asset Value and offering price per share ($2,342 ÷ 66.037 shares)(a) | $35.46 | |
Class C: | ||
Net Asset Value and offering price per share ($45,075 ÷ 1,291.389 shares)(a) | $34.90 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($812,258 ÷ 18,748.304 shares) | $43.32 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($73,227 ÷ 1,690.737 shares) | $43.31 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($67,251 ÷ 1,627.341 shares) | $41.33 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $12,359 | |
Interest | 2,481 | |
Income from Fidelity Central Funds | 377 | |
Total income | 15,217 | |
Expenses | ||
Management fee | ||
Basic fee | $3,597 | |
Performance adjustment | (1,445) | |
Transfer agent fees | 1,206 | |
Distribution and service plan fees | 1,140 | |
Accounting and security lending fees | 213 | |
Custodian fees and expenses | 7 | |
Independent trustees' fees and expenses | 3 | |
Registration fees | 118 | |
Audit | 38 | |
Legal | 3 | |
Miscellaneous | 5 | |
Total expenses before reductions | 4,885 | |
Expense reductions | (7) | 4,878 |
Net investment income (loss) | 10,339 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 23,221 | |
Foreign currency transactions | 11 | |
Total net realized gain (loss) | 23,232 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (44,756) | |
Total change in net unrealized appreciation (depreciation) | (44,756) | |
Net gain (loss) | (21,524) | |
Net increase (decrease) in net assets resulting from operations | $(11,185) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,339 | $14,207 |
Net realized gain (loss) | 23,232 | 117,291 |
Change in net unrealized appreciation (depreciation) | (44,756) | (113,531) |
Net increase (decrease) in net assets resulting from operations | (11,185) | 17,967 |
Distributions to shareholders from net investment income | (15,368) | (11,929) |
Distributions to shareholders from net realized gain | (316) | (1,090) |
Total distributions | (15,684) | (13,019) |
Share transactions - net increase (decrease) | 91,730 | (175,423) |
Total increase (decrease) in net assets | 64,861 | (170,475) |
Net Assets | ||
Beginning of period | 1,414,636 | 1,585,111 |
End of period (including undistributed net investment income of $7,712 and undistributed net investment income of $12,741, respectively) | $1,479,497 | $1,414,636 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 | $23.11 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .26 | .35 | .25 | .23 | –B | .13C |
Net realized and unrealized gain (loss) | (.20) | .06 | 2.87 | 8.25 | 5.03 | (.49) |
Total from investment operations | .06 | .41 | 3.12 | 8.48 | 5.03 | (.36) |
Distributions from net investment income | (.40) | (.28)D | (.23) | (.08) | (.12) | (.03)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.41) | (.31) | (.23) | (.08) | (.12) | (.04) |
Net asset value, end of period | $38.66 | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 |
Total ReturnE,F,G | .21% | 1.07% | 8.74% | 30.77% | 22.29% | (1.57)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .87%J | .93% | .96% | 1.04% | 1.21% | 1.18% |
Expenses net of fee waivers, if any | .87%J | .93% | .96% | 1.04% | 1.21% | 1.18% |
Expenses net of all reductions | .86%J | .93% | .96% | 1.03% | 1.21% | 1.17% |
Net investment income (loss) | 1.45%J | .89% | .68% | .73% | - %B | .51%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $207 | $215 | $233 | $243 | $203 | $190 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 | $23.90 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .23 | .28 | .18 | .18 | (.05)B | .08C |
Net realized and unrealized gain (loss) | (.20) | .06 | 2.98 | 8.54 | 5.22 | (.50) |
Total from investment operations | .03 | .34 | 3.16 | 8.72 | 5.17 | (.42) |
Distributions from net investment income | (.30) | (.19)D | (.16) | (.02) | (.07) | – |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | – |
Total distributions | (.31) | (.22) | (.16) | (.02) | (.07) | – |
Net asset value, end of period | $40.12 | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 |
Total ReturnE,F,G | .11% | .86% | 8.51% | 30.52% | 22.08% | (1.76)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.08%J | 1.15% | 1.17% | 1.23% | 1.38% | 1.35% |
Expenses net of fee waivers, if any | 1.07%J | 1.14% | 1.17% | 1.23% | 1.38% | 1.35% |
Expenses net of all reductions | 1.07%J | 1.14% | 1.17% | 1.22% | 1.38% | 1.35% |
Net investment income (loss) | 1.25%J | .68% | .47% | .54% | (.17)%B | .33%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $273 | $294 | $324 | $335 | $283 | $274 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.53 | $35.44 | $32.86 | $25.34 | $20.87 | $21.37 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .02 | (.05) | (.02) | (.18)B | (.06)C |
Net realized and unrealized gain (loss) | (.18) | .07 | 2.63 | 7.54 | 4.65 | (.44) |
Total from investment operations | (.07) | .09 | 2.58 | 7.52 | 4.47 | (.50) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | – | – | – | – | – | – |
Total distributions | – | – | – | – | – | – |
Net asset value, end of period | $35.46 | $35.53 | $35.44 | $32.86 | $25.34 | $20.87 |
Total ReturnD,E,F | (.20)% | .25% | 7.85% | 29.68% | 21.42% | (2.34)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.69%I | 1.77% | 1.78% | 1.83% | 1.97% | 1.93% |
Expenses net of fee waivers, if any | 1.69%I | 1.76% | 1.78% | 1.83% | 1.97% | 1.93% |
Expenses net of all reductions | 1.69%I | 1.76% | 1.78%�� | 1.82% | 1.97% | 1.93% |
Net investment income (loss) | .63%I | .06% | (.14)% | (.07)% | (.76)%B | (.25)%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2 | $4 | $7 | $11 | $13 | $16 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04) %.
C Net Investment 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) %.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 | $21.13 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .05 | (.03) | (.01) | (.17)B | (.05)C |
Net realized and unrealized gain (loss) | (.19) | .07 | 2.60 | 7.47 | 4.59 | (.44) |
Total from investment operations | (.08) | .12 | 2.57 | 7.46 | 4.42 | (.49) |
Distributions from net investment income | (.13) | (.04)D | (.02) | – | – | – |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | – |
Total distributions | (.14) | (.07) | (.02) | – | – | – |
Net asset value, end of period | $34.90 | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 |
Total ReturnE,F,G | (.20)% | .33% | 7.91% | 29.77% | 21.41% | (2.32)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.63%J | 1.70% | 1.72% | 1.78% | 1.95% | 1.92% |
Expenses net of fee waivers, if any | 1.63%J | 1.69% | 1.72% | 1.78% | 1.95% | 1.92% |
Expenses net of all reductions | 1.63%J | 1.69% | 1.72% | 1.77% | 1.95% | 1.92% |
Net investment income (loss) | .69%J | .13% | (.08)% | (.02)% | (.75)%B | (.24)%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $45 | $49 | $53 | $54 | $43 | $40 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.02) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Value Strategies Fund
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 | $25.80 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .36 | .51 | .40 | .37 | .09B | .22C |
Net realized and unrealized gain (loss) | (.24) | .07 | 3.21 | 9.20 | 5.62 | (.54) |
Total from investment operations | .12 | .58 | 3.61 | 9.57 | 5.71 | (.32) |
Distributions from net investment income | (.51) | (.39)D | (.33) | (.18) | (.19) | (.10)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.52) | (.42) | (.33) | (.18) | (.19) | (.11) |
Net asset value, end of period | $43.32 | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 |
Total ReturnE,F | .36% | 1.35% | 9.05% | 31.14% | 22.69% | (1.29)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .56%I | .67% | .69% | .73% | .89% | .88% |
Expenses net of fee waivers, if any | .56%I | .67% | .69% | .73% | .89% | .88% |
Expenses net of all reductions | .56%I | .66% | .69% | .72% | .89% | .88% |
Net investment income (loss) | 1.76%I | 1.16% | .95% | 1.03% | .31%B | .80%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $812 | $716 | $786 | $681 | $396 | $284 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class K
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 | $25.82 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .38 | .58 | .47 | .43 | .14B | .28C |
Net realized and unrealized gain (loss) | (.23) | .07 | 3.20 | 9.18 | 5.61 | (.55) |
Total from investment operations | .15 | .65 | 3.67 | 9.61 | 5.75 | (.27) |
Distributions from net investment income | (.57) | (.45)D | (.38) | (.22) | (.24) | (.16)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.58) | (.48) | (.38) | (.22) | (.24) | (.17) |
Net asset value, end of period | $43.31 | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 |
Total ReturnE,F | .43% | 1.51% | 9.21% | 31.34% | 22.93% | (1.11)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .43%I | .51% | .53% | .58% | .71% | .68% |
Expenses net of fee waivers, if any | .43%I | .51% | .53% | .58% | .71% | .68% |
Expenses net of all reductions | .43%I | .51% | .53% | .57% | .71% | .68% |
Net investment income (loss) | 1.89%I | 1.31% | 1.11% | 1.18% | .50%B | 1.00%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $73 | $72 | $97 | $119 | $70 | $47 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 | $24.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .33 | .48 | .37 | .34 | .08B | .22C |
Net realized and unrealized gain (loss) | (.22) | .08 | 3.06 | 8.79 | 5.37 | (.53) |
Total from investment operations | .11 | .56 | 3.43 | 9.13 | 5.45 | (.31) |
Distributions from net investment income | (.48) | (.39)D | (.32) | (.18) | (.20) | (.11)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.49) | (.42) | (.32) | (.18) | (.20) | (.12) |
Net asset value, end of period | $41.33 | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 |
Total ReturnE,F | .34% | 1.36% | 9.01% | 31.11% | 22.67% | (1.30)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .61%I | .68% | .71% | .76% | .90% | .86% |
Expenses net of fee waivers, if any | .61%I | .68% | .71% | .76% | .90% | .86% |
Expenses net of all reductions | .60%I | .68% | .71% | .75% | .90% | .86% |
Net investment income (loss) | 1.71%I | 1.14% | .93% | 1.00% | .31%B | .82%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $67 | $65 | $86 | $74 | $66 | $52 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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, Class K and Class I 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $448,497 |
Gross unrealized depreciation | (43,804) |
Net unrealized appreciation (depreciation) on securities | $404,693 |
Tax cost | $1,091,141 |
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 prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
2017 | $(133,637) |
The Fund elected to defer to its next fiscal year approximately $734 of capital losses recognized during the period November 1, 2015 to November 30, 2015.
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 $263,755 and $175,867, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Fidelity Value Strategies Fund as compared to its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .33% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $245 | $– |
Class T | .25% | .25% | 661 | – |
Class B | .75% | .25% | 15 | 11 |
Class C | .75% | .25% | 219 | 7 |
$1,140 | $18 |
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 by FDC | |
Class A | $8 |
Class T | 4 |
Class B(a) | –(b) |
Class C(a) | 1 |
$13 |
(a) 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.
(b) In the amount of less than five hundred dollars
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the 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 reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $225 | .23 |
Class T | 250 | .19 |
Class B | 4 | .30 |
Class C | 54 | .24 |
Fidelity Value Strategies Fund | 591 | .17 |
Class K | 16 | .05 |
Class I | 66 | .22 |
$1,206 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $36.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $256. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $2 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $5.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $2,185 | $1,691 |
Class T | 2,155 | 1,553 |
Class C | 187 | 56 |
Fidelity Value Strategies Fund | 9,140 | 6,934 |
Class K | 955 | 896 |
Class I | 746 | 799 |
Total | $15,368 | $11,929 |
From net realized gain | ||
Class A | $49 | $174 |
Class T | 65 | 234 |
Class C | 13 | 44 |
Fidelity Value Strategies Fund | 160 | 520 |
Class K | 15 | 58 |
Class I | 14 | 60 |
Total | $316 | $1,090 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 305 | 391 | $11,127 | $15,470 |
Reinvestment of distributions | 58 | 46 | 2,110 | 1,760 |
Shares redeemed | (528) | (904) | (19,018) | (35,567) |
Net increase (decrease) | (165) | (467) | $(5,781) | $(18,337) |
Class T | ||||
Shares sold | 232 | 486 | $8,710 | $19,926 |
Reinvestment of distributions | 54 | 41 | 2,045 | 1,646 |
Shares redeemed | (773) | (1,296) | (29,117) | (52,610) |
Net increase (decrease) | (487) | (769) | $(18,362) | $(31,038) |
Class B | ||||
Shares sold | – | – | $9 | $12 |
Shares redeemed | (44) | (95) | (1,469) | (3,438) |
Net increase (decrease) | (44) | (95) | $(1,460) | $(3,426) |
Class C | ||||
Shares sold | 43 | 131 | $1,404 | $4,724 |
Reinvestment of distributions | 6 | 3 | 191 | 95 |
Shares redeemed | (157) | (237) | (5,029) | (8,407) |
Net increase (decrease) | (108) | (103) | $(3,434) | $(3,588) |
Fidelity Value Strategies Fund | ||||
Shares sold | 7,288�� | 3,980 | $307,450 | $174,437 |
Reinvestment of distributions | 182 | 106 | 7,409 | 4,551 |
Shares redeemed | (5,095) | (5,750) | (199,371) | (250,149) |
Net increase (decrease) | 2,375 | (1,664) | $115,488 | $(71,161) |
Class K | ||||
Shares sold | 292 | 390 | $12,136 | $17,106 |
Reinvestment of distributions | 24 | 22 | 970 | 954 |
Shares redeemed | (263) | (1,001) | (10,650) | (44,142) |
Net increase (decrease) | 53 | (589) | $2,456 | $(26,082) |
Class I | ||||
Shares sold | 202 | 288 | $7,838 | $12,081 |
Reinvestment of distributions | 19 | 18 | 723 | 748 |
Shares redeemed | (150) | (809) | (5,738) | (34,620) |
Net increase (decrease) | 71 | (503) | $2,823 | $(21,791) |
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.
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, 2015 to May 31, 2016).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .87% | |||
Actual | $1,000.00 | $1,002.10 | $4.35 | |
Hypothetical-C | $1,000.00 | $1,020.65 | $4.39 | |
Class T | 1.07% | |||
Actual | $1,000.00 | $1,001.10 | $5.35 | |
Hypothetical-C | $1,000.00 | $1,019.65 | $5.40 | |
Class B | 1.69% | |||
Actual | $1,000.00 | $998.00 | $8.44 | |
Hypothetical-C | $1,000.00 | $1,016.55 | $8.52 | |
Class C | 1.63% | |||
Actual | $1,000.00 | $998.00 | $8.14 | |
Hypothetical-C | $1,000.00 | $1,016.85 | $8.22 | |
Fidelity Value Strategies Fund | .56% | |||
Actual | $1,000.00 | $1,003.60 | $2.81 | |
Hypothetical-C | $1,000.00 | $1,022.20 | $2.83 | |
Class K | .43% | |||
Actual | $1,000.00 | $1,004.30 | $2.15 | |
Hypothetical-C | $1,000.00 | $1,022.85 | $2.17 | |
Class I | .61% | |||
Actual | $1,000.00 | $1,003.40 | $3.06 | |
Hypothetical-C | $1,000.00 | $1,021.95 | $3.08 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
SO-SANN-0716
1.704744.118
Fidelity Advisor® Growth Opportunities Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Apple, Inc. | 5.3 | 7.0 |
Amazon.com, Inc. | 3.6 | 2.2 |
Alphabet, Inc. Class C | 2.9 | 3.0 |
Alphabet, Inc. Class A | 2.7 | 3.0 |
Facebook, Inc. Class A | 2.4 | 2.4 |
Salesforce.com, Inc. | 2.2 | 1.8 |
Tesla Motors, Inc. | 2.2 | 0.6 |
American Tower Corp. | 2.1 | 2.1 |
Visa, Inc. Class A | 2.0 | 2.0 |
Alliance Data Systems Corp. | 2.0 | 1.0 |
27.4 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 37.6 | 38.6 |
Consumer Discretionary | 17.7 | 17.0 |
Health Care | 17.7 | 18.4 |
Consumer Staples | 7.9 | 6.1 |
Industrials | 6.4 | 8.3 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016 * | ||
Stocks | 97.3% | |
Convertible Securities | 0.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.8% |
* Foreign investments - 10.1%
As of November 30, 2015 * | ||
Stocks | 99.2% | |
Convertible Securities | 0.8% |
* Foreign investments - 10.6%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 17.7% | |||
Auto Components - 0.4% | |||
Tenneco, Inc. (a) | 234,800 | $12,613 | |
Automobiles - 2.2% | |||
Tesla Motors, Inc. (a)(b) | 282,322 | 63,023 | |
Diversified Consumer Services - 0.7% | |||
ServiceMaster Global Holdings, Inc. (a) | 546,800 | 20,910 | |
Hotels, Restaurants & Leisure - 1.4% | |||
Domino's Pizza, Inc. | 23,300 | 2,817 | |
Las Vegas Sands Corp. | 63,892 | 2,954 | |
Starbucks Corp. | 637,600 | 34,998 | |
40,769 | |||
Internet & Catalog Retail - 5.2% | |||
Amazon.com, Inc. (a) | 142,900 | 103,287 | |
Expedia, Inc. | 71,100 | 7,909 | |
Netflix, Inc. (a) | 171,700 | 17,611 | |
Priceline Group, Inc. (a) | 12,000 | 15,172 | |
Wayfair LLC Class A (a) | 77,927 | 3,209 | |
147,188 | |||
Media - 3.8% | |||
Altice NV Class A (a) | 435,798 | 7,511 | |
AMC Networks, Inc. Class A (a) | 37,800 | 2,417 | |
Charter Communications, Inc. (a) | 220,263 | 48,224 | |
Comcast Corp. Class A | 310,700 | 19,667 | |
Liberty Global PLC Class A (a) | 148,500 | 5,546 | |
Lions Gate Entertainment Corp. (b) | 283,800 | 6,329 | |
The Walt Disney Co. | 181,000 | 17,959 | |
Twenty-First Century Fox, Inc. Class A | 10,500 | 303 | |
107,956 | |||
Multiline Retail - 0.3% | |||
Dollar General Corp. | 82,900 | 7,453 | |
Specialty Retail - 1.3% | |||
CarMax, Inc. (a)(b) | 79,300 | 4,255 | |
Home Depot, Inc. | 104,900 | 13,859 | |
TJX Companies, Inc. | 227,800 | 17,340 | |
35,454 | |||
Textiles, Apparel & Luxury Goods - 2.4% | |||
lululemon athletica, Inc. (a) | 359,716 | 23,392 | |
NIKE, Inc. Class B | 525,100 | 28,996 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 241,498 | 7,527 | |
VF Corp. | 126,600 | 7,890 | |
67,805 | |||
TOTAL CONSUMER DISCRETIONARY | 503,171 | ||
CONSUMER STAPLES - 7.7% | |||
Beverages - 2.8% | |||
Anheuser-Busch InBev SA NV ADR | 33,800 | 4,266 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 133,100 | 20,384 | |
Molson Coors Brewing Co. Class B | 117,400 | 11,644 | |
Monster Beverage Corp. | 129,200 | 19,380 | |
PepsiCo, Inc. | 104,100 | 10,532 | |
The Coca-Cola Co. | 271,100 | 12,091 | |
78,297 | |||
Food & Staples Retailing - 2.7% | |||
Costco Wholesale Corp. | 190,400 | 28,326 | |
CVS Health Corp. | 350,200 | 33,777 | |
Walgreens Boots Alliance, Inc. | 159,100 | 12,314 | |
Whole Foods Market, Inc. | 91,700 | 2,966 | |
77,383 | |||
Food Products - 0.3% | |||
Mead Johnson Nutrition Co. Class A | 98,400 | 8,096 | |
Post Holdings, Inc. (a) | 21,400 | 1,627 | |
9,723 | |||
Personal Products - 0.1% | |||
Herbalife Ltd. (a) | 69,600 | 4,029 | |
Tobacco - 1.8% | |||
Altria Group, Inc. | 45,200 | 2,877 | |
British American Tobacco PLC (United Kingdom) | 74,500 | 4,532 | |
Imperial Tobacco Group PLC | 137,468 | 7,488 | |
Philip Morris International, Inc. | 98,100 | 9,681 | |
Reynolds American, Inc. | 510,000 | 25,347 | |
49,925 | |||
TOTAL CONSUMER STAPLES | 219,357 | ||
ENERGY - 1.0% | |||
Oil, Gas & Consumable Fuels - 1.0% | |||
Cabot Oil & Gas Corp. | 269,800 | 6,467 | |
Devon Energy Corp. | 159,400 | 5,753 | |
Golar LNG Ltd. (b) | 28,700 | 499 | |
PDC Energy, Inc. (a) | 104,800 | 6,084 | |
Targa Resources Corp. | 14,800 | 634 | |
Teekay LNG Partners LP | 214,200 | 2,992 | |
The Williams Companies, Inc. | 182,500 | 4,044 | |
Williams Partners LP | 96,700 | 3,087 | |
29,560 | |||
FINANCIALS - 4.2% | |||
Banks - 0.6% | |||
HDFC Bank Ltd. sponsored ADR | 249,511 | 16,059 | |
Capital Markets - 0.7% | |||
BlackRock, Inc. Class A | 11,500 | 4,184 | |
Charles Schwab Corp. | 404,000 | 12,354 | |
Invesco Ltd. | 97,100 | 3,049 | |
19,587 | |||
Diversified Financial Services - 0.6% | |||
Bats Global Markets, Inc. | 8,100 | 225 | |
MSCI, Inc. Class A | 214,700 | 17,131 | |
On Deck Capital, Inc. (a)(b) | 102,800 | 531 | |
17,887 | |||
Insurance - 0.2% | |||
FNF Group | 211,300 | 7,385 | |
Real Estate Investment Trusts - 2.1% | |||
American Tower Corp. | 557,300 | 58,951 | |
TOTAL FINANCIALS | 119,869 | ||
HEALTH CARE - 17.7% | |||
Biotechnology - 11.1% | |||
AbbVie, Inc. | 513,600 | 32,321 | |
ACADIA Pharmaceuticals, Inc. (a) | 243,800 | 8,638 | |
Aduro Biotech, Inc. (a)(b) | 67,500 | 830 | |
Adverum Biotechnologies, Inc. (a) | 31,748 | 144 | |
Agios Pharmaceuticals, Inc. (a) | 75,400 | 4,219 | |
Alexion Pharmaceuticals, Inc. (a) | 137,700 | 20,779 | |
Alkermes PLC (a) | 407,900 | 18,931 | |
Alnylam Pharmaceuticals, Inc. (a) | 239,100 | 17,148 | |
Amgen, Inc. | 211,800 | 33,454 | |
Amicus Therapeutics, Inc. (a)(b) | 641,000 | 4,538 | |
Asterias Biotherapeutics, Inc. (a)(b) | 50,950 | 160 | |
Asterias Biotherapeutics, Inc. warrants 9/30/16 (a) | 10,190 | 6 | |
aTyr Pharma, Inc. (c) | 124,876 | 413 | |
Biogen, Inc. (a) | 75,600 | 21,904 | |
BioMarin Pharmaceutical, Inc. (a) | 137,700 | 12,345 | |
BioTime, Inc. warrants 10/1/18 (a) | 62,345 | 29 | |
bluebird bio, Inc. (a) | 124,800 | 5,647 | |
Celgene Corp. (a) | 27,470 | 2,899 | |
Celldex Therapeutics, Inc. (a) | 165,600 | 758 | |
Coherus BioSciences, Inc. (a) | 88,294 | 1,647 | |
Genocea Biosciences, Inc. (a)(b) | 68,216 | 321 | |
Gilead Sciences, Inc. | 258,000 | 22,461 | |
Infinity Pharmaceuticals, Inc. (a) | 94,800 | 502 | |
Insmed, Inc. (a) | 365,479 | 4,313 | |
Intercept Pharmaceuticals, Inc. (a) | 10,235 | 1,518 | |
Ionis Pharmaceuticals, Inc.(a)(b) | 558,953 | 12,683 | |
Lexicon Pharmaceuticals, Inc. (a) | 114,596 | 1,628 | |
Merrimack Pharmaceuticals, Inc. (a) | 437,800 | 2,920 | |
Novavax, Inc. (a)(b) | 887,700 | 5,406 | |
Ophthotech Corp. (a) | 77,700 | 4,172 | |
Prothena Corp. PLC (a) | 136,002 | 6,602 | |
Regeneron Pharmaceuticals, Inc. (a) | 103,800 | 41,409 | |
Regulus Therapeutics, Inc. (a)(b) | 318,000 | 1,953 | |
Rigel Pharmaceuticals, Inc. (a) | 498,548 | 1,286 | |
Sage Therapeutics, Inc. (a) | 15,244 | 502 | |
Seres Therapeutics, Inc. | 21,900 | 666 | |
Spark Therapeutics, Inc. (a) | 3,500 | 196 | |
Transition Therapeutics, Inc. (a) | 655,797 | 546 | |
Vertex Pharmaceuticals, Inc. (a) | 204,690 | 19,067 | |
XOMA Corp. (a)(b) | 1,084,759 | 743 | |
315,704 | |||
Health Care Equipment & Supplies - 1.3% | |||
Boston Scientific Corp. (a) | 659,500 | 14,977 | |
Medtronic PLC | 212,700 | 17,118 | |
Nevro Corp. (a) | 30,700 | 2,140 | |
Stryker Corp. | 30,800 | 3,424 | |
37,659 | |||
Health Care Providers & Services - 1.9% | |||
Cardinal Health, Inc. | 112,300 | 8,866 | |
Express Scripts Holding Co. (a) | 40,467 | 3,057 | |
HealthSouth Corp. warrants 1/17/17 (a) | 5,409 | 14 | |
McKesson Corp. | 164,700 | 30,163 | |
UnitedHealth Group, Inc. | 86,100 | 11,509 | |
53,609 | |||
Health Care Technology - 0.4% | |||
athenahealth, Inc. (a) | 89,700 | 11,380 | |
Castlight Health, Inc. Class B (a) | 117,900 | 496 | |
11,876 | |||
Pharmaceuticals - 3.0% | |||
AcelRx Pharmaceuticals, Inc. (a)(b) | 600,917 | 2,079 | |
Allergan PLC (a) | 43,690 | 10,300 | |
Bristol-Myers Squibb Co. | 232,200 | 16,649 | |
Endo International PLC (a) | 1,476,600 | 23,345 | |
Innoviva, Inc. | 117,700 | 1,328 | |
Intra-Cellular Therapies, Inc. (a) | 36,700 | 1,420 | |
Jazz Pharmaceuticals PLC (a) | 32,800 | 4,971 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 466,600 | 24,203 | |
84,295 | |||
TOTAL HEALTH CARE | 503,143 | ||
INDUSTRIALS - 6.4% | |||
Aerospace & Defense - 0.2% | |||
Honeywell International, Inc. | 61,800 | 7,035 | |
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 28,000 | 4,619 | |
United Parcel Service, Inc. Class B | 27,600 | 2,845 | |
7,464 | |||
Airlines - 2.4% | |||
Delta Air Lines, Inc. | 247,200 | 10,743 | |
JetBlue Airways Corp. (a) | 628,200 | 11,264 | |
Southwest Airlines Co. | 789,400 | 33,534 | |
Spirit Airlines, Inc. (a) | 304,400 | 13,232 | |
Wizz Air Holdings PLC (a) | 4,633 | 130 | |
68,903 | |||
Electrical Equipment - 0.6% | |||
SolarCity Corp. (a)(b) | 503,326 | 11,269 | |
Sunrun, Inc. (a)(b) | 998,500 | 6,330 | |
17,599 | |||
Industrial Conglomerates - 1.0% | |||
3M Co. | 52,500 | 8,837 | |
Danaher Corp. | 194,800 | 19,161 | |
27,998 | |||
Professional Services - 1.0% | |||
TransUnion Holding Co., Inc. | 234,100 | 7,749 | |
TriNet Group, Inc. (a) | 807,800 | 16,277 | |
Verisk Analytics, Inc. (a) | 41,100 | 3,263 | |
27,289 | |||
Road & Rail - 0.3% | |||
Genesee & Wyoming, Inc. Class A (a) | 45,800 | 2,751 | |
J.B. Hunt Transport Services, Inc. | 83,900 | 6,940 | |
9,691 | |||
Trading Companies & Distributors - 0.6% | |||
HD Supply Holdings, Inc. (a) | 448,100 | 15,818 | |
TOTAL INDUSTRIALS | 181,797 | ||
INFORMATION TECHNOLOGY - 37.0% | |||
Communications Equipment - 0.2% | |||
Infinera Corp. (a) | 372,581 | 4,885 | |
Electronic Equipment & Components - 0.1% | |||
CDW Corp. | 34,500 | 1,468 | |
Internet Software & Services - 11.9% | |||
Alphabet, Inc.: | |||
Class A | 101,865 | 76,282 | |
Class C | 112,775 | 82,971 | |
Endurance International Group Holdings, Inc. (a)(b) | 4,011,737 | 37,791 | |
Facebook, Inc. Class A (a) | 578,841 | 68,772 | |
GoDaddy, Inc. (a)(b) | 1,436,249 | 46,721 | |
Rackspace Hosting, Inc. (a) | 311,902 | 7,798 | |
Wix.com Ltd. (a) | 701,635 | 19,407 | |
339,742 | |||
IT Services - 11.4% | |||
Accenture PLC Class A | 17,800 | 2,118 | |
Alliance Data Systems Corp. (a) | 250,900 | 55,747 | |
Booz Allen Hamilton Holding Corp. Class A | 331,000 | 9,688 | |
Capgemini SA | 46,300 | 4,415 | |
Cognizant Technology Solutions Corp. Class A (a) | 731,092 | 44,918 | |
EPAM Systems, Inc. (a) | 473,400 | 36,220 | |
Fidelity National Information Services, Inc. | 70,500 | 5,236 | |
First Data Corp. Class A (a) | 119,200 | 1,494 | |
Gartner, Inc. Class A (a) | 67,700 | 6,880 | |
Global Payments, Inc. | 97,900 | 7,606 | |
Luxoft Holding, Inc. (a) | 148,400 | 9,637 | |
MasterCard, Inc. Class A | 390,500 | 37,449 | |
PayPal Holdings, Inc. (a) | 75,400 | 2,849 | |
Sabre Corp. | 984,700 | 27,739 | |
Travelport Worldwide Ltd. | 1,030,600 | 13,645 | |
Visa, Inc. Class A | 738,300 | 58,281 | |
323,922 | |||
Semiconductors & Semiconductor Equipment - 2.5% | |||
Micron Technology, Inc. (a) | 414,400 | 5,271 | |
NVIDIA Corp. | 360,330 | 16,835 | |
NXP Semiconductors NV (a) | 305,100 | 28,829 | |
SolarEdge Technologies, Inc. (a)(b) | 990,257 | 21,637 | |
72,572 | |||
Software - 5.3% | |||
Activision Blizzard, Inc. | 20,937 | 822 | |
Adobe Systems, Inc. (a) | 101,400 | 10,086 | |
Autodesk, Inc. (a) | 73,000 | 4,254 | |
Electronic Arts, Inc. (a) | 146,000 | 11,206 | |
Microsoft Corp. | 779,700 | 41,324 | |
NetSuite, Inc. (a)(b) | 62,800 | 4,981 | |
Red Hat, Inc. (a) | 38,230 | 2,961 | |
Salesforce.com, Inc. (a) | 756,100 | 63,293 | |
Tyler Technologies, Inc. (a) | 42,500 | 6,515 | |
Workday, Inc. Class A (a) | 62,500 | 4,740 | |
150,182 | |||
Technology Hardware, Storage & Peripherals - 5.6% | |||
Apple, Inc. | 1,525,306 | 152,319 | |
Nimble Storage, Inc. (a)(b) | 948,000 | 8,466 | |
160,785 | |||
TOTAL INFORMATION TECHNOLOGY | 1,053,556 | ||
MATERIALS - 3.2% | |||
Chemicals - 2.6% | |||
E.I. du Pont de Nemours & Co. | 106,100 | 6,940 | |
Eastman Chemical Co. | 57,300 | 4,204 | |
LyondellBasell Industries NV Class A | 423,700 | 34,472 | |
PPG Industries, Inc. | 188,400 | 20,287 | |
The Chemours Co. LLC | 19,160 | 167 | |
The Dow Chemical Co. | 148,600 | 7,632 | |
W.R. Grace & Co. | 19,300 | 1,498 | |
75,200 | |||
Containers & Packaging - 0.6% | |||
Sealed Air Corp. | 348,900 | 16,203 | |
TOTAL MATERIALS | 91,403 | ||
TELECOMMUNICATION SERVICES - 2.4% | |||
Diversified Telecommunication Services - 1.2% | |||
SBA Communications Corp. Class A (a) | 327,100 | 32,514 | |
Wireless Telecommunication Services - 1.2% | |||
T-Mobile U.S., Inc. (a) | 807,700 | 34,537 | |
TOTAL TELECOMMUNICATION SERVICES | 67,051 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,936,026) | 2,768,907 | ||
Convertible Preferred Stocks - 0.9% | |||
CONSUMER STAPLES - 0.2% | |||
Food & Staples Retailing - 0.1% | |||
Blue Apron, Inc. Series D (d) | 217,605 | 3,140 | |
Tobacco - 0.1% | |||
PAX Labs, Inc. Series C (d) | 1,069,313 | 2,844 | |
TOTAL CONSUMER STAPLES | 5,984 | ||
FINANCIALS - 0.1% | |||
Real Estate Management & Development - 0.1% | |||
Redfin Corp. Series G (a)(d) | 1,081,736 | 4,262 | |
INFORMATION TECHNOLOGY - 0.6% | |||
Internet Software & Services - 0.4% | |||
Uber Technologies, Inc. Series D, 8.00% (a)(d) | 221,104 | 10,784 | |
Software - 0.2% | |||
Cloudera, Inc. Series F (a)(d) | 41,786 | 1,058 | |
MongoDB, Inc. Series F, 8.00% (a)(d) | 515,124 | 4,183 | |
5,241 | |||
TOTAL INFORMATION TECHNOLOGY | 16,025 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $23,237) | 26,271 | ||
Money Market Funds - 5.1% | |||
Fidelity Cash Central Fund, 0.40% (e) | 41,062,310 | 41,062 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (e)(f) | 102,891,910 | 102,892 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $143,954) | 143,954 | ||
TOTAL INVESTMENT PORTFOLIO - 103.3% | |||
(Cost $2,103,217) | 2,939,132 | ||
NET OTHER ASSETS (LIABILITIES) - (3.3)% | (92,762) | ||
NET ASSETS - 100% | $2,846,370 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $413,000 or 0.0% of net assets.
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $26,271,000 or 0.9% of net assets.
(e) 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.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Blue Apron, Inc. Series D | 5/18/15 | $2,900 |
Cloudera, Inc. Series F | 2/5/14 | $608 |
MongoDB, Inc. Series F, 8.00% | 10/2/13 | $8,615 |
PAX Labs, Inc. Series C | 5/22/15 | $4,117 |
Redfin Corp. Series G | 12/16/14 | $3,567 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $3,430 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $19 |
Fidelity Securities Lending Cash Central Fund | 2,016 |
Total | $2,035 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $503,171 | $503,171 | $-- | $-- |
Consumer Staples | 225,341 | 214,825 | 4,532 | 5,984 |
Energy | 29,560 | 29,560 | -- | -- |
Financials | 124,131 | 119,869 | -- | 4,262 |
Health Care | 503,143 | 503,143 | -- | -- |
Industrials | 181,797 | 181,797 | -- | -- |
Information Technology | 1,069,581 | 1,053,556 | -- | 16,025 |
Materials | 91,403 | 91,403 | -- | -- |
Telecommunication Services | 67,051 | 67,051 | -- | -- |
Money Market Funds | 143,954 | 143,954 | -- | -- |
Total Investments in Securities: | $2,939,132 | $2,908,329 | $4,532 | $26,271 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 89.9% |
Ireland | 3.0% |
Netherlands | 2.5% |
Israel | 1.6% |
Others (Individually Less Than 1%) | 3.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $100,385) — See accompanying schedule: Unaffiliated issuers (cost $1,959,263) | $2,795,178 | |
Fidelity Central Funds (cost $143,954) | 143,954 | |
Total Investments (cost $2,103,217) | $2,939,132 | |
Receivable for investments sold | 26,340 | |
Receivable for fund shares sold | 958 | |
Dividends receivable | 1,890 | |
Distributions receivable from Fidelity Central Funds | 244 | |
Prepaid expenses | 1 | |
Other receivables | 256 | |
Total assets | 2,968,821 | |
Liabilities | ||
Payable to custodian bank | $2 | |
Payable for investments purchased | 13,096 | |
Payable for fund shares redeemed | 4,143 | |
Accrued management fee | 777 | |
Distribution and service plan fees payable | 840 | |
Other affiliated payables | 533 | |
Other payables and accrued expenses | 168 | |
Collateral on securities loaned, at value | 102,892 | |
Total liabilities | 122,451 | |
Net Assets | $2,846,370 | |
Net Assets consist of: | ||
Paid in capital | $1,892,499 | |
Accumulated net investment loss | (4,745) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 122,703 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 835,913 | |
Net Assets | $2,846,370 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($587,982.83 ÷ 10,213.618 shares) | $57.57 | |
Maximum offering price per share (100/94.25 of $57.57) | $61.08 | |
Class T: | ||
Net Asset Value and redemption price per share ($1,326,295.82 ÷ 23,110.667 shares) | $57.39 | |
Maximum offering price per share (100/96.50 of $57.39) | $59.47 | |
Class B: | ||
Net Asset Value and offering price per share ($3,313.43 ÷ 64.170 shares)(a) | $51.64 | |
Class C: | ||
Net Asset Value and offering price per share ($213,503.59 ÷ 4,097.024 shares)(a) | $52.11 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($709,591.17 ÷ 11,686.370 shares) | $60.72 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($5,682.71 ÷ 93.190 shares) | $60.98 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $12,554 | |
Income from Fidelity Central Funds (including $2,016 from security lending) | 2,035 | |
Total income | 14,589 | |
Expenses | ||
Management fee | ||
Basic fee | $8,056 | |
Performance adjustment | (1,969) | |
Transfer agent fees | 2,829 | |
Distribution and service plan fees | 5,138 | |
Accounting and security lending fees | 448 | |
Custodian fees and expenses | 60 | |
Independent trustees' fees and expenses | 7 | |
Registration fees | 64 | |
Audit | 37 | |
Legal | 3 | |
Interest | 12 | |
Miscellaneous | 14 | |
Total expenses before reductions | 14,699 | |
Expense reductions | (52) | 14,647 |
Net investment income (loss) | (58) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 128,942 | |
Foreign currency transactions | 5 | |
Total net realized gain (loss) | 128,947 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (276,057) | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | (276,058) | |
Net gain (loss) | (147,111) | |
Net increase (decrease) in net assets resulting from operations | $(147,169) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(58) | $(6,115) |
Net realized gain (loss) | 128,947 | 500,028 |
Change in net unrealized appreciation (depreciation) | (276,058) | (309,232) |
Net increase (decrease) in net assets resulting from operations | (147,169) | 184,681 |
Distributions to shareholders from net realized gain | (371,619) | – |
Share transactions - net increase (decrease) | (69,137) | (483,133) |
Total increase (decrease) in net assets | (587,925) | (298,452) |
Net Assets | ||
Beginning of period | 3,434,295 | 3,732,747 |
End of period (including accumulated net investment loss of $4,745 and accumulated net investment loss of $4,687, respectively) | $2,846,370 | $3,434,295 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $66.87 | $63.52 | $54.89 | $41.34 | $35.39 | $32.30 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | (.08) | (.11) | (.10) | (.11) | (.08) |
Net realized and unrealized gain (loss) | (2.08) | 3.43 | 8.74 | 13.65 | 6.06 | 3.17 |
Total from investment operations | (2.06) | 3.35 | 8.63 | 13.55 | 5.95 | 3.09 |
Distributions from net realized gain | (7.24) | – | – | – | – | – |
Net asset value, end of period | $57.57 | $66.87 | $63.52 | $54.89 | $41.34 | $35.39 |
Total ReturnB,C,D | (3.49)% | 5.27% | 15.72% | 32.78% | 16.81% | 9.57% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .92%G | 1.05% | 1.08% | 1.23% | 1.30% | 1.08% |
Expenses net of fee waivers, if any | .92%G | 1.05% | 1.08% | 1.23% | 1.29% | 1.08% |
Expenses net of all reductions | .92%G | 1.05% | 1.08% | 1.23% | 1.29% | 1.07% |
Net investment income (loss) | .08%G | (.12)% | (.18)% | (.20)% | (.29)% | (.23)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $588 | $664 | $648 | $555 | $359 | $267 |
Portfolio turnover rateH | 68%G | 51% | 13% | 17% | 34% | 31% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $66.75 | $63.55 | $55.04 | $41.54 | $35.62 | $32.58 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | (.23) | (.24) | (.19) | (.19) | (.15) |
Net realized and unrealized gain (loss) | (2.08) | 3.43 | 8.75 | 13.69 | 6.11 | 3.19 |
Total from investment operations | (2.12) | 3.20 | 8.51 | 13.50 | 5.92 | 3.04 |
Distributions from net realized gain | (7.24) | – | – | – | – | – |
Net asset value, end of period | $57.39 | $66.75 | $63.55 | $55.04 | $41.54 | $35.62 |
Total ReturnB,C,D | (3.60)% | 5.04% | 15.46% | 32.50% | 16.62% | 9.33% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.15%G | 1.28% | 1.31% | 1.43% | 1.48% | 1.25% |
Expenses net of fee waivers, if any | 1.15%G | 1.28% | 1.31% | 1.43% | 1.48% | 1.25% |
Expenses net of all reductions | 1.14%G | 1.28% | 1.31% | 1.43% | 1.48% | 1.25% |
Net investment income (loss) | (.15)%G | (.35)% | (.40)% | (.40)% | (.48)% | (.40)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,326 | $1,461 | $1,504 | $1,426 | $1,187 | $1,102 |
Portfolio turnover rateH | 68%G | 51% | 13% | 17% | 34% | 31% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $60.95 | $58.39 | $50.87 | $38.62 | $33.31 | $30.64 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.19) | (.58) | (.55) | (.44) | (.39) | (.33) |
Net realized and unrealized gain (loss) | (1.88) | 3.14 | 8.07 | 12.69 | 5.70 | 3.00 |
Total from investment operations | (2.07) | 2.56 | 7.52 | 12.25 | 5.31 | 2.67 |
Distributions from net realized gain | (7.24) | – | – | – | – | – |
Net asset value, end of period | $51.64 | $60.95 | $58.39 | $50.87 | $38.62 | $33.31 |
Total ReturnB,C,D | (3.89)% | 4.38% | 14.78% | 31.72% | 15.94% | 8.71% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.76%G | 1.90% | 1.92% | 2.03% | 2.07% | 1.83% |
Expenses net of fee waivers, if any | 1.76%G | 1.90% | 1.92% | 2.03% | 2.05% | 1.83% |
Expenses net of all reductions | 1.76%G | 1.90% | 1.92% | 2.03% | 2.05% | 1.83% |
Net investment income (loss) | (.76)%G | (.97)% | (1.02)% | (1.00)% | (1.05)% | (.98)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $3 | $6 | $9 | $12 | $13 | $14 |
Portfolio turnover rateH | 68%G | 51% | 13% | 17% | 34% | 31% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $61.42 | $58.78 | $51.17 | $38.83 | $33.48 | $30.79 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.17) | (.52) | (.50) | (.42) | (.38) | (.33) |
Net realized and unrealized gain (loss) | (1.90) | 3.16 | 8.11 | 12.76 | 5.73 | 3.02 |
Total from investment operations | (2.07) | 2.64 | 7.61 | 12.34 | 5.35 | 2.69 |
Distributions from net realized gain | (7.24) | – | – | – | – | – |
Net asset value, end of period | $52.11 | $61.42 | $58.78 | $51.17 | $38.83 | $33.48 |
Total ReturnB,C,D | (3.86)% | 4.49% | 14.87% | 31.78% | 15.98% | 8.74% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.67%G | 1.80% | 1.83% | 1.96% | 2.04% | 1.82% |
Expenses net of fee waivers, if any | 1.67%G | 1.80% | 1.83% | 1.96% | 2.03% | 1.82% |
Expenses net of all reductions | 1.67%G | 1.80% | 1.83% | 1.96% | 2.02% | 1.82% |
Net investment income (loss) | (.67)%G | (.87)% | (.93)% | (.93)% | (1.02)% | (.97)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $214 | $238 | $212 | $159 | $71 | $47 |
Portfolio turnover rateH | 68%G | 51% | 13% | 17% | 34% | 31% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $70.05 | $66.35 | $57.18 | $42.94 | $36.63 | $33.33 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .11 | .05 | .05 | .01 | .05 |
Net realized and unrealized gain (loss) | (2.20) | 3.59 | 9.12 | 14.19 | 6.30 | 3.25 |
Total from investment operations | (2.09) | 3.70 | 9.17 | 14.24 | 6.31 | 3.30 |
Distributions from net realized gain | (7.24) | – | – | – | – | – |
Net asset value, end of period | $60.72 | $70.05 | $66.35 | $57.18 | $42.94 | $36.63 |
Total ReturnB,C | (3.36)% | 5.58% | 16.04% | 33.16% | 17.23% | 9.90% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .64%F | .77% | .81% | .93% | .97% | .72% |
Expenses net of fee waivers, if any | .64%F | .77% | .81% | .93% | .97% | .72% |
Expenses net of all reductions | .63%F | .77% | .81% | .93% | .97% | .72% |
Net investment income (loss) | .36%F | .16% | .09% | .09% | .04% | .13% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $710 | $1,061 | $1,357 | $1,112 | $475 | $215 |
Portfolio turnover rateG | 68%F | 51% | 13% | 17% | 34% | 31% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth Opportunities Fund Class Z
Six months ended (Unaudited) May 31, | Years ended November 30, | |||
2016 | 2015 | 2014 | 2013 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $70.27 | $66.48 | $57.20 | $53.30 |
Income from Investment Operations | ||||
Net investment income (loss)B | .14 | .20 | .14 | .02 |
Net realized and unrealized gain (loss) | (2.19) | 3.59 | 9.14 | 3.88 |
Total from investment operations | (2.05) | 3.79 | 9.28 | 3.90 |
Distributions from net realized gain | (7.24) | – | – | – |
Net asset value, end of period | $60.98 | $70.27 | $66.48 | $57.20 |
Total ReturnC,D | (3.29)% | 5.70% | 16.22% | 7.32% |
Ratios to Average Net AssetsE,F | ||||
Expenses before reductions | .51%G | .64% | .67% | .78%G |
Expenses net of fee waivers, if any | .50%G | .64% | .67% | .78%G |
Expenses net of all reductions | .50%G | .64% | .67% | .78%G |
Net investment income (loss) | .49%G | .29% | .24% | .14%G |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $5,683 | $4,597 | $2,955 | $107 |
Portfolio turnover rateH | 68%G | 51% | 13% | 17% |
A For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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, Class I and Class Z 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), deferred trustees compensation, net operating losses, 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 | $946,629 |
Gross unrealized depreciation | (133,139) |
Net unrealized appreciation (depreciation) on securities | $813,490 |
Tax cost | $2,125,642 |
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 $1,014,530 and $1,503,421, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to its benchmark index, the Russell 1000 Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $747 | $2 |
Class T | .25% | .25% | 3,294 | – |
Class B | .75% | .25% | 21 | 16 |
Class C | .75% | .25% | 1,076 | 117 |
$5,138 | $135 |
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 by FDC | |
Class A | $68 |
Class T | 18 |
Class B(a) | -(b) |
Class C(a) | 11 |
$97 |
(a) 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.
(b) In the amount of less than five hundred dollars.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $636 | .21 |
Class T | 1,245 | .19 |
Class B | 6 | .30 |
Class C | 227 | .21 |
Class I | 714 | .18 |
Class Z | 1 | .05 |
$2,829 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $36 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 or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $13,909 | .61% | $11 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $672. 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 and includes $59 from securities loaned to FCM.
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $8,396. The weighted average interest rate was .88%. The interest expense amounted to less than five hundred dollars under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $40 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of the fund-level operating expenses in the amount of $12.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net realized gain | ||
Class A | $72,319 | $– |
Class T | 159,664 | – |
Class B | 693 | – |
Class C | 28,156 | – |
Class I | 110,148 | – |
Class Z | 639 | – |
Total | $371,619 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 1,026 | 2,042 | $58,077 | $132,799 |
Reinvestment of distributions | 1,108 | – | 66,935 | – |
Shares redeemed | (1,852) | (2,310) | (103,030) | (150,069) |
Net increase (decrease) | 282 | (268) | $21,982 | $(17,270) |
Class T | ||||
Shares sold | 1,235 | 2,048 | $68,417 | $132,934 |
Reinvestment of distributions | 2,514 | – | 151,539 | – |
Shares redeemed | (2,528) | (3,816) | (140,198) | (247,857) |
Net increase (decrease) | 1,221 | (1,768) | $79,758 | $(114,923) |
Class B | ||||
Shares sold | 1 | 8 | $70 | $496 |
Reinvestment of distributions | 12 | – | 660 | – |
Shares redeemed | (45) | (60) | (2,252) | (3,572) |
Net increase (decrease) | (32) | (52) | $(1,522) | $(3,076) |
Class C | ||||
Shares sold | 467 | 976 | $24,340 | $58,121 |
Reinvestment of distributions | 428 | – | 23,474 | – |
Shares redeemed | (671) | (715) | (34,179) | (42,885) |
Net increase (decrease) | 224 | 261 | $13,635 | $15,236 |
Class I | ||||
Shares sold | 1,233 | 3,352 | $73,277 | $227,344 |
Reinvestment of distributions | 1,258 | – | 79,978 | – |
Shares redeemed | (5,947) | (8,670) | (338,196) | (591,814) |
Net increase (decrease) | (3,456) | (5,318) | $(184,941) | $(364,470) |
Class Z | ||||
Shares sold | 31 | 30 | $2,108 | $1,991 |
Reinvestment of distributions | 10 | – | 639 | – |
Shares redeemed | (13) | (9) | (796) | (621) |
Net increase (decrease) | 28 | 21 | $1,951 | $1,370 |
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.
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, 2015 to May 31, 2016).
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.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .92% | |||
Actual | $1,000.00 | $965.10 | $4.52 | |
Hypothetical-C | $1,000.00 | $1,020.40 | $4.65 | |
Class T | 1.15% | |||
Actual | $1,000.00 | $964.00 | $5.65 | |
Hypothetical-C | $1,000.00 | $1,019.25 | $5.81 | |
Class B | 1.76% | |||
Actual | $1,000.00 | $961.10 | $8.63 | |
Hypothetical-C | $1,000.00 | $1,016.20 | $8.87 | |
Class C | 1.67% | |||
Actual | $1,000.00 | $961.40 | $8.19 | |
Hypothetical-C | $1,000.00 | $1,016.65 | $8.42 | |
Class I | .64% | |||
Actual | $1,000.00 | $966.40 | $3.15 | |
Hypothetical-C | $1,000.00 | $1,021.80 | $3.23 | |
Class Z | .50% | |||
Actual | $1,000.00 | $967.10 | $2.46 | |
Hypothetical-C | $1,000.00 | $1,022.50 | $2.53 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
GO-SANN-0716
1.704615.118
Fidelity Advisor® Large Cap Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
JPMorgan Chase & Co. | 3.6 | 4.3 |
General Electric Co. | 2.9 | 3.6 |
Bank of America Corp. | 2.9 | 3.0 |
Microsoft Corp. | 2.7 | 2.8 |
Apple, Inc. | 2.6 | 3.4 |
Citigroup, Inc. | 2.4 | 2.6 |
Chevron Corp. | 2.0 | 1.8 |
Qualcomm, Inc. | 2.0 | 1.6 |
Procter & Gamble Co. | 1.9 | 1.8 |
Alphabet, Inc. Class A | 1.8 | 1.8 |
24.8 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Information Technology | 21.4 | 22.7 |
Financials | 20.6 | 21.8 |
Health Care | 13.6 | 12.4 |
Energy | 13.0 | 9.0 |
Industrials | 12.2 | 13.0 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 99.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 9.2%
As of November 30, 2015 * | ||
Stocks | 99.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.8% |
* Foreign investments - 9.6%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 8.6% | |||
Auto Components - 0.2% | |||
BorgWarner, Inc. | 42,000 | $1,429,260 | |
Johnson Controls, Inc. | 24,400 | 1,077,260 | |
2,506,520 | |||
Automobiles - 0.2% | |||
General Motors Co. | 15,700 | 491,096 | |
Harley-Davidson, Inc. | 12,200 | 565,958 | |
Tesla Motors, Inc. (a) | 5,600 | 1,250,088 | |
2,307,142 | |||
Hotels, Restaurants & Leisure - 0.5% | |||
Las Vegas Sands Corp. | 36,500 | 1,687,760 | |
Yum! Brands, Inc. | 54,138 | 4,444,188 | |
6,131,948 | |||
Household Durables - 0.5% | |||
KB Home | 307,900 | 4,292,126 | |
Taylor Morrison Home Corp. (a) | 148,000 | 2,205,200 | |
6,497,326 | |||
Leisure Products - 0.1% | |||
NJOY, Inc. (a)(b) | 417,590 | 53,452 | |
Polaris Industries, Inc. | 14,600 | 1,241,292 | |
1,294,744 | |||
Media - 4.5% | |||
Comcast Corp. Class A | 324,537 | 20,543,192 | |
Scripps Networks Interactive, Inc. Class A | 104,800 | 6,742,832 | |
Sinclair Broadcast Group, Inc. Class A | 86,400 | 2,732,832 | |
Time Warner, Inc. | 220,159 | 16,657,230 | |
Viacom, Inc. Class B (non-vtg.) | 184,800 | 8,199,576 | |
54,875,662 | |||
Multiline Retail - 1.4% | |||
Target Corp. | 240,440 | 16,537,463 | |
Specialty Retail - 1.1% | |||
Lowe's Companies, Inc. | 168,579 | 13,508,235 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Michael Kors Holdings Ltd. (a) | 19,300 | 824,496 | |
TOTAL CONSUMER DISCRETIONARY | 104,483,536 | ||
CONSUMER STAPLES - 6.0% | |||
Beverages - 1.8% | |||
Diageo PLC | 189,781 | 5,149,747 | |
The Coca-Cola Co. | 365,475 | 16,300,185 | |
21,449,932 | |||
Food & Staples Retailing - 1.0% | |||
CVS Health Corp. | 59,911 | 5,778,416 | |
United Natural Foods, Inc. (a) | 25,800 | 961,308 | |
Walgreens Boots Alliance, Inc. | 55,455 | 4,292,217 | |
Whole Foods Market, Inc. | 29,400 | 951,090 | |
11,983,031 | |||
Food Products - 0.2% | |||
Mead Johnson Nutrition Co. Class A | 37,000 | 3,044,360 | |
Household Products - 1.9% | |||
Procter & Gamble Co. | 282,752 | 22,914,222 | |
Tobacco - 1.1% | |||
British American Tobacco PLC sponsored ADR | 10,131 | 1,232,436 | |
Philip Morris International, Inc. | 119,729 | 11,814,858 | |
13,047,294 | |||
TOTAL CONSUMER STAPLES | 72,438,839 | ||
ENERGY - 13.0% | |||
Energy Equipment & Services - 1.6% | |||
Baker Hughes, Inc. | 92,100 | 4,271,598 | |
Ensco PLC Class A | 60,950 | 602,796 | |
Helmerich & Payne, Inc. (c) | 26,000 | 1,589,900 | |
National Oilwell Varco, Inc. | 149,332 | 4,920,489 | |
Oceaneering International, Inc. | 134,500 | 4,446,570 | |
Schlumberger Ltd. | 49,605 | 3,784,862 | |
19,616,215 | |||
Oil, Gas & Consumable Fuels - 11.4% | |||
Amyris, Inc. (a)(c) | 765,100 | 439,933 | |
Anadarko Petroleum Corp. | 50,200 | 2,603,372 | |
Apache Corp. | 204,010 | 11,657,131 | |
Cabot Oil & Gas Corp. | 199,200 | 4,774,824 | |
Cenovus Energy, Inc. | 370,700 | 5,588,698 | |
Chevron Corp. | 243,007 | 24,543,707 | |
ConocoPhillips Co. | 280,400 | 12,278,716 | |
Devon Energy Corp. | 43,600 | 1,573,524 | |
Energy Transfer Equity LP | 478,800 | 6,052,032 | |
Golar LNG Ltd. | 48,300 | 840,420 | |
Imperial Oil Ltd. | 265,700 | 8,467,307 | |
Kinder Morgan, Inc. | 465,400 | 8,414,432 | |
Legacy Reserves LP | 83,200 | 200,512 | |
MPLX LP | 5,176 | 165,114 | |
Noble Energy, Inc. | 24,600 | 879,450 | |
SM Energy Co. (c) | 108,900 | 3,432,528 | |
Suncor Energy, Inc. (c) | 648,600 | 17,914,586 | |
Teekay Offshore Partners LP | 88,600 | 559,066 | |
The Williams Companies, Inc. | 583,829 | 12,937,651 | |
Williams Partners LP | 468,800 | 14,964,096 | |
138,287,099 | |||
TOTAL ENERGY | 157,903,314 | ||
FINANCIALS - 20.6% | |||
Banks - 13.8% | |||
Bank of America Corp. | 2,374,400 | 35,117,376 | |
Citigroup, Inc. | 636,997 | 29,664,950 | |
Comerica, Inc. | 154,600 | 7,281,660 | |
Cullen/Frost Bankers, Inc. | 5,700 | 381,330 | |
Fifth Third Bancorp | 60,100 | 1,134,087 | |
JPMorgan Chase & Co. | 671,568 | 43,833,240 | |
PNC Financial Services Group, Inc. | 40,285 | 3,615,176 | |
Regions Financial Corp. | 976,000 | 9,594,080 | |
Standard Chartered PLC (United Kingdom) | 389,286 | 2,984,312 | |
SunTrust Banks, Inc. | 335,608 | 14,706,343 | |
U.S. Bancorp | 314,665 | 13,473,955 | |
Wells Fargo & Co. | 115,994 | 5,883,216 | |
167,669,725 | |||
Capital Markets - 5.1% | |||
Charles Schwab Corp. | 254,653 | 7,787,289 | |
Franklin Resources, Inc. | 28,500 | 1,064,475 | |
Goldman Sachs Group, Inc. | 9,300 | 1,483,164 | |
KKR & Co. LP | 321,036 | 4,337,196 | |
Legg Mason, Inc. | 31,500 | 1,086,750 | |
Morgan Stanley | 417,143 | 11,417,204 | |
Northern Trust Corp. | 161,286 | 11,951,293 | |
State Street Corp. | 285,458 | 18,000,981 | |
The Blackstone Group LP | 168,800 | 4,420,872 | |
61,549,224 | |||
Diversified Financial Services - 0.3% | |||
KKR Renaissance Co-Invest LP unit (a)(b) | 29,500 | 3,333,795 | |
Markit Ltd. (a) | 15,700 | 539,609 | |
3,873,404 | |||
Insurance - 0.7% | |||
Marsh & McLennan Companies, Inc. | 3,200 | 211,424 | |
MetLife, Inc. | 122,985 | 5,601,967 | |
Principal Financial Group, Inc. | 56,900 | 2,535,464 | |
8,348,855 | |||
Thrifts & Mortgage Finance - 0.7% | |||
MGIC Investment Corp. (a) | 254,092 | 1,791,349 | |
Radian Group, Inc. | 595,068 | 7,384,794 | |
9,176,143 | |||
TOTAL FINANCIALS | 250,617,351 | ||
HEALTH CARE - 13.6% | |||
Biotechnology - 3.5% | |||
AbbVie, Inc. | 55,300 | 3,480,029 | |
Alnylam Pharmaceuticals, Inc. (a) | 11,400 | 817,608 | |
Amgen, Inc. | 61,347 | 9,689,759 | |
Biogen, Inc. (a) | 29,800 | 8,633,954 | |
BioMarin Pharmaceutical, Inc. (a) | 25,600 | 2,295,040 | |
Celgene Corp. (a) | 41,900 | 4,421,288 | |
Celldex Therapeutics, Inc. (a) | 5,100 | 23,358 | |
Genocea Biosciences, Inc. (a) | 18,400 | 86,480 | |
Gilead Sciences, Inc. | 15,100 | 1,314,606 | |
Insmed, Inc. (a) | 65,264 | 770,115 | |
Intercept Pharmaceuticals, Inc. (a) | 42,031 | 6,235,719 | |
Spark Therapeutics, Inc. (a) | 18,700 | 1,046,265 | |
Vertex Pharmaceuticals, Inc. (a) | 33,300 | 3,101,895 | |
Windtree Therapeutics, Inc. (a)(c) | 38,252 | 99,838 | |
42,015,954 | |||
Health Care Equipment & Supplies - 3.3% | |||
Abbott Laboratories | 140,825 | 5,580,895 | |
Alere, Inc. (a) | 64,400 | 2,765,980 | |
Boston Scientific Corp. (a) | 756,586 | 17,182,068 | |
Medtronic PLC | 101,100 | 8,136,528 | |
NxStage Medical, Inc. (a) | 73,300 | 1,385,370 | |
Zimmer Biomet Holdings, Inc. | 38,400 | 4,689,024 | |
39,739,865 | |||
Health Care Providers & Services - 1.5% | |||
Cigna Corp. | 10,600 | 1,357,966 | |
Express Scripts Holding Co. (a) | 69,910 | 5,281,701 | |
McKesson Corp. | 62,996 | 11,537,087 | |
18,176,754 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 34,700 | 146,087 | |
Life Sciences Tools & Services - 0.4% | |||
Agilent Technologies, Inc. | 113,200 | 5,194,748 | |
Pharmaceuticals - 4.9% | |||
Allergan PLC (a) | 10,329 | 2,435,062 | |
Bristol-Myers Squibb Co. | 15,600 | 1,118,520 | |
GlaxoSmithKline PLC sponsored ADR | 451,439 | 19,127,470 | |
Jazz Pharmaceuticals PLC (a) | 41,107 | 6,230,177 | |
Johnson & Johnson | 113,963 | 12,842,490 | |
Novartis AG sponsored ADR | 1,600 | 127,216 | |
Sanofi SA | 13,555 | 1,114,117 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 269,691 | 13,988,872 | |
TherapeuticsMD, Inc. (a) | 353,800 | 3,162,972 | |
60,146,896 | |||
TOTAL HEALTH CARE | 165,420,304 | ||
INDUSTRIALS - 12.2% | |||
Aerospace & Defense - 1.6% | |||
General Dynamics Corp. | 3,600 | 510,732 | |
KEYW Holding Corp. (a) | 113,182 | 1,009,583 | |
The Boeing Co. | 80,263 | 10,125,177 | |
United Technologies Corp. | 72,972 | 7,339,524 | |
18,985,016 | |||
Air Freight & Logistics - 2.0% | |||
C.H. Robinson Worldwide, Inc. | 24,000 | 1,799,520 | |
FedEx Corp. | 39,500 | 6,516,315 | |
Hub Group, Inc. Class A (a) | 39,348 | 1,574,707 | |
United Parcel Service, Inc. Class B | 134,975 | 13,914,573 | |
23,805,115 | |||
Building Products - 0.1% | |||
Lennox International, Inc. | 5,200 | 714,220 | |
Commercial Services & Supplies - 0.2% | |||
Stericycle, Inc. (a) | 21,100 | 2,067,589 | |
Electrical Equipment - 1.2% | |||
AMETEK, Inc. | 93,330 | 4,463,041 | |
Eaton Corp. PLC | 29,400 | 1,811,922 | |
Emerson Electric Co. | 106,700 | 5,550,534 | |
Hubbell, Inc. Class B | 24,482 | 2,601,702 | |
14,427,199 | |||
Industrial Conglomerates - 2.9% | |||
General Electric Co. | 1,185,044 | 35,823,880 | |
Machinery - 1.1% | |||
Deere & Co. | 53,500 | 4,402,515 | |
Ingersoll-Rand PLC | 40,383 | 2,697,988 | |
Joy Global, Inc. (c) | 87,400 | 1,488,422 | |
Rexnord Corp. (a) | 151,900 | 3,150,406 | |
Wabtec Corp. | 7,600 | 588,088 | |
Xylem, Inc. | 16,800 | 750,288 | |
13,077,707 | |||
Professional Services - 0.3% | |||
Acacia Research Corp. (a) | 37,000 | 190,920 | |
IHS, Inc. Class A (a) | 3,300 | 405,669 | |
Verisk Analytics, Inc. (a) | 45,500 | 3,612,245 | |
4,208,834 | |||
Road & Rail - 2.7% | |||
Celadon Group, Inc. | 13,800 | 136,344 | |
CSX Corp. | 371,801 | 9,826,700 | |
Genesee & Wyoming, Inc. Class A (a) | 97,400 | 5,850,818 | |
J.B. Hunt Transport Services, Inc. | 62,800 | 5,194,816 | |
Kansas City Southern | 46,700 | 4,347,770 | |
Norfolk Southern Corp. | 36,558 | 3,073,065 | |
Old Dominion Freight Lines, Inc. (a) | 41,300 | 2,657,655 | |
Union Pacific Corp. | 19,200 | 1,616,448 | |
32,703,616 | |||
Trading Companies & Distributors - 0.1% | |||
United Rentals, Inc. (a) | 24,800 | 1,727,816 | |
TOTAL INDUSTRIALS | 147,540,992 | ||
INFORMATION TECHNOLOGY - 21.4% | |||
Communications Equipment - 1.7% | |||
Cisco Systems, Inc. | 714,154 | 20,746,174 | |
Electronic Equipment & Components - 0.1% | |||
Fitbit, Inc. | 75,200 | 1,066,336 | |
Internet Software & Services - 4.4% | |||
Alphabet, Inc.: | |||
Class A | 29,356 | 21,983,241 | |
Class C | 25,437 | 18,714,510 | |
Facebook, Inc. Class A (a) | 66,500 | 7,900,865 | |
LinkedIn Corp. Class A (a) | 600 | 81,900 | |
Twitter, Inc. (a)(c) | 109,000 | 1,658,980 | |
Yahoo!, Inc. (a) | 78,434 | 2,975,786 | |
53,315,282 | |||
IT Services - 5.1% | |||
Cognizant Technology Solutions Corp. Class A (a) | 34,984 | 2,149,417 | |
First Data Corp. (d) | 205,630 | 2,576,544 | |
First Data Corp. Class A (a) | 123,800 | 1,551,214 | |
IBM Corp. | 81,281 | 12,496,141 | |
MasterCard, Inc. Class A | 146,500 | 14,049,350 | |
Paychex, Inc. | 94,522 | 5,124,983 | |
PayPal Holdings, Inc. (a) | 67,200 | 2,539,488 | |
Unisys Corp. (a) | 281,562 | 2,376,383 | |
Visa, Inc. Class A | 234,720 | 18,528,797 | |
61,392,317 | |||
Semiconductors & Semiconductor Equipment - 2.1% | |||
Maxim Integrated Products, Inc. | 27,500 | 1,043,900 | |
Qualcomm, Inc. | 437,750 | 24,041,230 | |
25,085,130 | |||
Software - 3.8% | |||
Adobe Systems, Inc. (a) | 41,110 | 4,089,212 | |
Autodesk, Inc. (a) | 66,381 | 3,868,021 | |
Microsoft Corp. | 613,754 | 32,528,962 | |
Mobileye NV (a)(c) | 38,400 | 1,458,048 | |
Oracle Corp. | 110,550 | 4,444,110 | |
46,388,353 | |||
Technology Hardware, Storage & Peripherals - 4.2% | |||
Apple, Inc. | 314,921 | 31,448,011 | |
EMC Corp. | 523,900 | 14,643,005 | |
Western Digital Corp. | 116,200 | 5,407,948 | |
51,498,964 | |||
TOTAL INFORMATION TECHNOLOGY | 259,492,556 | ||
MATERIALS - 3.1% | |||
Chemicals - 2.5% | |||
CF Industries Holdings, Inc. | 49,900 | 1,380,234 | |
E.I. du Pont de Nemours & Co. | 48,215 | 3,153,743 | |
Ingevity Corp. (a) | 23,881 | 695,892 | |
Intrepid Potash, Inc. (a)(c) | 281,660 | 357,708 | |
LyondellBasell Industries NV Class A | 26,000 | 2,115,360 | |
Monsanto Co. | 132,317 | 14,881,693 | |
Potash Corp. of Saskatchewan, Inc. | 277,000 | 4,520,380 | |
W.R. Grace & Co. | 40,700 | 3,159,948 | |
30,264,958 | |||
Containers & Packaging - 0.5% | |||
WestRock Co. | 143,289 | 5,675,677 | |
Metals & Mining - 0.1% | |||
Freeport-McMoRan, Inc. (c) | 175,000 | 1,939,000 | |
TOTAL MATERIALS | 37,879,635 | ||
TELECOMMUNICATION SERVICES - 0.4% | |||
Diversified Telecommunication Services - 0.4% | |||
Verizon Communications, Inc. | 104,294 | 5,308,565 | |
UTILITIES - 0.9% | |||
Electric Utilities - 0.7% | |||
Exelon Corp. | 250,400 | 8,581,208 | |
Independent Power and Renewable Electricity Producers - 0.2% | |||
Dynegy, Inc. (a) | 142,200 | 2,679,048 | |
TOTAL UTILITIES | 11,260,256 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,060,101,235) | 1,212,345,348 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
ENERGY - 0.0% | |||
Oil, Gas & Consumable Fuels - 0.0% | |||
Amyris, Inc. 9.5% 4/15/19 (d) | |||
(Cost $676,000) | 676,000 | 418,698 | |
Shares | Value | ||
Money Market Funds - 2.2% | |||
Fidelity Securities Lending Cash Central Fund, 0.44% (e)(f) | |||
(Cost $26,393,117) | 26,393,117 | 26,393,117 | |
TOTAL INVESTMENT PORTFOLIO - 102.0% | |||
(Cost $1,087,170,352) | 1,239,157,163 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (24,041,578) | ||
NET ASSETS - 100% | $1,215,115,585 |
Legend
(a) Non-income producing
(b) 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 $3,387,247 or 0.3% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) 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 $2,995,242 or 0.2% of net assets.
(e) 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.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
KKR Renaissance Co-Invest LP unit | 7/25/13 | $3,112,250 |
NJOY, Inc. | 6/7/13 - 10/24/13 | $1,208,497 |
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 | $3,360 |
Fidelity Securities Lending Cash Central Fund | 131,398 |
Total | $134,758 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $104,483,536 | $104,430,084 | $-- | $53,452 |
Consumer Staples | 72,438,839 | 67,289,092 | 5,149,747 | -- |
Energy | 157,903,314 | 157,903,314 | -- | -- |
Financials | 250,617,351 | 247,283,556 | -- | 3,333,795 |
Health Care | 165,420,304 | 164,306,187 | 1,114,117 | -- |
Industrials | 147,540,992 | 147,540,992 | -- | -- |
Information Technology | 259,492,556 | 259,492,556 | -- | -- |
Materials | 37,879,635 | 37,879,635 | -- | -- |
Telecommunication Services | 5,308,565 | 5,308,565 | -- | -- |
Utilities | 11,260,256 | 11,260,256 | -- | -- |
Corporate Bonds | 418,698 | -- | 418,698 | -- |
Money Market Funds | 26,393,117 | 26,393,117 | -- | -- |
Total Investments in Securities: | $1,239,157,163 | $1,229,087,354 | $6,682,562 | $3,387,247 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2016 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $25,278,585) — See accompanying schedule: Unaffiliated issuers (cost $1,060,777,235) | $1,212,764,046 | |
Fidelity Central Funds (cost $26,393,117) | 26,393,117 | |
Total Investments (cost $1,087,170,352) | $1,239,157,163 | |
Receivable for investments sold | 5,006,039 | |
Receivable for fund shares sold | 789,824 | |
Dividends receivable | 2,594,666 | |
Interest receivable | 8,206 | |
Distributions receivable from Fidelity Central Funds | 18,308 | |
Prepaid expenses | 487 | |
Other receivables | 8,659 | |
Total assets | 1,247,583,352 | |
Liabilities | ||
Payable to custodian bank | $613,601 | |
Payable for investments purchased | 2,363,153 | |
Payable for fund shares redeemed | 2,117,792 | |
Accrued management fee | 416,504 | |
Distribution and service plan fees payable | 297,004 | |
Other affiliated payables | 233,945 | |
Other payables and accrued expenses | 32,651 | |
Collateral on securities loaned, at value | 26,393,117 | |
Total liabilities | 32,467,767 | |
Net Assets | $1,215,115,585 | |
Net Assets consist of: | ||
Paid in capital | $1,064,800,408 | |
Undistributed net investment income | 6,475,408 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (8,143,280) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 151,983,049 | |
Net Assets | $1,215,115,585 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($447,716,693 ÷ 16,335,615 shares) | $27.41 | |
Maximum offering price per share (100/94.25 of $27.41) | $29.08 | |
Class T: | ||
Net Asset Value and redemption price per share ($168,763,084 ÷ 6,169,827 shares) | $27.35 | |
Maximum offering price per share (100/96.50 of $27.35) | $28.34 | |
Class B: | ||
Net Asset Value and offering price per share ($3,010,837 ÷ 117,980 shares)(a) | $25.52 | |
Class C: | ||
Net Asset Value and offering price per share ($163,609,788 ÷ 6,524,861 shares)(a) | $25.07 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($432,015,183 ÷ 15,129,618 shares) | $28.55 |
(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.
Statement of Operations
Six months ended May 31, 2016 (Unaudited) | ||
Investment Income | ||
Dividends | $13,038,326 | |
Interest | 31,948 | |
Income from Fidelity Central Funds | 134,758 | |
Total income | 13,205,032 | |
Expenses | ||
Management fee | ||
Basic fee | $3,270,336 | |
Performance adjustment | (698,226) | |
Transfer agent fees | 1,212,442 | |
Distribution and service plan fees | 1,771,373 | |
Accounting and security lending fees | 193,480 | |
Custodian fees and expenses | 25,633 | |
Independent trustees' fees and expenses | 2,673 | |
Registration fees | 50,374 | |
Audit | 30,657 | |
Legal | 3,695 | |
Interest | 501 | |
Miscellaneous | 5,626 | |
Total expenses before reductions | 5,868,564 | |
Expense reductions | (24,681) | 5,843,883 |
Net investment income (loss) | 7,361,149 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (3,955,995) | |
Foreign currency transactions | 9,667 | |
Total net realized gain (loss) | (3,946,328) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (3,774,619) | |
Assets and liabilities in foreign currencies | 1,348 | |
Total change in net unrealized appreciation (depreciation) | (3,773,271) | |
Net gain (loss) | (7,719,599) | |
Net increase (decrease) in net assets resulting from operations | $(358,450) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $7,361,149 | $11,443,757 |
Net realized gain (loss) | (3,946,328) | 29,727,618 |
Change in net unrealized appreciation (depreciation) | (3,773,271) | (64,007,130) |
Net increase (decrease) in net assets resulting from operations | (358,450) | (22,835,755) |
Distributions to shareholders from net investment income | (10,152,553) | (5,828,260) |
Distributions to shareholders from net realized gain | (28,234,854) | (37,026,970) |
Total distributions | (38,387,407) | (42,855,230) |
Share transactions - net increase (decrease) | (77,921,142) | 119,504,310 |
Total increase (decrease) in net assets | (116,666,999) | 53,813,325 |
Net Assets | ||
Beginning of period | 1,331,782,584 | 1,277,969,259 |
End of period (including undistributed net investment income of $6,475,408 and undistributed net investment income of $9,266,812, respectively) | $1,215,115,585 | $1,331,782,584 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Large Cap Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.12 | $29.60 | $28.11 | $20.43 | $17.57 | $16.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .17 | .25 | .20 | .16 | .15 | .09 |
Net realized and unrealized gain (loss) | (.05) | (.74) | 3.45 | 7.61 | 3.30 | .87 |
Total from investment operations | .12 | (.49) | 3.65 | 7.77 | 3.45 | .96 |
Distributions from net investment income | (.23) | (.14) | (.22) | (.02) | (.18) | (.06) |
Distributions from net realized gain | (.60) | (.85) | (1.94) | (.07) | (.41) | (.02) |
Total distributions | (.83) | (.99) | (2.16) | (.09) | (.59) | (.08) |
Net asset value, end of period | $27.41 | $28.12 | $29.60 | $28.11 | $20.43 | $17.57 |
Total ReturnB,C,D | .60% | (1.57)% | 14.13% | 38.16% | 19.69% | 5.73% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .94%G | 1.15% | 1.30% | 1.26% | 1.25% | 1.29% |
Expenses net of fee waivers, if any | .94%G | 1.15% | 1.25% | 1.26% | 1.25% | 1.29% |
Expenses net of all reductions | .93%G | 1.15% | 1.25% | 1.24% | 1.24% | 1.28% |
Net investment income (loss) | 1.28%G | .90% | .72% | .68% | .76% | .49% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $447,717 | $469,026 | $414,421 | $214,686 | $123,303 | $103,670 |
Portfolio turnover rateH | 27%G | 31% | 28% | 54% | 59% | 83% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Large Cap Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.02 | $29.50 | $28.02 | $20.41 | $17.51 | $16.63 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .13 | .18 | .13 | .10 | .10 | .04 |
Net realized and unrealized gain (loss) | (.04) | (.74) | 3.44 | 7.59 | 3.29 | .87 |
Total from investment operations | .09 | (.56) | 3.57 | 7.69 | 3.39 | .91 |
Distributions from net investment income | (.16) | (.07) | (.15) | (.01) | (.10) | –B |
Distributions from net realized gain | (.60) | (.85) | (1.94) | (.07) | (.39) | (.02) |
Total distributions | (.76) | (.92) | (2.09) | (.08) | (.49) | (.03)C |
Net asset value, end of period | $27.35 | $28.02 | $29.50 | $28.02 | $20.41 | $17.51 |
Total ReturnD,E,F | .45% | (1.84)% | 13.83% | 37.82% | 19.39% | 5.44% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.20%I | 1.41% | 1.56% | 1.51% | 1.49% | 1.54% |
Expenses net of fee waivers, if any | 1.20%I | 1.41% | 1.50% | 1.51% | 1.49% | 1.54% |
Expenses net of all reductions | 1.20%I | 1.41% | 1.50% | 1.49% | 1.49% | 1.53% |
Net investment income (loss) | 1.02%I | .63% | .47% | .42% | .52% | .24% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $168,763 | $177,560 | $170,613 | $114,864 | $76,151 | $69,678 |
Portfolio turnover rateJ | 27%I | 31% | 28% | 54% | 59% | 83% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Large Cap Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.11 | $27.52 | $26.24 | $19.21 | $16.49 | $15.72 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .01 | (.01) | (.03) | –B | (.05) |
Net realized and unrealized gain (loss) | (.04) | (.69) | 3.23 | 7.13 | 3.10 | .82 |
Total from investment operations | .01 | (.68) | 3.22 | 7.10 | 3.10 | .77 |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.60) | (.73) | (1.94) | (.07) | (.38) | – |
Total distributions | (.60) | (.73) | (1.94) | (.07) | (.38) | – |
Net asset value, end of period | $25.52 | $26.11 | $27.52 | $26.24 | $19.21 | $16.49 |
Total ReturnC,D,E | .16% | (2.42)% | 13.30% | 37.08% | 18.77% | 4.90% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.79%H | 2.00% | 2.16% | 2.06% | 2.02% | 2.04% |
Expenses net of fee waivers, if any | 1.79%H | 1.99% | 2.00% | 2.06% | 2.02% | 2.04% |
Expenses net of all reductions | 1.78%H | 1.99% | 2.00% | 2.05% | 2.01% | 2.04% |
Net investment income (loss) | .43%H | .05% | (.03)% | (.13)% | (.01)% | (.26)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $3,011 | $4,835 | $8,401 | $10,499 | $10,535 | $12,839 |
Portfolio turnover rateI | 27%H | 31% | 28% | 54% | 59% | 83% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Large Cap Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.70 | $27.21 | $26.07 | $19.08 | $16.41 | $15.65 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .06 | .04 | (.01) | (.02) | –B | (.04) |
Net realized and unrealized gain (loss) | (.05) | (.69) | 3.19 | 7.08 | 3.09 | .80 |
Total from investment operations | .01 | (.65) | 3.18 | 7.06 | 3.09 | .76 |
Distributions from net investment income | (.04) | (.01) | (.10) | –B | (.03) | – |
Distributions from net realized gain | (.60) | (.85) | (1.94) | (.07) | (.39) | – |
Total distributions | (.64) | (.86) | (2.04) | (.07) | (.42) | – |
Net asset value, end of period | $25.07 | $25.70 | $27.21 | $26.07 | $19.08 | $16.41 |
Total ReturnC,D,E | .18% | (2.33)% | 13.31% | 37.14% | 18.83% | 4.86% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.69%H | 1.90% | 2.05% | 2.00% | 2.00% | 2.03% |
Expenses net of fee waivers, if any | 1.69%H | 1.90% | 2.00% | 2.00% | 2.00% | 2.03% |
Expenses net of all reductions | 1.69%H | 1.90% | 2.00% | 1.99% | 1.99% | 2.03% |
Net investment income (loss) | .53%H | .14% | (.03)% | (.07)% | .01% | (.25)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $163,610 | $181,957 | $168,763 | $67,780 | $28,856 | $24,197 |
Portfolio turnover rateI | 27%H | 31% | 28% | 54% | 59% | 83% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Large Cap Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.30 | $30.78 | $29.03 | $21.03 | $18.13 | $17.22 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .21 | .34 | .28 | .24 | .22 | .15 |
Net realized and unrealized gain (loss) | (.06) | (.78) | 3.59 | 7.85 | 3.40 | .89 |
Total from investment operations | .15 | (.44) | 3.87 | 8.09 | 3.62 | 1.04 |
Distributions from net investment income | (.30) | (.20) | (.18) | (.02) | (.31) | (.11) |
Distributions from net realized gain | (.60) | (.85) | (1.94) | (.07) | (.41) | (.02) |
Total distributions | (.90) | (1.04)B | (2.12) | (.09) | (.72) | (.13) |
Net asset value, end of period | $28.55 | $29.30 | $30.78 | $29.03 | $21.03 | $18.13 |
Total ReturnC,D | .69% | (1.33)% | 14.43% | 38.62% | 20.10% | 6.03% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .68%G | .89% | 1.04% | .95% | .91% | .95% |
Expenses net of fee waivers, if any | .68%G | .89% | 1.00% | .95% | .91% | .95% |
Expenses net of all reductions | .67%G | .89% | 1.00% | .94% | .91% | .94% |
Net investment income (loss) | 1.54%G | 1.15% | .97% | .98% | 1.10% | .83% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $432,015 | $498,404 | $515,771 | $242,897 | $1,071,491 | $1,013,999 |
Portfolio turnover rateH | 27%G | 31% | 28% | 54% | 59% | 83% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.04 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.849 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
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 Class I, 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to partnerships, foreign currency transactions, deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $232,150,694 |
Gross unrealized depreciation | (86,943,993) |
Net unrealized appreciation (depreciation) on securities | $145,206,701 |
Tax cost | $1,093,950,462 |
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 $164,851,891 and $264,429,853, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .43% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $535,147 | $11,367 |
Class T | .25% | .25% | 408,218 | – |
Class B | .75% | .25% | 18,037 | 13,583 |
Class C | .75% | .25% | 809,971 | 133,613 |
$1,771,373 | $158,563 |
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 by FDC | |
Class A | $62,175 |
Class T | 10,246 |
Class B(a) | 280 |
Class C(a) | 15,709 |
$88,410 |
(a) 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of 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-Level Average Net Assets(a) | |
Class A | $437,113 | .20 |
Class T | 179,882 | .22 |
Class B | 5,493 | .30 |
Class C | 170,247 | .21 |
Class I | 419,707 | .19 |
$1,212,442 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $5,405 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 or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $3,920,625 | .56% | $489 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,080 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $131,398, including $194 from securities loaned to FCM.
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $556,000. The weighted average interest rate was .80%. The interest expense amounted to $12 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $20,078 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $4,603.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $3,826,802 | $2,028,918 |
Class T | 981,442 | 401,622 |
Class C | 295,369 | 82,446 |
Class I | 5,048,940 | 3,315,274 |
Total | $10,152,553 | $5,828,260 |
From net realized gain | ||
Class A | $9,966,960 | $12,045,812 |
Class T | 3,809,644 | 4,941,694 |
Class B | 110,345 | 220,894 |
Class C | 4,228,922 | 5,384,378 |
Class I | 10,118,983 | 14,434,192 |
Total | $28,234,854 | $37,026,970 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 2,160,228 | 6,318,731 | $55,641,623 | $179,805,007 |
Reinvestment of distributions | 506,726 | 488,972 | 13,174,015 | 13,432,055 |
Shares redeemed | (3,010,465) | (4,126,969) | (77,611,093) | (116,797,696) |
Net increase (decrease) | (343,511) | 2,680,734 | $(8,795,455) | $76,439,366 |
Class T | ||||
Shares sold | 476,905 | 1,467,747 | $12,193,216 | $41,749,475 |
Reinvestment of distributions | 178,869 | 188,811 | 4,645,613 | 5,182,860 |
Shares redeemed | (822,131) | (1,103,079) | (21,029,401) | (31,222,052) |
Net increase (decrease) | (166,357) | 553,479 | $(4,190,572) | $15,710,283 |
Class B | ||||
Shares sold | 1,731 | 8,184 | $41,926 | $216,847 |
Reinvestment of distributions | 4,310 | 8,005 | 104,666 | 205,898 |
Shares redeemed | (73,255) | (136,299) | (1,744,132) | (3,621,450) |
Net increase (decrease) | (67,214) | (120,110) | $(1,597,540) | $(3,198,705) |
Class C | ||||
Shares sold | 467,604 | 2,311,592 | $10,999,034 | $60,389,767 |
Reinvestment of distributions | 161,472 | 182,523 | 3,852,174 | 4,616,012 |
Shares redeemed | (1,184,730) | (1,616,562) | (27,874,165) | (41,900,226) |
Net increase (decrease) | (555,654) | 877,553 | $(13,022,957) | $23,105,553 |
Class I | ||||
Shares sold | 1,989,220 | 7,784,685 | $52,977,480 | $230,249,704 |
Reinvestment of distributions | 510,015 | 563,541 | 13,796,737 | 16,089,097 |
Shares redeemed | (4,382,433) | (8,094,060) | (117,088,835) | (238,890,988) |
Net increase (decrease) | (1,883,198) | 254,166 | $(50,314,618) | $7,447,813 |
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.
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, 2015 to May 31, 2016).
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.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .94% | |||
Actual | $1,000.00 | $1,006.00 | $4.71 | |
Hypothetical-C | $1,000.00 | $1,020.30 | $4.75 | |
Class T | 1.20% | |||
Actual | $1,000.00 | $1,004.50 | $6.01 | |
Hypothetical-C | $1,000.00 | $1,019.00 | $6.06 | |
Class B | 1.79% | |||
Actual | $1,000.00 | $1,001.60 | $8.96 | |
Hypothetical-C | $1,000.00 | $1,016.05 | $9.02 | |
Class C | 1.69% | |||
Actual | $1,000.00 | $1,001.80 | $8.46 | |
Hypothetical-C | $1,000.00 | $1,016.55 | $8.52 | |
Class I | .68% | |||
Actual | $1,000.00 | $1,006.90 | $3.41 | |
Hypothetical-C | $1,000.00 | $1,021.60 | $3.44 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
LC-SANN-0716
1.704742.118
Fidelity Advisor® Stock Selector Mid Cap Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
AMETEK, Inc. | 3.9 | 3.5 |
Roper Technologies, Inc. | 3.5 | 3.2 |
Ecolab, Inc. | 1.8 | 1.5 |
Teledyne Technologies, Inc. | 1.7 | 1.3 |
IDEX Corp. | 1.5 | 2.5 |
Arthur J. Gallagher & Co. | 1.5 | 1.2 |
Capital One Financial Corp. | 1.4 | 1.4 |
Verisk Analytics, Inc. | 1.4 | 0.0 |
PPG Industries, Inc. | 1.3 | 1.5 |
Dollar General Corp. | 1.2 | 0.9 |
19.2 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 25.2 | 24.8 |
Information Technology | 16.7 | 16.9 |
Industrials | 14.1 | 14.8 |
Consumer Discretionary | 12.0 | 13.1 |
Health Care | 8.8 | 8.3 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016 * | ||
Stocks and Equity Futures | 97.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.1% |
* Foreign investments - 5.2%
As of November 30, 2015 * | ||
Stocks and Equity Futures | 96.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.2% |
* Foreign investments - 6.0%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.0% | |||
Distributors - 0.8% | |||
LKQ Corp. (a) | 497,500 | $16,452 | |
Hotels, Restaurants & Leisure - 1.3% | |||
Dunkin' Brands Group, Inc. | 453,900 | 19,649 | |
Wyndham Worldwide Corp. | 107,800 | 7,265 | |
26,914 | |||
Household Durables - 1.1% | |||
Newell Brands, Inc. | 216,858 | 10,342 | |
NVR, Inc. (a) | 7,200 | 12,478 | |
22,820 | |||
Internet & Catalog Retail - 0.7% | |||
HSN, Inc. | 199,300 | 10,437 | |
Liberty Interactive Corp. QVC Group Series A (a) | 141,210 | 3,810 | |
14,247 | |||
Leisure Products - 0.5% | |||
Polaris Industries, Inc. (b) | 125,400 | 10,662 | |
Media - 3.1% | |||
AMC Networks, Inc. Class A (a) | 165,000 | 10,550 | |
Discovery Communications, Inc. Class A (a) | 443,200 | 12,343 | |
Live Nation Entertainment, Inc. (a) | 317,300 | 7,663 | |
Omnicom Group, Inc. | 118,000 | 9,833 | |
Scripps Networks Interactive, Inc. Class A | 222,200 | 14,296 | |
Viacom, Inc. Class B (non-vtg.) | 149,100 | 6,616 | |
61,301 | |||
Multiline Retail - 1.2% | |||
Dollar General Corp. | 270,100 | 24,282 | |
Specialty Retail - 2.2% | |||
AutoZone, Inc. (a) | 10,300 | 7,851 | |
GameStop Corp. Class A | 277,300 | 8,069 | |
O'Reilly Automotive, Inc. (a) | 37,700 | 9,969 | |
Ross Stores, Inc. | 325,700 | 17,392 | |
43,281 | |||
Textiles, Apparel & Luxury Goods - 1.1% | |||
PVH Corp. | 149,500 | 14,023 | |
Ralph Lauren Corp. | 90,000 | 8,490 | |
22,513 | |||
TOTAL CONSUMER DISCRETIONARY | 242,472 | ||
CONSUMER STAPLES - 4.2% | |||
Beverages - 0.8% | |||
Coca-Cola European Partners PLC | 98,500 | 3,823 | |
Dr. Pepper Snapple Group, Inc. | 49,300 | 4,506 | |
Molson Coors Brewing Co. Class B | 83,600 | 8,291 | |
16,620 | |||
Food & Staples Retailing - 0.5% | |||
United Natural Foods, Inc. (a) | 169,200 | 6,304 | |
Whole Foods Market, Inc. | 96,800 | 3,131 | |
9,435 | |||
Food Products - 1.1% | |||
ConAgra Foods, Inc. | 117,500 | 5,370 | |
Mead Johnson Nutrition Co. Class A | 67,900 | 5,587 | |
WhiteWave Foods Co. (a) | 235,300 | 10,506 | |
21,463 | |||
Household Products - 1.1% | |||
Church & Dwight Co., Inc. | 108,100 | 10,646 | |
Energizer Holdings, Inc. | 232,700 | 11,014 | |
21,660 | |||
Personal Products - 0.6% | |||
Coty, Inc. Class A | 83,300 | 2,194 | |
Edgewell Personal Care Co. (a) | 133,500 | 10,604 | |
12,798 | |||
Tobacco - 0.1% | |||
Universal Corp. | 37,100 | 2,029 | |
TOTAL CONSUMER STAPLES | 84,005 | ||
ENERGY - 3.2% | |||
Energy Equipment & Services - 1.1% | |||
Dril-Quip, Inc. (a) | 137,400 | 8,386 | |
Nabors Industries Ltd. | 622,300 | 5,850 | |
Oil States International, Inc. (a) | 221,000 | 7,262 | |
21,498 | |||
Oil, Gas & Consumable Fuels - 2.1% | |||
Cabot Oil & Gas Corp. | 60,800 | 1,457 | |
Cimarex Energy Co. | 56,600 | 6,581 | |
Energen Corp. | 189,800 | 9,038 | |
HollyFrontier Corp. | 366,300 | 9,802 | |
PDC Energy, Inc. (a) | 75,100 | 4,360 | |
Whiting Petroleum Corp. (a) | 428,400 | 5,291 | |
WPX Energy, Inc. (a) | 588,500 | 6,056 | |
42,585 | |||
TOTAL ENERGY | 64,083 | ||
FINANCIALS - 25.2% | |||
Banks - 5.0% | |||
Aldermore Group PLC (a) | 1,920,700 | 6,012 | |
CIT Group, Inc. | 200,000 | 6,852 | |
Comerica, Inc. | 126,100 | 5,939 | |
FirstMerit Corp. | 409,900 | 9,297 | |
Huntington Bancshares, Inc. | 2,251,078 | 23,524 | |
Prosperity Bancshares, Inc. | 165,200 | 8,896 | |
Shawbrook Group PLC (a) | 1,401,100 | 5,986 | |
Signature Bank (a) | 108,100 | 14,594 | |
Synovus Financial Corp. | 539,027 | 17,340 | |
The Jammu & Kashmir Bank Ltd. | 2,407,373 | 2,051 | |
100,491 | |||
Capital Markets - 0.8% | |||
Fortress Investment Group LLC | 435,700 | 2,200 | |
Interactive Brokers Group, Inc. | 238,667 | 9,590 | |
KCG Holdings, Inc. Class A (a) | 150,644 | 2,120 | |
Stifel Financial Corp. (a) | 40,000 | 1,511 | |
15,421 | |||
Consumer Finance - 3.0% | |||
Capital One Financial Corp. | 391,600 | 28,681 | |
Enova International, Inc. (a) | 268,767 | 1,957 | |
Navient Corp. | 653,116 | 8,954 | |
OneMain Holdings, Inc. (a) | 252,380 | 7,889 | |
SLM Corp. (a) | 2,056,916 | 14,131 | |
61,612 | |||
Diversified Financial Services - 1.6% | |||
Bats Global Markets, Inc. | 5,500 | 153 | |
MSCI, Inc. Class A | 302,400 | 24,128 | |
On Deck Capital, Inc. (a)(b) | 1,667,958 | 8,623 | |
32,904 | |||
Insurance - 4.4% | |||
Allied World Assurance Co. Holdings AG | 200,000 | 7,416 | |
Arthur J. Gallagher & Co. | 626,300 | 30,269 | |
Direct Line Insurance Group PLC | 2,404,758 | 13,071 | |
Employers Holdings, Inc. | 150,000 | 4,478 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 20,400 | 10,483 | |
Hanover Insurance Group, Inc. | 112,900 | 9,786 | |
Principal Financial Group, Inc. | 183,300 | 8,168 | |
ProAssurance Corp. | 81,200 | 4,262 | |
87,933 | |||
Real Estate Investment Trusts - 9.5% | |||
Altisource Residential Corp. Class B | 507,921 | 5,089 | |
Communications Sales & Leasing, Inc. | 176,300 | 4,404 | |
DCT Industrial Trust, Inc. | 352,800 | 15,216 | |
Douglas Emmett, Inc. | 424,500 | 14,386 | |
Equity Lifestyle Properties, Inc. | 138,000 | 10,115 | |
Extra Space Storage, Inc. | 65,200 | 6,062 | |
FelCor Lodging Trust, Inc. | 1,097,100 | 7,252 | |
Healthcare Realty Trust, Inc. | 401,600 | 12,767 | |
Liberty Property Trust (SBI) | 158,753 | 5,925 | |
Mack-Cali Realty Corp. | 627,900 | 16,476 | |
Mid-America Apartment Communities, Inc. | 206,250 | 21,242 | |
Outfront Media, Inc. | 293,900 | 6,536 | |
Pennsylvania Real Estate Investment Trust (SBI) | 526,600 | 11,111 | |
Potlatch Corp. | 164,000 | 5,606 | |
Ramco-Gershenson Properties Trust (SBI) | 340,000 | 6,123 | |
Redwood Trust, Inc. | 358,100 | 5,103 | |
Sabra Health Care REIT, Inc. | 413,400 | 8,657 | |
The GEO Group, Inc. | 92,550 | 3,078 | |
Urban Edge Properties | 499,800 | 13,420 | |
VEREIT, Inc. | 1,341,400 | 12,864 | |
191,432 | |||
Real Estate Management & Development - 0.3% | |||
CBRE Group, Inc. (a) | 191,950 | 5,730 | |
Thrifts & Mortgage Finance - 0.6% | |||
Essent Group Ltd. (a) | 301,300 | 6,586 | |
LIC Housing Finance Ltd. | 719,652 | 5,038 | |
11,624 | |||
TOTAL FINANCIALS | 507,147 | ||
HEALTH CARE - 8.8% | |||
Biotechnology - 0.8% | |||
Puma Biotechnology, Inc. (a) | 65,000 | 2,456 | |
Vertex Pharmaceuticals, Inc. (a) | 152,000 | 14,159 | |
16,615 | |||
Health Care Equipment & Supplies - 3.9% | |||
Boston Scientific Corp. (a) | 700,000 | 15,897 | |
Nevro Corp. (a) | 101,591 | 7,083 | |
The Cooper Companies, Inc. | 125,000 | 20,351 | |
The Spectranetics Corp. (a) | 550,000 | 10,076 | |
Wright Medical Group NV (a) | 620,000 | 11,991 | |
Zimmer Biomet Holdings, Inc. | 100,500 | 12,272 | |
77,670 | |||
Health Care Providers & Services - 2.4% | |||
Adeptus Health, Inc. Class A (a)(b) | 100,000 | 7,150 | |
American Renal Associates Holdings, Inc. | 400,000 | 11,196 | |
AmSurg Corp. (a) | 140,000 | 10,471 | |
MEDNAX, Inc. (a) | 200,000 | 13,690 | |
Surgical Care Affiliates, Inc. (a) | 150,000 | 6,716 | |
49,223 | |||
Life Sciences Tools & Services - 0.6% | |||
Agilent Technologies, Inc. | 240,000 | 11,014 | |
Pharmaceuticals - 1.1% | |||
Catalent, Inc. (a) | 620,000 | 17,434 | |
Endo International PLC (a) | 320,000 | 5,059 | |
22,493 | |||
TOTAL HEALTH CARE | 177,015 | ||
INDUSTRIALS - 14.1% | |||
Aerospace & Defense - 1.7% | |||
Teledyne Technologies, Inc. (a) | 344,936 | 33,849 | |
Electrical Equipment - 5.0% | |||
AMETEK, Inc. | 1,629,472 | 77,922 | |
Hubbell, Inc. Class B | 210,600 | 22,380 | |
100,302 | |||
Industrial Conglomerates - 3.5% | |||
Roper Technologies, Inc. | 408,386 | 69,867 | |
Machinery - 1.5% | |||
IDEX Corp. | 367,200 | 30,602 | |
Professional Services - 1.4% | |||
Verisk Analytics, Inc. (a) | 360,077 | 28,587 | |
Trading Companies & Distributors - 1.0% | |||
AerCap Holdings NV (a) | 58,500 | 2,287 | |
MSC Industrial Direct Co., Inc. Class A | 252,400 | 18,917 | |
21,204 | |||
TOTAL INDUSTRIALS | 284,411 | ||
INFORMATION TECHNOLOGY - 16.7% | |||
Communications Equipment - 0.3% | |||
F5 Networks, Inc. (a) | 51,230 | 5,646 | |
Electronic Equipment & Components - 2.9% | |||
CDW Corp. | 238,500 | 10,151 | |
IPG Photonics Corp. (a) | 116,500 | 10,063 | |
Jabil Circuit, Inc. | 768,300 | 14,659 | |
Trimble Navigation Ltd. (a) | 666,600 | 17,052 | |
Zebra Technologies Corp. Class A (a) | 111,700 | 5,932 | |
57,857 | |||
Internet Software & Services - 2.0% | |||
Akamai Technologies, Inc. (a) | 80,800 | 4,410 | |
Box, Inc. Class A (a)(b) | 196,000 | 2,462 | |
LinkedIn Corp. Class A (a) | 30,500 | 4,163 | |
Marketo, Inc. (a) | 229,050 | 8,069 | |
Rackspace Hosting, Inc. (a) | 699,400 | 17,485 | |
SPS Commerce, Inc. (a) | 83,100 | 4,529 | |
Velti PLC (a)(c) | 215,084 | 1 | |
41,119 | |||
IT Services - 3.9% | |||
Alliance Data Systems Corp. (a) | 76,700 | 17,042 | |
Blackhawk Network Holdings, Inc. (a) | 170,000 | 5,851 | |
Cognizant Technology Solutions Corp. Class A (a) | 164,500 | 10,107 | |
EPAM Systems, Inc. (a) | 114,400 | 8,753 | |
Global Payments, Inc. | 203,300 | 15,794 | |
Maximus, Inc. | 270,500 | 15,594 | |
PayPal Holdings, Inc. (a) | 119,800 | 4,527 | |
77,668 | |||
Semiconductors & Semiconductor Equipment - 2.6% | |||
Applied Materials, Inc. | 11,100 | 271 | |
Cirrus Logic, Inc. (a) | 137,000 | 4,932 | |
Cree, Inc. (a)(b) | 328,900 | 7,920 | |
Lam Research Corp. | 2,927 | 242 | |
Micron Technology, Inc. (a) | 458,600 | 5,833 | |
NXP Semiconductors NV (a) | 133,300 | 12,596 | |
Qorvo, Inc. (a) | 191,900 | 9,781 | |
Skyworks Solutions, Inc. | 160,800 | 10,735 | |
52,310 | |||
Software - 4.3% | |||
CommVault Systems, Inc. (a) | 344,000 | 15,576 | |
Fair Isaac Corp. | 42,100 | 4,691 | |
Fleetmatics Group PLC (a) | 136,700 | 5,591 | |
Fortinet, Inc. (a) | 238,500 | 8,159 | |
Paylocity Holding Corp. (a) | 104,000 | 3,818 | |
Proofpoint, Inc. (a) | 54,000 | 3,165 | |
Salesforce.com, Inc. (a) | 167,500 | 14,021 | |
SS&C Technologies Holdings, Inc. | 64,000 | 3,942 | |
Synchronoss Technologies, Inc. (a) | 23,600 | 832 | |
Tableau Software, Inc. (a) | 74,000 | 3,807 | |
Tyler Technologies, Inc. (a) | 98,300 | 15,068 | |
Workday, Inc. Class A (a) | 110,100 | 8,350 | |
87,020 | |||
Technology Hardware, Storage & Peripherals - 0.7% | |||
HP, Inc. | 485,100 | 6,491 | |
Western Digital Corp. | 159,100 | 7,405 | |
13,896 | |||
TOTAL INFORMATION TECHNOLOGY | 335,516 | ||
MATERIALS - 7.1% | |||
Chemicals - 5.2% | |||
CF Industries Holdings, Inc. | 535,700 | 14,817 | |
Ecolab, Inc. | 313,379 | 36,741 | |
Ingevity Corp. (a) | 325,600 | 9,488 | |
PPG Industries, Inc. | 237,100 | 25,531 | |
W.R. Grace & Co. | 234,197 | 18,183 | |
104,760 | |||
Containers & Packaging - 1.9% | |||
Ball Corp. | 230,711 | 16,680 | |
Sealed Air Corp. | 155,700 | 7,231 | |
WestRock Co. | 361,800 | 14,331 | |
38,242 | |||
TOTAL MATERIALS | 143,002 | ||
TELECOMMUNICATION SERVICES - 0.1% | |||
Diversified Telecommunication Services - 0.1% | |||
Cogent Communications Group, Inc. | 30,300 | 1,207 | |
Zayo Group Holdings, Inc. (a) | 36,000 | 1,000 | |
2,207 | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. (a) | 20,300 | 868 | |
TOTAL TELECOMMUNICATION SERVICES | 3,075 | ||
UTILITIES - 6.1% | |||
Electric Utilities - 3.0% | |||
Great Plains Energy, Inc. | 250,300 | 7,304 | |
OGE Energy Corp. | 299,226 | 9,034 | |
Pinnacle West Capital Corp. | 166,300 | 12,238 | |
PNM Resources, Inc. | 605,900 | 19,898 | |
Westar Energy, Inc. | 213,203 | 12,010 | |
60,484 | |||
Gas Utilities - 1.7% | |||
Atmos Energy Corp. | 211,140 | 15,392 | |
National Fuel Gas Co. | 192,311 | 10,577 | |
South Jersey Industries, Inc. | 275,300 | 7,953 | |
33,922 | |||
Independent Power and Renewable Electricity Producers - 0.4% | |||
Calpine Corp. (a) | 500,300 | 7,404 | |
Talen Energy Corp. (a) | 50,500 | 581 | |
7,985 | |||
Multi-Utilities - 1.0% | |||
Avangrid, Inc. | 156,400 | 6,572 | |
Black Hills Corp. (b) | 237,935 | 14,405 | |
20,977 | |||
TOTAL UTILITIES | 123,368 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,906,821) | 1,964,094 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 0.3% 8/25/16 (d) | |||
(Cost $290) | 290 | 290 | |
Shares | Value (000s) | ||
Money Market Funds - 4.3% | |||
Fidelity Cash Central Fund, 0.40% (e) | 56,851,487 | $56,851 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (e)(f) | 29,393,725 | 29,394 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $86,245) | 86,245 | ||
TOTAL INVESTMENT PORTFOLIO - 101.8% | |||
(Cost $1,993,356) | 2,050,629 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (36,097) | ||
NET ASSETS - 100% | $2,014,532 |
Futures Contracts | |||
Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||
Equity Index Contracts | |||
48 CME E-mini S&P MidCap 400 Index Contracts (United States) | June 2016 | 7,161 | $21 |
The face value of futures purchased as a percentage of Net Assets is 0.4%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,000 or 0.0% of net assets.
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $290,000.
(e) 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.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Velti PLC | 4/19/13 | $323 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $73 |
Fidelity Securities Lending Cash Central Fund | 310 |
Total | $383 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $242,472 | $242,472 | $-- | $-- |
Consumer Staples | 84,005 | 84,005 | -- | -- |
Energy | 64,083 | 64,083 | -- | -- |
Financials | 507,147 | 507,147 | -- | -- |
Health Care | 177,015 | 177,015 | -- | -- |
Industrials | 284,411 | 284,411 | -- | -- |
Information Technology | 335,516 | 335,515 | 1 | -- |
Materials | 143,002 | 143,002 | -- | -- |
Telecommunication Services | 3,075 | 3,075 | -- | -- |
Utilities | 123,368 | 123,368 | -- | -- |
U.S. Government and Government Agency Obligations | 290 | -- | 290 | -- |
Money Market Funds | 86,245 | 86,245 | -- | -- |
Total Investments in Securities: | $2,050,629 | $2,050,338 | $291 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $21 | $21 | $-- | $-- |
Total Assets | $21 | $21 | $-- | $-- |
Total Derivative Instruments: | $21 | $21 | $-- | $-- |
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, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $21 | $0 |
Total Equity Risk | 21 | 0 |
Total Value of Derivatives | $21 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $28,658) — See accompanying schedule: Unaffiliated issuers (cost $1,907,111) | $1,964,384 | |
Fidelity Central Funds (cost $86,245) | 86,245 | |
Total Investments (cost $1,993,356) | $2,050,629 | |
Cash | 1,248 | |
Receivable for investments sold | 36,904 | |
Receivable for fund shares sold | 910 | |
Dividends receivable | 1,747 | |
Distributions receivable from Fidelity Central Funds | 93 | |
Receivable for daily variation margin for derivative instruments | 5 | |
Prepaid expenses | 1 | |
Other receivables | 34 | |
Total assets | 2,091,571 | |
Liabilities | ||
Payable for investments purchased | $39,430 | |
Payable for fund shares redeemed | 6,688 | |
Accrued management fee | 610 | |
Distribution and service plan fees payable | 487 | |
Other affiliated payables | 392 | |
Other payables and accrued expenses | 38 | |
Collateral on securities loaned, at value | 29,394 | |
Total liabilities | 77,039 | |
Net Assets | $2,014,532 | |
Net Assets consist of: | ||
Paid in capital | $2,057,854 | |
Undistributed net investment income | 3,302 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (103,909) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 57,285 | |
Net Assets | $2,014,532 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($550,806 ÷ 17,738.0 shares) | $31.05 | |
Maximum offering price per share (100/94.25 of $31.05) | $32.94 | |
Class T: | ||
Net Asset Value and redemption price per share ($612,670 ÷ 19,635.0 shares) | $31.20 | |
Maximum offering price per share (100/96.50 of $31.20) | $32.33 | |
Class B: | ||
Net Asset Value and offering price per share ($6,103 ÷ 214.8 shares)(a) | $28.41 | |
Class C: | ||
Net Asset Value and offering price per share ($143,041 ÷ 5,021.4 shares)(a) | $28.49 | |
Fidelity Stock Selector Mid Cap Fund: | ||
Net Asset Value, offering price and redemption price per share ($199,434 ÷ 6,169.2 shares) | $32.33 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($502,478 ÷ 15,513.7 shares) | $32.39 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $15,939 | |
Interest | 2 | |
Income from Fidelity Central Funds | 383 | |
Total income | 16,324 | |
Expenses | ||
Management fee | ||
Basic fee | $5,798 | |
Performance adjustment | (1,227) | |
Transfer agent fees | 2,260 | |
Distribution and service plan fees | 2,935 | |
Accounting and security lending fees | 324 | |
Custodian fees and expenses | 30 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 71 | |
Audit | 38 | |
Legal | 8 | |
Interest | 4 | |
Miscellaneous | 10 | |
Total expenses before reductions | 10,256 | |
Expense reductions | (92) | 10,164 |
Net investment income (loss) | 6,160 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $2) | (101,184) | |
Foreign currency transactions | 4 | |
Futures contracts | (313) | |
Total net realized gain (loss) | (101,493) | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $7) | 51,176 | |
Assets and liabilities in foreign currencies | 3 | |
Futures contracts | (198) | |
Total change in net unrealized appreciation (depreciation) | 50,981 | |
Net gain (loss) | (50,512) | |
Net increase (decrease) in net assets resulting from operations | $(44,352) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $6,160 | $4,877 |
Net realized gain (loss) | (101,493) | 274,812 |
Change in net unrealized appreciation (depreciation) | 50,981 | (264,502) |
Net increase (decrease) in net assets resulting from operations | (44,352) | 15,187 |
Distributions to shareholders from net investment income | (3,959) | (2,753) |
Distributions to shareholders from net realized gain | (39,216) | – |
Total distributions | (43,175) | (2,753) |
Share transactions - net increase (decrease) | (301,058) | (166,510) |
Total increase (decrease) in net assets | (388,585) | (154,076) |
Net Assets | ||
Beginning of period | 2,403,117 | 2,557,193 |
End of period (including undistributed net investment income of $3,302 and undistributed net investment income of $1,101, respectively) | $2,014,532 | $2,403,117 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.01 | $31.80 | $28.37 | $22.16 | $19.15 | $19.22 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .09 | .08 | .08 | .10 | .09 | .08B |
Net realized and unrealized gain (loss) | (.48) | .13 | 3.36 | 6.29 | 3.02 | (.15) |
Total from investment operations | (.39) | .21 | 3.44 | 6.39 | 3.11 | (.07) |
Distributions from net investment income | (.04) | – | (.01) | (.14) | (.10) | – |
Distributions from net realized gain | (.53) | – | – | (.04) | – | – |
Total distributions | (.57) | – | (.01) | (.18) | (.10) | – |
Net asset value, end of period | $31.05 | $32.01 | $31.80 | $28.37 | $22.16 | $19.15 |
Total ReturnC,D,E | (1.14)% | .66% | 12.11% | 29.07% | 16.32% | (.36)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .94%H | .98% | 1.05% | .95% | .94% | .92% |
Expenses net of fee waivers, if any | .94%H | .98% | 1.05% | .95% | .94% | .92% |
Expenses net of all reductions | .93%H | .97% | 1.05% | .92% | .94% | .91% |
Net investment income (loss) | .61%H | .24% | .26% | .39% | .41% | .39%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $551 | $593 | $652 | $692 | $593 | $644 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.16 | $32.02 | $28.63 | $22.36 | $19.30 | $19.41 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .06 | – | .01 | .04 | .05 | .04B |
Net realized and unrealized gain (loss) | (.49) | .14 | 3.38 | 6.36 | 3.05 | (.15) |
Total from investment operations | (.43) | .14 | 3.39 | 6.40 | 3.10 | (.11) |
Distributions from net investment income | – | – | – | (.09) | (.04) | – |
Distributions from net realized gain | (.53) | – | – | (.04) | – | – |
Total distributions | (.53) | – | – | (.13) | (.04) | – |
Net asset value, end of period | $31.20 | $32.16 | $32.02 | $28.63 | $22.36 | $19.30 |
Total ReturnC,D,E | (1.26)% | .44% | 11.84% | 28.80% | 16.12% | (.57)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.17%H | 1.22% | 1.28% | 1.16% | 1.14% | 1.11% |
Expenses net of fee waivers, if any | 1.17%H | 1.21% | 1.28% | 1.16% | 1.14% | 1.11% |
Expenses net of all reductions | 1.16%H | 1.21% | 1.27% | 1.13% | 1.13% | 1.10% |
Net investment income (loss) | .38%H | .01% | .03% | .17% | .22% | .20%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $613 | $681 | $794 | $817 | $755 | $871 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.07) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.41 | $29.47 | $26.51 | $20.71 | $17.94 | $18.15 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | (.18) | (.16) | (.10) | (.07) | (.07)B |
Net realized and unrealized gain (loss) | (.44) | .12 | 3.12 | 5.90 | 2.84 | (.14) |
Total from investment operations | (.47) | (.06) | 2.96 | 5.80 | 2.77 | (.21) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.53) | – | – | – | – | – |
Total distributions | (.53) | – | – | – | – | – |
Net asset value, end of period | $28.41 | $29.41 | $29.47 | $26.51 | $20.71 | $17.94 |
Total ReturnC,D,E | (1.52)% | (.20)% | 11.17% | 28.01% | 15.44% | (1.16)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.78%H | 1.83% | 1.89% | 1.76% | 1.73% | 1.71% |
Expenses net of fee waivers, if any | 1.78%H | 1.83% | 1.89% | 1.76% | 1.73% | 1.71% |
Expenses net of all reductions | 1.77%H | 1.82% | 1.88% | 1.74% | 1.73% | 1.70% |
Net investment income (loss) | (.23)%H | (.61)% | (.58)% | (.43)% | (.38)% | (.40)%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $6 | $10 | $16 | $21 | $22 | $28 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.48 | $29.51 | $26.52 | $20.73 | $17.95 | $18.15 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.02) | (.15) | (.14) | (.09) | (.06) | (.07)B |
Net realized and unrealized gain (loss) | (.44) | .12 | 3.13 | 5.91 | 2.84 | (.13) |
Total from investment operations | (.46) | (.03) | 2.99 | 5.82 | 2.78 | (.20) |
Distributions from net investment income | – | – | – | (.02) | – | – |
Distributions from net realized gain | (.53) | – | – | (.01) | – | – |
Total distributions | (.53) | – | – | (.03) | – | – |
Net asset value, end of period | $28.49 | $29.48 | $29.51 | $26.52 | $20.73 | $17.95 |
Total ReturnC,D,E | (1.48)% | (.10)% | 11.27% | 28.09% | 15.49% | (1.10)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.69%H | 1.74% | 1.80% | 1.69% | 1.68% | 1.66% |
Expenses net of fee waivers, if any | 1.69%H | 1.73% | 1.80% | 1.69% | 1.68% | 1.66% |
Expenses net of all reductions | 1.68%H | 1.73% | 1.80% | 1.67% | 1.68% | 1.65% |
Net investment income (loss) | (.14)%H | (.51)% | (.49)% | (.36)% | (.33)% | (.35)%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $143 | $155 | $172 | $172 | $141 | $150 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62) %.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund
Six months ended (Unaudited) May 31, | Years ended November 30, | ||||
2016 | 2015 | 2014 | 2013 | 2012 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.34 | $33.14 | $29.56 | $23.14 | $21.20 |
Income from Investment Operations | |||||
Net investment income (loss)B | .13 | .16 | .16 | .17 | .09 |
Net realized and unrealized gain (loss) | (.50) | .14 | 3.49 | 6.54 | 1.85 |
Total from investment operations | (.37) | .30 | 3.65 | 6.71 | 1.94 |
Distributions from net investment income | (.12) | (.10) | (.07) | (.25) | – |
Distributions from net realized gain | (.53) | – | – | (.04) | – |
Total distributions | (.64)C | (.10) | (.07) | (.29) | – |
Net asset value, end of period | $32.33 | $33.34 | $33.14 | $29.56 | $23.14 |
Total ReturnD,E | (1.01)% | .90% | 12.38% | 29.36% | 9.15% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .70%H | .75% | .81% | .71% | .59%H |
Expenses net of fee waivers, if any | .70%H | .74% | .81% | .71% | .59%H |
Expenses net of all reductions | .69%H | .74% | .81% | .69% | .58%H |
Net investment income (loss) | .85%H | .48% | .50% | .62% | .86%H |
Supplemental Data | |||||
Net assets, end of period (in millions) | $199 | $486 | $553 | $225 | $1 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% |
A For the period June 6, 2012 (commencement of sale of shares) to November 30, 2012.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.64 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.529 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Financial Highlights — Fidelity Advisor Stock Selector Mid Cap Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $33.39 | $33.22 | $29.64 | $23.14 | $20.01 | $20.02 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .13 | .13 | .16 | .18 | .15 | .14B |
Net realized and unrealized gain (loss) | (.50) | .14 | 3.50 | 6.56 | 3.15 | (.15) |
Total from investment operations | (.37) | .27 | 3.66 | 6.74 | 3.30 | (.01) |
Distributions from net investment income | (.11) | (.10) | (.08) | (.20) | (.17) | – |
Distributions from net realized gain | (.53) | – | – | (.04) | – | – |
Total distributions | (.63)C | (.10) | (.08) | (.24) | (.17) | – |
Net asset value, end of period | $32.39 | $33.39 | $33.22 | $29.64 | $23.14 | $20.01 |
Total ReturnD,E | (1.01)% | .80% | 12.39% | 29.44% | 16.66% | (.05)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .72%H | .83% | .80% | .67% | .65% | .62% |
Expenses net of fee waivers, if any | .71%H | .83% | .80% | .67% | .65% | .62% |
Expenses net of all reductions | .71%H | .82% | .80% | .65% | .64% | .61% |
Net investment income (loss) | .84%H | .39% | .51% | .66% | .71% | .69%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $502 | $479 | $371 | $214 | $172 | $234 |
Portfolio turnover rateI | 89%H | 109% | 89% | 79%J | 72% | 198% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
C Total distributions of $.63 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.529 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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 Class I 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. 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, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, market discount, foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $216,130 |
Gross unrealized depreciation | (164,748) |
Net unrealized appreciation (depreciation) on securities | $51,382 |
Tax cost | $1,999,247 |
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 2000 (the Act), the Fund is permitted to carryforward 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 | $(250) |
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. 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 may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the 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 daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. 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 $(313) and a change in net unrealized appreciation (depreciation) of $(198) 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 $939,992 and $1,237,645, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the S&P MidCap 400 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .43% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $675 | $– |
Class T | .25% | .25% | 1,520 | – |
Class B | .75% | .25% | 37 | 28 |
Class C | .75% | .25% | 703 | – |
$2,935 | $28 |
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 by FDC | |
Class A | $13 |
Class T | 8 |
Class B(a) | –(b) |
Class C(a) | 3 |
$24 |
(a) 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.
(b) In the amount of less than five hundred dollars
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of 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-Level Average Net Assets(a) | |
Class A | $571 | .21 |
Class T | 594 | .19 |
Class B | 11 | .30 |
Class C | 150 | .21 |
Fidelity Stock Selector Mid Cap Fund | 383 | .22 |
Class I | 551 | .24 |
$2,260 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $36 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 or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $24,655 | .62% | $4 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $826. 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 $310, including $13 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $84 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $755 | $– |
Fidelity Stock Selector Mid Cap Fund | 1,674 | 1,667 |
Class I | 1,530 | 1,086 |
Total | $3,959 | $2,753 |
From net realized gain | ||
Class A | $9,744 | $– |
Class T | 11,098 | – |
Class B | 166 | – |
Class C | 2,758 | – |
Fidelity Stock Selector Mid Cap Fund | 7,708 | – |
Class I | 7,742 | – |
Total | $39,216 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 575 | 1,378 | $17,148 | $44,847 |
Reinvestment of distributions | 331 | – | 9,838 | – |
Shares redeemed | (1,679) | (3,369) | (49,826) | (109,342) |
Net increase (decrease) | (773) | (1,991) | $(22,840) | $(64,495) |
Class T | ||||
Shares sold | 555 | 1,615 | $16,476 | $53,028 |
Reinvestment of distributions | 356 | – | 10,639 | – |
Shares redeemed | (2,467) | (5,214) | (73,497) | (170,224) |
Net increase (decrease) | (1,556) | (3,599) | $(46,382) | $(117,196) |
Class B | ||||
Shares sold | 1 | 2 | $31 | $36 |
Reinvestment of distributions | 5 | – | 145 | – |
Shares redeemed | (116) | (219) | (3,150) | (6,583) |
Net increase (decrease) | (110) | (217) | $(2,974) | $(6,547) |
Class C | ||||
Shares sold | 66 | 234 | $1,829 | $7,096 |
Reinvestment of distributions | 90 | – | 2,469 | – |
Shares redeemed | (378) | (818) | (10,309) | (24,477) |
Net increase (decrease) | (222) | (584) | $(6,011) | $(17,381) |
Fidelity Stock Selector Mid Cap Fund | ||||
Shares sold | 248 | 939 | $7,634 | $31,733 |
Reinvestment of distributions | 300 | 49 | 9,281 | 1,651 |
Shares redeemed | (8,966) | (3,087) | (277,007) | (101,545) |
Net increase (decrease) | (8,418) | (2,099) | $(260,092) | $(68,161) |
Class I | ||||
Shares sold | 3,466 | 5,194 | $106,483 | $175,072 |
Reinvestment of distributions | 291 | 30 | 9,016 | 1,015 |
Shares redeemed | (2,583) | (2,041) | (78,258) | (68,817) |
Net increase (decrease) | 1,174 | 3,183 | $37,241 | $107,270 |
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.
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, 2015 to May 31, 2016).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .94% | |||
Actual | $1,000.00 | $988.60 | $4.67 | |
Hypothetical-C | $1,000.00 | $1,020.30 | $4.75 | |
Class T | 1.17% | |||
Actual | $1,000.00 | $987.40 | $5.81 | |
Hypothetical-C | $1,000.00 | $1,019.15 | $5.91 | |
Class B | 1.78% | |||
Actual | $1,000.00 | $984.80 | $8.83 | |
Hypothetical-C | $1,000.00 | $1,016.10 | $8.97 | |
Class C | 1.69% | |||
Actual | $1,000.00 | $985.20 | $8.39 | |
Hypothetical-C | $1,000.00 | $1,016.55 | $8.52 | |
Fidelity Stock Selector Mid Cap Fund | .70% | |||
Actual | $1,000.00 | $989.90 | $3.48 | |
Hypothetical-C | $1,000.00 | $1,021.50 | $3.54 | |
Class I | .71% | |||
Actual | $1,000.00 | $989.90 | $3.53 | |
Hypothetical-C | $1,000.00 | $1,021.45 | $3.59 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
MC-SANN-0716
1.704677.118
Fidelity® Value Strategies Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
LyondellBasell Industries NV Class A | 5.3 | 6.5 |
Citigroup, Inc. | 4.6 | 3.0 |
Bank of America Corp. | 3.9 | 4.1 |
U.S. Bancorp | 3.3 | 2.7 |
Cott Corp. | 3.0 | 2.6 |
Boston Scientific Corp. | 2.7 | 2.3 |
General Motors Co. | 2.7 | 3.3 |
WestRock Co. | 2.6 | 1.2 |
Universal Health Services, Inc. Class B | 2.6 | 2.4 |
St. Jude Medical, Inc. | 2.5 | 2.1 |
33.2 |
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 18.0 | 15.2 |
Health Care | 16.3 | 14.5 |
Consumer Discretionary | 15.6 | 19.8 |
Materials | 10.8 | 10.0 |
Industrials | 9.0 | 7.7 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016* | ||
Stocks | 83.7% | |
Bonds | 5.4% | |
Other Investments | 0.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 10.3% |
* Foreign investments - 15.5%
As of November 30, 2015* | ||
Stocks | 88.9% | |
Bonds | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 11.0% |
* Foreign investments - 15.9%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 83.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.6% | |||
Auto Components - 1.6% | |||
Delphi Automotive PLC | 287,077 | $19,510 | |
Tenneco, Inc. (a) | 90,224 | 4,847 | |
24,357 | |||
Automobiles - 2.7% | |||
General Motors Co. | 1,284,836 | 40,190 | |
Diversified Consumer Services - 1.3% | |||
Service Corp. International | 683,850 | 18,737 | |
Hotels, Restaurants & Leisure - 1.8% | |||
Cedar Fair LP (depositary unit) | 227,420 | 13,652 | |
Wyndham Worldwide Corp. | 199,867 | 13,469 | |
27,121 | |||
Household Durables - 3.6% | |||
CalAtlantic Group, Inc. | 527,581 | 19,515 | |
Lennar Corp. Class A | 424,700 | 19,354 | |
PulteGroup, Inc. | 744,504 | 13,967 | |
52,836 | |||
Leisure Products - 3.5% | |||
Hasbro, Inc. | 266,797 | 23,289 | |
Vista Outdoor, Inc. (a) | 557,700 | 27,985 | |
51,274 | |||
Media - 0.5% | |||
Regal Entertainment Group Class A (b) | 330,800 | 6,957 | |
Specialty Retail - 0.6% | |||
GameStop Corp. Class A (b) | 313,213 | 9,114 | |
TOTAL CONSUMER DISCRETIONARY | 230,586 | ||
CONSUMER STAPLES - 5.4% | |||
Beverages - 3.0% | |||
Cott Corp. | 3,069,864 | 44,315 | |
Food & Staples Retailing - 1.5% | |||
CVS Health Corp. | 237,100 | 22,868 | |
Food Products - 0.9% | |||
Calavo Growers, Inc. | 232,028 | 13,135 | |
TOTAL CONSUMER STAPLES | 80,318 | ||
ENERGY - 2.9% | |||
Energy Equipment & Services - 0.5% | |||
Halliburton Co. | 183,600 | 7,744 | |
Oil, Gas & Consumable Fuels - 2.4% | |||
Continental Resources, Inc. (a) | 145,000 | 6,099 | |
Kinder Morgan, Inc. | 170,400 | 3,081 | |
Range Resources Corp. (b) | 191,300 | 8,147 | |
Valero Energy Corp. | 327,300 | 17,903 | |
35,230 | |||
TOTAL ENERGY | 42,974 | ||
FINANCIALS - 17.4% | |||
Banks - 16.1% | |||
Bank of America Corp. | 3,923,013 | 58,021 | |
CIT Group, Inc. | 157,349 | 5,391 | |
Citigroup, Inc. | 1,481,723 | 69,004 | |
JPMorgan Chase & Co. | 314,200 | 20,508 | |
Regions Financial Corp. | 774,763 | 7,616 | |
SunTrust Banks, Inc. | 249,500 | 10,933 | |
U.S. Bancorp | 1,129,384 | 48,360 | |
Wells Fargo & Co. | 377,370 | 19,140 | |
238,973 | |||
Capital Markets - 0.5% | |||
The Blackstone Group LP | 267,400 | 7,003 | |
Insurance - 0.8% | |||
Progressive Corp. | 347,700 | 11,578 | |
TOTAL FINANCIALS | 257,554 | ||
HEALTH CARE - 15.2% | |||
Health Care Equipment & Supplies - 5.9% | |||
Boston Scientific Corp. (a) | 1,785,400 | 40,546 | |
St. Jude Medical, Inc. | 463,300 | 36,304 | |
Zimmer Biomet Holdings, Inc. | 87,600 | 10,697 | |
87,547 | |||
Health Care Providers & Services - 3.4% | |||
DaVita HealthCare Partners, Inc. (a) | 158,496 | 12,255 | |
Universal Health Services, Inc. Class B | 278,914 | 37,614 | |
49,869 | |||
Life Sciences Tools & Services - 0.8% | |||
PerkinElmer, Inc. | 207,500 | 11,361 | |
Pharmaceuticals - 5.1% | |||
Johnson & Johnson | 126,000 | 14,199 | |
Merck & Co., Inc. | 474,100 | 26,673 | |
Sanofi SA sponsored ADR | 159,344 | 6,565 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 992,000 | 28,222 | |
75,659 | |||
TOTAL HEALTH CARE | 224,436 | ||
INDUSTRIALS - 8.6% | |||
Aerospace & Defense - 4.1% | |||
Esterline Technologies Corp. (a) | 180,022 | 12,135 | |
Honeywell International, Inc. | 139,500 | 15,879 | |
Orbital ATK, Inc. | 278,850 | 24,268 | |
Textron, Inc. | 223,717 | 8,515 | |
60,797 | |||
Airlines - 0.3% | |||
Air Canada (a) | 674,400 | 4,953 | |
Machinery - 1.8% | |||
Deere & Co. | 164,900 | 13,570 | |
Ingersoll-Rand PLC | 208,100 | 13,903 | |
27,473 | |||
Road & Rail - 1.7% | |||
Avis Budget Group, Inc. (a) | 297,500 | 8,925 | |
Hertz Global Holdings, Inc. (a) | 1,617,300 | 15,672 | |
24,597 | |||
Trading Companies & Distributors - 0.7% | |||
Aircastle Ltd. | 467,200 | 9,877 | |
TOTAL INDUSTRIALS | 127,697 | ||
INFORMATION TECHNOLOGY - 3.9% | |||
IT Services - 0.8% | |||
Fidelity National Information Services, Inc. | 165,730 | 12,309 | |
Semiconductors & Semiconductor Equipment - 1.6% | |||
Cypress Semiconductor Corp. (b) | 1,507,475 | 16,024 | |
Micron Technology, Inc. (a) | 559,183 | 7,113 | |
23,137 | |||
Software - 1.5% | |||
Microsoft Corp. | 429,324 | 22,754 | |
TOTAL INFORMATION TECHNOLOGY | 58,200 | ||
MATERIALS - 10.4% | |||
Chemicals - 7.8% | |||
Ashland, Inc. | 83,100 | 9,420 | |
Axiall Corp. | 284,126 | 6,617 | |
Ingevity Corp. (a) | 159,333 | 4,643 | |
LyondellBasell Industries NV Class A | 965,892 | 78,589 | |
PPG Industries, Inc. | 154,592 | 16,646 | |
115,915 | |||
Containers & Packaging - 2.6% | |||
WestRock Co. | 956,000 | 37,867 | |
TOTAL MATERIALS | 153,782 | ||
TELECOMMUNICATION SERVICES - 2.1% | |||
Diversified Telecommunication Services - 2.1% | |||
Level 3 Communications, Inc. (a) | 558,139 | 30,112 | |
UTILITIES - 2.2% | |||
Independent Power and Renewable Electricity Producers - 0.9% | |||
Calpine Corp. (a) | 310,763 | 4,599 | |
Dynegy, Inc. (a) | 441,400 | 8,316 | |
12,915 | |||
Multi-Utilities - 1.3% | |||
Sempra Energy | 179,639 | 19,243 | |
TOTAL UTILITIES | 32,158 | ||
TOTAL COMMON STOCKS | |||
(Cost $844,962) | 1,237,817 | ||
Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - 5.4% | |||
ENERGY - 3.5% | |||
Oil, Gas & Consumable Fuels - 3.5% | |||
Chesapeake Energy Corp. 4.875% 4/15/22 | 22,905 | 13,743 | |
Continental Resources, Inc. 4.5% 4/15/23 | 10,000 | 9,106 | |
Sabine Pass Liquefaction LLC 5.75% 5/15/24 | 20,000 | 20,100 | |
Whiting Petroleum Corp. 5.75% 3/15/21 | 10,000 | 8,475 | |
51,424 | |||
HEALTH CARE - 1.1% | |||
Pharmaceuticals - 1.1% | |||
Valeant Pharmaceuticals International, Inc. 6.125% 4/15/25 (c) | 18,955 | 15,851 | |
INDUSTRIALS - 0.4% | |||
Machinery - 0.4% | |||
Harsco Corp. 5.75% 5/15/18 | 6,749 | 6,040 | |
MATERIALS - 0.4% | |||
Metals & Mining - 0.4% | |||
Freeport-McMoRan, Inc. 3.875% 3/15/23 | 7,525 | 6,189 | |
TOTAL NONCONVERTIBLE BONDS | |||
(Cost $65,623) | 79,504 | ||
Preferred Securities - 0.6% | |||
FINANCIALS - 0.6% | |||
Banks - 0.6% | |||
Barclays PLC 6.625%(d)(e) | |||
(Cost $9,904) | 10,000 | 9,515 | |
Shares | Value (000s) | ||
Money Market Funds - 11.4% | |||
Fidelity Cash Central Fund, 0.40% (f) | 150,790,718 | 150,791 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (f)(g) | 18,207,279 | 18,207 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $168,998) | 168,998 | ||
TOTAL INVESTMENT PORTFOLIO - 101.1% | |||
(Cost $1,089,487) | 1,495,834 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (16,337) | ||
NET ASSETS - 100% | $1,479,497 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $15,851,000 or 1.1% of net assets.
(d) Security is perpetual in nature with no stated maturity date.
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(f) 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.
(g) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $121 |
Fidelity Securities Lending Cash Central Fund | 256 |
Total | $377 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $230,586 | $230,586 | $-- | $-- |
Consumer Staples | 80,318 | 80,318 | -- | -- |
Energy | 42,974 | 42,974 | -- | -- |
Financials | 257,554 | 257,554 | -- | -- |
Health Care | 224,436 | 224,436 | -- | -- |
Industrials | 127,697 | 127,697 | -- | -- |
Information Technology | 58,200 | 58,200 | -- | -- |
Materials | 153,782 | 153,782 | -- | -- |
Telecommunication Services | 30,112 | 30,112 | -- | -- |
Utilities | 32,158 | 32,158 | -- | -- |
Corporate Bonds | 79,504 | -- | 79,504 | -- |
Preferred Securities | 9,515 | -- | 9,515 | -- |
Money Market Funds | 168,998 | 168,998 | -- | -- |
Total Investments in Securities: | $1,495,834 | $1,406,815 | $89,019 | $-- |
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
BB | 2.4% |
B | 2.1% |
CCC,CC,C | 1.5% |
Equities | 83.7% |
Short-Term Investments and Net Other Assets | 10.3% |
100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 84.5% |
Canada | 6.3% |
Netherlands | 5.3% |
Bailiwick of Jersey | 1.3% |
Others (Individually Less Than 1%) | 2.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $18,003) — See accompanying schedule: Unaffiliated issuers (cost $920,489) | $1,326,836 | |
Fidelity Central Funds (cost $168,998) | 168,998 | |
Total Investments (cost $1,089,487) | $1,495,834 | |
Receivable for fund shares sold | 2,194 | |
Dividends receivable | 2,151 | |
Interest receivable | 600 | |
Distributions receivable from Fidelity Central Funds | 70 | |
Total assets | 1,500,849 | |
Liabilities | ||
Payable for fund shares redeemed | $2,275 | |
Accrued management fee | 411 | |
Distribution and service plan fees payable | 194 | |
Other affiliated payables | 236 | |
Other payables and accrued expenses | 29 | |
Collateral on securities loaned, at value | 18,207 | |
Total liabilities | 21,352 | |
Net Assets | $1,479,497 | |
Net Assets consist of: | ||
Paid in capital | $1,178,624 | |
Undistributed net investment income | 7,712 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (113,186) | |
Net unrealized appreciation (depreciation) on investments | 406,347 | |
Net Assets | $1,479,497 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($206,841 ÷ 5,349.749 shares) | $38.66 | |
Maximum offering price per share (100/94.25 of $38.66) | $41.02 | |
Class T: | ||
Net Asset Value and redemption price per share ($272,503 ÷ 6,792.650 shares) | $40.12 | |
Maximum offering price per share (100/96.50 of $40.12) | $41.58 | |
Class B: | ||
Net Asset Value and offering price per share ($2,342 ÷ 66.037 shares)(a) | $35.46 | |
Class C: | ||
Net Asset Value and offering price per share ($45,075 ÷ 1,291.389 shares)(a) | $34.90 | |
Fidelity Value Strategies Fund: | ||
Net Asset Value, offering price and redemption price per share ($812,258 ÷ 18,748.304 shares) | $43.32 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($73,227 ÷ 1,690.737 shares) | $43.31 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($67,251 ÷ 1,627.341 shares) | $41.33 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $12,359 | |
Interest | 2,481 | |
Income from Fidelity Central Funds | 377 | |
Total income | 15,217 | |
Expenses | ||
Management fee | ||
Basic fee | $3,597 | |
Performance adjustment | (1,445) | |
Transfer agent fees | 1,206 | |
Distribution and service plan fees | 1,140 | |
Accounting and security lending fees | 213 | |
Custodian fees and expenses | 7 | |
Independent trustees' fees and expenses | 3 | |
Registration fees | 118 | |
Audit | 38 | |
Legal | 3 | |
Miscellaneous | 5 | |
Total expenses before reductions | 4,885 | |
Expense reductions | (7) | 4,878 |
Net investment income (loss) | 10,339 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 23,221 | |
Foreign currency transactions | 11 | |
Total net realized gain (loss) | 23,232 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (44,756) | |
Total change in net unrealized appreciation (depreciation) | (44,756) | |
Net gain (loss) | (21,524) | |
Net increase (decrease) in net assets resulting from operations | $(11,185) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,339 | $14,207 |
Net realized gain (loss) | 23,232 | 117,291 |
Change in net unrealized appreciation (depreciation) | (44,756) | (113,531) |
Net increase (decrease) in net assets resulting from operations | (11,185) | 17,967 |
Distributions to shareholders from net investment income | (15,368) | (11,929) |
Distributions to shareholders from net realized gain | (316) | (1,090) |
Total distributions | (15,684) | (13,019) |
Share transactions - net increase (decrease) | 91,730 | (175,423) |
Total increase (decrease) in net assets | 64,861 | (170,475) |
Net Assets | ||
Beginning of period | 1,414,636 | 1,585,111 |
End of period (including undistributed net investment income of $7,712 and undistributed net investment income of $12,741, respectively) | $1,479,497 | $1,414,636 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 | $23.11 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .26 | .35 | .25 | .23 | –B | .13C |
Net realized and unrealized gain (loss) | (.20) | .06 | 2.87 | 8.25 | 5.03 | (.49) |
Total from investment operations | .06 | .41 | 3.12 | 8.48 | 5.03 | (.36) |
Distributions from net investment income | (.40) | (.28)D | (.23) | (.08) | (.12) | (.03)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.41) | (.31) | (.23) | (.08) | (.12) | (.04) |
Net asset value, end of period | $38.66 | $39.01 | $38.91 | $36.02 | $27.62 | $22.71 |
Total ReturnE,F,G | .21% | 1.07% | 8.74% | 30.77% | 22.29% | (1.57)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .87%J | .93% | .96% | 1.04% | 1.21% | 1.18% |
Expenses net of fee waivers, if any | .87%J | .93% | .96% | 1.04% | 1.21% | 1.18% |
Expenses net of all reductions | .86%J | .93% | .96% | 1.03% | 1.21% | 1.17% |
Net investment income (loss) | 1.45%J | .89% | .68% | .73% | - %B | .51%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $207 | $215 | $233 | $243 | $203 | $190 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 | $23.90 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .23 | .28 | .18 | .18 | (.05)B | .08C |
Net realized and unrealized gain (loss) | (.20) | .06 | 2.98 | 8.54 | 5.22 | (.50) |
Total from investment operations | .03 | .34 | 3.16 | 8.72 | 5.17 | (.42) |
Distributions from net investment income | (.30) | (.19)D | (.16) | (.02) | (.07) | – |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | – |
Total distributions | (.31) | (.22) | (.16) | (.02) | (.07) | – |
Net asset value, end of period | $40.12 | $40.40 | $40.28 | $37.28 | $28.58 | $23.48 |
Total ReturnE,F,G | .11% | .86% | 8.51% | 30.52% | 22.08% | (1.76)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.08%J | 1.15% | 1.17% | 1.23% | 1.38% | 1.35% |
Expenses net of fee waivers, if any | 1.07%J | 1.14% | 1.17% | 1.23% | 1.38% | 1.35% |
Expenses net of all reductions | 1.07%J | 1.14% | 1.17% | 1.22% | 1.38% | 1.35% |
Net investment income (loss) | 1.25%J | .68% | .47% | .54% | (.17)%B | .33%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $273 | $294 | $324 | $335 | $283 | $274 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.53 | $35.44 | $32.86 | $25.34 | $20.87 | $21.37 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .02 | (.05) | (.02) | (.18)B | (.06)C |
Net realized and unrealized gain (loss) | (.18) | .07 | 2.63 | 7.54 | 4.65 | (.44) |
Total from investment operations | (.07) | .09 | 2.58 | 7.52 | 4.47 | (.50) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | – | – | – | – | – | – |
Total distributions | – | – | – | – | – | – |
Net asset value, end of period | $35.46 | $35.53 | $35.44 | $32.86 | $25.34 | $20.87 |
Total ReturnD,E,F | (.20)% | .25% | 7.85% | 29.68% | 21.42% | (2.34)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.69%I | 1.77% | 1.78% | 1.83% | 1.97% | 1.93% |
Expenses net of fee waivers, if any | 1.69%I | 1.76% | 1.78% | 1.83% | 1.97% | 1.93% |
Expenses net of all reductions | 1.69%I | 1.76% | 1.78% | 1.82% | 1.97% | 1.93% |
Net investment income (loss) | .63%I | .06% | (.14)% | (.07)% | (.76)%B | (.25)%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2 | $4 | $7 | $11 | $13 | $16 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04) %.
C Net Investment 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) %.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 | $21.13 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .11 | .05 | (.03) | (.01) | (.17)B | (.05)C |
Net realized and unrealized gain (loss) | (.19) | .07 | 2.60 | 7.47 | 4.59 | (.44) |
Total from investment operations | (.08) | .12 | 2.57 | 7.46 | 4.42 | (.49) |
Distributions from net investment income | (.13) | (.04)D | (.02) | – | – | – |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | – |
Total distributions | (.14) | (.07) | (.02) | – | – | – |
Net asset value, end of period | $34.90 | $35.12 | $35.07 | $32.52 | $25.06 | $20.64 |
Total ReturnE,F,G | (.20)% | .33% | 7.91% | 29.77% | 21.41% | (2.32)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.63%J | 1.70% | 1.72% | 1.78% | 1.95% | 1.92% |
Expenses net of fee waivers, if any | 1.63%J | 1.69% | 1.72% | 1.78% | 1.95% | 1.92% |
Expenses net of all reductions | 1.63%J | 1.69% | 1.72% | 1.77% | 1.95% | 1.92% |
Net investment income (loss) | .69%J | .13% | (.08)% | (.02)% | (.75)%B | (.24)%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $45 | $49 | $53 | $54 | $43 | $40 |
Portfolio turnover rateK | 28%J | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.02) %.
C Net Investment 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) %.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Value Strategies Fund
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 | $25.80 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .36 | .51 | .40 | .37 | .09B | .22C |
Net realized and unrealized gain (loss) | (.24) | .07 | 3.21 | 9.20 | 5.62 | (.54) |
Total from investment operations | .12 | .58 | 3.61 | 9.57 | 5.71 | (.32) |
Distributions from net investment income | (.51) | (.39)D | (.33) | (.18) | (.19) | (.10)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.52) | (.42) | (.33) | (.18) | (.19) | (.11) |
Net asset value, end of period | $43.32 | $43.72 | $43.56 | $40.28 | $30.89 | $25.37 |
Total ReturnE,F | .36% | 1.35% | 9.05% | 31.14% | 22.69% | (1.29)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .56%I | .67% | .69% | .73% | .89% | .88% |
Expenses net of fee waivers, if any | .56%I | .67% | .69% | .73% | .89% | .88% |
Expenses net of all reductions | .56%I | .66% | .69% | .72% | .89% | .88% |
Net investment income (loss) | 1.76%I | 1.16% | .95% | 1.03% | .31%B | .80%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $812 | $716 | $786 | $681 | $396 | $284 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class K
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 | $25.82 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .38 | .58 | .47 | .43 | .14B | .28C |
Net realized and unrealized gain (loss) | (.23) | .07 | 3.20 | 9.18 | 5.61 | (.55) |
Total from investment operations | .15 | .65 | 3.67 | 9.61 | 5.75 | (.27) |
Distributions from net investment income | (.57) | (.45)D | (.38) | (.22) | (.24) | (.16)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.58) | (.48) | (.38) | (.22) | (.24) | (.17) |
Net asset value, end of period | $43.31 | $43.74 | $43.57 | $40.28 | $30.89 | $25.38 |
Total ReturnE,F | .43% | 1.51% | 9.21% | 31.34% | 22.93% | (1.11)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .43%I | .51% | .53% | .58% | .71% | .68% |
Expenses net of fee waivers, if any | .43%I | .51% | .53% | .58% | .71% | .68% |
Expenses net of all reductions | .43%I | .51% | .53% | .57% | .71% | .68% |
Net investment income (loss) | 1.89%I | 1.31% | 1.11% | 1.18% | .50%B | 1.00%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $73 | $72 | $97 | $119 | $70 | $47 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Strategies Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 | $24.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .33 | .48 | .37 | .34 | .08B | .22C |
Net realized and unrealized gain (loss) | (.22) | .08 | 3.06 | 8.79 | 5.37 | (.53) |
Total from investment operations | .11 | .56 | 3.43 | 9.13 | 5.45 | (.31) |
Distributions from net investment income | (.48) | (.39)D | (.32) | (.18) | (.20) | (.11)D |
Distributions from net realized gain | (.01) | (.03)D | – | – | – | (.01)D |
Total distributions | (.49) | (.42) | (.32) | (.18) | (.20) | (.12) |
Net asset value, end of period | $41.33 | $41.71 | $41.57 | $38.46 | $29.51 | $24.26 |
Total ReturnE,F | .34% | 1.36% | 9.01% | 31.11% | 22.67% | (1.30)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .61%I | .68% | .71% | .76% | .90% | .86% |
Expenses net of fee waivers, if any | .61%I | .68% | .71% | .76% | .90% | .86% |
Expenses net of all reductions | .60%I | .68% | .71% | .75% | .90% | .86% |
Net investment income (loss) | 1.71%I | 1.14% | .93% | 1.00% | .31%B | .82%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $67 | $65 | $86 | $74 | $66 | $52 |
Portfolio turnover rateJ | 28%I | 9% | 6% | 22% | 23% | 34% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%.
C Net Investment 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%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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, Class K and Class I 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective after the close of business on June 24, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $448,497 |
Gross unrealized depreciation | (43,804) |
Net unrealized appreciation (depreciation) on securities | $404,693 |
Tax cost | $1,091,141 |
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 prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
2017 | $(133,637) |
The Fund elected to defer to its next fiscal year approximately $734 of capital losses recognized during the period November 1, 2015 to November 30, 2015.
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 $263,755 and $175,867, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Fidelity Value Strategies Fund as compared to its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .33% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $245 | $– |
Class T | .25% | .25% | 661 | – |
Class B | .75% | .25% | 15 | 11 |
Class C | .75% | .25% | 219 | 7 |
$1,140 | $18 |
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 by FDC | |
Class A | $8 |
Class T | 4 |
Class B(a) | –(b) |
Class C(a) | 1 |
$13 |
(a) 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.
(b) In the amount of less than five hundred dollars
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the 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 reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $225 | .23 |
Class T | 250 | .19 |
Class B | 4 | .30 |
Class C | 54 | .24 |
Fidelity Value Strategies Fund | 591 | .17 |
Class K | 16 | .05 |
Class I | 66 | .22 |
$1,206 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $36.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $256. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $2 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $5.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $2,185 | $1,691 |
Class T | 2,155 | 1,553 |
Class C | 187 | 56 |
Fidelity Value Strategies Fund | 9,140 | 6,934 |
Class K | 955 | 896 |
Class I | 746 | 799 |
Total | $15,368 | $11,929 |
From net realized gain | ||
Class A | $49 | $174 |
Class T | 65 | 234 |
Class C | 13 | 44 |
Fidelity Value Strategies Fund | 160 | 520 |
Class K | 15 | 58 |
Class I | 14 | 60 |
Total | $316 | $1,090 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 305 | 391 | $11,127 | $15,470 |
Reinvestment of distributions | 58 | 46 | 2,110 | 1,760 |
Shares redeemed | (528) | (904) | (19,018) | (35,567) |
Net increase (decrease) | (165) | (467) | $(5,781) | $(18,337) |
Class T | ||||
Shares sold | 232 | 486 | $8,710 | $19,926 |
Reinvestment of distributions | 54 | 41 | 2,045 | 1,646 |
Shares redeemed | (773) | (1,296) | (29,117) | (52,610) |
Net increase (decrease) | (487) | (769) | $(18,362) | $(31,038) |
Class B | ||||
Shares sold | – | – | $9 | $12 |
Shares redeemed | (44) | (95) | (1,469) | (3,438) |
Net increase (decrease) | (44) | (95) | $(1,460) | $(3,426) |
Class C | ||||
Shares sold | 43 | 131 | $1,404 | $4,724 |
Reinvestment of distributions | 6 | 3 | 191 | 95 |
Shares redeemed | (157) | (237) | (5,029) | (8,407) |
Net increase (decrease) | (108) | (103) | $(3,434) | $(3,588) |
Fidelity Value Strategies Fund | ||||
Shares sold | 7,288 | 3,980 | $307,450 | $174,437 |
Reinvestment of distributions | 182 | 106 | 7,409 | 4,551 |
Shares redeemed | (5,095) | (5,750) | (199,371) | (250,149) |
Net increase (decrease) | 2,375 | (1,664) | $115,488 | $(71,161) |
Class K | ||||
Shares sold | 292 | 390 | $12,136 | $17,106 |
Reinvestment of distributions | 24 | 22 | 970 | 954 |
Shares redeemed | (263) | (1,001) | (10,650) | (44,142) |
Net increase (decrease) | 53 | (589) | $2,456 | $(26,082) |
Class I | ||||
Shares sold | 202 | 288 | $7,838 | $12,081 |
Reinvestment of distributions | 19 | 18 | 723 | 748 |
Shares redeemed | (150) | (809) | (5,738) | (34,620) |
Net increase (decrease) | 71 | (503) | $2,823 | $(21,791) |
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.
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, 2015 to May 31, 2016).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | .87% | |||
Actual | $1,000.00 | $1,002.10 | $4.35 | |
Hypothetical-C | $1,000.00 | $1,020.65 | $4.39 | |
Class T | 1.07% | |||
Actual | $1,000.00 | $1,001.10 | $5.35 | |
Hypothetical-C | $1,000.00 | $1,019.65 | $5.40 | |
Class B | 1.69% | |||
Actual | $1,000.00 | $998.00 | $8.44 | |
Hypothetical-C | $1,000.00 | $1,016.55 | $8.52 | |
Class C | 1.63% | |||
Actual | $1,000.00 | $998.00 | $8.14 | |
Hypothetical-C | $1,000.00 | $1,016.85 | $8.22 | |
Fidelity Value Strategies Fund | .56% | |||
Actual | $1,000.00 | $1,003.60 | $2.81 | |
Hypothetical-C | $1,000.00 | $1,022.20 | $2.83 | |
Class K | .43% | |||
Actual | $1,000.00 | $1,004.30 | $2.15 | |
Hypothetical-C | $1,000.00 | $1,022.85 | $2.17 | |
Class I | .61% | |||
Actual | $1,000.00 | $1,003.40 | $3.06 | |
Hypothetical-C | $1,000.00 | $1,021.95 | $3.08 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
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Fidelity Advisor® Growth & Income Fund Semi-Annual Report May 31, 2016 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
JPMorgan Chase & Co.(a) | 3.6 | 4.2 |
Microsoft Corp. | 3.2 | 3.2 |
General Electric Co. | 3.1 | 3.6 |
Bank of America Corp. | 2.7 | 2.9 |
Apple, Inc. | 2.7 | 3.4 |
Citigroup, Inc. | 2.4 | 2.6 |
Chevron Corp. | 2.4 | 2.2 |
Johnson & Johnson(a) | 2.3 | 2.0 |
Procter & Gamble Co(a) | 2.3 | 2.1 |
Qualcomm, Inc. | 2.0 | 1.7 |
26.7 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of May 31, 2016
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 21.5 | 22.3 |
Information Technology | 20.5 | 21.3 |
Health Care | 13.6 | 11.7 |
Industrials | 12.3 | 12.8 |
Energy | 12.0 | 9.7 |
Asset Allocation (% of fund's net assets)
As of May 31, 2016 *,** | ||
Stocks | 97.9% | |
Convertible Securities | 1.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
* Foreign investments - 11.4%
** Written options - (0.0)%
As of November 30, 2015*,** | ||
Stocks | 98.1% | |
Convertible Securities | 1.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.8% |
* Foreign investments - 11.7%
** Written options - 0.0%
Investments May 31, 2016 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 8.3% | |||
Auto Components - 0.3% | |||
BorgWarner, Inc. | 27,500 | $936 | |
Johnson Controls, Inc. | 15,100 | 667 | |
1,603 | |||
Automobiles - 0.2% | |||
General Motors Co. | 21,000 | 657 | |
Harley-Davidson, Inc. | 6,800 | 315 | |
972 | |||
Diversified Consumer Services - 0.1% | |||
H&R Block, Inc. | 14,200 | 303 | |
Hotels, Restaurants & Leisure - 0.7% | |||
Cedar Fair LP (depositary unit) | 1,400 | 84 | |
Dunkin' Brands Group, Inc. | 16,300 | 706 | |
Las Vegas Sands Corp. | 18,100 | 837 | |
Whitbread PLC | 7,425 | 453 | |
Yum! Brands, Inc. (a) | 22,561 | 1,852 | |
3,932 | |||
Leisure Products - 0.1% | |||
NJOY, Inc. (b)(c) | 52,211 | 7 | |
Polaris Industries, Inc. | 8,200 | 697 | |
704 | |||
Media - 4.3% | |||
Comcast Corp. Class A | 143,929 | 9,111 | |
Scripps Networks Interactive, Inc. Class A | 45,472 | 2,926 | |
Sinclair Broadcast Group, Inc. Class A | 27,227 | 861 | |
Time Warner, Inc. | 88,818 | 6,720 | |
Viacom, Inc. Class B (non-vtg.) | 67,700 | 3,004 | |
22,622 | |||
Multiline Retail - 1.2% | |||
Target Corp. (a) | 92,299 | 6,348 | |
Specialty Retail - 1.3% | |||
Foot Locker, Inc. | 8,800 | 492 | |
L Brands, Inc. | 9,800 | 672 | |
Lowe's Companies, Inc. | 68,257 | 5,469 | |
6,633 | |||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Ralph Lauren Corp. | 6,600 | 623 | |
TOTAL CONSUMER DISCRETIONARY | 43,740 | ||
CONSUMER STAPLES - 6.9% | |||
Beverages - 2.1% | |||
Britvic PLC | 14,500 | 142 | |
Diageo PLC | 79,724 | 2,163 | |
PepsiCo, Inc. | 15,243 | 1,542 | |
The Coca-Cola Co. (a) | 161,684 | 7,211 | |
11,058 | |||
Food & Staples Retailing - 0.9% | |||
CVS Health Corp. | 34,151 | 3,294 | |
Walgreens Boots Alliance, Inc. | 19,782 | 1,531 | |
4,825 | |||
Food Products - 0.2% | |||
Mead Johnson Nutrition Co. Class A | 13,600 | 1,119 | |
Household Products - 2.3% | |||
Procter & Gamble Co. (a) | 144,335 | 11,697 | |
Personal Products - 0.1% | |||
Edgewell Personal Care Co. (b) | 8,200 | 651 | |
Tobacco - 1.3% | |||
British American Tobacco PLC sponsored ADR | 11,576 | 1,408 | |
Imperial Tobacco Group PLC | 9,459 | 515 | |
Philip Morris International, Inc. (a) | 49,138 | 4,849 | |
6,772 | |||
TOTAL CONSUMER STAPLES | 36,122 | ||
ENERGY - 11.9% | |||
Energy Equipment & Services - 1.3% | |||
Baker Hughes, Inc. | 30,000 | 1,391 | |
Helmerich & Payne, Inc. | 10,000 | 612 | |
National Oilwell Varco, Inc. | 47,900 | 1,578 | |
Oceaneering International, Inc. | 52,500 | 1,736 | |
Schlumberger Ltd. | 18,634 | 1,422 | |
6,739 | |||
Oil, Gas & Consumable Fuels - 10.6% | |||
Amyris, Inc. (b)(d) | 32,022 | 18 | |
Anadarko Petroleum Corp. | 10,100 | 524 | |
Apache Corp. | 73,141 | 4,179 | |
Cabot Oil & Gas Corp. | 17,900 | 429 | |
Cenovus Energy, Inc. | 192,300 | 2,899 | |
Chevron Corp. | 122,463 | 12,369 | |
ConocoPhillips Co. | 117,600 | 5,150 | |
Energy Transfer Equity LP | 32,100 | 406 | |
EQT Midstream Partners LP | 4,300 | 324 | |
Golar LNG Ltd. | 43,700 | 760 | |
Imperial Oil Ltd. | 118,900 | 3,789 | |
Kinder Morgan, Inc. | 226,800 | 4,101 | |
Legacy Reserves LP | 89,800 | 216 | |
MPLX LP | 16,026 | 511 | |
PrairieSky Royalty Ltd. (d) | 57,240 | 1,108 | |
Suncor Energy, Inc. (d) | 271,390 | 7,496 | |
Teekay LNG Partners LP | 39,500 | 552 | |
The Williams Companies, Inc. | 221,331 | 4,905 | |
Williams Partners LP | 188,020 | 6,002 | |
55,738 | |||
TOTAL ENERGY | 62,477 | ||
FINANCIALS - 21.5% | |||
Banks - 14.2% | |||
Bank of America Corp. | 967,242 | 14,306 | |
Citigroup, Inc. | 268,722 | 12,514 | |
Comerica, Inc. | 58,100 | 2,737 | |
Cullen/Frost Bankers, Inc. | 6,600 | 442 | |
Fifth Third Bancorp | 35,100 | 662 | |
JPMorgan Chase & Co. (a) | 290,243 | 18,941 | |
Lloyds Banking Group PLC | 81,400 | 85 | |
M&T Bank Corp. | 20,200 | 2,414 | |
PNC Financial Services Group, Inc. | 29,616 | 2,658 | |
Regions Financial Corp. | 365,000 | 3,588 | |
Standard Chartered PLC (United Kingdom) | 109,584 | 840 | |
SunTrust Banks, Inc. | 143,435 | 6,285 | |
U.S. Bancorp | 152,930 | 6,548 | |
Wells Fargo & Co. | 47,050 | 2,386 | |
74,406 | |||
Capital Markets - 5.3% | |||
Apollo Global Management LLC Class A | 50,900 | 836 | |
Ashmore Group PLC | 93,600 | 394 | |
Charles Schwab Corp. | 98,913 | 3,025 | |
Franklin Resources, Inc. | 10,200 | 381 | |
Goldman Sachs Group, Inc. | 1,100 | 175 | |
Invesco Ltd. | 44,000 | 1,382 | |
KKR & Co. LP | 190,313 | 2,571 | |
Morgan Stanley | 120,630 | 3,302 | |
Northern Trust Corp. | 76,337 | 5,657 | |
Oaktree Capital Group LLC Class A | 19,700 | 903 | |
State Street Corp. | 113,570 | 7,162 | |
The Blackstone Group LP | 72,900 | 1,909 | |
27,697 | |||
Diversified Financial Services - 0.4% | |||
FactSet Research Systems, Inc. | 1,500 | 239 | |
McGraw Hill Financial, Inc. | 15,600 | 1,744 | |
1,983 | |||
Insurance - 1.0% | |||
Chubb Ltd. | 2,000 | 253 | |
Marsh & McLennan Companies, Inc. | 32,466 | 2,145 | |
MetLife, Inc. | 35,005 | 1,594 | |
Principal Financial Group, Inc. | 22,900 | 1,020 | |
5,012 | |||
Real Estate Investment Trusts - 0.4% | |||
American Tower Corp. | 6,400 | 677 | |
Crown Castle International Corp. | 13,700 | 1,244 | |
First Potomac Realty Trust | 4,672 | 42 | |
Sabra Health Care REIT, Inc. | 13,500 | 283 | |
2,246 | |||
Thrifts & Mortgage Finance - 0.2% | |||
Radian Group, Inc. | 87,990 | 1,092 | |
TOTAL FINANCIALS | 112,436 | ||
HEALTH CARE - 12.7% | |||
Biotechnology - 2.4% | |||
AbbVie, Inc. | 54,300 | 3,417 | |
Amgen, Inc. | 25,792 | 4,074 | |
Biogen, Inc. (b) | 10,600 | 3,071 | |
Celgene Corp. (b) | 10,900 | 1,150 | |
Gilead Sciences, Inc. | 6,500 | 566 | |
Intercept Pharmaceuticals, Inc. (b) | 3,600 | 534 | |
12,812 | |||
Health Care Equipment & Supplies - 2.3% | |||
Abbott Laboratories | 63,626 | 2,521 | |
Ansell Ltd. (b) | 37,830 | 522 | |
Becton, Dickinson & Co. | 2,200 | 366 | |
Medtronic PLC | 72,242 | 5,814 | |
Zimmer Biomet Holdings, Inc. | 22,690 | 2,771 | |
11,994 | |||
Health Care Providers & Services - 1.3% | |||
Cigna Corp. | 5,000 | 641 | |
McKesson Corp. | 25,533 | 4,676 | |
Patterson Companies, Inc. | 26,800 | 1,308 | |
6,625 | |||
Life Sciences Tools & Services - 0.5% | |||
Agilent Technologies, Inc. | 52,500 | 2,409 | |
Pharmaceuticals - 6.2% | |||
Bayer AG | 3,000 | 286 | |
Bristol-Myers Squibb Co. | 17,900 | 1,283 | |
GlaxoSmithKline PLC sponsored ADR | 210,809 | 8,932 | |
Innoviva, Inc. (d) | 23,200 | 262 | |
Johnson & Johnson (a) | 103,901 | 11,709 | |
Novartis AG sponsored ADR | 701 | 56 | |
Sanofi SA | 19,554 | 1,607 | |
Shire PLC sponsored ADR (d) | 9,800 | 1,824 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 125,074 | 6,488 | |
32,447 | |||
TOTAL HEALTH CARE | 66,287 | ||
INDUSTRIALS - 12.1% | |||
Aerospace & Defense - 2.0% | |||
General Dynamics Corp. | 1,500 | 213 | |
Meggitt PLC | 20,306 | 114 | |
Rolls-Royce Group PLC | 90,000 | 807 | |
The Boeing Co. | 44,394 | 5,600 | |
United Technologies Corp. | 38,531 | 3,875 | |
10,609 | |||
Air Freight & Logistics - 2.2% | |||
C.H. Robinson Worldwide, Inc. | 29,800 | 2,234 | |
PostNL NV (b) | 355,900 | 1,567 | |
United Parcel Service, Inc. Class B | 73,679 | 7,596 | |
11,397 | |||
Airlines - 0.2% | |||
Copa Holdings SA Class A | 18,800 | 970 | |
Building Products - 0.1% | |||
Lennox International, Inc. | 1,900 | 261 | |
Commercial Services & Supplies - 0.1% | |||
KAR Auction Services, Inc. | 15,600 | 640 | |
Electrical Equipment - 0.9% | |||
Eaton Corp. PLC | 11,400 | 703 | |
Emerson Electric Co. | 43,100 | 2,242 | |
Hubbell, Inc. Class B | 16,312 | 1,733 | |
4,678 | |||
Industrial Conglomerates - 3.1% | |||
General Electric Co. | 536,093 | 16,206 | |
Machinery - 0.7% | |||
Caterpillar, Inc. | 1,400 | 102 | |
CLARCOR, Inc. | 2,100 | 125 | |
Deere & Co. | 19,000 | 1,564 | |
Donaldson Co., Inc. | 23,600 | 791 | |
IMI PLC | 14,800 | 215 | |
Pentair PLC | 2,700 | 163 | |
Wabtec Corp. | 6,200 | 480 | |
Xylem, Inc. | 10,700 | 478 | |
3,918 | |||
Professional Services - 0.1% | |||
Nielsen Holdings PLC | 8,500 | 454 | |
Road & Rail - 2.2% | |||
CSX Corp. | 149,033 | 3,939 | |
J.B. Hunt Transport Services, Inc. | 43,320 | 3,583 | |
Kansas City Southern | 16,505 | 1,537 | |
Norfolk Southern Corp. | 16,008 | 1,346 | |
Union Pacific Corp. | 13,200 | 1,111 | |
11,516 | |||
Trading Companies & Distributors - 0.5% | |||
MSC Industrial Direct Co., Inc. Class A | 5,600 | 420 | |
W.W. Grainger, Inc. | 1,400 | 320 | |
Watsco, Inc. | 14,564 | 1,955 | |
2,695 | |||
TOTAL INDUSTRIALS | 63,344 | ||
INFORMATION TECHNOLOGY - 20.4% | |||
Communications Equipment - 1.6% | |||
Cisco Systems, Inc. | 295,071 | 8,572 | |
Internet Software & Services - 3.1% | |||
Alphabet, Inc.: | |||
Class A | 11,518 | 8,625 | |
Class C | 10,013 | 7,367 | |
Yahoo!, Inc. (b) | 4,692 | 178 | |
16,170 | |||
IT Services - 5.2% | |||
First Data Corp. (e) | 126,726 | 1,588 | |
First Data Corp. Class A (b) | 14,500 | 182 | |
IBM Corp. | 36,200 | 5,565 | |
MasterCard, Inc. Class A | 56,090 | 5,379 | |
Paychex, Inc. (a) | 110,909 | 6,013 | |
Sabre Corp. | 12,000 | 338 | |
Unisys Corp. (b)(d) | 79,900 | 674 | |
Visa, Inc. Class A | 98,440 | 7,771 | |
27,510 | |||
Semiconductors & Semiconductor Equipment - 2.5% | |||
Maxim Integrated Products, Inc. | 44,800 | 1,701 | |
Qualcomm, Inc. | 188,013 | 10,326 | |
Xilinx, Inc. | 20,700 | 981 | |
13,008 | |||
Software - 3.7% | |||
Microsoft Corp. | 309,873 | 16,423 | |
Oracle Corp. | 53,184 | 2,138 | |
SS&C Technologies Holdings, Inc. | 9,700 | 597 | |
19,158 | |||
Technology Hardware, Storage & Peripherals - 4.3% | |||
Apple, Inc. | 138,778 | 13,858 | |
EMC Corp. | 212,400 | 5,937 | |
Western Digital Corp. | 55,100 | 2,564 | |
22,359 | |||
TOTAL INFORMATION TECHNOLOGY | 106,777 | ||
MATERIALS - 2.7% | |||
Chemicals - 2.3% | |||
CF Industries Holdings, Inc. | 26,900 | 744 | |
E.I. du Pont de Nemours & Co. | 25,831 | 1,690 | |
Ingevity Corp. (b) | 331 | 10 | |
Johnson Matthey PLC | 1,400 | 58 | |
LyondellBasell Industries NV Class A | 15,400 | 1,253 | |
Monsanto Co. | 55,601 | 6,253 | |
Potash Corp. of Saskatchewan, Inc. | 116,400 | 1,900 | |
11,908 | |||
Containers & Packaging - 0.4% | |||
Ball Corp. | 5,400 | 390 | |
International Paper Co. | 2,200 | 93 | |
Packaging Corp. of America | 5,600 | 382 | |
WestRock Co. | 39,700 | 1,573 | |
2,438 | |||
TOTAL MATERIALS | 14,346 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.6% | |||
Verizon Communications, Inc. | 65,109 | 3,314 | |
UTILITIES - 0.8% | |||
Electric Utilities - 0.8% | |||
Exelon Corp. | 123,300 | 4,225 | |
PPL Corp. | 700 | 27 | |
4,252 | |||
Multi-Utilities - 0.0% | |||
Sempra Energy | 300 | 32 | |
TOTAL UTILITIES | 4,284 | ||
TOTAL COMMON STOCKS | |||
(Cost $420,500) | 513,127 | ||
Preferred Stocks - 1.1% | |||
Convertible Preferred Stocks - 1.1% | |||
HEALTH CARE - 0.9% | |||
Health Care Equipment & Supplies - 0.9% | |||
Alere, Inc. 3.00% | 14,554 | 4,908 | |
INDUSTRIALS - 0.2% | |||
Commercial Services & Supplies - 0.2% | |||
Stericycle, Inc. 2.25% | 11,200 | 888 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 5,796 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
INDUSTRIALS - 0.0% | |||
Aerospace & Defense - 0.0% | |||
Rolls-Royce Group PLC | 5,935,600 | 9 | |
Rolls-Royce Group PLC (C Shares) (b) | 2,679,030 | 4 | |
13 | |||
TOTAL PREFERRED STOCKS | |||
(Cost $5,035) | 5,809 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.3% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Tesla Motors, Inc. 1.25% 3/1/21 | 470 | 432 | |
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Amyris, Inc. 9.5% 4/15/19 (e) | 697 | 432 | |
Peabody Energy Corp. 4.75% 12/15/41 (f) | 590 | 4 | |
436 | |||
INFORMATION TECHNOLOGY - 0.1% | |||
Internet Software & Services - 0.1% | |||
Twitter, Inc. 0.25% 9/15/19 | 790 | 696 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $2,284) | 1,564 | ||
Shares | Value (000s) | ||
Money Market Funds - 2.2% | |||
Fidelity Cash Central Fund, 0.40% (g) | 1,469,044 | 1,469 | |
Fidelity Securities Lending Cash Central Fund, 0.44% (g)(h) | 10,141,820 | 10,142 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $11,611) | 11,611 | ||
TOTAL INVESTMENT PORTFOLIO - 101.5% | |||
(Cost $439,430) | 532,111 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (8,099) | ||
NET ASSETS - 100% | $524,012 |
Written Options | ||||
Expiration Date/Exercise Price | Number of Contracts | Premium (000s) | Value (000s) | |
Call Options | ||||
Johnson & Johnson | 7/15/16 - $120.00 | 155 | $5 | $(1) |
JPMorgan Chase & Co. | 6/17/16 - $67.50 | 443 | 23 | (11) |
Paychex, Inc. | 6/17/16 - $55.00 | 581 | 29 | (19) |
Philip Morris International, Inc. | 6/17/16 - $95.00 | 135 | 20 | (54) |
Procter & Gamble Co. | 7/15/16 - $85.00 | 359 | 8 | (7) |
Target Corp. | 7/15/16 - $87.50 | 174 | 26 | 0 |
The Coca-Cola Co. | 7/15/16 - $48.00 | 163 | 3 | 0 |
Yum! Brands, Inc. | 7/15/16 - $87.50 | 221 | 51 | (21) |
TOTAL WRITTEN OPTIONS | $165 | $(113) |
Values shown as $0 may reflect amounts less than $500.
Legend
(a) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $15,768,000.
(b) Non-income producing
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,000 or 0.0% of net assets.
(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 $2,020,000 or 0.4% of net assets.
(f) Non-income producing - Security is in default.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
NJOY, Inc. | 2/14/14 | $91 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $3 |
Fidelity Securities Lending Cash Central Fund | 24 |
Total | $27 |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $43,740 | $43,733 | $-- | $7 |
Consumer Staples | 36,122 | 33,959 | 2,163 | -- |
Energy | 62,477 | 62,477 | -- | -- |
Financials | 112,436 | 112,351 | 85 | -- |
Health Care | 71,195 | 64,394 | 6,801 | -- |
Industrials | 64,245 | 63,438 | 807 | -- |
Information Technology | 106,777 | 106,777 | -- | -- |
Materials | 14,346 | 14,346 | -- | -- |
Telecommunication Services | 3,314 | 3,314 | -- | -- |
Utilities | 4,284 | 4,284 | -- | -- |
Corporate Bonds | 1,564 | -- | 1,564 | -- |
Money Market Funds | 11,611 | 11,611 | -- | -- |
Total Investments in Securities: | $532,111 | $520,684 | $11,420 | $7 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(113) | $(113) | $-- | $-- |
Total Liabilities | $(113) | $(113) | $-- | $-- |
Total Derivative Instruments: | $(113) | $(113) | $-- | $-- |
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, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
(Amounts in thousands) | ||
Asset | Liability | |
Equity Risk | ||
Written Options(a) | $0 | $(113) |
Total Equity Risk | 0 | (113) |
Total Value of Derivatives | $0 | $(113) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.6% |
Canada | 3.3% |
United Kingdom | 3.2% |
Ireland | 1.3% |
Israel | 1.2% |
Others (Individually Less Than 1%) | 2.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | May 31, 2016 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $9,759) — See accompanying schedule: Unaffiliated issuers (cost $427,819) | $520,500 | |
Fidelity Central Funds (cost $11,611) | 11,611 | |
Total Investments (cost $439,430) | $532,111 | |
Receivable for investments sold | 1,456 | |
Receivable for fund shares sold | 2,211 | |
Dividends receivable | 1,357 | |
Interest receivable | 22 | |
Distributions receivable from Fidelity Central Funds | 5 | |
Other receivables | 7 | |
Total assets | 537,169 | |
Liabilities | ||
Payable for investments purchased | $1,090 | |
Payable for fund shares redeemed | 1,299 | |
Accrued management fee | 191 | |
Distribution and service plan fees payable | 182 | |
Written options, at value (premium received $165) | 113 | |
Other affiliated payables | 108 | |
Other payables and accrued expenses | 32 | |
Collateral on securities loaned, at value | 10,142 | |
Total liabilities | 13,157 | |
Net Assets | $524,012 | |
Net Assets consist of: | ||
Paid in capital | $432,410 | |
Undistributed net investment income | 2,982 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,108) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 92,728 | |
Net Assets | $524,012 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($236,497 ÷ 9,671.7 shares) | $24.45 | |
Maximum offering price per share (100/94.25 of $24.45) | $25.94 | |
Class T: | ||
Net Asset Value and redemption price per share ($169,288 ÷ 6,920.6 shares) | $24.46 | |
Maximum offering price per share (100/96.50 of $24.46) | $25.35 | |
Class B: | ||
Net Asset Value and offering price per share ($2,953 ÷ 126.3 shares)(a) | $23.38 | |
Class C: | ||
Net Asset Value and offering price per share ($76,281 ÷ 3,300.0 shares)(a) | $23.12 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($38,993 ÷ 1,566.7 shares) | $24.89 |
(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.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | |
Investment Income | ||
Dividends | $6,350 | |
Interest | 52 | |
Income from Fidelity Central Funds | 27 | |
Total income | 6,429 | |
Expenses | ||
Management fee | $1,128 | |
Transfer agent fees | 556 | |
Distribution and service plan fees | 1,079 | |
Accounting and security lending fees | 98 | |
Custodian fees and expenses | 22 | |
Independent trustees' fees and expenses | 1 | |
Registration fees | 40 | |
Audit | 35 | |
Legal | 4 | |
Miscellaneous | 3 | |
Total expenses before reductions | 2,966 | |
Expense reductions | (9) | 2,957 |
Net investment income (loss) | 3,472 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,632) | |
Foreign currency transactions | (70) | |
Written options | 337 | |
Total net realized gain (loss) | (1,365) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,119) | |
Assets and liabilities in foreign currencies | 9 | |
Written options | 52 | |
Total change in net unrealized appreciation (depreciation) | (1,058) | |
Net gain (loss) | (2,423) | |
Net increase (decrease) in net assets resulting from operations | $1,049 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2016 (Unaudited) | Year ended November 30, 2015 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,472 | $7,971 |
Net realized gain (loss) | (1,365) | 33,814 |
Change in net unrealized appreciation (depreciation) | (1,058) | (48,443) |
Net increase (decrease) in net assets resulting from operations | 1,049 | (6,658) |
Distributions to shareholders from net investment income | (7,087) | (6,678) |
Distributions to shareholders from net realized gain | (32,560) | (40,365) |
Total distributions | (39,647) | (47,043) |
Share transactions - net increase (decrease) | 19,143 | (16,615) |
Total increase (decrease) in net assets | (19,455) | (70,316) |
Net Assets | ||
Beginning of period | 543,467 | 613,783 |
End of period (including undistributed net investment income of $2,982 and undistributed net investment income of $6,597, respectively) | $524,012 | $543,467 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth & Income Fund Class A
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.36 | $28.95 | $25.87 | $19.67 | $17.00 | $16.05 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .18 | .42 | .40 | .37 | .33 | .21 |
Net realized and unrealized gain (loss) | (.13) | (.76)B | 2.97 | 5.88 | 2.90 | .78 |
Total from investment operations | .05 | (.34) | 3.37 | 6.25 | 3.23 | .99 |
Distributions from net investment income | (.39) | (.36) | (.11) | (.05) | (.53) | (.04) |
Distributions from net realized gain | (1.57) | (1.88) | (.18) | – | (.03) | – |
Total distributions | (1.96) | (2.25)C | (.29) | (.05) | (.56) | (.04) |
Net asset value, end of period | $24.45 | $26.36 | $28.95 | $25.87 | $19.67 | $17.00 |
Total ReturnD,E,F | .56% | (.96)%B | 13.20% | 31.86% | 19.20% | 6.17% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.00%I | .99% | 1.01% | 1.02% | 1.05% | 1.06% |
Expenses net of fee waivers, if any | 1.00%I | .98% | 1.01% | 1.02% | 1.05% | 1.06% |
Expenses net of all reductions | 1.00%I | .98% | 1.01% | 1.00% | 1.04% | 1.05% |
Net investment income (loss) | 1.56%I | 1.57% | 1.48% | 1.61% | 1.75% | 1.22% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $236 | $244 | $276 | $255 | $183 | $170 |
Portfolio turnover rateJ | 29%I | 35% | 44% | 48% | 57% | 123% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.04 per share. Excluding these litigation proceeds, the total return would have been (1.10)%.
C Total distributions of $2.25 per share is comprised of distributions from net investment income of $.363 and distributions from net realized gain of $1.883 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth & Income Fund Class T
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.32 | $28.91 | $25.84 | $19.68 | $16.97 | $16.02 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .15 | .35 | .33 | .32 | .29 | .17 |
Net realized and unrealized gain (loss) | (.13) | (.76)B | 2.97 | 5.89 | 2.89 | .78 |
Total from investment operations | .02 | (.41) | 3.30 | 6.21 | 3.18 | .95 |
Distributions from net investment income | (.32) | (.29) | (.05) | (.05) | (.44) | – |
Distributions from net realized gain | (1.57) | (1.88) | (.18) | – | (.03) | – |
Total distributions | (1.88)C | (2.18)D | (.23) | (.05) | (.47) | – |
Net asset value, end of period | $24.46 | $26.32 | $28.91 | $25.84 | $19.68 | $16.97 |
Total ReturnE,F,G | .46% | (1.22)%B | 12.91% | 31.62% | 18.93% | 5.93% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.25%J | 1.23% | 1.25% | 1.25% | 1.27% | 1.29% |
Expenses net of fee waivers, if any | 1.25%J | 1.23% | 1.25% | 1.25% | 1.27% | 1.29% |
Expenses net of all reductions | 1.25%J | 1.23% | 1.24% | 1.23% | 1.26% | 1.28% |
Net investment income (loss) | 1.31%J | 1.32% | 1.24% | 1.38% | 1.53% | .99% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $169 | $180 | $216 | $214 | $166 | $158 |
Portfolio turnover rateK | 29%J | 35% | 44% | 48% | 57% | 123% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.04 per share. Excluding these litigation proceeds, the total return would have been (1.36)%
C Total distributions of $1.88 per share is comprised of distributions from net investment income of $.319 and distributions from net realized gain of $1.565 per share.
D Total distributions of $2.18 per share is comprised of distributions from net investment income of $.293 and distributions from net realized gain of $1.883 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth & Income Fund Class B
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.06 | $27.58 | $24.74 | $18.95 | $16.24 | $15.41 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .08 | .19 | .17 | .18 | .18 | .08 |
Net realized and unrealized gain (loss) | (.11) | (.74)B | 2.85 | 5.65 | 2.78 | .75 |
Total from investment operations | (.03) | (.55) | 3.02 | 5.83 | 2.96 | .83 |
Distributions from net investment income | (.08) | (.09) | – | (.04) | (.22) | – |
Distributions from net realized gain | (1.57) | (1.88) | (.18) | – | (.03) | – |
Total distributions | (1.65) | (1.97) | (.18) | (.04) | (.25) | – |
Net asset value, end of period | $23.38 | $25.06 | $27.58 | $24.74 | $18.95 | $16.24 |
Total ReturnC,D,E | .19% | (1.83)%B | 12.30% | 30.81% | 18.31% | 5.39% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.83%H | 1.82% | 1.83% | 1.81% | 1.81% | 1.81% |
Expenses net of fee waivers, if any | 1.83%H | 1.82% | 1.83% | 1.81% | 1.81% | 1.81% |
Expenses net of all reductions | 1.83%H | 1.82% | 1.83% | 1.80% | 1.81% | 1.80% |
Net investment income (loss) | .73%H | .73% | .65% | .82% | .99% | .47% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $3 | $5 | $8 | $12 | $11 | $13 |
Portfolio turnover rateI | 29%H | 35% | 44% | 48% | 57% | 123% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.04. per share. Excluding these litigation proceeds, the total return would have been (1.97)%.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth & Income Fund Class C
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $24.92 | $27.51 | $24.66 | $18.87 | $16.23 | $15.39 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .09 | .21 | .19 | .19�� | .19 | .08 |
Net realized and unrealized gain (loss) | (.12) | (.73)B | 2.84 | 5.64 | 2.77 | .76 |
Total from investment operations | (.03) | (.52) | 3.03 | 5.83 | 2.96 | .84 |
Distributions from net investment income | (.21) | (.18) | – | (.04) | (.29) | – |
Distributions from net realized gain | (1.57) | (1.88) | (.18) | – | (.03) | – |
Total distributions | (1.77)C | (2.07)D | (.18) | (.04) | (.32) | – |
Net asset value, end of period | $23.12 | $24.92 | $27.51 | $24.66 | $18.87 | $16.23 |
Total ReturnE,F,G | .23% | (1.74)%B | 12.38% | 30.95% | 18.33% | 5.46% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.75%J | 1.73% | 1.74% | 1.74% | 1.76% | 1.78% |
Expenses net of fee waivers, if any | 1.75%J | 1.73% | 1.74% | 1.74% | 1.76% | 1.78% |
Expenses net of all reductions | 1.75%J | 1.73% | 1.74% | 1.73% | 1.76% | 1.77% |
Net investment income (loss) | .81%J | .82% | .74% | .89% | 1.04% | .50% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $76 | $79 | $85 | $74 | $58 | $53 |
Portfolio turnover rateK | 29%J | 35% | 44% | 48% | 57% | 123% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.04 per share. Excluding these litigation proceeds, the total return would have been (1.88)%.
C Total distributions of $1.77 per share is comprised of distributions from net investment income of $.206 and distributions from net realized gain of $1.565 per share.
D Total distributions of $2.07 per share is comprised of distributions from net investment income of $.183 and distributions from net realized gain of $1.883 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Growth & Income Fund Class I
Six months ended (Unaudited) May 31, | Years ended November 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.85 | $29.47 | $26.13 | $19.79 | $17.16 | $16.19 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .22 | .50 | .49 | .43 | .40 | .27 |
Net realized and unrealized gain (loss) | (.14) | (.78)B | 3.03 | 5.97 | 2.91 | .79 |
Total from investment operations | .08 | (.28) | 3.52 | 6.40 | 3.31 | 1.06 |
Distributions from net investment income | (.48) | (.45) | – | (.06) | (.65) | (.09) |
Distributions from net realized gain | (1.57) | (1.88) | (.18) | – | (.03) | – |
Total distributions | (2.04)C | (2.34)D | (.18) | (.06) | (.68) | (.09) |
Net asset value, end of period | $24.89 | $26.85 | $29.47 | $26.13 | $19.79 | $17.16 |
Total ReturnE,F | .72% | (.70)%B | 13.56% | 32.41% | 19.59% | 6.56% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .73%I | .71% | .70% | .70% | .71% | .72% |
Expenses net of fee waivers, if any | .73%I | .70% | .70% | .70% | .71% | .72% |
Expenses net of all reductions | .73%I | .70% | .70% | .68% | .70% | .71% |
Net investment income (loss) | 1.83%I | 1.86% | 1.78% | 1.93% | 2.09% | 1.56% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $39 | $36 | $28 | $24 | $1,031 | $1,017 |
Portfolio turnover rateJ | 29%I | 35% | 44% | 48% | 57% | 123% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $0.04 per share. Excluding these litigation proceeds, the total return would have been (.84)%.
C Total distributions of $2.04 per share is comprised of distributions from net investment income of $.478 and distributions from net realized gain of $1.565 per share.
D Total distributions of $2.34 per share is comprised of distributions from net investment income of $.454 and distributions from net realized gain of $1.883 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2016
(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 Class I 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 maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price 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, 2016 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, certain conversion ratio adjustments and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $118,082 |
Gross unrealized depreciation | (28,934) |
Net unrealized appreciation (depreciation) on securities | $89,148 |
Tax cost | $442,963 |
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. 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 options. 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. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. Counterparty credit risk related to exchange-traded options may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are reflected separately on the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options".
During the period, the Fund recognized net realized gain (loss) of $337 and a change in net unrealized appreciation (depreciation) of $52 related to its investment in written options. This amount is included in the Statement of Operations.
The following is a summary of the Fund's written options activity:
Number of Contracts | Amount of Premiums | |
Outstanding at beginning of period | - | $- |
Options Opened | 9 | 578 |
Options Exercised | (1) | (54) |
Options Closed | (4) | (171) |
Options Expired | (2) | (188) |
Outstanding at end of period | 2 | $ 165 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $73,191 and $88,419, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting 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 the investment adviser, 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 Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $282 | $– |
Class T | .25% | .25% | 413 | – |
Class B | .75% | .25% | 18 | 14 |
Class C | .75% | .25% | 366 | 22 |
$1,079 | $36 |
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 by FDC | |
Class A | $29 |
Class T | 8 |
Class B(a) | –(b) |
Class C(a) | 5 |
$42 |
(a) 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.
(b) Amounts are less than five hundred dollars.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of 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-Level Average Net Assets(a) | |
Class A | $249 | .22 |
Class T | 185 | .22 |
Class B | 5 | .30 |
Class C | 82 | .22 |
Class I | 35 | .20 |
$556 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $5.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to an amount of less than five hundred dollars and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $24. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $7 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $2.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2016 | Year ended November 30, 2015 | |
From net investment income | ||
Class A | $3,587 | $3,464 |
Class T | 2,175 | 2,191 |
Class B | 15 | 27 |
Class C | 651 | 567 |
Class I | 659 | 429 |
Total | $7,087 | $6,678 |
From net realized gain | ||
Class A | $14,443 | $18,027 |
Class T | 10,700 | 14,122 |
Class B | 287 | 575 |
Class C | 4,965 | 5,855 |
Class I | 2,165 | 1,786 |
Total | $32,560 | $40,365 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2016 | Year ended November 30, 2015 | Six months ended May 31, 2016 | Year ended November 30, 2015 | |
Class A | ||||
Shares sold | 572 | 1,359 | $13,317 | $36,064 |
Reinvestment of distributions | 720 | 778 | 16,776 | 19,973 |
Shares redeemed | (863) | (2,428) | (19,990) | (64,761) |
Net increase (decrease) | 429 | (291) | $10,103 | $(8,724) |
Class T | ||||
Shares sold | 247 | 490 | $5,739 | $12,982 |
Reinvestment of distributions | 536 | 618 | 12,512 | 15,887 |
Shares redeemed | (693) | (1,760) | (16,125) | (46,877) |
Net increase (decrease) | 90 | (652) | $2,126 | $(18,008) |
Class B | ||||
Shares sold | 3 | 10 | $51 | $251 |
Reinvestment of distributions | 12 | 23 | $278 | $570 |
Shares redeemed | (76) | (153) | (1,681) | (3,905) |
Net increase (decrease) | (61) | (120) | $(1,352) | $(3,084) |
Class C | ||||
Shares sold | 255 | 460 | $5,592 | $11,623 |
Reinvestment of distributions | 224 | 231 | 4,961 | 5,657 |
Shares redeemed | (349) | (620) | (7,599) | (15,418) |
Net increase (decrease) | 130 | 71 | $2,954 | $1,862 |
Class I | ||||
Shares sold | 306 | 615 | $7,467 | $16,671 |
Reinvestment of distributions | 101 | 71 | 2,390 | 1,846 |
Shares redeemed | (193) | (272) | (4,545) | (7,178) |
Net increase (decrease) | 214 | 414 | $5,312 | $11,339 |
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.
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, 2015 to May 31, 2016).
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.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During Period-B December 1, 2015 to May 31, 2016 | |
Class A | 1.00% | |||
Actual | $1,000.00 | $1,005.60 | $5.01 | |
Hypothetical-C | $1,000.00 | $1,020.00 | $5.05 | |
Class T | 1.25% | |||
Actual | $1,000.00 | $1,004.60 | $6.26 | |
Hypothetical-C | $1,000.00 | $1,018.75 | $6.31 | |
Class B | 1.83% | |||
Actual | $1,000.00 | $1,001.90 | $9.16 | |
Hypothetical-C | $1,000.00 | $1,015.85 | $9.22 | |
Class C | 1.75% | |||
Actual | $1,000.00 | $1,002.30 | $8.76 | |
Hypothetical-C | $1,000.00 | $1,016.25 | $8.82 | |
Class I | .73% | |||
Actual | $1,000.00 | $1,007.20 | $3.66 | |
Hypothetical-C | $1,000.00 | $1,021.35 | $3.69 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
AGAI-SANN-0716
1.704634.118
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/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | July 25, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | July 25, 2016 |
By: | /s/Howard J. Galligan III |
Howard J. Galligan III | |
Chief Financial Officer | |
Date: | July 25, 2016 |